Market Outlook – 19 April 2017

High Drama In Intra-Day Nifty Movements; Index Fails To Support Higher Levels, Markets May Be Moving Lower Towards 9000; Short Term Traders Should Avoid Index Trading, Focus On Stocks; It Stocks Continue To Weaken, Avoid Bottom Fishing Here.

NIFTY

Yesterday was a narrow range day. This narrow range came after 11 trading days of sideways and choppy movement. When Markets opened higher, there was a sign that the narrow range is breaking on the upside, with the Nifty likely to move above 9200, towards the resistance of 9250. morning outlook

This did come about. But, what followed was interesting. At higher levels, around 9217, the Nifty faced significant selling, leading to an intraday decline of 112 points, more than 1%.

The Nifty closed at 9108, the lowest close in 13 trading days, about three weeks. At 9108, the Index is touching the lower boundary of 9100 support. This support is now getting threatened with a possible breakdown in the next few days.

The short term trend is probably down. The Nifty has found it difficult to cross the 9250 resistance. It has also found support around 9100-9150. Today’s price action suggests that the 9100 support is likely to give way, leading to a further decline, maybe towards 9000.

The downside correction is not offering a trade. Price action is choppy and volatile – this makes it quite unpredictable..

BANK NIFTY:

Bank Nifty had a choppy day with negative bias as prices opened with strength but a sharp intraday decline forced it to close near the lows. It was a tale of two halves in Bank Nifty.

In the first half, index traded above yesterday’s close (making a new lifetime high) but after lunch a sharp decline took prices to intraday low below 21650. It was bears who had the market in control on intraday basis as prices closed near the low with virtually no loss no gain.

On the daily charts, prices were trading narrow and sideways inside 21250-21750 from last three weeks and the range was narrowing. We anticipated a move here in the index. Bank Nifty broke out from that range on upside but failed to hold higher levels and closed back inside the range that suggests weakness.

We do not have any position in the index right now and we would advise traders to avoid trading due to falling momentum and a possibility of a short term correction.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
ASHOKLEY 81 SELL Intermediate and Short Term Trend is down in ASHOLEY. The stock has seen a decline and then started trading narrow. Prices have broken down its support and closed lower. Sell this stock below 81. If this trade executes then place a stop just above 82 and a target at 79.
TATASTEEL 448 SELL Intermediate and Short Term Trend is now down in TATASTEEL. The stock has been consolidating at the top. Prices have seen a breakdown and closed lower. Sell this stock below 448. If this trade executes then place a stop just above 453 and a target at 435.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
JINDALSTEL APR FUT SELL 119 CMP 123 112 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
ADANIENT.17.04 Apr 144.65 17.13 18.22 23984000 ARVIND.17.04 Apr 386.55 -3.41 11.38 7402000
UPL.17.04 Apr 764.1 3.45 0.02 7232400 UBL.17.04 Apr 730 -3.24 7.17 1045800
IRB.17.04 Apr 248.65 3.37 9.76 20097500 HEXAWARE.17.04 Apr 200.05 -3.24 0.44 4092000
BANKINDIA.17.04 Apr 149.75 2.11 3.47 25908000 TATASTEEL.17.04 Apr 449.5 -3.23 6.71 31700000
CESC.17.04 Apr 861.5 1.83 1.1 5764000 GMRINFRA.17.04 Apr 15.7 -3.09 1.67 2.17E+08
                                                                           Short covering                                                                               Long Unwinding
DCBBANK.17.04 Apr 2.85 -4.96 6894000 178.45 IBREALEST.17.04 Apr 133.15 -9.88 -7.65 21720000
JUBLFOOD.17.04 Apr 1.67 -2.89 1964500 1008 HDIL.17.04 Apr 88.25 -5.61 -2.46 27960000
AUROPHARMA.17.04 Apr 1.48 -0.35 14753900 665.5 DLF.17.04 Apr 164.55 -5.08 -5.03 37935000
OFSS.17.04 Apr 0.54 -0.73 264450 3596.4 JSWSTEEL.17.04 Apr 186.75 -4.3 -1.38 49260000
DHFL.17.04 Apr 2.57 -0.55 21231000 400.35 CAPF.17.04 Apr 754 -3.69 -7.56 958400

