Market Outlook 15 Mar 2017

Markets Breakout From Three Week Trading Range; Bank Nifty, Nifty Record New Lifetime Highs; Indian Stock Markets Are In A Bull Run; Trend Is Up, Traders And Investors Should Remain Only On The Buy Side market research analysis

NIFTY:

Nifty has seen a breakout from a trading range (8860-8980) with a handsome gap up register today due the outcome from election results. Nifty has made a new lifetime highs at 9122 but eventually closed below 9100 level. After a move like this, markets do consolidate and even retrace after such moves, a dip should be a buying opportunity in that scenario.
Traders are carrying long position should take profit from their positions tomorrow morning (both call and future).

Short term trend is up, but fresh buying should be done when new setups or patterns come in. Till then, buy on intraday dips, avoid carrying positions.

Option Trade in NIFTY

We had bought 8900 Call Options March Expiry at the price of 160 in Wednesday’s trading session.

Now it is a gamble that paid off as we had purchased this level for the election result only.

Now, as we got a significant gain from this breakout; we are advising traders to book profit from these positions at tomorrow morning price.

BANK NIFTY:

Bank Nifty opened with a big gap up of more than 400 points at 21189 and initial rally took prices to lifetime highs of 21274. After that, prices consolidated inside hundred points and made a low at 21060. Eventually, index closed near the lows but with a gain of 300 points (thanks to enormous gap up).

On the daily charts, prices broke out from more than three week trading range (20400 – 21100).  We had anticipated a big move as prices were in a contraction phase and expansion was imminent.

We had suggested a trade in the Bank Nifty according to the breakout or breakdown.

Buy if Bank Nifty breaks above 20950; OR; Sell if a price breaks below 20450. However, we had also suggested applying first 15 min rule if index opens beyond this range.

Bank Nifty opened above 20950 and prices did not cross first 15 min high, so trade was not executed. Now, after a gap up like this, we may see some consolidation within the index. Therefore, swing traders should wait for the new trading opportunity. However, intraday traders can look to trade only on the buying side on dips or consolidation patterns

 

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
LICHSGFIN 580 BUY Intermediate and short term trend is up in LICHSGFIN. The stock has seen a breakout from a bullish head and shoulder pattern. We may see higher levels. Buy this stock above 581. If this trade executes then place your stop just below 559 and a target near 625.
VOLTAS 384 BUY Intermediate and short term trend is up in VOLTAS. The stock has seen sustain up move and now trading in a range. We may see a breakout on the upside. Buy this stock above 388. If this trade executes then place your stop just below 378 and a target near 408.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
CEAT LTD MAR FUT BUY 1233 CMP 1215 1260 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
CEATLTD.17.03 Mar 1236 6.56 34.94 2555000 BHARATFIN.17.03 Mar 814.2 -2.25 8.26 17947000
SRTRANSFIN.17.03 Mar 1023.65 6.49 6.14 3195600 IDEA.17.03 Mar 103.1 -1.58 1.26 83986000
IBULHSGFIN.17.03 Mar 907.6 5.82 4.81 14222400 BOSCHLTD.17.03 Mar 22400 -1.44 5.1 89125
DHFL.17.03 Mar 344.9 5.54 3.74 19989000 BHARTIARTL.17.03 Mar 360.65 -1.1 3.07 40371600
ICICIBANK.17.03 Mar 286.9 5.52 5.27 71120000 UPL.17.03 Mar 701.5 -0.82 8.75 6604800
                                                                           Short covering                                                                               Long Unwinding
APOLLOTYRE.17.03 Mar 3.84 -1.3 15462000 186.75 NIFTYMID50.17.03 Mar 4010 -5.62 -50 200
ADANIENT.17.03 Mar 3.23 -0.25 19176000 97.5 JPASSOCIAT.17.03 Mar 14.25 -5 -1.02 1.39E+08
CG POWER AND INDUSTRIAL 3.06 -7.41 17088000 70.75 JINDALSTEL.17.03 Mar 124.5 -1.23 -7.53 38034000
L&TFH.17.03 Mar 2.96 -2.16 19953000 121.55 DJIA.17.03 Mar 20850 -0.33 -6.34 43020
JSWSTEEL.17.03 Mar 2.83 -2.35 43107000 181.7 S&P500.17.03 Mar 2372.5 -0.07 -10.79 533500

