Markets Remain Steady With Nifty, Bank Nifty Recording Another Life Time High
MARKET OUTLOOK – 06 JUNE 2017
Markets remain steady with nifty, Bank nifty recording another life time high; narrow range in nifty suggests process of contraction may come to an end soon; expect strong, expanding price action in indices soon enough.
NIFTY: The Nifty has recorded five days of really narrow ranges. Narrow ranges usually lead to big thrusting moves, up or down. As we write this, the Nifty is at lifetime high, closing at 9675.10 with a gain of 21.60 points. Traders should wait patiently for expansion and then look to enter the market; there is no hurry here.
Traders should strive to have one view for day to day trading. Since the current intermediate trend is UP, the best way to trade the market is to remain on the buy side.
Often, intraday movements as well as very short term (few days) trend will change to down. It is best to step aside and avoid such moves. Short selling in a bull market is not a good idea. There will be severe corrections which will show themselves as intermediate down trend. Professional traders should consider some short selling in such down moves. As of now, we do not have any pattern that suggests a down trend is starting.
Our bias for the short term is choppy but with an upside direction. Short term traders should ideally stay out of this market and wait patiently for buying set ups. Intraday traders can look to buy small dips or breakout from consolidation patterns as long as Nifty stays above 9530 level.
Gains in the index were contributed mainly by Auto and Banks while Pharma and Metal drags. Market breadth was positive today with 817 rising and 647 declining shares on the NSE.
BANK NIFTY: Bank Nifty had a narrow range day but with a bullish bias; prices opened with a gap up near 23400 and made a high just below 23500. Eventually index managed to close above 23450 with a gain of 100 points.
On the daily charts, Bank Nifty is still trading inside 23000-23500 from last seven days. Moreover, index has made an ascending triangle pattern at its top. A decisive breakout from this range would be a next trading opportunity for swing traders. Trend is up and the index is trading in the upper hand of a range; so possibility of upside breakout is higher.
We are suggesting a trade for a short period of time. Traders should take long positions in the index above 23500. However, if price opens above 23500 then apply 15-min rule; your entry point would be the high made between 09:15 to 09:30 AM. If that trade executes then place your stop loss at 23250 in both the cases. Target for this trade should come at 23950.
Intraday traders can continue to initiate long positions on dips and consolidation patterns as suggested before. Avoid taking short positions.
|AJANTAPHARM||1599||SELL||Intermediate and Short Term Trend is down in AJANTPHARM. The stock has seen a decline and then saw a minor correction in a form of Bearish Flag. We may see a breakdown here. Sell this stock below 1595. If this trade executes then place a stop just above 1620 and a target at 1545.|
|MINDTREE||556||BUY||Intermediate and Short Term Trend is up in MINDTREE. The stock has seen an upside rally and then started trading very narrow. Prices have formed a pattern of Ascending Triangle and broken on upside. Buy this stock above 558. If this trade executes then place a stop just below 550 and a target at 574|
|Stock Name||Strike Price||Buy/Sell||CMP||Initiation||Stop Loss||Target||Remarks|
|HINDZINC||JUNE FUT||BUY||244.6||CMP||241||252||OI Increase|
|Long Buildup||Short Buildup|
|Stocks||Price||Price%||OI %||OI||Stocks||Price||Price%||OI %||OI|
|AUROPHARMA.17.06 Jun||582.45||13||7||18263700||BHEL.17.06 Jun||140.6||-8.88||15.17||43080000|
|JPASSOCIAT.17.06 Jun||12.2||9.91||4.85||183600000||HEXAWARE.17.06 Jun||234.05||-5.76||19.28||2970000|
|INDIACEM.17.06 Jun||206||8.91||3.19||26040000||JUBLFOOD.17.06 Jun||904.1||-3.69||37.01||2930000|
|IBREALEST.17.06 Jun||169.4||6.71||1.54||27050000||SINTEX.17.06 Jun||28.15||-3.6||6.95||15233250|
