Market  Outlook – 14 Feb 2017

Markets In Narrow Range, Inside A Range Of Just 60 Points; Ready For Big Move Either Side; Our View Remains Bullish; Look To Buy With Proper Stop And Target; Banks, IT And Energy Is Outperforming

Market outlook 14 Feb 2017

NIFTY: NIFTY is trading very narrow from last six trading days. The index has locked inside 60 point range from 8760 – 8820.

 This range is very narrow so we may see a breakout very soon in either direction. Since we are bullish in the market so we are expecting a breakout on upside.

From here there are three scenarios are likely;

Prices breaks above 8820,

Prices breaks below 8760, and,

Prices remain inside 8760 – 8820.

Our View:

Probability of Scenario (c) is very low whereas probability of scenario (a) is very high.

Since the range is very narrow so it is also possible that both the levels may break. So we should be focusing on only long side of the market since all the three trends is up.

BANK NIFTY: BANK NIFTY traded very choppy today. The index opens with a gap up of 46 points. Prices made its day high near 20308 and low near 20116. The index closes near 20255 with a gain of just 27 points.

Yesterday we have discussed a trade. The trade was to be buyers in the Bank nifty if it trades above 20320. Prices never cross this level intraday so we do not have any trade in the Bank Index.

The narrow range is intact so far in the index. This narrow movement suggests we may see a big move very soon.

There are 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.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
BHARATFIN 830.95 BUY Intermediate trend is up in BHARATFIN. The stock has seen an upside rally and then started trading very narrow. Today’s up move suggests prices are now coming out from this narrow movement and we may see a big move here. Buy this stock above 832. If this trade executes then place your stop just below 820 and a target near 856.
ULTRACEMCO 3756 BUY Intermediate and short term trend is up in ULTRACEMCO. The stock has seen an upside rally and then started trading range bound. We may see a breakout here. Buy this stock above 3770. If this trade executes then place your stop just below 3720 and a target near 3870.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
HEROMOTOCO FEB FUT SELL 3030.05 BELOW 3025 3060 2960 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
EXIDEIND.17.02 Feb 216.3 3.62 1.86 13352000 BANKBARODA.17.02 Feb 168.65 -10.46 43.51 50771000
EICHERMOT.17.02 Feb 24860 3.5 5.53 212900 SRF.17.02 Feb 1586.25 -9.61 44.86 796000
CAIRN.17.02 Feb 282.2 3.16 4.02 25434500 ICIL.17.02 Feb 168.9 -7.27 2.88 3629500
VEDL.17.02 Feb 256.7 3.13 1.17 43130500 IFCI.17.02 Feb 28.75 -6.96 14.04 69872000
CESC.17.02 Feb 859.5 2.92 6.19 4470400 CROMPGREAV.17.02 Feb 66.9 -6.37 13.93 24540000
Short Covering Long Unwinding
Stocks Price Price% OI OI% Stocks Price Price% OI OI%
CADILAHC.17.02 Feb 2.19 -1 3318400 373.35 ORIENTBANK.17.02 Feb 120.8 -4.24 -2.94 12858000
TATAPOWER.17.02 Feb 2.14 -0.41 26100000 83.45 BANKINDIA.17.02 Feb 128.4 -4.21 -9.4 24468000
NTPC.17.02 Feb 0.92 -0.15 21408000 169.95 JPASSOCIAT.17.02 Feb 13 -3.7 -1.26 138516000
UPL.17.02 Feb 0.47 -1.56 6070800 732 RCOM.17.02 Feb 33.5 -3.46 -0.44 109728000
HINDZINC.17.02 Feb 0.38 -2.22 8864000 315.55 JSWSTEEL.17.02 Feb 186.8 -3.36 -0.75 49065000

