Market Outlook – 13 April 2017

Markets In Narrow Range, Inside Of Just 90 Points; Ready For Big Move Either Side; Our View Remains Sideways; Infosys Reports Schedule Tomorrow; Market Reaction To Infy Results May Set Trend For Next Few Days.

Market research analysisNIFTY

Intraday price action in Nifty was choppy today; prices started with a gap up at 9242.50 but seen a weighty dip that pushed prices below 9200 levels. The index made some recovery in the later half and eventually closed above the psychological level of 9200. Index traded inside a moderate range of 85 points.

On the daily charts, the index is rotating inside a narrow range of 90 points from last four consecutive days. Nifty had a nice recovery after trading lower in the first half of a trading session.

The index has recorded four days of really narrow ranges. Narrow ranges usually lead to big thrusting moves, up or down. As we write this, the Nifty is almost in the middle of this narrow range, closing at 9203.45 with a loss of 33.55 points. Traders should wait patiently for a directional move and then look to enter the market; there is no hurry here.

Bank Nifty did break its resistance placed near 21700 but momentum was not strong there and finally closed below the significant level of 21700. So, the breakout did not confirm in the Bank Nifty yet. Thus, Trend remains sideways here.

IT, on the other hand, continues to underperform. However, INFY results are scheduled tomorrow, so IT index in particular may remain volatile. Market reaction to INFY results may set trend for IT for next few days. So, wait and watch..

BANK NIFTY:

Bank Nifty saw extreme choppiness in today’s price action. The index opened with a gap up of 30 points at 21735 but witnessed a vertical dip that pressed prices to intraday low near 21550. Bank Nifty found buyers at lower levels and recovery in the second half took prices to lifetime high at 21787.10. However, index again came down and eventually closed near 21650 with a decline of nearly 55 points.

On the daily charts, prices broke out above its resistance of 21700 yesterday. However, index failed to keep prices above 21700 and closed lower. Therefore, breakout still not confirmed. Traders should understand that a confirmation of a breakout is required before executing a trade; that did not happen.

Trend remains sideways in the Bank Nifty. As of now we do not have a new pattern which suggests a new trading opportunity here. So, avoid taking positional trade in the index.

Traders can look to trade only intraday according to early morning momentum

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
HDFCBANK 1441 BUY Intermediate and Short Term Trend is up in HDFCBANK. The stock has seen an upside rally and then started trading narrow. This narrow movement suggests a big move is very near. Buy this stock above 1445. If this trade executes then place a stop just below 1430 and a target at 1475.
ABIRLANUVO 1552 BUY Intermediate and Short Term Trend is up in ABIRLANUVO. The stock has seen an upside rally and then started trading inside a range. We may see a breakout here very soon. Buy this stock above 1560. If this trade executes then place a stop just above 1540 and a target at 1600.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
HINDPETRO APR FUT BUY 542.3 CMP 535 555 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
HDFCBANK.17.03 Mar 1466.5 2.65 14.2 20504000 ONGC.17.03 Mar 183.9 -1.84 3.99 25395000
PTC.17.03 Mar 91.9 2.62 5.38 7528000 IDFCBANK.17.03 Mar 59.65 -1.65 8.06 34008000
EICHERMOT.17.03 Mar 25656.8 2.53 11.06 153325 Bharat Electronics Limit 153.5 -1.57 5.44 14040000
BHARTIARTL.17.03 Mar 351.15 2.06 6.95 16743300 COALINDIA.17.03 Mar 289.5 -1.51 0.16 9698500
CASTROLIND.17.03 Mar 429 1.6 27.39 4023600 BOSCHLTD.17.03 Mar 22598.55 -1.5 15.02 77325
                                                                           Short covering                                                                               Long Unwinding
IBREALEST.17.03 Mar 8.52 -14.9 11250000 87.25 IDEA.17.03 Mar 87.05 -2.25 -6.52 53718000
TORNTPOWER.17.03 Mar 5.82 -6.37 1455000 236.35 BHEL.17.03 Mar 164.4 -2.23 -19.65 13225000
HDIL.17.03 Mar 5.26 -8.16 12160000 82.05 IDBI.17.03 Mar 74.5 -2.04 -30.82 15280000
BATAINDIA.17.03 Mar 4.22 -7.57 1449800 569.55 JUSTDIAL.17.03 Mar 542.8 -1.99 -31.87 1174800
JETAIRWAYS.17.03 Mar 3.51 -26.06 1983000 532.3 M&MFIN.17.03 Mar 314.85 -1.98 -5.38 6817500

