Market Outlook – 15 December 2017

HIGHER VOLATILITY PERSISTS IN THE MARKETS; NIFTY, BANK NIFTY IS TRADING RANGEBOUND; OVERALL TREND REMAINS UP; BUYING OPPORTUNITIES SHOULD EMERGE ABOVE 10330; AVOID METAL, FOCUS ON PHARMA AND IT STOCKS;

NIFTY:

NIFTY opened at 10229.30 with a gap up of 38 points. Higher volatility remained today in the index. The index first seen a minor decline and made its intraday low at 10141.55. Prices find support there and started an upside rally. The index made its intraday high near 10276.10 and closed at 10252.10 with a gain of 59 points.

.On the daily charts, Nifty is still rotating in a range where support and resistance comes at 10100 and 10330 respectively. This range is getting narrower. The index is contracting in a range of 130 points (10200 – 10330) from last five trading days. Therefore, a breakout from this range may lead to a breakout in larger range also. It is a trader’s job to be patient in this circumstance which makes the trader more responsible for trading. Traders must understand that these phases come repeatedly in choppy markets. Hence avoid trading the index as far as price actions are sideway

BANK NIFTY:

BANK NIFTY opened at 25062.40 with a minor gap up of 32 points. Higher volatility remained today in the index. The index first seen a minor decline and made its intraday low at 24888.65. Prices find support there and started an upside rally. The index made its intraday high near 25205.90 and closed at 25162.95 with a gain of 133 points.

Moreover, prices are trading in the middle of a trading range now. However the index closed higher today. The index remained inside its trading range 24850 – 25450. Trading ranges are always difficult to trade. Now, within this range, prices may go up and down, but until a breakout is not confirmed, there is no clarity on the trend. This is the nature of the market, which we have to accept.

We should maintain our patience and wait for the sustain breakout from either of above two levels. Swing traders should avoid trading as far as prices are trading inside this range.

Intraday traders should observe early morning price movements and then trade accordingly for the day only.

 

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
HEXAWARE 324.50 BUY Intermediate and Short term trends are up in HEXAWARE. The stock has seen a sharp decline and then finds support near 318. We may see an upside rally from this support. Buy this stock above 325. If this trade executes then place a stop at 320 and a target at 335.
BHARATFORG 692.05 BUY Intermediate and Short term trends are up in BHARATFORG. The stock has seen a sharp decline and then started trading inside a range. Prices are now finding a strong support near 685. Buy this stock above 695. If this trade executes then place a stop at 685 and a target at 715.

 

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
BPCL DEC FUT BUY 513.5 CMP 507 523 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
WOCKPHARMA.17.12 Dec 763 5.54 9.11 3661600 JUSTDIAL.17.12 Dec 494 -2.78 13.97 2887200
HINDPETRO.17.12 Dec 437.15 3.39 2.97 28608300 INDIGO.17.12 Dec 1138 -0.17 9.84 2557800
KSCL.17.12 Dec 542.8 2.7 2.42 4002000 TCS.17.12 Dec 2570.2 -2.5 7.53 6927250
DCBBANK.17.12 Dec 187.55 2.63 11.29 5544000 AMARAJABAT.17.12 Dec 771 -1.03 7.41 2106000
GRASIM.17.12 Dec 1147.65 2.4 2.85 4279500 INDIACEM.17.12 Dec 164 -3.04 7.17 29036000
                                                                           Short covering                                                                               Long Unwinding
IRB.17.12 Dec 6.27 -3.09 16210000 208.5 ICIL.17.12 Dec 107.35 -2.67 -2.14 10748500
FORTIS.17.12 Dec 2.86 -1.15 52474500 135 JISLJALEQS.17.12 Dec 110 -1.83 -1 48114000
HDIL.17.12 Dec 2.27 -0.81 35160000 54 PCJEWELLER.17.12 Dec 433.25 -1.82 -7.32 9156000
MUTHOOTFIN.17.12 Dec 2.27 -3.55 2979000 424.05 JPASSOCIAT.17.12 Dec 17.75 -1.66 -0.45 2.27E+08
HEXAWARE.17.12 Dec 2.15 -0.85 5253000 324.8 SAIL.17.12 Dec 77.8 -1.33 -0.69 79020000