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
Reliance Industries Ltd 1029.85 -0.03 1957988 2366578 82.7 Nifty 50 8805.05 0.13 83157
Britannia Ind Ltd. 3271.7 1 201954 169120 80.11 Nifty Bank 20251.8 0.19 83154
Axis Bank Limited 490.3 0.29 6626404 7925879 76.61 Nifty IT 10452.9 0.63 83154
ITC Ltd. 270.6 -1.01 8967548 5672381 73.86 Nifty Energy 10704.7 0.26 83154
Dabur India Ltd. 269.2 1.74 1004160 640532 73.72 Nifty Pharma 10403.6 -0.33 83154
Grasim Ind Ltd. 1000.3 -1.07 1957065 4773114 73.42 Nifty Realty 194 -1.05 83154
TATA CONSULTAN SERV 2414.25 0.68 1909906 2117700 73.25 Nifty Infrastructure 3036.1 -0.09 83154
HDFC Ltd. 1392.05 0.25 1638938 1192367 72.81 Nifty PSU Bank 3312.45 -2.98 83154
UPL LIMITED 730.1 0.43 511470 936267 71.92 Nifty Auto 9973.3 -0.14 83154
CADILA HEALTHCARE LTD. 373.15 2.49 518063 477889 69.99 Nifty Metal 3083.05 0.25 83154

UPCOMING ECONOMIC DATA

                                      Domestic
•WPI Data on 14th Feb, 2017

CORPORATE NEWS

•Larsen & Toubro Ltd  has struck a 51:49 joint venture with Europe’s MBDA Missile Systems to develop and supply missiles and missile systems to the Indian armed forces.   The joint venture company — L&T MBDA Missile Systems Ltd — will initially develop and supply fifth generation anti-tank guided missiles and missiles for Coastal Batteries and high speed target drones.

•Tata Motors has launched its truck brand — Tata Prima — in the Kingdom of Saudi Arabia (KSA).

•Suzlon Energy has divested 49% stake in solar power projects totalling 210 mw and is in advanced talks to sell stake in another 130 mw projects in a deal that the company aims to close before March.

•Tata Steel has signed a definitive agreement to sell its UK subsidiary’s speciality steel business to the Liberty House Group for 100 million pounds (Rs 839 crore).

Source: Economic Times, Business Standard

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
21STCENMGM Results 14-Feb-17 AMTEKAUTO Results 14-Feb-17
ABIRLANUVO Results 14-Feb-17 ANGIND Results 14-Feb-17
ACROPETAL Results 14-Feb-17 ANIKINDS Results 14-Feb-17
ADANIENT Results 14-Feb-17 ANKITMETAL Results 14-Feb-17
AFTEK Results 14-Feb-17 APOLLOHOSP Results 14-Feb-17
AGARIND Results 14-Feb-17 APOLLOHOSP Results/Others 14-Feb-17
AGRODUTCH Results 14-Feb-17 ARCHIDPLY Results 14-Feb-17
AHLWEST Results 14-Feb-17 ARCOTECH Results 14-Feb-17
AKSHOPTFBR Results 14-Feb-17 ARIHANT Results 14-Feb-17
ALOKTEXT Board Meeting Postponed 14-Feb-17 ASHAPURMIN Results 14-Feb-17
AMBICAAGAR Results 14-Feb-17 ASHIANA Results 14-Feb-17

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
BHEL Interim Dividend – Rs. – 0.8000 14-Feb-17 ISHANCH Bonus issue 1:2 14-Feb-17
CARBORUNIV Interim Dividend – Rs. – 1.0000 14-Feb-17 MRF Interim Dividend – Rs. – 3.0000 14-Feb-17
CARERATING Interim Dividend – Rs. – 6.0000 14-Feb-17 ORBTEXP Bonus issue 1:1 14-Feb-17
CREATIVE Interim Dividend – Rs. – 10.0000 14-Feb-17 ORBTEXP Interim Dividend – Rs. – 2.0000 14-Feb-17
GESHIP Interim Dividend – Rs. – 3.6000 14-Feb-17 REDINGTON Special Dividend – Rs. – 2.0000 14-Feb-17
IMFA Interim Dividend – Rs. – 10.0000 14-Feb-17 GULFOILLUB Interim Dividend – Rs. – 3.5000 15-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


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