MARKET OUTLOOK – 23 Feb, 2017

Two Doji In A Row Suggests Confusion In The Market; Nifty Remains Above 8900, Led By Reliance (Up More Than 11%) And Followed By Idea (Up More Than 5%) And Axis Bank (Up Almost 4%); Stay Long In Nifty And Nifty Bank With A Tighten Stop.

morning outlook - 23 Feb 2017

NIFTY:

Nifty opened with some postive bias and traded in a narrow range between 8920-8950 most part of the session and closed at 8926 with a gain of 20 point at the end.

Nifty is continious  making higher high higher bottom on daily chart and beached the crucial psychological level of 8,950 in intraday trade for the first time since September 8, 2016 , with RIL contributing most of the gains.

In sectoral front energy stocks surged the most at 4.53 per cent, RIL, Coal India and BPCL 1.30 % contributing most to its rise. On the other hand IT stock were witness of profit booking.

8970 is short term resistance for the nifty so any close above this level we can move higher upto 9200-9250 level. All trend is up so we should look for buy on dips and avoid short selling….

BANK NIFTY:

BANK NIFTY opens above 20900. The index traded very narrow today in a range of just 129 points. The index closes with minor gain (just 30 points) but below todays open.

BANK NIFTY traded very narrow today and made a pattern of NR 7 (narrowest range in last 7 trading days). NR7 suggest that price movement is contracting. Prices are moving around less and less. This happens when markets are confused on the direction. If markets are not sure of where prices are going, they do not take positions, leading to prices moving in a narrow range.

Narrow ranges do not last for a long time. Inside a narrow range, the bulls and bears are evenly balanced. But, sooner or later, one group emerges stronger and prices start trending in favor of the stronger group.

Private Sector Banks are outperforming the whole index. We should avoid trading in the PSU BANK and look for buying in PVT Banks only.

We are long in the index from 20715. We are advising to tighten the stop at 20600. Exit if prices cross below this stop any time.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
BRITANNIA 3243 BUY Intermediate and short term trend is up in BRITANNIA. The stock has seen an upside rally and then started trading range bound. Prices are narrowing day by day inside this range suggests a breakout is very near. Buy this stock above 3250. If this trade executes then place your stop just below 3210 and a target near 3350.
LICHSGFIN 559 BUY Intermediate trend is sideways in LICHSGFIN. The stock is consolidating and trading near its resistance. We are taking a long trade here in anticipation of a breakout. Buy this stock above 560. If this trade executes then place your stop just below 554 and a target near 573.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
IDEA FEB FUT BUY 113.80 CMP 110.50 120.00 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
RELIANCE.17.02 Feb 1208.4 11.17 17.34 17321000 PAGEIND.17.02 Feb 13811 -4.06 1.1 27450
IDEA.17.02 Feb 113.8 4.88 8.49 53585000 TITAN.17.02 Feb 440.65 -3.65 19.51 6027000
JUSTDIAL.17.02 Feb 529.65 4.47 9.79 2341200 ADANIENT.17.02 Feb 94.25 -3.48 5.55 18880000
KTKBANK.17.02 Feb 127.9 4.28 2.14 13378250 NTPC.17.02 Feb 166.65 -3.34 14.84 14612000
AXISBANK.17.02 Feb 522.65 3.52 12.23 18795600 BEL.17.02 Feb 1513 -2.79 10.23 1668600
Short Covering Long Unwinding
Stocks Price Price% OI OI% Stocks Price Price% OI OI%
JETAIRWAYS.17.02 Feb 2.71 -11.8 3454000 423.05 MCLEODRUSS.17.02 Feb 164 -3.44 -5.43 2715000
RPOWER.17.02 Feb 1.55 -6.23 29244000 46 ABIRLANUVO.17.02 Feb 1499.3 -3.13 -3.03 1150800
RECLTD.17.02 Feb 1.48 -1.93 20118000 158 ASHOKLEY.17.02 Feb 92.3 -2.94 -22.05 26103000
CEATLTD.17.02 Feb 1.24 -26.6 1236200 1130.95 STAR.17.02 Feb 1149.7 -2.93 -2.36 1424500
HEROMOTOCO.17.02 Feb 0.93 -0.85 1141800 3162 PCJEWELLER.17.02 Feb 377.95 -2.92 -5.77 808500

