Market Outlook – 19 June 2017

Markets Have Seen A Pause From Last Three Weeks; Trading Range Persists In Nifty, Bank Nifty, A Breakout From The Range Is Imminent, May Come About Next Week; Till Then Focus On Realty Stocks For Buying Opportunity; Derivative Picks

Market Research Analysis

NIFTY: Friday saw trading inside a narrow range – This suggests a thrusting move is coming early next week. Nifty support comes around 9570; breakdown below the support may lead to a deeper correction. For more than three weeks, the nifty has been trading in a narrow range. The range is now clearly visible with support at 9570 and resistance at 9690, giving a width of 120 points for the range. Price movement in the initial weeks of June (for the nifty) has been very narrow – just 150 points. This contraction in the weekly range points towards a big thrusting move in the next few weeks of the month. On the daily charts an inside day pattern is formed on the Japanese candlestick charts. Narrow price action from the last few days suggests a directional move is very near. A trading range that develops after a sustained up move should eventually resolve itself into another breakout on the upside. This is the principle that we go by. However, as traders, we have to be prepared for any eventuality. At this point, we do not have any patterns that suggest going short. As new patterns emerge, there may come about a change in our analysis, but that is in the future. We will wait patiently for markets to cross the above mentioned levels, and then decide on moving with the index direction. Till then hold your nerves.

BANK NIFTY: Bank Nifty again had a choppy and narrow day as prices started with a gap up of 50 points just below 23450 but then seen a minor decline that took index below 23400. However, 100 points rally in last hour helped price to make intraday high near 23530. Eventually, index closed at 23495 with a gain of exact 100 points. On the weekly charts, Bank Nifty made NR7 (narrowest range week in last seven weeks) that suggest blistering move ahead. On the daily charts, prices are still trading inside a range (23100‐23700) from three weeks. We were suggesting our readers from past few days that a directional move may come if prices successfully break this level on either side. We continue on that theme. Intraday traders should prepare to take trades on either side of the market for the day only. Actual trades depend on the behaviour of the price movements or market action during the day; trade with lower volumes. Positional traders should also wait for the directional move beyond 23100‐23700 for a trading opportunity. Till then watch the action from outside..

 

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
BHARATFORG 1182 BUY Intermediate and Short Term Trend is up in BHARATFORG. The stock has seen an upside rally and then a minor correction. That correction finds support near 1160. We may see an upside rally here. Buy this stock above 1185. If this trade executes then place a stop just below 1070 and a target at 1215.
KAJARIACER 708 BUY Intermediate and Short Term Trend is sideways in KAJARIACER. The stock has seen an upside rally and then started a process of consolidation. Prices are now at the verge of breakout. We may see an upside rally here. Buy this stock above 710. If this trade executes then place a stop just below 700 and a target at 730.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
CIPLA JUNE FUT SELL 538.9 CMP 545 531-525 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
BEML.17.06 Jun 1456.55 7.24 8.39 3052800 LUPIN.17.06 Jun 1136.15 -4.36 5.28 8653200
INDIACEM.17.06 Jun 221.2 4.27 5.03 27989500 FORTIS.17.06 Jun 191.6 -3.45 9.31 26408700
CENTURYTEX.17.06 Jun 1116.25 4.19 0.95 7618600 JUBLFOOD.17.06 Jun 929.1 -3.09 4.18 2794000
L&TFH.17.06 Jun 147.25 3.73 11.64 20191500 ALBK.17.06 Jun 69.95 -2.58 5.64 25860000
MFSL.17.06 Jun 609 2.7 0.14 5557000 CIPLA.17.06 Jun 538.9 -2.24 0.32 6571000
                                                                           Short covering                                                                               Long Unwinding
UJJIVAN.17.06 Jun 6.39 -9.96 6139200 323.85 SUNPHARMA.17.06 Jun 531.15 -2.48 -0.39 36194900
NIFTYINFRA.17.06 Jun 4.1 -53.33 1575 2817 WIPRO.17.06 Jun 255.8 -2.09 -0.42 27201600
JPASSOCIAT.17.06 Jun 3.1 -6.48 1.84E+08 14.95 GMRINFRA.17.06 Jun 19.5 -2.01 -0.02 2.58E+08
TATAMTRDVR.17.06 Jun 3.04 -2.93 19473300 282.65 CHOLAFIN.17.06 Jun 1096.75 -1.97 -0.72 412000
MCX.17.06 Jun 2.83 -11.49 1425500 1112.3 DHFL.17.06 Jun 455.8 -1.68 -2.75 20043000

