Market Outlook – 21 July 2017

More Volatility In Nifty; Lower Levels Continue To Attract Buyers But Sellers Step In Above 9900; Two Days Of Push Towards 9800 In Last Three Days Is Cause For Worry To Bulls; Short Term Trend Is Sideways; Avoid Trading Index.

NIFTY:

Nifty had a down day today; prices opened with a gap up of 18 points near its resistance at 9920 but then traded downwards till lunch. In after lunch session, index consolidated the early damage and closed with a loss of 26.30 points at 9873.30, near the lows, which is further a sign of weakness.

With a constant fall and close below 9900, Nifty has closed in the middle of a 150-point trading range (9780-9930). It Seems intraday price action was as bearish as it can be. The fact that it could not hold resistance makes the trading range more interesting.

Now, we are eagerly waiting to see next Markets movement. Will prices able to confirm a break below 9780 or will they bounce back? Answer to these questions lies in the future.

The Nifty short term trend is sideways. All said and done, we are probably in consolidation. We have to be patient while markets in a trading range.

Bank Nifty, on the other hand, continues to attract buyers as index managed in making fourth consecutive lifetime high. Our long positions in the index have closed as we prices with our target. Now, we may also see some consolidation in the index due to a one sided move we have witnessed in this index, thus avoid trading index and focus on outperforming Banking stocks only for some time.

BANK NIFTY:

Bank Nifty had a choppy day in the markets; prices started near the yesterdays close but staged a rally that took prices to new lifetime highs near 24300.  However, prices came back sharply and closed at 24222 with a gain of 62 points.

On the daily charts, Bank Nifty has again made new lifetime highs (fourth in a row). In the process, our long positions get closed with a gain of 290 points as prices met with our target near 24300. Now, the index has realized a rally of 1300 points in less than a month. After a run up like these, prices tend to consolidate. Thus, we may see consolidation or even a correction here.

Consequently, intraday as well as swing traders should avoid the index completely and focus should shift on outperforming stocks only.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
IBREALEST 214 BUY Intermediate and Short Term Trend is up in IBREALEST. The stock is consolidating after an upside rally. Prices have seen a breakout and closed higher. Buy this stock above 215. If this trade executes then place a stop at 213 and a target at 219.
PCJEWELLER 254 BUY Intermediate and Short Term Trend is sideways in PCJEWELLER. The stock has seen a correction and then started a process of consolidation. Prices are trading very narrow and inside a range. We may see a breakout here. Buy this stock above 255. If this trade executes then place a stop at 251 and a target at 263.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
HDFCBANK JULY FUT BUY 1712 CMP 1697 1735 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
ENGINERSIN.17.07 Jul 166 5.16 7.71 13541500 CANBK.17.07 Jul 353.8 -4.84 11.52 16086144
SREINFRA.17.07 Jul 132.8 4.4 3.85 5935000 MINDTREE.17.07 Jul 487 -4.31 6.21 4984800
IBREALEST.17.07 Jul 216 3.55 0.47 29690000 HINDPETRO.17.07 Jul 368.65 -4.31 0.35 26737200
AXISBANK.17.07 Jul 539.05 3.42 12.71 37569600 MRPL.17.07 Jul 120.1 -4.11 4.61 11236500
NBCC.17.07 Jul 217.35 2.96 7.41 4305000 CADILAHC.17.07 Jul 527.35 -3.55 3.7 3411200
                                                                           Short covering                                                                               Long Unwinding
JUSTDIAL.17.07 Jul 6.89 -15.3 4378800 381.75 BIOCON.17.07 Jul 402.85 -3.16 -10.71 7927200
SINTEX.17.07 Jul 6.81 -4.42 27901500 37.65 KPIT.17.07 Jul 130 -3.06 -3.13 4084000
FORTIS.17.07 Jul 4.46 -3.75 35361900 158.25 TATAGLOBAL.17.07 Jul 171.2 -2.56 -1.31 26842500
NMDC.17.07 Jul 2.9 -0.23 23040000 124 JSWSTEEL.17.07 Jul 214.55 -2.48 -2.1 46326000
BAJFINANCE.17.07 Jul 2.68 -1.42 3606000 1586 UJJIVAN.17.07 Jul 334.6 -2.09 -0.48 7243200