Top Delivery Percentage

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
Shree Cements Ltd. 17687.95 0.22 8823 13157 91.71 Nifty 50 9105.15 -0.37 86484
UltraTech Cement Limited 3972.2 -0.69 263758 137131 82.47 Nifty Bank 21671.85 0.11 86427
Wipro Ltd 494 0.35 1178496 1175344 80.38 Nifty IT 9981.55 -0.19 86427
CASTROL INDIA LTD. 429.1 0.15 619586 347887 77.42 INDIA VIX 12.38 4.12 94497
Tata Power Co. Ltd. 83.55 -0.59 4184680 4815767 77.37 Nifty Energy 12031.4 -0.63 86427
Pidilite Industries Ltd 712.8 0.08 522988 258993 77.18 Nifty Pharma 10355.8 -0.89 86427
United Breweries Limited 731.75 -2.57 258023 119211 76.67 Nifty Realty 237.95 -3.39 86427
HDFC Bank Ltd. 1447.3 0.73 909715 1323652 74.18 Nifty Auto 9813.7 -0.77 86427
Torrent Pharma Ltd. 1450.3 -0.93 61752 139126 71.13 Nifty Metal 2901.25 -1.76 86427
Power Grid Corporation o

 

202.35 0.02 4317244 4375997 69.84 Nifty Commodities 3461.25 -0.6 86427

Upcoming Economic Data

                                      International
•US Crude Oil Inventories on 19th April, 2017.

•US Initial jobless claims on 20th April, 2017.

Corporate News

•V-Mart Retail has opened a new store in the state of Uttar Pradesh. The store is fashion stores. With this the tally of Uttar Pradesh is 17 composite & 43 fashion stores. This takes the total number of stores to 142 Stores in 122 Cities across 14 states, with 37 Composite Stores & 105 Fashion Stores with a total area of approx. 12.03 lakhs sq. ft

•Net profit of GRUH Finance rose 25.77% to Rs 110.45 crore in the quarter ended March 2017 as against Rs 87.82 crore during the previous quarter ended March 2016. Sales rose 13.41% to Rs 416.11 crore in the quarter ended March 2017 as against Rs 366.91 crore during the previous quarter ended March 2016.

•ABB India has won an order worth around Rs 178 crore, from Power Grid Company of Bangladesh to support the country’s power infrastructure expansion and meet its growing electricity needs

Source: Capitaline Database.

Board Meetings

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
INDUSINDBK Results/Dividend 19-Apr-17 PAPERPROD Results/Others 20-Apr-17
YESBANK Results/Dividend 19-Apr-17 MASTEK Results/Dividend 20-Apr-17
TV18BRDCST Results 19-Apr-17 LSIL Results 20-Apr-17
SASKEN Results/Dividend 19-Apr-17 MINDTREE Results/Dividend 20-Apr-17
NETWORK18 Results 19-Apr-17 MINDTREE Results/Dividend 20-Apr-17
RSSOFTWARE Results/Others 19-Apr-17 HINDZINC Results 20-Apr-17
JAYBARMARU Results/Dividend 19-Apr-17 DIAPOWER Results 20-Apr-17
CRISIL Results/Dividend 20-Apr-17 CYIENT Results/Dividend 20-Apr-17

Corporate Action

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
OFSS Interim Dividend – Rs. – 170.0000 19-Apr-17 ORIENTPPR Interim Dividend – Rs. – 0.5000 26-Apr-17
FOSECOIND Final Dividend – Rs. – 7.0000 20-Apr-17 ELANTAS Dividend – Rs. – 4.5000 27-Apr-17
AVANCE Consolidation of Shares 24-Apr-17 ABB Dividend – Rs. – 4.0000 28-Apr-17
SANOFI Final Dividend – Rs. – 50.0000 25-Apr-17 ITDCEM Dividend – Rs. – 0.3000 3-May-17
CAIRN Amalgamation 26-Apr-17 STOVAC Final Dividend – Rs. – 31.0000 3-May-17
CAIRN Interim Dividend – Rs. – 17.7000 26-Apr-17 VESUVIUS Dividend – Rs. – 6.5000 4-May-17

DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


For Daily Share Market Updates, Market Research Analysis reports, Weekly Techno-Funda Report, Fundamental Analysis Report, Monthly Recommended stock Picks, Equity Trading Tips, Upcoming IPO/NFO/Bonds/Ncd’s  updates & other related information Subscribe our blog http://research.elitewealth.in

or Call us on: 011-42445800/9650901058