MARKET OUTLOOK – 28 Feb, 2017

Mild Correction In Nifty Brings Index Below 8900; Bank, Auto Stocks Face More Declines; Short Term View Changes To Sideways; Avoid Trading The Index For The Time Being; Focus On Individual Stocks.

market research analysis

NIFTY:

After three days of DOJI price actions, Nifty finally went through a decline which forced prices to close below 8900.

The Nifty paused again, giving a sense that the Market is willing to wait and consolidate before taking its next step.

The Nifty is just 200 points away from registering a life time high at 9119.20. These two hundred points have to be seen in context – The low of the recent reaction was 7893.90, with the Index moving more than 1000 points in just two months since the low point.

The context is: if the Index could move up 1000 points, making life time highs by going up another 200 points seems likely enough.

For Nifty Traders who trade in the short term, keep a stop under 8880.

Dips are buying opportunities as far as prices are trading above its support of 8800. A close below 8800 would be a sign of weakness in the index and will suggest further correction within the index.

BANK NIFTY:

Bank Nifty had a down day in the business; prices started near the yesterday’s close at 20853 which was also high of the day. Index went through initial decline and then trading in a range for few hours.

However, breakdown in the last hour took Bank Nifty today’s low at 20584. Finally, it closed near the lows at 20600 with a decline of 250 points.

On the daily charts, Bank Nifty had a strong support zone inside 20300-20450. A close below this range would be a signal of deeper correction in the index.

Traders had a long position in the Bank Nifty from 20715 and we had advised to protect them with a stop loss of 20600. Prices went below this level, so traders should be exited from long positions with a loss of 115 points.

Bank Nifty is trying to make a trading range inside 20450-21050.  We may get to see new trading opportunity beyond this range. Till then wait and watch the action from outside.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
ADANIPORTS 296 SELL Intermediate and short term trend is sideways in ADANIPORTS. The stock is consolidating at its top and now making a bearish head & shoulder. A breakdown may lead prices lower. Sell this stock below 295. If this trade executes then place your stop just above 300 and a target near 285
BAJAJFINANCE 1092 BUY Intermediate trend is up in BAJFINANCE. The stock has seen a sharp upside rally and the saw a minor correction in a shape of bullish flag. We may see a breakout here. Buy this stock above 1095. If this trade executes then place your stop just below 1075 and a target near 1135.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
JSWENERGY MAR FUT BUY 65.65 CMP 63 68 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI   Stocks Price Price% OI % OI
JPASSOCIAT.17.03 Mar 16.3 10.88 751.15 1.77E+08 HINDPETRO.17.03 Mar 540 -5.42 323.38 17799600
WOCKPHARMA.17.03 Mar 761 8.16 1055.18 4082400 COALINDIA.17.03 Mar 312.6 -4.7 58.54 10778000
JINDALSTEL.17.03 Mar 125.35 7.32 540 44640000 IDEA.17.03 Mar 114.05 -4.44 65.02 70777000
JETAIRWAYS.17.03 Mar 447.9 6.23 415.78 6081000 RECLTD.17.03 Mar 151.6 -4.26 284.7 31992000
RELIANCE.17.03 Mar 1240.55 4.91 341.15 21215000 BPCL.17.03 Mar 691.9 -3.33 370.17 10516800
                                                                           Short covering                                                                               Long Unwinding
NIFTYINFRA.17.03 Mar 4.1 -53.33 1575 2817 NIFTYCPSE.17.03 Mar 2594.9 0 -4.37 87500
NIFTYPSE.17.03 Mar 2.81 -39.29 3400 3185 NIFTYMID50.17.03 Mar 4010 -5.62 -50 200

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
Mah & Mah Ltd. 1293.85 -0.84 747562 2105076 88.56   Nifty 50 8896.7 -0.48 90081
HCL Technologies Ltd. 839.95 -0.34 1192619 2805321 82.8 Nifty Bank 20613.05 -1.26 90228
Dabur India Ltd. 272.7 1.17 2053179 2208090 80.28 Nifty IT 10706.7 0.16 90228
HDFC Ltd. 1375.7 -0.72 2822066 3261942 79.06   INDIA VIX 13.68 2.05 90081
SHRIRAM TRANS FIN CO. LT 933.55 -0.01 378742 1860315 78.54   Nifty Energy 11458.8 1.31 90228
NTPC Limited 165.4 -0.06 7375490 5221925 77.88   Nifty Pharma 10571.7 0.1 90228
IndusInd Bank Ltd. 1319.3 -1.6 1919392 2016225 77.84   Nifty Realty 194.85 0.18 90228
Power Grid Corporation o 192.75 -3.21 8324234 5843595 77.5   Nifty Infrastructure 2975.5 -1.26 90228
Grasim Ind Ltd. 1018.35 -0.64 1950222 3484322 76.97   Nifty PSU Bank 3262.45 -1.06 90228
CASTROL INDIA LTD. 415.55 -0.37 689325 1163480 76.41   Nifty Auto 9666.85 -0.97 90228

