Markets In Decline; Nifty Closes Below 8760 – 8820 Narrow Trading Range
Market Outlook – 16 Feb 2017
Markets Decline; Nifty Closes Below 8760 – 8820 Narrow Trading Range; Suggesting At Least The Short Term Trend May Have Changed To Down; Avoid Long Positions; Look For Shorting Opportunity.
NIFTY: It was a down day in Nifty, Bank Nifty. After the flat opening it closed near day’s low. It continued falling lower in a staircase pattern throughout the day. Feeble attempts to recover were used by bears to fresh shorts. It Seems intraday price action was as bearish as it can be. So all long bets should be off (if any) for the time being.
A Narrow trading range of almost seven trading days has seen a breakdown today and the index closes below this trading range. The Nifty bank did not participate in today’s decline as it remains inside the range.
The Nifty short term trend is down. All said and done, we are in a correction. We have to take short term trades in the downside direction and wait patiently for this correction to end, before we begin buying.
Our short position triggers today and we should maintain this trade with suggested stop. Today breakdown was not very decisive so we should wait for a follow through on downside to confirm this breakdown..
BANK NIFTY: BANK NIFTY opens near 20282 near yesterday close. Prices have seen a decline today and close lower 20200 with a loss of 100 points.
The index continues trading narrow and range bound inside 20000 – 20400. NIFTY has broken on downside so we are expecting the BANK NIFTY may also follow the NIFTY and breaks the range on downside.
Yesterday we had discussed three scenarios;
Prices breaks above 20400 then we will buy with a stop just below 20100.
Prices breaks below 20000 then we will sell with a stop just above 20300.
Prices remain trading inside 20000 – 20400 then we will avoid trading.
These are still valid and we are advising our readers to follow these and trade accordingly.
We are now in a phase of contraction and sooner we may see an expansion in either side of the market
|AMARAJABAT||849||SELL||Intermediate and short term trend is down in AMARAJABAT. The stock has seen a decline and then broken on downside. We may see a decline here. Sell this stock below 848. If this trade executes then place your stop just above 860 and a target near 824.|
|TATASTEEL||460||SELL||Intermediate trend is sideways in TATASTEEL. The stock has seen an upside rally and then started a process of consolidation. Prices are now at the verge of breakdown from a bearish head & shoulder. Sell this stock below 460. If this trade executes then place your stop just above 465 and a target near 450.|
|Stock Name||Strike Price||Buy/Sell||CMP||Initiation||Stop Loss||Target||Remarks|
|Long Buildup||Short Buildup|
|Stocks||Price||Price%||OI %||OI||Stocks||Price||Price%||OI %||OI|
|IGL.17.02 Feb||1052.65||2.49||10.5||2349600||TATAMTRDVR.17.02 Feb||269||-10.35||14.73||20162100|
|ADANIENT.17.02 Feb||92.45||1.43||6.36||23408000||TATAMOTORS.17.02 Feb||438.2||-9.84||17.46||45571500|
|ZEEL.17.02 Feb||521.65||1.33||2.59||7924800||HDIL.17.02 Feb||63.15||-7.81||27.53||31424000|
|ITC.17.02 Feb||275.35||1.27||9.98||48669600||DLF.17.02 Feb||136.6||-7.58||2.06||34720000|
|INFRATEL.17.02 Feb||322.95||1.13||2.4||7438400||IDFC.17.02 Feb||52.35||-5.08||5.78||80744400|
|Short Covering||Long Unwinding|
|NIFTYINFRA.17.02 Feb||2817||4.1||-53.33||1575||JPASSOCIAT.17.02 Feb||12.15||-7.25||-4.61||125188000|
|NIFTYPSE.17.02 Feb||3185||2.81||-39.29||3400||RCOM.17.02 Feb||32.35||-6.37||-0.98||104352000|
|JINDALSTEL.17.02 Feb||90.65||2.66||-0.74||48150000||NIFTYMID50.17.02 Feb||4010||-5.62||-50||200|
|BEL.17.02 Feb||1525.9||0.7||-1.78||2489850||PCJEWELLER.17.02 Feb||368.2||-4.6||-4.4||1237500|
|DJIA.17.02 Feb||20500||0.59||-6.21||19020||GMRINFRA.17.02 Feb||13.65||-4.55||-0.64||166860000|
TOP DELIVERY PERCENTAGE
|Stocks||Price||%Chg||Vol||Delivery||Del %||% Change|
UPCOMING ECONOMIC DATA
|•Quarterly GDP (Q4) (YoY) on 28th Feb, 2017.
•IIP Data (YoY) on 10th March, 2017.
|•Dr Reddy’s Laboratories Limited and Aurobindo Pharma Limited have separately started recalling few quantities of two different drugs from the US market as they are found to be not up to the mark.
• DLF’s net debt rose by Rs 1,257 crore to Rs 24,397 crore in the third quarter of the current fiscal as its cash-flows were hit due to fall in housing sales amid negative sentiment in the property market post demonetisation.
•Dassault has signed the joint venture with Reliance Defence for Rafale offset obligations. In January, Competition Commission of India had approved the proposed joint venture between Anil Ambani-led group firm Reliance Aerostructure and Rafale-maker Dassault Aviation.
Source: Economic Times, Business Standard
|Company Name||Purpose||Meeting Date||Company Name||Purpose||Meeting Date|
|MBECL||Raising of Funds||17-Feb-17||CASTROLIND||Results/Dividend||21-Feb-17|
|VALECHAENG||Scheme of Arrangement||17-Feb-17||PAPERPROD||Results/Dividend||21-Feb-17|
|ROHLTD||Dividend||18-Feb-17||KAMATHOTEL||Board Meeting Postponed||21-Feb-17|
|MALWACOTT||Board Meeting Postponed||18-Feb-17||EIDPARRY||Dividend||21-Feb-17|
|AMBUJACEM||Results/Dividend||20-Feb-17||EMCO||Board Meeting Postponed||23-Feb-17|
|Company Name||Purpose||Ex-Date||Company Name||Purpose||Ex-Date|
|AMRUTANJAN||Interim Dividend – Rs. – 1.1000||16-Feb-17||MINDAIND||Interim Dividend – Rs. – 1.2000||16-Feb-17|
|AVTNPL||Interim Dividend – Rs. – 0.2000||16-Feb-17||PAGEIND||Interim Dividend – Rs. – 25.0000||16-Feb-17|
|BHARATFORG||Interim Dividend – Rs. – 2.5000||16-Feb-17||POWERGRID||Interim Dividend – Rs. – 1.0000||16-Feb-17|
|BOSCHLTD||Interim Dividend – Rs. – 75.0000||16-Feb-17||SELAN||Interim Dividend – Rs. – 5.0000||16-Feb-17|
|COMPUAGE||Stock Split From Rs.10/- to Rs.2/-||16-Feb-17||SHBCL||Interim Dividend – Rs. – 0.2500||16-Feb-17|
|JAYAGROGN||Interim Dividend – Rs. – 5.0000||16-Feb-17||SNL||Interim Dividend – Rs. – 3.0000||16-Feb-17|
|KALECONSUL||Interim Dividend – Rs. – 11.0000||16-Feb-17||SOUTHBANK||Right Issue of Equity Shares||16-Feb-17|
|MANAPPURAM||Interim Dividend – Rs. – 0.5000||16-Feb-17||STERTOOLS||Interim Dividend – Rs. – 1.0000||16-Feb-17|
|MENONBE||Interim Dividend – Rs. – 1.0000||16-Feb-17||TAKE||Interim Dividend – Rs. – 0.3000||16-Feb-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