Market Outlook – 12 April 2017

Markets Break Two Days Of Failure; Rallies To Close At Day High; Short Term Trend Remains Sideways With Resistance Near 9300; Bank Nifty Closes On New Lifetime High; FMCG, PSU Bank Stocks Continue To Outperform; Look For A Buying Opportunity.

daily market research

NIFTY

Nifty has seen an uptrend day today; prices started off with a gap up at 9184.55 and made a low at 9175 in early trades. The index went through staggering rally that helped nifty making an intraday high near 9245. Eventually, index closed near the highs at 9233 with a gain of 58 points. The index traded in a moderate range of 70 points.

Markets are more or less consolidating inside a range with a strong support near 9100 and a resistance at 9275-9300 area from around last two weeks. That should be considered normal after recent outpouring.

We may see alternate bouts of buying and selling as far as index roving with a sideways trend. We should maintain our patience and wait for the sustain breakout from either of above two levels for a trade in Nifty index.

On the contrary, Bank Nifty staged smart gains that took the index to another lifetime high (Fourth lifetime high in last two weeks). Positive price action in the index suggests strength. We may continue to see outperformance in banking stocks. Therefore, look for a buying opportunity there.

BANK NIFTY:

Bank Nifty has seen an uptrend day today; prices started the session with a minor change at 21521.45 and made a low just below 21500 within first fifteen minutes of trading. After that, it was one way road on the upside. Index made a high above 21750 and eventually, closed near the highs above 21700 with a gain of 170 points.

Bank Nifty, with this rally, reaches to unchartered territory (new lifetime highs). On the daily charts, prices were trading inside (21300-21700) from last two weeks. The index has seen a breakout from that range today and closed above to it. Traders should wait for the confirmation of range breakout; another closing above 21700 will confirm that.

As of now we do not have a new pattern which suggests a new trading opportunity here. So, avoid trading in the index till next opportunity arises.

PSU Banks are going through delightful rally. We may continue to see outperformance here; hence look for a buying opportunity on dips and consolidations.

 

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
SBI 294 BUY Intermediate and Short Term Trend is up in SBI. The stock has seen an upside rally and then started a minor correction for three trading days. Today prices close higher suggest the correction is over. Buy this stock above 295. If this trade executes then place a stop just below 290 and a target at 305.
BHARATFIN 766 SELL Intermediate and Short Term Trend is sideways in BHARATFIN. The stock has seen an upside rally and then started a process of consolidation at its top. Prices are now at the verge of breakdown from the support level. Sell this stock below 764. If this trade executes then place a stop just above 780 and a target at 735.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
CENTURYTEX APR FUT BUY 1092.5 CMP 1075 1120 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
RECLTD.17.04 Apr 206.9 12.57 12.6 29766000 ADANIPOWER.17.04 Apr 37.25 -16.1 13.08 1.49E+08
KTKBANK.17.04 Apr 160.3 9.38 16.49 32405750 ADANIPORTS.17.04 Apr 335.65 -4.96 21.44 14657500
PFC.17.04 Apr 164.6 7.41 5.47 34950000 JSWSTEEL.17.04 Apr 199.3 -2.83 2.12 45798000
DCBBANK.17.04 Apr 181.75 5.91 28.79 6421500 TATAPOWER.17.04 Apr 85.55 -2.23 14.99 35289000
JPASSOCIAT.17.04 Apr 13.65 5.81 2.37 1.76E+08 ZEEL.17.04 Apr 543 -1.92 3.64 7078500
                                                                           Short covering                                                                               Long Unwinding
ITC.17.04 Apr 2.75 -4.84 52142400 282.5 BHARATFIN.17.04 Apr 770.55 -1.19 -0.69 19954000
Bharat Electronics Limit 2.7 -3.79 26077500 176.9 BRITANNIA.17.04 Apr 3412.6 -0.71 -3.81 379200
CONCOR.17.04 Apr 2.61 -1.72 1177500 1156.5 INFRATEL.17.04 Apr 355.8 -0.63 -4.47 6356800
IGL.17.04 Apr 2.6 -2.14 2564100 1033.5 BAJAJ-AUTO.17.04 Apr 2826.45 -0.61 -3.01 1530750
SINTEX.17.04 Apr 2.5 -0.08 37705500 112.7 HINDPETRO.17.04 Apr 541.55 -0.59 -0.88 19288500

