MARKET OUTLOOK – 20th June, 2017

Nifty Bounce Back From Support; Trading Range 9570 – 9690 Continues, Avoid Index Till The Confirm Breakout, Focus On Individual Stocks; Banks Are Outperforming While Pharma Under performance Persist;

research updates 20 June 2017

NIFTY: Nifty registered a bullish day today as prices started the session with a gap up of 40 points near 9627 and intraday rally took prices to 9675 level as well. Final closing of the index was in the upper end of today’s trading range (60 points) at 9654.15 with a gain of 80 points.

On the daily charts, it does appear that 9570 level is a strong support zone for the Nifty as prices crossed down this level but came back in a trading range sharply. Now, it is moving towards resistance level of 9690. So, if prices able to cross this level decisively then traders will get a nice buying opportunity in the index.

However, as far as prices are trading inside this range, traders are advised not to take any trade as they may witness choppiness within a trading range. After today’s rally, the Nifty could go into a huddle and move sideways, again going below 9600 and of course, going higher also. Thus, wait for the sustain breakout then enter new positions.

Bank Nifty, on the other hand, breaks out generously above 23700 and made new lifetime high above 23800; this is one of the reasons that lift the market up. Traders should look for a buying opportunity on dips and consolidations. Nifty Metals were one of the outperformers in today’s trade with Banks, while Nifty Realty and Nifty Pharma drag market down.

BANK NIFTY:

Bank Nifty started the session with a gap up of 75 points near 23570. After trading steadily, prices staged a smart rally in the later half that helped bank Nifty making a lifetime high above 23800. Eventually, index closed near 23700 (due to profit bookings in the last half an hour) with a gain of more than 200 points.

On the daily charts, index was in a trading range 23100-23700 but prices broke this range on the upside. However, traders should remain patient as we need a follow through to confirm the breakout.

That is because, index failed to capitalize the gains when it previously broke out above 23700. Therefore, traders should wait for another close above 23700 for the breakout confirmation.

Additionally, Nifty is still trading in a range that also affects the overall market trend. Hence, positional traders should avoid taking positions in the Bank Nifty till we see a sustain move. Though, intraday traders can look to trade in the index only on the long side on dips and consolidation patterns. Avoid taking short position.

 

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
HEROMOTO 3830 BUY Intermediate and Short Term Trend is up in HEROMOTOCO. The stock has seen an upside rally and then a minor correction in a shape of bullish flag. Prices have seen a breakout and closed higher. We may see an upside rally here. Buy this stock above 3835. If this trade executes then place a stop just below 3790 and a target at 3930.
M&MFIN 350 BUY Intermediate and Short Term Trend is sideways in M&MFIN. The stock has seen an upside rally and then a deep and sharp correction. Prices are now finding support near 345. We may see an upside rally here. Buy this stock above 352. If this trade executes then place a stop just below 347 and a target at 362.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
TATAELXSI JUNE FUT BUY 1623 CMP 1505 1650-1675 OI Increase

Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
BALKRISIND.17.06 Jun 1619 4.79 0.1 400000 WOCKPHARMA.17.06 Jun 587 -7.45 26.09 4314600
TATAELXSI.17.06 Jun 1623.5 4.65 25.86 1440800 IDBI.17.06 Jun 57.25 -3.21 6.02 41112000
VGUARD.17.06 Jun 189 4.07 7.55 3591000 MUTHOOTFIN.17.06 Jun 461.4 -2.69 0.74 1633500
MOTHERSUMI.17.06 Jun 492.25 3.39 4.66 7862500 DISHTV.17.06 Jun 77.75 -2.69 10.5 28434000
TATASTEEL.17.06 Jun 520.75 3.32 4.34 31392000 HDIL.17.06 Jun 90 -2.33 29.97 31640000
                                                                           Short covering                                                                               Long Unwinding
HINDZINC.17.06 Jun 2.26 -0.03 20489600 247 VOLTAS.17.06 Jun 474.7 -3.19 -0.03 6188000
CGPOWER.17.06 Jun 1.98 -1.24 19080000 85.1 KSCL.17.06 Jun 640 -3.18 -1.21 3315000
ALBK.17.06 Jun 1.57 -6.77 24110000 71.05 JPASSOCIAT.17.06 Jun 14.6 -2.34 -2.04 1.8E+08
LT.17.06 Jun 1.56 -0.4 6838500 1761.75 BIOCON.17.06 Jun 331.05 -2.1 -0.83 11667600
CUMMINSIND.17.06 Jun 1.32 -0.51 579600 934.5 CAPF.17.06 Jun 711.55 -1.31 -0.09 3564800

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
Oracle Fin Serv Soft Ltd 3660.9 -1.13 9980 118687 88.18 Nifty 50 9657.55 0.72 82797
Kirloskar Cummins Ltd. 932.2 1.3 263812 323239 83.82 Nifty Bank 23742.15 1.02 82797
Kotak Mahindra Bank Limi 987.55 0.5 917933 3516924 83.79 Nifty IT 10197.9 0.08 82797
Bharti Airtel Limited 367.5 0.73 1701672 3690747 82.53 INDIA VIX 10.63 -2.68 82797
IndusInd Bank Ltd. 1511.35 0.83 692751 1099235 79.94 Nifty Pharma 9489.2 -0.38 82797
Mah & Mah Ltd. 1388.25 0.07 1112550 1308289 79.27 Nifty Realty 270.1 -0.31 82797
ICICI BANK LTD. 320.6 1.3 9745281 16608502 78.65 Nifty Infrastructure 3239.65 0.99 82797
Bajaj Auto Limited 2827.75 0.64 500836 164274 78.41 Nifty PSU Bank 3486.75 0.67 82797
Infosys Limited 929.85 -1.11 3427930 4241070 77.47 Nifty Auto 10893.3 0.22 82797
HCL Technologies Ltd. 842.5 0.42 845428 1470047 76.87 Nifty Metal 2982.4 1.75 82797

UPCOMING ECONOMIC DATA

                                      Domestic
•Nikkei Manufacturing PMI on 03rd July, 2017.

•Nikkei Service PMI on 05th July, 2017.

•US Existing Home Sales (May) on 21st June, 2017.

CORPORATE NEWS

•Tata Elxsi announced its association with Airtel as technology partner for system integration for Airtel’s Internet TV. Tata Elxsi developed and integrated key software components to ensure that the Android TV application suite provides a seamless user experience whether the viewer accesses online or offline content. This includes the OTA (Over the Air) upgrade module, a smart UI, customized Android TV launcher and software optimizations to future-proof the service.

•The Vedanta group and Jharkhand Mineral Development Corporation (JSMDC) would jointly set up the plant, Rs 700 crore of the total MoU signed with prospective investors have already been implemented on the ground and project proposals worth Rs 15 to 16,000 crore will be effective in July.

• RPP Infra Projects has bagged an order worth Rs 51.2 cr from Tamil Nadu Civil Supplies Corporation (TNCSC).

Source: Economics Times

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
ICICIBANK Bonus issue 1:10 20-Jun-17 MUNJALAU Final Dividend – