Market Outlook – 17 July 2017

Markets Traded Choppy After Making Fresh Lifetime High; It Remains Subdued With Minor Losses While Bank Nifty Shines; Short As Well As Primary Trend Remains Up; But May See Consolidation; Look For A Buying Opportunity In Individual Stocks.

NIFTY:

Nifty had a choppy day but with some bullish bias due to recovery recorded in the index after initial dip. After an early dip that pushed index to intraday low near 9850, prices bounced back sharply that helped Nifty to close near the yesterday’s close at 9886.35. Earlier, Nifty opened at fresh highs above 9900 but struggled to cross day’s high.

WHAT LIES AHEAD: In India, the bull market is still in progress. There will be periods of deep correction / consolidation as the bull market moves ahead. These dips should be treated as buying opportunities for blue chip stocks. We cannot predict when and at what levels the bull market will terminate. We do not need to do so.

We understand that bull markets can far exceed initial expectations. So, we go with the flow, stay on the buy side.

The short term trend remains up. If you want to take long positions, do so but on sharp dip, just exit if Nifty falls below 9800. Longs can further be accumulated if Nifty clears and sustains above 9950 level with the same stop at 9800. Nifty is currently in uncharted territory so there are no set targets and as we have been doing so far just trail your profits above those levels with appropriate stops).

BANK NIFTY:

Due to recovery in the second half, bank nifty manages to close near lifetime highs. Index started the session with a gap up of 85 points at 23950 but saw a dip that took prices to intraday low near 23750. However, index bounced back sharply and made intraday high in last few minutes of trading at 23963.65. Bank Nifty closes near the high at 23943.20 with a gain of 78 points.

On the daily charts, Bank Nifty was in a trading range (23100-23800) from the month of May. Yesterday, prices broke out from range but eventually closed near its resistance; so breakout was not confirmed yesterday. Today, index sustain above its resistance for second consecutive day. So, trading range breakout is now confirmed in Bank Nifty. We were waiting for a decisive breakout in Bank Nifty for a buying opportunity.

Therefore, swing traders should look to buy the index above today’s high i.e. 23965. However, if price opens above this level then apply 15-min Rule.

The idea is to wait for first 15 minutes to be over. Your entry point will be the high made between 09:15 to 09:30 AM. If prices cross 15-minutes high, then take a long trade. Your stop will be same in both the cases at 23750.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
CADILAHC 533 BUY Intermediate and Short Term Trend is up in CADILAHC. The stock has seen an upside rally and then started a process of correction. Prices have formed a trading range and broken above to it. Buy this stock above 535. If this trade executes then place a stop at 530 and a target at 545
SREINFRA 114 BUY Intermediate and Short Term Trend is up in SREINFRA. The stock has seen an upside rally and then started trading inside a range. We may see a breakout here. Buy this stock above 115. If this trade executes then place a stop at 113 and a target at 119.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
INDIAN BANK JUNE FUT BUY 317.6 CMP 308 330-340 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
AUROPHARMA.17.07 Jul 747.05 5.55 0.37 12724000 NATIONALUM.17.07 Jul 70.2 -3.77 15.24 9072000
JUBLFOOD.17.07 Jul 1170.2 4.73 3.24 2646000 JUSTDIAL.17.07 Jul 359 -2.35 5.72 4950000
STAR.17.07 Jul 1050 4.3 2.36 2251000 ICIL.17.07 Jul 164.8 -2.17 0.55 8928500
CESC.17.07 Jul 908.65 4.25 4.75 6743000 IOC.17.07 Jul 374.65 -2.05 2.49 26571000
ACC.17.07 Jul 1747.6 3.12 2.04 1682400 RAYMOND.17.07 Jul 795.3 -1.78 5.45 1872800
                                                                           Short covering                                                                               Long Unwinding
BIOCON.17.07 Jul 8.59 -6.51 11552400 398.65 SINTEX.17.07 Jul 32.95 -3.65 -2.73 24638250
GAIL.17.07 Jul 4.68 -1.54 10596000 390.2 JPASSOCIAT.17.07 Jul 20.8 -2.35 -1.12 1.56E+08
INDIANB.17.07 Jul 4.11 -0.12 3226000 317.6 ADANIPOWER.17.07 Jul 29.85 -1.81 -0.55 1.2E+08
HINDPETRO.17.07 Jul 3.82 -0.67 27661725 389 IBREALEST.17.07 Jul 197.55 -1.54 -2.31 30080000
MFSL.17.07 Jul 2.74 -3.5 4819000 600.95 WIPRO.17.07 Jul 260.25 -1.36 -0.3 25358400

