Market Outlook – 05 May 2017

Markets Looking Positive And Cheerful; Nifty On A Top Of A Trading Range; Look For A Buying Opportunity Above 9370; Bank Nifty Reaches Another Lifetime Highs;  Psu Banks Outperform, Buy On Dips;

NIFTY Nifty had a narrow range day but with a positive bias as prices opened with a gap up above 9360. Index saw an intraday dip but recuperated well and eventually able to sustain that gap up.

On the daily charts, Prices are trading inside 90-points range with support (9280) and resistance (9370) from last seven trading days. Addition to this, prices turned in favour of the bulls now as Nifty is now trading at the top of a range. If index would able to cross resistance level then traders will get a nice buying opportunity. Bank Nifty on the other hand, broke out generously from consolidation (22150- 22500) and closed nearly 450 points higher from last closing. Bank Nifty was one of the outperformers recently and continues to outperform. This may also impact positively on Nifty and lead to a breakout from its resistance. This is just a possibility and if prices crossed 9370 level then traders can look to trade the Nifty on the long side. Market is looking positive due to outdo of Bank Nifty and other indices (except IT & PHARMA). Therefore, we should avoid short selling in the indices and look for buying opportunity only on dips and consolidation as far as Nifty is above 9280.

BANK NIFTY: Bank Nifty has seen an upward day today; prices started the session with an enormous gap up of almost 330 points at 22618.30. Index traded volatile initially and made a low just below 22450 within first fifteen minutes of trading. After that, it was one way road on the upside. Index made a high just below 22750 and eventually, closed near the highs at 22730 with a gain of nearly 450 points. Bank Nifty, with this rally, reaches to uncharted territory (new lifetime highs). On the daily charts, prices were trading inside (22150-22500) from last couple of days. The index has seen a breakout from that range today and closed above to it. Swing traders should wait for a consolidation to buy but intraday traders can look to trade Bank Nifty only on long side with the strategy of buy on dips and intraday consolidations. PSU Banks are going through delightful rally. We may continue to see outperformance here; hence look for a buying opportunity on dips and consolidationsin their stocks. Note: PSU BANKS are best for trading purpose right now but for investing, looking current scenario, we should shift our focus on Private Banks..

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
AXISBANK 518 BUY Intermediate and Short Term Trend is up in AXISBANK. The stock is consolidating from last three months. Prices are now at the verge of breakout. Buy this stock above 520. If this trade executes then place a stop just below 515 and a target at 530.
LT 1730 BUY Intermediate and Short Term Trend is up in LT. The stock has seen a minor correction in a form of bullish flag. Prices are now at the verge of breakout from this pattern. Buy this stock above 1735. If this trade executes then place a stop just below 1720 and a target at 1765.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
TITAN IND MAY FUT BUY 496 CMP 489 502-510 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
VGUARD.17.05 May 206.5 9.23 91.21 1566000 GLENMARK.17.05 May 863.8 -2.8 10.4 3091200
ICICIBANK.17.05 May 298.25 8.71 15.7 88455000 VEDL.17.05 May 233.9 -2.8 4.95 60994500
EXIDEIND.17.05 May 239 7.22 3.38 17600000 GRANULES.17.05 May 141.8 -2.51 4.76 15640000
UNIONBANK.17.05 May 189.5 7.12 5.91 21796000 MRF.17.05 May 67050 -2.51 4.34 56625
GSFC.17.05 May 142.95 6.32 21.57 6138000 BHARATFORG.17.05 May 1126 -2.47 17.49 3913800
                                                                           Short covering                                                                               Long Unwinding
SYNDIBANK.17.05 May 4.11 -0.08 21978000 91.2 APOLLOTYRE.17.05 May 242.45 -1.46 -0.15 13596000
DALMIABHA.17.05 May 2.3 -0.5 1141800 2244 PEL.17.05 May 2561.95 -1.45 -0.88 371700
KTKBANK.17.05 May 1.73 -0.02 33445625 173.1 JETAIRWAYS.17.05 May 525 -1.23 -2.86 5256000
Bharat Electronics Limit 1.36 -1.99 23238000 182.15 UJJIVAN.17.05 May 354.5 -1.17 -3.89 7466400
HEXAWARE.17.05 May 1.27 -4.34 2907000 238.45 DHFL.17.05 May 441 -1.15 -0.27 22972500