TOP DELIVERY PERCENTAGE

Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
RELIANCE.17.02 Feb 1208.4 11.17 17.34 17321000 PAGEIND.17.02 Feb 13811 -4.06 1.1 27450
IDEA.17.02 Feb 113.8 4.88 8.49 53585000 TITAN.17.02 Feb 440.65 -3.65 19.51 6027000
JUSTDIAL.17.02 Feb 529.65 4.47 9.79 2341200 ADANIENT.17.02 Feb 94.25 -3.48 5.55 18880000
KTKBANK.17.02 Feb 127.9 4.28 2.14 13378250 NTPC.17.02 Feb 166.65 -3.34 14.84 14612000
AXISBANK.17.02 Feb 522.65 3.52 12.23 18795600 BEL.17.02 Feb 1513 -2.79 10.23 1668600
Short Covering Long Unwinding
Stocks Price Price% OI OI% Stocks Price Price% OI OI%
JETAIRWAYS.17.02 Feb 2.71 -11.8 3454000 423.05 MCLEODRUSS.17.02 Feb 164 -3.44 -5.43 2715000
RPOWER.17.02 Feb 1.55 -6.23 29244000 46 ABIRLANUVO.17.02 Feb 1499.3 -3.13 -3.03 1150800
RECLTD.17.02 Feb 1.48 -1.93 20118000 158 ASHOKLEY.17.02 Feb 92.3 -2.94 -22.05 26103000
CEATLTD.17.02 Feb 1.24 -26.6 1236200 1130.95 STAR.17.02 Feb 1149.7 -2.93 -2.36 1424500
HEROMOTOCO.17.02 Feb 0.93 -0.85 1141800 3162 PCJEWELLER.17.02 Feb 377.95 -2.92 -5.77 808500

UPCOMING ECONOMIC DATA

                                      Domestic                                                                                                              
•Quarterly GDP (Q4) (YoY) on 28th Feb, 2017.

•IIP Data (YoY) on 10th March, 2017.

CORPORATE NEWS

•Maruti Suzuki India (MSI) is investing another Rs 1,900 crore till March 2019 on enhancing the R&D centre here for cutting time of new product development and to expand infrastructure for evaluating vehicles’ safety.

• Bharat Financial Inclusion, started rolling out Aadhar-based digital lending process to ensure a loan getting sanctioned and disbursed within minutes.

•Tata Chemicals fertiliser plant at Haldia will remain shut till April 15 due to relocation of ammonia pipeline as well as annual repair and maintenance work.

•IDBI Bank proposes to dilute stake in some non-core businesses to shore up capital base.

Source: Economic Times, Business Standard

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
AMTEKAUTO Others 23-Feb-17 CASTEXTECH Issue of Securities 25-Feb-17
SOTL Dividend 23-Feb-17 MALWACOTT Board Meeting Postponed 25-Feb-17
RAIN Results 23-Feb-17 LAKPRE Others 25-Feb-17
MAHINDCIE Results 23-Feb-17 NAUKRI Dividend 25-Feb-17
EMCO Board Meeting Postponed 23-Feb-17 METALFORGE Preferential issue 25-Feb-17
EDL Allotment of Securities 23-Feb-17 IL&FSENGG Preferential issue 25-Feb-17
MERCK Results/Dividend 24-Feb-17 MERCK Board Meeting Postponed 27-Feb-17
TANTIACONS Board Meeting Postponed 24-Feb-17 VESUVIUS Results/Dividend 27-Feb-17
ONELIFECAP Others 24-Feb-17 SANOFI Results/Dividend 27-Feb-17

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
CESC Interim Dividend – Rs. – 10.0000 23-Feb-17 HEXAWARE Interim Dividend – Rs. – 1.0000 2-Mar-17
NATCOPHARM Interim Dividend – Rs. – 6.0000 23-Feb-17 MODISNME Interim Dividend – Rs. – 1.0000 2-Mar-17
NUTRA Stock  Split From Rs.10/- to Rs.5/- 27-Feb-17 ROHLTD Interim Dividend – Rs. – 1.0000 2-Mar-17
RECLTD Interim Dividend – Rs. – 7.0000 27-Feb-17 SYMPHONY Interim Dividend – Rs. – 1.0000 2-Mar-17
BPCL Interim Dividend – Rs. – 19.5000 28-Feb-17 TECHNO Buy Back of Shares 2-Mar-17
HINDPETRO Interim Dividend – Rs. – 22.5000 1-Mar-17 VISHAL Right Issue of Equity Shares 2-Mar-17
MINDACORP Interim Dividend – Rs. – 0.2000 1-Mar-17 EIDPARRY Interim Dividend – Rs. – 4.0000 3-Mar-17
SUNDARMFIN Interim Dividend – Rs. – 5.0000 1-Mar-17 DICIND Dividend – Rs. – 4.0000 14-Mar-17
AADHAARVEN Consolidation of Shares 2-Mar-17 ACC Dividend – Rs. – 6.0000 16-Mar-17

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