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
Torrent Pharma Ltd. 1497.15 2.55 215975 8949636 99.06 Nifty 50 9173.75 0.33 79995
HAVELLS INDIA LIMITED 471 2.2 2556202 19357038 96.11 Nifty Bank 21620.7 1.07 79995
IndusInd Bank Ltd. 1422.3 1.72 1430611 7916496 94.3 Nifty IT 10730.75 -0.1 79995
Biocon Limited 1139.05 -0.99 303780 2105796 86.35 INDIA VIX 12.15 0.5 79995
Kotak Mahindra Bank Limi 865.15 0.88 3534385 4088951 85.02 Nifty Energy 11377.65 0.34 79995
Sun Pharma  Ltd 687.05 -0.09 2558208 4274679 82.96 Nifty Pharma 10407.3 -0.12 79998
HCL Technologies Ltd. 875.85 -0.2 1463739 1743125 82.17 Nifty Realty 215.3 1.84 79998
Bharti Airtel Limited 351.2 1.84 3916104 7207668 81.39 Nifty Infrastructure 3082.6 0.31 79998
HDFC Ltd. 1519.95 -0.14 8057156 2911900 80.99 Nifty PSU Bank 3514.35 0.78 79998
NTPC Limited 163.1 -0.52 8013105 3058551 79.83 Nifty Auto 9860.3 0.15 79998

UPCOMING ECONOMIC DATA

                                      Domestic
•WPI Data on 14th April, 2017. (Tentative) •US Initial Jobless Claims on 13th April, 2017.

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

CORPORATE NEWS

•NBCC will help develop a social housing project and construct a new Supreme Court building in Mauritius, which together are estimated to cost USD 50 million.

•ITC is overhauling its foods portfolio to invigorate its market share in categories that have been showing signs of fatigue more than a decade after the cigarette maker challenged the dominance of most packaged food companies in the country.

•Airtel Digital TV, the DTH arm of Bharti Airtel has launched an Android-enabled set top box (STB) that will allow consumers to watch content available on Internet on television besides regular satellite channels.

Source: Economic Times, Business Standard                             .

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
BAJAJCORP Results/Dividend 13-Apr-17 PREMEXPLN Raising of Funds 14-Apr-17
VENUSREM Others 13-Apr-17 RIIL Results/Dividend 14-Apr-17
RPOWER Results 13-Apr-17 MANAKINDST Results/Dividend 14-Apr-17
JENSONICOL Others 13-Apr-17 BIL Preferential issue 14-Apr-17
INFY Results/Dividend 13-Apr-17 BEPL Results/Dividend 15-Apr-17
GUJAPOLLO Buyback 13-Apr-17 PRUDMOULI Meeting Updates 15-Apr-17
DCBBANK Results 14-Apr-17 RELINFRA Results/Dividend 15-Apr-17
SVOGL Board Meeting Adjourned 14-Apr-17 J&KBANK Raising of Funds 15-Apr-17

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
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
FOSECOIND Final Dividend – Rs. – 7.0000 20-Apr-17 GMBREW Dividend – Rs. – 3.0000 9-May-17
SANOFI Final Dividend – Rs. – 50.0000 25-Apr-17 NESTLEIND Final Dividend – Rs. – 23.0000 19-May-17
ELANTAS Dividend – Rs. – 4.5000 27-Apr-17 CASTROLIND Dividend – Rs. – 4.5000 25-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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