Market Outlook – 18 September 2017

MARKETS RECOVERED FROM INTRADAY DIP; NIFTY AND BANK NIFTY CONSOLIDATING AFTER RANGE BREAKOUT; TREND REMAINS SIDEWAYS WITH A RESISTANCE OF 10140; ANY BUYING OPPORTUNITY WILL EMERGE ABOVE THIS LEVEL;

NIFTY:

Again it was a dull day for the index , nifty opened lower and went down till it found intraday support at lower level only to recover all the losses as bull regained control of the market in the second half.

Nifty started with a 25 points gap down at 10062 and went lower till 10043. It was the second session which changed the scenario in favour of the bulls that took prices to intraday high 10115. However, last half an hour decline forced index to close near yesterday’s close at 10085. Amongst the major indices, Nifty IT was the major outperformer with gain of 1% while Bank and Auto indices closed with minor losses.

On the daily charts, Nifty is trading very choppy and volatile. After broking out from a range, the Nifty has formed another range in last four days. In this period, the index has traded inside just 100 points. We can expect a big move early next week with the direction remains unknown.

Below the support appears near 10000 whereas resistance comes near 10150. Short term view is now sideways in Nifty so a move above 10140 only will be a buying opportunity in the index. For the second time, Nifty came down from resistance so possibility of a breakdown from support couldn’t be neglected.

BANK NIFTY:

Bank Nifty has again traded choppy inside a narrow range throughout the day. Prices started the session with a gap down of 40 points at 24840 and made intraday low of 24791. However, Bank Nifty regains some points in second half that helped the index to make a high at 24915.At the end, closed at 24845 with a loss of 75 points.

On the daily charts, prices are trading narrow after a range breakout. Bank Nifty has made NR7 (narrowest range week in last seven weeks) that suggest blistering move ahead. Traders went long in Bank Nifty (Future September Expiry) at 24750. Now prices are again seeking a big move after four successive narrow trading days. Therefore, traders should hold on to these long positions with even tighter stop loss of 24822.70.

Furthermore, if the index goes below 24734 intraday then swing traders should initiate short positions in this index. Nevertheless, trend remains up in the Bank Nifty therefore intraday traders should look to buy the index on dips as far as prices are above 24734.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
AMARAJABAT 773 SELL Intermediate and Short Term Trend are down in AMARAJABAT. The stock has seen a decline and then started trading narrow. Prices have formed a trading range and then broken down. Sell this stock below 772. If this trade executes then place a stop at 782 and a target at 752.
ASHOKLEY 116 BUY Intermediate and Short Term Trend are up in ASHOKLEY. The stock has seen an upside rally and then started a sharp correction. Prices are now finding support near 115. We may see an upside move here. Buy this stock above 117. If this trade executes then place a stop at 115 and a target at 122.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
BANKINDIA SEP FUT BUY 155.3 CMP 152.5 158.5-160 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI   Stocks Price Price% OI % OI
ANDHRABANK.17.09 Sep 58.8 10.73 23.18 22530000 RCOM.17.09 Sep 20.5 -5.31 1.38 113148000
SYNDIBANK.17.09 Sep 70 4.48 9.58 18117000 BHEL.17.09 Sep 132.35 -3.75 1.55 36035000
ALBK.17.09 Sep 72.8 3.41 14.62 13250000 INDIACEM.17.09 Sep 190.45 -3.15 4.13 26467000
BAJAJ-AUTO.17.09 Sep 3034 3.13 14.26 1578250 ICIL.17.09 Sep 119.6 -2.76 0.66 12316500
MFSL.17.09 Sep 617.6 2.68 17.89 5529000 HDIL.17.09 Sep 61.95 -2.59 5.67 36808000
                                                                           Short covering                                                                               Long Unwinding
ONGC.17.09 Sep 4.14 -9.73 48243750 166 Reliance Naval and Engin 58.25 -2.18 -1.21 13221000
OFSS.17.09 Sep 1.97 -4.42 61650 3542.35 PTC.17.09 Sep 122.25 -2 -1.86 15232000
PCJEWELLER.17.09 Sep 1.97 -0.78 9150000 348.7 HCC.17.09 Sep 38.1 -1.8 -6.41 26112000
OIL.17.09 Sep 1.58 -3.54 2963928 324 MARICO.17.09 Sep 327.5 -1.75 -0.84 4316000
INFIBEAM.17.09 Sep 1.58 -0.37 48968000 147.85 IFCI.17.09 Sep 23.6 -1.67 -0.03 69542000