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
Hindustan Unilever Ltd 913.75 4.4 2763421 1370915 89.38 Nifty 50 9087 1.71 86058
Dabur India Ltd. 273.6 0.07 2533256 1031652 83.91 Nifty Bank 21102.7 1.81 86058
COALINDIA 294.95 -6.75 9137462 4066388 77.55 Nifty IT 10879.25 1.2 86058
IndusInd Bank Ltd. 1354.2 1.38 930423 1226152 75.93 INDIA VIX 12.4 -11.17 86058
United Breweries Limited 774.5 0.8 143093 237617 74.72 Nifty Pharma 10648.05 1.72 86058
HDFC Ltd. 1424.15 3.67 6249576 1196665 74.44 Nifty Realty 203.4 2.6 86058
Kirloskar Cummins Ltd. 847.1 -0.98 400592 177163 74.02 Nifty Infrastructure 3049.65 2.09 86058
GAIL (India) Limited 375.8 -0.65 10797125 4349409 73.75 Nifty Auto 9910.4 1.34 86058
HDFC Bank Ltd. 1410.7 0.76 1788755 1044220 71.27 Nifty Metal 3032.1 -0.08 86058
Power Grid Corporation o 193.65 0.57 6686042 6538901 70.93 Nifty Commodities 3397.95 0.97 86058

UPCOMING ECONOMIC DATA

                                          International
US Existing Home Sales (Feb) on 22nd March, 2017.

CORPORATE NEWS

•Tata Power Solar  has expanded the capacity of its cell and module manufacturing facility in Bengaluru.

•NTPC, the largest Indian power generation company plans to set up fair price pharmacies near its power plants. To begin, it would be setting up 10 such pharmacies which would later be increased.

•Hindustan Zinc, a producer of zinc-lead-silver, will commission its first Zinc fumer plant at the cost of Rs. 570 crore to extract metals from the waste

•DiSTI Corporation has announced a strategic partnership with Tata ElxsiBSE 0.98 % to deliver DiSTI’s GL Studio UI products with Tata Elxsi software services.

Source: Economic Times, Business Standard 

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
BEARDSELL Stock split 15-Mar-17 RELINFRA QIP 16-Mar-17
SGFL Board Meeting Adjourned 15-Mar-17 SANDESH Dividend 16-Mar-17
SUNCLAYLTD Dividend 15-Mar-17 FCSSOFT Others 16-Mar-17
SBIN Raising of Funds 15-Mar-17 FARMAXIND Others 16-Mar-17
KALPATPOWR Raising of Funds 15-Mar-17 ABMINTLTD Bonus 17-Mar-17
ENGINERSIN Dividend 16-Mar-17 VGUARD Bonus 17-Mar-17
UNIPLY Raising of Funds 16-Mar-17 SURANAT&P Issue of Securities 17-Mar-17

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
KPEL Bonus issue 1.501 15-Mar-17 NMDC Interim Dividend – Rs. – 4.1500 16-Mar-17
VGUARD Bonus issue 2:5 15-Mar-17 SBBJ Amalgamation 16-Mar-17
ACC Dividend – Rs. – 6.0000 16-Mar-17 SBT Amalgamation 16-Mar-17
AMBUJACEM Final Dividend – Rs. – 1.2000 16-Mar-17 SUNCLAYLTD Interim Dividend – Rs. – 16.5000 20-Mar-17
BEL Stock  Split From Rs.10/- to Rs.1/- 16-Mar-17 CRISIL Dividend – Rs. – 9.0000 21-Mar-17
CADILAHC Interim Dividend – Rs. – 3.2000 16-Mar-17 SHILPAMED Interim Dividend – Rs. – 0.6000 21-Mar-17
HEROMOTOCO Interim Dividend – Rs. – 55.0000 16-Mar-17 BEARDSELL Interim Dividend – Rs. – 1.5000 22-Mar-17
KUSHAL Bonus issue 1:1 16-Mar-17 PHL Interim Dividend – Rs. – 7.5000 22-Mar-17
MYSOREBANK Amalgamation 16-Mar-17 SUNTV Interim Dividend – Rs. – 5.0000 22-Mar-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


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