UPCOMING ECONOMIC DATA

                                      Domestic                                                                                                              
•Quarterly GDP (Q4) (YoY) on 28th Feb, 2017.

•IIP Data (YoY) on 10th March, 2017.

CORPORATE NEWS

•Steel Authority of India (SAIL)will attune its product portfolio to changing customer needs as part of an overall review of its marketing performance.

•Maruti Zydus Cadila: US health regulator has approved the group’s plans to initiate phase II clinical trials of Saroglitazar Magnesium in patients suffering from a certain liver disease.

•Piramal Enterprises (PEL) has entered into a partnership with Ivanhoé Cambridge to provide long term equity capital to residential projects across five metros in the country  Ivanhoé Cambridge, a real estate subsidiary of CDPQ (Caisse de dépôt et placement du Québec) will be allocating an initial USD 250 million for this purpose.

•Varun Beverages has hiked stake in its Zambia subsidiary, Varun Beverages (Zambia) Ltd, to 90 per cent.

Source: Economic Times, Business Standard

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
BSELINFRA Meeting Updates 28-Feb-17 HARITASEAT Dividend 3-Mar-17
PENIND Meeting Updates 28-Feb-17 RUCHIRA Preferential issue 3-Mar-17
DBL Others 28-Feb-17 RUCHIRA Preferential issue 3-Mar-17
DSSL Meeting Updates 1-Mar-17 MOTOGENFIN Others 3-Mar-17
ZYDUSWELL Dividend 1-Mar-17 DIAPOWER Appointment 4-Mar-17
PHILIPCARB Dividend 1-Mar-17 BLS Stock Split/Others 6-Mar-17
MANDHANA Results 1-Mar-17 TVSMOTOR Dividend 6-Mar-17
NATIONALUM Dividend 2-Mar-17 EMAMILTD Dividend 6-Mar-17
TATAMTRDVR Meeting Updates 2-Mar-17 BRFL Board meeting Rescheduled 6-Mar-17

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
BPCL Interim Dividend – Rs. – 19.5000 28-Feb-17 TECHNO Buy Back of Shares 2-Mar-17
HINDPETRO Interim Dividend – Rs. – 22.5000 1-Mar-17 VISHAL Right Issue of Equity Shares 2-Mar-17
MINDACORP Interim Dividend – Rs. – 0.2000 1-Mar-17 EIDPARRY Interim Dividend – Rs. – 4.0000 3-Mar-17
SUNDARMFIN Interim Dividend – Rs. – 5.0000 1-Mar-17 NAUKRI Interim Dividend – Rs. – 1.5000 3-Mar-17
AADHAARVEN Consolidation of Shares 2-Mar-17 ASHFL Bonus issue 1:1 7-Mar-17
HEXAWARE Interim Dividend – Rs. – 1.0000 2-Mar-17 CASTROLIND Special Dividend – Rs. – 2.0000 7-Mar-17
MODISNME Interim Dividend – Rs. – 1.0000 2-Mar-17 GAIL Bonus issue 1:3 9-Mar-17
ROHLTD Interim Dividend – Rs. – 1.0000 2-Mar-17 SOTL Interim Dividend – Rs. – 13.5000 9-Mar-17
SYMPHONY Interim Dividend – Rs. – 1.0000 2-Mar-17 VIAANINDUS Stock  Split From Rs.10/- to Rs.1/- 9-Mar-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


For Daily Share Market Updates, Market Research Analysis reports, Weekly Techno-Funda Report, Fundamental Analysis Report, Monthly Recommended stock Picks, Equity Trading Tips, Upcoming IPO/NFO/Bonds/Ncd’s  updates & other related information Subscribe our blog http://research.elitewealth.in

or Call us on: 011-42445800/9650901058