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
Godrej Cons Products Ltd 957.85 -0.11 157334 922094 91.35 Nifty 50 9873.3 -0.27 87345
Hero MotoCorp Limited 3729.9 -1.08 374090 400082 86.2 Nifty Bank 24213.35 0.25 87285
HDFC Ltd. 1651 -0.23 1042156 2367126 84.15 Nifty IT 10491.15 -0.88 87285
Mah & Mah Ltd. 1393.45 0.8 902218 1576431 83.06 INDIA VIX 11.32 0.53 94671
Petronet LNG Limited 206.2 0.07 4498838 5637034 81.64 Nifty Pharma 10140.75 -0.92 87285
Apollo Hospitals Ltd 1233.5 -1.33 211523 180919 80.73 Nifty Realty 282.05 0.27 87285
AMARA RAJA BATT LTD 833.75 -0.05 199702 486247 78.99 Nifty Infrastructure 3374.65 -0.15 87285
ADANIPORTS 380 -0.28 4490409 3705113 76.43 Nifty PSU Bank 3508.35 -1.16 87285
Kotak Mahindra Bank Limi 980 -1.43 10689537 3808209 76.31 Nifty Auto 10960.7 -0.47 87285
Power Grid Corporation o 218.7 0.02 5756608 3639298 75.92 Nifty Metal 3196.4 -0.92 87285

UPCOMING ECONOMIC DATA

                                      Domestic
•RBI Monetary Policy on 02nd August, 2017. •Fed Interest Rate Decision on 26th July, 2017.    

CORPORATE NEWS

•Merck is betting on India’s growing pharmaceutical space and steady state spending on healthcare to expand its business, even as the German life sciences and technology company’s seven-year-old joint venture with Dr Reddy’s Laboratories to develop bio similar drugs comes to an end

• ICICI Bank will be selling personal loans of up to Rs 15 lakh through its ATMs that can be availed of by select salaried customers even if they haven’t previously applied for one.  Using data from credit information companies, the lender will pre-qualify select customers for personal loans.

•Ashok Leyland has formed a strategic alliance with SUN Mobility to develop electric mobility solutions. The companies said they are looking at creating an integrated ecosystem by deploying Ashok Leyland’s electric vehicles and supporting them with smart batteries and a network of quick interchange battery stations developed by SUN Mobility.

Source: Economics Times

BOARD MEETINGS

Company Name Purpose Date Company Name Purpose Date
DHFL Results 21-Jul-17 INDIANB Results 21-Jul-17
DICIND Results 21-Jul-17 HINDDORROL Results 21-Jul-17
ASHOKLEY Results 21-Jul-17 MAFATLAFIN Results/Others 21-Jul-17
CANFINHOME Results 21-Jul-17 QUESS Results 21-Jul-17
CANFINHOME Others 21-Jul-17 ONWARDTEC Results 21-Jul-17
ATUL Results 21-Jul-17 PERSISTENT Results 21-Jul-17
BALMLAWRIE Others 21-Jul-17 MRPL Results 21-Jul-17

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
ATLANTA Dividend – Rs. – 0.3000 21-Jul-17 KIRLFER Dividend – Rs. – 1.7500 21-Jul-17
BIRLACORPN Dividend – Rs. – 6.5000 21-Jul-17 MONSANTO Final Dividend – Rs. – 15.0000 21-Jul-17
DCMSHRIRAM Dividend – Rs. – 0.8000 21-Jul-17 PEL Dividend – Rs. – 21.0000 21-Jul-17
GATI Dividend – Rs. – 0.8000 21-Jul-17 POLYCHEM Dividend – Rs. – 2.5000 21-Jul-17
GEPIL Dividend – Rs. – 3.0000 21-Jul-17 SHREECEM Final Dividend – Rs. – 24.0000 21-Jul-17
INDPRUD Dividend – Rs. – 25.0000 21-Jul-17 SMLT Dividend – Rs. – 0.5000 21-Jul-17
JENBURPH Dividend – Rs. – 8.1000 21-Jul-17 VGUARD Dividend – Rs. – 0.7000 21-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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