Mild Correction In Nifty Brings Index Below 8900; Bank, Auto Stocks Face More Declines
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.
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 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.
|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.|
|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|
|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
|•Quarterly GDP (Q4) (YoY) on 28th Feb, 2017.
•IIP Data (YoY) on 10th March, 2017.
|•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
|Company Name||Purpose||Meeting Date||Company Name||Purpose||Meeting Date|
|PENIND||Meeting Updates||28-Feb-17||RUCHIRA||Preferential issue||3-Mar-17|
|TATAMTRDVR||Meeting Updates||2-Mar-17||BRFL||Board meeting Rescheduled||6-Mar-17|
|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|
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