Narrow Movement Continues In Market, Look For Buying Opportunity.
Market Outlook – 11 October 2017
Narrow Movement Continues In Market; Contraction In Nifty, Bank Nifty For Past Few Days Likely To End Soon; Expect Strong Momentum Move; Midcaps Outperformance Persist, Look For Buying Opportunity.
NIFTY: Nifty traded in a narrow range and made ‘Doji’ pattern for a second successive session, as investors turned indecisive at higher levels. Index continued making higher high higher low formation for a seventh session , this indicating that index is continuous trading with positive bias . On the sectorial front banks, IT and cement were the major gainer while FMCG and metals were witness of some profit booking.
After an up move we witnessed couple of days before, Nifty has made a pattern of DOJI (when the open and close are same or near) on Japanese candlestick charts for the second consecutive day. This pattern is often formed at a sustain move. Though we are in a strong uptrend and at present looking for buying opportunities, as traders we should be open to all possibilities. This means, that if the markets decide to decline, we will obey market commands and exit from long positions. Bank Nifty has also seen a narrow range day today. We may also see a decisive move in this index soon.
Traders are advised that nifty continues to hold above 10,000 level, it may attract buying action towards 10,060-10,100 range in the near term. While 9,950 will likely act as good support in near term.
BANK NIFTY: Bank Nifty had a narrow range day today where prices started with a gap up of 50 points at 24304 and made a low below 24275 initially. Then index witnessed a 110-point rally that took Bank Nifty to intraday high of 24380. There it found resistance and came down a little bit to close at 24326 with a gain of 70 points.
On the daily charts, Bank Nifty has again traded narrow and made NR7 pattern. The index has managed to close above the resistance of 24300-24350 but was not convincing. We may again see a downside shift in the Bank Nifty from resistance. Therefore, On Wednesday, if Bank Nifty shows weakness and find resistance again then swing traders should take short positions below 24135.70. As far as prices are trading above 24135.70, we assume the short term trend mildly up because prices are trading near the resistance level. Intraday traders should also look for a buying opportunity on dips as far as prices are trading above 24135.70. Any shorting opportunity will come below this level only.
|BEL||166.55||BUY||Intermediate and Short Term Trend are up in BEL. The stock has seen an upside rally and then started a process of correction. Prices have finds a support near 160 and now trading inside a range. We may see a breakout here. Buy this stock above 167. If this trade executes then place a stop at 165 and a target at 171|
|DIVISLAB||890.50||SELL||Intermediate and Short Term Trend are up in DIVISLAB. The stock has seen an upside rally and then started a process of correction. Prices have finds a support near 850 and now trading inside a range. We may see a breakout here. Buy this stock above 895. If this trade executes then place a stop at 880 and a target at 925.|
|Stock Name||Strike Price||Buy/Sell||CMP||Initiation||Stop Loss||Target||Remarks|
|HDFCBANK||OCT FUT||BUY||1800||CMP||1790||1825||OI Increase|
|Long Buildup||Short Buildup|
|Stocks||Price||Price%||OI %||OI||Stocks||Price||Price%||OI %||OI|
|BIOCON.17.10 Oct||370.35||7.88||11.73||10958400||CUMMINSIND.17.10 Oct||912.65||-0.02||16.18||598800|
|NIITTECH.17.10 Oct||605||6.38||34.9||991500||PEL.17.10 Oct||2773||-0.33||8.97||1308900|
|SUZLON.17.10 Oct||16.3||6.19||4.36||4.35E+08||VEDL.17.10 Oct||322.5||-0.86||8.87||51411500|
|BALRAMCHIN.17.10 Oct||166.45||5.58||6.39||15207500||SOUTHBANK.17.10 Oct||30.2||-6.36||8.23||1.7E+08|
|SREINFRA.17.10 Oct||113.9||5.51||4.65||9110000||KAJARIACER.17.10 Oct||725.75||-0.95||7.43||879200|
|Short covering||Long Unwinding|
|BALKRISIND.17.10 Oct||0.48||-3.42||497200||1703.45||JINDALSTEL.17.10 Oct||157.1||-1.07||-0.96||34303500|