Top Delivery Percentage

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
Britannia Ind Ltd. 4357 0.38 139797 80897 85.55   Nifty 50 10085.4 -0.01 34441335
NESTLEIND 7349.05 1.59 54195 44073 79.93 Nifty Bank 24844.3 -0.27 13973944
NTPC Limited 167.35 -0.77 5522238 4715889 77.72 Nifty IT 10599.75 0.99 1494068
HDFC Ltd. 1768.95 -0.16 4778170 2797714 77.05   INDIA VIX 11.68 1.83 2.97E+08
BHARTI INFRATEL LIMITED 374 1.07 11439738 1204050 76.64   Nifty Energy 13347 -0.13 2033794
Infosys Limited 908.25 1.78 6729730 5034797 73.51   Nifty Pharma 9338 -0.46 37179960
Hindustan Unilever Ltd 1246 -0.15 1333125 905726 73.08   Nifty Realty 286.75 -0.33 1.21E+09
Oil & Natural Gas Corp 166.75 4.64 25453536 11178237 72.72   Nifty Infrastructure 3368.9 -0.51 1.03E+08
ITC Ltd. 269.3 -0.99 13147594 5069217 71.99   Nifty PSU Bank 3278.25 -0.5 1.06E+08
TATA CONSULTANCY 2506.05 0.77 1472036 389170 71.97   Nifty Auto 10971.45 0.21 31670573

Upcoming Economic Data

                                            Domestic                                                                                                                            International
•RBI Monetary Policy on 04th October, 2017. •US Fed Interest Rate Decision on 20th September, 2017.

News Updates

•IndusInd Bank has secured up to USD 200 million (about Rs 1,282 crore) loan from multilateral lender Asian Development Bank (ADB) to serve low income women borrowers in rural areas.

•Maruti’s Japanese parent Suzuki Motor deciding to make electric cars at its factory in Gujarat for India and the world. It will also be the first commercially-available electric car for Suzuki.

• Coal import in August declined 24 per cent on a yearly basis as Indian buyers preferred not to buy any fresh fossil fuel and instead wait and watch ahead of an upcoming auction for the power sector.

•Cyient has agreed to sell its entire 49% stake in Infotech Aerospace Services to Pratt & Whitney, part of United Technologies Corporation, for $10.9 million

Source: Economics Times

Board Meetings

Company Name Purpose Date Company Name Purpose Date
PREMCO General 18-Sep-17 SDL General 22-Sep-17
RELSTRUCT General 18-Sep-17 VIDHIING Interim Dividend General 25-Sep-17
AUROCOK Quarterly Results 19-Sep-17 THEWEST General 26-Sep-17
GUJAPOLLO* General 19-Sep-17 HERITGFOOD General 27-Sep-17
ACRYSIL General 20-Sep-17 SAMTELIN General 28-Sep-17
AICHAMP General 20-Sep-17 TAHL General 28-Sep-17
GAMMONIND Audited Results 20-Sep-17 KANSAINER Quarterly Results 16-Oct-17
RUIAAQA General 20-Sep-17 AXISBANK Quarterly Results 17-Oct-17
SIPTL General 20-Sep-17 INFY Audited Results Interim Dividend General 24-Oct-17
FIBERWEB General 21-Sep-17 MAHLIFE Quarterly Results 30-Oct-17
SKCIL General 21-Sep-17 TCI Quarterly Results 2-Nov-17

Corporate Action

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
 GALLISPAT Dividend – Rs. – 0.5000 18-Sep-17 BRPL Right Issue of Equity Shares 18-Sep-17
AARTIIND Final Dividend – Rs. – 1.0000 18-Sep-17 BSL Dividend – Rs. – 1.2000 18-Sep-17
ALANKIT Final Dividend – Rs. – 0.1000 18-Sep-17 FLUIDOM Dividend – Rs. – 1.7500 18-Sep-17
ALICON Final Dividend – Rs. – 4.2500 18-Sep-17 GRAUWEIL Dividend – Rs. – 0.4000 18-Sep-17
ARROWTEX Dividend – Rs. – 1.5000 18-Sep-17 HBLPOWER Dividend – Rs. – 0.2500 18-Sep-17
BASANTGL Dividend – Rs. – 0.0500 18-Sep-17 HIGHGROUND Dividend – Rs. – 0.1000 18-Sep-17
BLISSGVS Dividend – Rs. – 0.6000 18-Sep-17 IGL Final Dividend – Rs. – 5.0000 18-Sep-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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