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
HDFC Ltd. 1476.85 0.64 2166320 1880021 85.45 Nifty 50 9237 0.61 28827267
Cipla Ltd 580.05 -1.63 2103296 957630 81.31 Nifty Bank 21736.15 1 12262798
MARICO LIMITED 301.15 0.42 477848 1097064 78.74 Nifty IT 10398.85 0.59 1042437
Power Grid Corporation o 199.15 1.97 6000806 2534797 78.19 INDIA VIX 11.4 -1.89 2.3E+08
Tata Power Co. Ltd. 85.45 -1.84 32224697 4134302 75.04 Nifty Pharma 10355.55 0.39 25682022
ITC Ltd. 282.05 3.11 10934606 4089387 74.67 Nifty Realty 226.1 1.23 1.18E+09
COALINDIA 288.9 0.75 4064823 3864402 74.31 Nifty Infrastructure 3209.25 0.62 82957034
CASTROL INDIA LTD. 434.65 0.42 538565 2218916 74.29 Nifty PSU Bank 3578.25 2.08 74658361
Hero MotoCorp Limited 3202.2 0.09 169115 216201 74.26 Nifty Auto 10040.05 0.1 26476598
TATA CONSULTANCY 2419.3 -0.12 778892 938567 73.81 Nifty Metal 3092.05 -1.48 85694323

UPCOMING ECONOMIC DATA

                                      Domestic
•IIP Data on  12th April , 2017.

•CPI Data on 12th April 2017

•US Crude Oil inventories on 12th April, 2017.

•US PPI (MoM) (Mar) on 13th April, 2017.

CORPORATE NEWS

•NTPC’s joint venture BIFPCL has tied up funds to the tune of USD 1.6 billion to set up 1,320-mw Maitree Super Thermal Power Project in Bangladesh.

•Mahindra Holidays & Resorts India Ltd (MHRIL) has acquired an additional 3.22 per cent stake in Finland-based Holiday Club Resorts Oy (HCR) for 2.16 million euros (over Rs 14.5 crore).

•BHEL has bagged an order from Indian Railways for installing 2 MW roof-top solar photo voltaic systems at Diesel Locomotive Modernisation Works (DMW) in Patiala.

Source: Economic Times, Business Standard                             .

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
BAJAJCORP Results/Dividend 13-Apr-17 INFOMEDIA Results 15-Apr-17
RPOWER Results 13-Apr-17 GEMINI Results 15-Apr-17
INFY Results/Dividend 13-Apr-17 GRUH Results/Dividend 17-Apr-17
DCBBANK Results 14-Apr-17 HINDOILEXP Results 18-Apr-17
RIIL Results/Dividend 14-Apr-17 VSTIND Results/Dividend 18-Apr-17
MANAKINDST Results/Dividend 14-Apr-17 TNTELE Results/Others 18-Apr-17
BEPL Results/Dividend 15-Apr-17 INDUSINDBK Results/Dividend 19-Apr-17
RELINFRA Results/Dividend 15-Apr-17 YESBANK Results/Dividend 19-Apr-17

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
FAGBEARING Dividend – Rs. – 12.0000 12-Apr-17 FOSECOIND Final Dividend – Rs. – 7.0000 20-Apr-17
KSBPUMPS Dividend – Rs. – 5.5000 12-Apr-17 SANOFI Final Dividend – Rs. – 50.0000 25-Apr-17
SANDUMA Interim Dividend – Rs. – 1.0000 12-Apr-17 ELANTAS Dividend – Rs. – 4.5000 27-Apr-17
ONTIC Consolidation of Shares 13-Apr-17 ABB Dividend – Rs. – 4.0000 28-Apr-17
RMCHEM Bonus issue 4:1 18-Apr-17 ITDCEM Dividend – Rs. – 0.3000 3-May-17
OFSS Interim Dividend – Rs. – 170.0000 19-Apr-17 VESUVIUS Dividend – Rs. – 6.5000 4-May-17

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

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