|POWERGRID.17.10 Oct||1.46||-3.34||22204000||204.8||IDFCBANK.17.10 Oct||59.2||-1||-0.27||98640000|
|ENGINERSIN.17.10 Oct||0.84||-2.86||12243000||150.2||TITAN.17.10 Oct||616.3||-0.5||-0.88||5419500|
|ARVIND.17.10 Oct||2.53||-2.43||6518000||393||PAGEIND.17.10 Oct||18790.5||-0.37||-0.19||26800|
|Reliance Naval and Engin||1.03||-2.04||12096000||53.7||GAIL.17.10 Oct||445.75||-0.36||-0.59||16848000|
TOP DELIVERY PERCENTAGE
|Stocks||Price||%Chg||Vol||Delivery||Del %||% Change|
|Britannia Ind Ltd.||4348.6||0.09||87459||148834||80.85||Nifty 50||10016.95||0.28||84810|
|TATA CONSULTANCY||2459.25||0.21||611005||714603||80.58||Nifty Bank||24347.45||0.39||84810|
|Power Grid Corporation o||204.75||1.89||8190135||9510410||78.84||INDIA VIX||11.11||-2.44||84810|
|ICICI BANK LTD.||269.8||-0.72||18594444||15582800||76.09||Nifty Pharma||9530.3||0.26||84810|
|HDFC Ltd.||1744.75||-0.28||1956024||1141221||75.44||Nifty Realty||282.5||-0.86||84810|
|Hero MotoCorp Limited||3695.25||0.51||367529||314093||74.12||Nifty Infrastructure||3278.35||0.69||84810|
|Hindustan Unilever Ltd||1209.2||-0.91||802675||525677||72.93||Nifty PSU Bank||3104.2||0.11||84810|
|Kotak Mahindra Bank Limi||1055.65||0.54||1602617||1121171||72.51||Nifty Auto||11029.85||0.22||84810|
|Petronet LNG Limited||245.7||1.87||5950384||1648273||71.41||Nifty Metal||3721.55||0.1||84810|
|ITC Ltd.||266.2||-0.67||5472538||4303630||70.68||Nifty Commodities||3896.15||0.29||84807|
UPCOMING ECONOMIC DATA
|•CPI (YoY) on 12th October, 2017
•WPI Inflation (YoY) on 16th October, 2017
|•Housing Starts on (MoM) (Sep) on 18th October, 2017
•Manufacturing PMI (Oct) on 24th October, 2017
•Service PMI on 24th October, 2017
|•Rajeev Gopalkrishnan said goods and services tax (GST) will help company save some costs in the long-term. Overall, GST has been neutral for the company so far. On business front, he said same-store-sales growth maintained at 6 percent so far. However, saw lower same-store-sales growth in July and August. He said revenue of USD 1 billion is achievable in next five-six years. According to him, premium products contribute close to 30 percent to sales and it should increase to 50 percent by end FY18.
•Larsen and Toubro Ltd (L&T) has won a Rs1361 crore contract to supply 5 million smart electricity meters, according to state-owned Energy Efficiency Services Ltd (EESL), which is procuring the devices. The contract to supply smart electricity meters at Rs2,722 a piece, the lowest bid, is about 40-50% lower than the current market rate, said EESL.
• South Indian Bank Ltd on Tuesday reported 96% decline in its September quarter net profit due to higher provisions. Net profit for the quarter stood at Rs4.32 crore against Rs110.52 crore a year ago. Provisions and contingencies surged over 253% to Rs453.68 crore from Rs128.33 crore a year ago. On quarter-on-quarter basis, it jumped over 102% from Rs2,898.22 crore.
Source: Economics Times
|Company Name||Purpose||Ex-Date||Company Name||Purpose||Ex-Date|
|GOACARBON||Results/Others||11-Oct-17||PEL||Raising of Funds||12-Oct-17|
|SAKUMA||Issue of Securities||11-Oct-17||RIIL||Results||12-Oct-17|
|Company Name||Purpose||Ex-Date||Company Name||Purpose||Ex-Date|
|ALEXANDER||Bonus issue 1:5||11-Oct-17||IIFL||Spin Off||17-Oct-17|
|KPL||Bonus issue 1:1||11-Oct-17||IPRU2182||Redemption of Mutual Fund||17-Oct-17|
|AREYDRG||Stock Split From Rs.10/- to Rs.1/-||12-Oct-17||IPRU8382||Redemption of Mutual Fund||17-Oct-17|
|CANFINHOME||Stock Split From Rs.10/- to Rs.2/-||12-Oct-17||VIDHIING||Interim Dividend – Rs. – 0.2000||17-Oct-17|
|KALLAM||Bonus issue 1:4||12-Oct-17||MONEYMAST||Dividend – Rs. – 0.0100||18-Oct-17|
|KARURVYSYA||Right Issue of Equity Shares||12-Oct-17||POKARNA||Stock Split From Rs.10/- to Rs.2/-||18-Oct-17|
|TALBROSENG||Bonus issue 1:1||12-Oct-17||BLCISER||Consolidation of Shares||23-Oct-17|
|DWEKAM||Consolidation of Shares||16-Oct-17||SIYSIL||Stock Split From Rs.10/- to Rs.2/-||25-Oct-17|
|HIRECT||Right Issue of Equity Shares||17-Oct-17||INFY||Buy Back of Shares||31-Oct-17|
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