TOP DELIVERY PERCENTAGE 

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
HCL Technologies Ltd. 875.2 0.06 3096534 1011234 79.57   Nifty 50 9768.95 0.34 89418
Godrej Cons Products Ltd 900.45 -0.79 849778 351721 74.41 Nifty Bank 24008.15 0.82 89418
Wipro Ltd 285.9 -0.83 3991666 1665762 72.79 Nifty IT 10521.9 -0.21 89418
ICICI BANK LTD. 275.95 -0.16 32223724 12915950 72.34   INDIA VIX 13.17 -4.96 89421
HDFC Ltd. 1744.35 1.45 3640524 1990091 70.49   Nifty Pharma 9111.55 0.83 89421
Oracle Fin Serv Soft Ltd 3593.3 1.34 34539 14513 69.36   Nifty Infrastructure 3210.8 0.11 89424
Zee Entertain. Enterp.Lt 520 -0.76 3202761 924159 69.27   Nifty PSU Bank 3042.2 0.51 89424
Bharti Airtel Limited 382.05 -1.01 14570752 1676143 68.52   Nifty Auto 10683.65 0.35 89424
Hindustan Unilever Ltd 1202.8 -0.26 3007522 1566060 68.12   Nifty Metal 3501.55 0.7 89424
KAJARIA CERAMICS LTD 703.75 1.21 282248 1048664 67.58   Nifty Commodities 3717.65 0.31 89424

 

UPCOMING ECONOMIC DATA

                 International
•Housing Starts MoM  (Nov)  on 19th December 2017

•Manufacturing PMI (Dec) on 2nd January 2017

•ISM Manufacturing PMI on 3rd January 2017

 

NEWS UPDATES

•Drug major Lupin today said it has received approval from the US health regulator to market its Tydemy tablets, used to prevent pregnancy, in the American market.  The company has received final approval from the US Food and Drug Administration (USFDA) to market Tydemy, which is a generic version of Bayer HealthCare Pharmaceuticals’ Safyral Tablets, Lupin said in a statement. Tydemy is indicated for use by women to prevent pregnancy and to raise folate levels in women who chose to use an oral contraceptive for contraception.

•Torrent Pharmaceuticals Limited on Thursday announced that it has completed acquisition of branded business of Unichem Laboratories Limited for India and Nepal, including its Sikkim manufacturing facility, on a going concern basis by way of slump sale. This transaction was in pursuance of the definitive binding agreement entered into between Torrent and Unichem on November 3, 2017.

•The Reserve Bank of India (RBI) has imposed Rs 3 crore penalty on IndusInd Bank  for breaching rules on income classification norms. A statement issued by RBI said that the penalty was imposed after the regulator observed violation of various regulations issued by the RBI on non-performing loans and extension of non-fund based limits.

Source: Economics Times

 

BOARD MEETINGS

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
PATELENG Results/Others 15-Dec-17 KANSAINER Results 19-Jan-18
TTML Results 19-Dec-17 MAHLIFE Results 30-Jan-18
SANWARIA Results/Others 03-Jan-18 TCI Results 08-Feb-18
INFY Results 12-Jan-18 TCIDEVELOP Results 08-Feb-18

 

CORPORATE ACTION

Company Name Ex Date Purpose Company Name Ex Date Purpose
HDFCLIFE 15-Dec-17 Interim Dividend – Rs. – 1.3600 FRONTSEC 21-Dec-17 Buy Back of Shares
SUMEETINDS 15-Dec-17 Right Issue of Equity Shares M&M 21-Dec-17 Bonus issue 1:1
COLPAL 18-Dec-17 Interim Dividend – Rs. – 4.0000 MANGALAM 21-Dec-17 Interim Dividend – Rs. – 0.5000
SHIVTEX 19-Dec-17 Dividend – Rs. – 1.6000 VAKRANG 21-Dec-17 Bonus issue 1:1
INDOAMIN 20-Dec-17 Final Dividend – Rs. – 1.0000 WATERBASE 21-Dec-17 Final Dividend – Rs. – 1.0000
TULIVE 20-Dec-17 Buy Back of Shares ZSARACOM 21-Dec-17 Buy Back of Shares
BALKRISIND 21-Dec-17 Bonus issue 1:1 JINDWORLD 26-Dec-17 Stock  Split From Rs.10/- to Rs.5/-
CASTROLIND 21-Dec-17 Bonus issue 1:1 CONFINT 27-Dec-17 Consolidation of Shares
CMI 21-Dec-17 Final Dividend – Rs. – 1.0000

 


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

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