|ADANIENT.17.06 Jun||119.1||6.58||1.59||22432000||NATIONALUM.17.06 Jun||66.6||-3.41||2.56||4168000|
|Short covering||Long Unwinding|
|ADANIPORTS.17.06 Jun||3.67||-3.45||10645000||341.65||POWERGRID.17.06 Jun||204.6||-2.39||-0.07||24108000|
|EQUITAS.17.06 Jun||3.23||-1.1||7484800||154.85||INDUSINDBK.17.06 Jun||1480.2||-0.57||-0.25||5713800|
|DIVISLAB.17.06 Jun||3.01||-0.2||10490400||589.55||MOTHERSUMI.17.06 Jun||448.1||-0.41||-2.2||7877500|
|AJANTPHARM.17.06 Jun||2.57||-1.56||377600||1570||HINDUNILVR.17.06 Jun||1065.25||-0.4||-0.5||9369000|
|RPOWER.17.06 Jun||2.5||-0.14||59148000||41.05||NCC.17.06 Jun||85.1||-0.29||-1.34||18848000|
TOP DELIVERY PERCENTAGE
|Stocks||Price||%Chg||Vol||Delivery||Del %||% Change|
|Hindustan Unilever Ltd||1097.75||1.04||612171||1803842||81.39||Nifty 50||9675.1||0.22||86409|
|Ambuja Cements Ltd||240.35||-0.04||966410||1733856||80.94||Nifty Bank||23459.65||0.36||86364|
|Oracle Fin Serv Soft Ltd||3679||1.39||22779||27758||80.43||Nifty IT||10660.1||0.48||86364|
|Power Grid Corporation o||205.3||-0.39||2865347||2859517||75.72||Nifty Energy||11806.4||0.42||86364|
|TATA CONSULTANCY||2603.95||1.52||750094||511928||75.53||Nifty Pharma||9229.75||-0.27||86364|
|HCL Technologies Ltd.||858.7||0.09||1408309||839149||75.48||Nifty Realty||255.95||0.77||86364|
|HDFC Ltd.||1606.15||0.09||2988075||2572628||75.05||Nifty Infrastructure||3271.65||0.54||86364|
|ONGC||175.75||1.01||5836542||3017795||74.71||Nifty PSU Bank||3530.85||0.1||86364|
|Cholamandal Investment||1046.35||1.09||141001||88404||72.54||Nifty Auto||10967.95||0.24||86364|
UPCOMING ECONOMIC DATA
|•RBI Monetary Policy on 07th June, 2017.
•IIP & CPI Data on 12th June, 2017.
|•US Crude Oil Inventories on 07th June, 2017.
•US Initial Jobless Claims on 08th June, 2017.
|•NTPC has entered into the new business segment of setting up charging stations for electric vehicles (EVs) and has installed first such points at its offices in Delhi and Noida. The main objective in setting up EV charging points is to be part of promoting clean energy transportation.
•Andhra Bank and Allahabad Bank have put up for sale nearly Rs 6,000 crore of bad loans amid mounting pressure on state-run lenders to clean their books
• Zydus Cadila has received the US health regulator’s nod to market levofloxacin injection, used to treat bacterial infections, in the American market. The company has received final approval from the US Food and Drug Administration (USFDA) to market levofloxacin injection, 500 mg/20mL and 750mg/30 mL
Economics Times, Capitaline Database
|Company Name||Purpose||Ex-Date||Company Name||Purpose||Ex-Date|
|HINDUJAFO||Amalgamation||6-Jun-17||MUTHTFN||Bonus issue 1:10||12-Jun-17|
|IRB||Interim Dividend – Rs. – 3.0000||6-Jun-17||JSWSTEEL||Dividend – Rs. – 2.2500||12-Jun-17|
|MANINFRA||Interim Dividend – Rs. – 0.5400||7-Jun-17||WIPRO||Bonus issue 1:1||13-Jun-17|
|INDOZIN-B||Amalgamation||8-Jun-17||CHEMBOND||Dividend – Rs. – 1.6500||13-Jun-17|
|VTMLTD||Dividend – Rs. – 0.7500||8-Jun-17||KANSAINER||Dividend – Rs. – 2.5000||13-Jun-17|
|BPCL||Final Dividend – Rs. – 1.0000||8-Jun-17||TCS||Final Dividend – Rs. – 27.5000||13-Jun-17|
|TORNTPOWER||Final Dividend – Rs. – 2.2000||8-Jun-17||KANSAINER||Special Dividend – Rs. – 0.5000||13-Jun-17|
|BOSCHLTD||Final Dividend – Rs. – 90.0000||8-Jun-17||CANFINHOME||Dividend – Rs. – 10.0000||14-Jun-17|
|AUROPHARMA||Interim Dividend – Rs. – 1.2500||8-Jun-17||VISAKAIND||Dividend – Rs. – 6.0000||14-Jun-17|
|LLOYDELENG||Special Dividend – Rs. – 20.0000||8-Jun-17||MASTEK||Final Dividend – Rs. – 2.5000||14-Jun-17|
|RJL||Buy Back of Shares||9-Jun-17||CHEVIOT||Buy Back of Shares||15-Jun-17|
|KITEX||Final Dividend – Rs. – 0.7500||9-Jun-17||TTKPRESTIG||Buy Back of Shares||15-Jun-17|
|INDAG||Final Dividend – Rs. – 1.5000||9-Jun-17||CHEVIOT||Dividend – Rs. – 1.0000||15-Jun-17|
|RALLIS||Final Dividend – Rs. – 2.5000||9-Jun-17||DEEPAKNI||Dividend – Rs. – 1.2000||15-Jun-17|
|NETWORK||Reduction of Capital||9-Jun-17||VIJAYABANK||Dividend – Rs. – 1.5000||15-Jun-17|
|RALLIS||Special Dividend – Rs. – 1.2500||9-Jun-17||NITTAGELA||Dividend – Rs. – 2.5000||15-Jun-17|
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