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
KAJARIA CERAMICS LTD 679.6 0.66 129482 392570 89.51 Nifty 50 9886.35 -0.05 27801990
Axis Bank Limited 512.95 0.21 3160157 19190329 86.32 Nifty Bank 23937.7 0.21 11493433
Bajaj Auto Limited 2809.8 0.72 150816 249264 82.03 Nifty IT 10330.65 -1.05 1890450
Kotak Mahindra Bank Limi 977.2 1.57 3771140 2249748 80.72 INDIA VIX 11.17 -0.71 2.44E+08
Hero MotoCorp Limited 3758.05 0.19 187230 304453 79.13 Nifty Pharma 9958.25 0.84 27655469
Mah & Mah Ltd. 1375.55 0.38 653673 604713 76.08 Nifty Realty 276.3 -0.72 9.92E+08
ICICI PRUDENTIAL LIFE IN 484.35 -0.39 309227 918938 75.85 Nifty Infrastructure 3338.8 0.3 82376658
HDFC Ltd. 1647.7 -0.56 1214121 2048254 75.06 Nifty PSU Bank 3519.9 0.96 78263140
Lupin Limited 1139.15 -0.25 855906 933108 74.66 Nifty Auto 10892.25 -0.41 25192082
Sun Pharma  Ltd 572.55 0.57 3111057 3215026 73.66 Nifty Metal 3140.05 -0.42 87338013

UPCOMING ECONOMIC DATA               

                                      Domestic
•RBI Monetary Policy on 02nd August, 2017. •US Crude Oil Inventories on 19th July, 2017.

•Initial Jobless Claims on 20th July, 2017.

•Fed Interest Rate Decision on 26th July, 2017.

CORPORATE NEWS

•Maruti Suzuki has roped in IBSFINtech India, an expert in currency and securities management, to automate its entire treasury operations to protect itself from currency and market volatility, and eliminate errors.

•Inox Wind is headed for insolvency after the National Company Law Tribunal’s (NCLT) Chandigarh bench ordered the commencement of the process in response to an operational creditor’s plea, in the first such case in the renewable energy sector.

•The Competition Commission today ordered a fresh investigation against state-owned GAILBSE 4.85 % (India) for alleged abuse of dominant position with regard to supply of natural gas.

Source: Economics Times

BOARD MEETINGS

Company Name Purpose Date Company Name Purpose Date
AIFL Meeting Updates 17-Jul-17 IMFA Results 17-Jul-17
SILINV Results 17-Jul-17 HMVL Results 17-Jul-17
SHARDAMOTR Results 17-Jul-17 CGCL Results 17-Jul-17
PRAKASH Results 17-Jul-17 ANIKINDS Meeting Updates 17-Jul-17
LINDEINDIA Results 17-Jul-17 ANGIND Results/Others 17-Jul-17
JUBLFOOD Results 17-Jul-17 ACC Results/Dividend 17-Jul-17
JUBILANT Results 17-Jul-17 CRISIL Results/Dividend 18-Jul-17

CORPORATE ACTION 

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
ASTEC Final Dividend – Rs. – 1.5000 17-Jul-17 GRINDWELL Dividend – Rs. – 4.0000 17-Jul-17
ATFL Dividend – Rs. – 2.0000 17-Jul-17 INTELLECT Right Issue of Equity Shares 17-Jul-17
BIMETAL Dividend – Rs. – 7.5000 17-Jul-17 KALYANIFRG Dividend – Rs. – 3.0000 17-Jul-17
DLINK Dividend – Rs. – 2.0000 17-Jul-17 ORICON Dividend – Rs. – 0.4600 17-Jul-17
DRREDDY Dividend – Rs. – 20.0000 17-Jul-17 PVR Final Dividend – Rs. – 2.0000 17-Jul-17
EVERESTIND Dividend – Rs. – 1.0000 17-Jul-17 SHANKARA Dividend – Rs. – 2.7500 17-Jul-17
GET&D Dividend – Rs. – 1.8000 17-Jul-17 ALFREDHE Dividend – Rs. – 2.0000 18-Jul-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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