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
HDFC Ltd. 1640.85 0.24 2692532 5097448 89.76 Nifty 50 9588.05 0.1 28309971
NESTLEIND 6759.75 1.08 35730 34499 85.45 Nifty Bank 23502.75 0.47 11563375
MARICO LIMITED 313.3 -0.71 524272 503441 81.84 Nifty IT 10189.5 -0.86 1226917
NTPC Limited 160.6 0.97 4235495 4158261 79.83 INDIA VIX 10.92 -3.53 2.44E+08
MAX FINANCIAL SERVICES L 606.65 2.73 1051142 841419 78.55 Nifty Pharma 9525.5 -1.76 28190709
Ambuja Cements Ltd 237.25 0.49 4001169 3439694 78.24 Nifty Realty 270.95 0.28 9.97E+08
HCL Technologies Ltd. 839 -0.64 1912330 1364604 76.94 Nifty Infrastructure 3208.05 -0.04 84540437
TATA CONSULTANCY 2399.7 -0.48 1225213 1140716 76.12 Nifty PSU Bank 3463.4 0.2 78360194
Mah & Mah Ltd. 1387.3 -0.03 1650375 1157519 73.85 Nifty Auto 10869.2 0.27 24945482
Colgate Palmolive (India 1094.75 1.48 458594 264066 73.11 Nifty Metal 2931.05 -0.05 92479592

UPCOMING ECONOMIC DATA

                                      Domestic
•Nikkei Manufacturing PMI on 03rd July, 2017.

•Nikkei Service PMI on 05th July, 2017.

•US Existing Home Sales (May) on 21st June, 2017.

ECONOMICS/CORPORATE NEWS

•Lupin announced the launch of its Bupropion Hydrochloride Extended Release Tablets USP, 150 mg and 300 mg having received an approval from the USFDA earlier. It is the AB rated generic equivalent of Valent Pharmaceuticals North America, LLC’s Wellbutrin XL tablets, 150 mg and 300 mg, which is indicated for the treatment of major depressive disorders and prevention of seasonal affective disorders in adults.

•Siemens Ltd has bagegd a contract from CLP India Pvt Lt to implement a cyber security solution for power plant automation at the latter’s Paguthan power plant in Gujarat.

•Glenmark has received tentative nod from the US health regulator for Saxagliptin tablets.

Source: Economics Times, Capitaline

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
DAMOTH Dividend – Rs. – 2.8000 19-Jun-17 HINDUNILVR Final Dividend – Rs. – 10.0000 22-Jun-17
TORNTPHARM Final Dividend – Rs. – 4.0000 19-Jun-17 KITEX Bonus issue 2:5 22-Jun-17
ICICIBANK Bonus issue 1:10 20-Jun-17 MUNJALAU Final Dividend – Rs. – 2.0000 22-Jun-17
ICICIBANK Dividend – Rs. – 2.5000 20-Jun-17 PTL Dividend – Rs. – 1.2500 22-Jun-17
GHCL Final Dividend – Rs. – 3.5000 21-Jun-17 SHRIRAMCIT Final Dividend – Rs. – 10.0000 22-Jun-17
HAVELLS Final Dividend – Rs. – 3.5000 21-Jun-17 SMSPHARMA Spin Off 22-Jun-17
PCJEWELLER Dividend – Rs. – 1.0000 21-Jun-17 TVSELECT Dividend – Rs. – 0.5000 22-Jun-17
SRTRANSFIN Final Dividend – Rs. – 6.0000 21-Jun-17 UPL Dividend – Rs. – 7.0000 22-Jun-17
SUPREMEIND Final Dividend – Rs. – 7.0000 21-Jun-17 VOITHPAPR Dividend – Rs. – 4.0000 22-Jun-17
SUPREMEIND Special Dividend – Rs. – 5.0000 21-Jun-17 WELSPUNGUJR Dividend – Rs. – 0.5000 22-Jun-17
UNIMOVR Reduction of Capital 21-Jun-17 WELSPUNIND Final Dividend – Rs. – 0.6500 22-Jun-17
VIRAT Final Dividend – Rs. – 2.5000 21-Jun-17 STEELCAS Dividend – Rs. – 0.6000 23-Jun-17
ARCOTECH Stock  Split From Rs.10/- to Rs.2/- 22-Jun-17 APOLLOTYRE Dividend – Rs. – 3.0000 27-Jun-17
BANKBARODA Dividend – Rs. – 1.2000 22-Jun-17 FCH Final Dividend – Rs. – 2.6000 27-Jun-17
GOACARBON Final Dividend – Rs. – 3.0000 22-Jun-17 ELNET Dividend – Rs. – 1.4000 28-Jun-17
GODREJCP Bonus issue 1:1 22-Jun-17 INDIANHUME Final Dividend – Rs. – 2.4000 28-Jun-17 

 


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