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.

 

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
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.

DERIVATIVE PICKS

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
Sectors Price Change % Quantity
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

                                          Domestic                                                                                                                       International
•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

               

CORPORATE NEWS

•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

BOARD MEETINGS

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
GOACARBON Results/Others 11-Oct-17 PEL Raising of Funds 12-Oct-17
TV18BRDCST Results 11-Oct-17 MANAPPURAM Others 12-Oct-17
SAKUMA Issue of Securities 11-Oct-17 RIIL Results 12-Oct-17
PSPPROJECT Others 11-Oct-17 INDUSINDBK Results 12-Oct-17
NETWORK18 Results 11-Oct-17 FCSSOFT Meeting Updates 12-Oct-17
LAKSHVILAS Results 11-Oct-17 CYIENT Results/Dividend 12-Oct-17
BAJAJCORP Results 12-Oct-17 CLEDUCATE Others 13-Oct-17
TFL Others 12-Oct-17 RELIANCE Results 13-Oct-17
TCS Results/Dividend 12-Oct-17 RNAVAL Results 13-Oct-17

CORPORATE ACTION

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

 DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

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