Top Delivery Percentage

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
NESTLEIND 6735.5 0.3 18029 20035 83.83 Nifty 50 9311.95 -0.02 86241
HDFC Ltd. 1564.35 -0.44 5810079 3240990 80.45 Nifty Bank 22307.3 -0.15 86193
Cholamandalam Investment 1085.05 -0.75 212043 196363 79.25 Nifty IT 10131.05 1.25 86193
Tata Motors DVR  A  Ord 266.95 -0.93 1140057 2072158 77.12 Nifty Pharma 9981.8 -0.54 86193
Pidilite Industries Ltd 738.75 1.13 549561 530019 76.22 Nifty Realty 259.6 1.55 86193
Mah & Mah Ltd. 1334.9 -1.02 739877 685992 75.73 Nifty Infrastructure 3223.2 -0.25 86193
Cipla Ltd 549.95 -1.1 1271612 595912 74.63 Nifty PSU Bank 3691.35 1.01 86193
Page Industries Limited 14489.65 -2.32 11327 10963 72.84 Nifty Auto 10273 -0.21 86193
Petronet LNG Limited 435.35 1.26 2139646 1113169 70.89 Nifty Metal 2950.85 -0.22 86193
Hindustan Unilever Ltd 956.7 2.43 1234682 690865 70.71 Nifty Commodities 3567.35 -0.08 86193

Upcoming Economic Data

                                      Domestic                                                                                                                             International
•Nikkei Service PMI on 05th May, 2017. •US Nonfarm Payrolls on 5th May, 2017.

Corporate News

1.L&T Technology Services has signed a definitive Agreement to acquire Esencia Technologies Inc, USA. The acquisition will also include its Indian subsidiary i.e. Esencia Technologies India. The transaction is expected to be completed around end of May 2017.

2.Housing Development Finance Corporation announced that the Board of Directors of the Company has granted its in-principle approval for issuance of Rupee Denominated Bonds to overseas investors up to an amount not exceeding Rs 5000 crore under the automatic route.

3.Punj Llyod and its JV Partner, Israel Weapon Industries inaugurated the country’s first private sector small arms manufacturing plant in Malanpur in Madhya Pradesh. The joint venture company, Punj Llyod Raksha Systems will be manufacturing small arms for the Indian Defence Forces and also for export.

Source: Economics Times, Capitaline Database.

Board Meetings

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
BLUEDART Results/Dividend 5-May-17 GOKULAGRO Results 5-May-17
DALMIASUG Results/Dividend 5-May-17 EICHERMOT Results/Dividend 5-May-17
APCOTEXIND Results 5-May-17 EQUITAS Results 5-May-17
APOLLOTYRE Results/Dividend 5-May-17 FSL Results 5-May-17
BSE Results/Dividend 5-May-17 INDIANB Raising of Funds 5-May-17
ATUL Results/Dividend 5-May-17 MONSANTO Results/Dividend 5-May-17
GESHIP Results/Dividend 5-May-17 RAIN Results 5-May-17
GNA Results 5-May-17 NIITTECH Results/Dividend 5-May-17

Corporate Action

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
HATSUN Interim Dividend – Rs. – 3.0000 5-May-17 GPTINFRA Interim Dividend – Rs. – 1.5000 9-May-17
HEXAWARE Interim Dividend – Rs. – 1.0000 5-May-17 BJDUP Reduction of Capital 11-May-17
KKCL Interim Dividend – Rs. – 7.0000 5-May-17 JMFINANCIL Final Dividend – Rs. – 0.8500 11-May-17
MISHTANN Consolidation of Shares 5-May-17 MARATHON Buy Back of Shares 11-May-17
TCS Buy Back of Shares 5-May-17 FUTSOL Final Dividend – Rs. – 0.5000 16-May-17
GMBREW Dividend – Rs. – 3.0000 9-May-17 LKPFIN Dividend – Rs. – 2.0000 18-May-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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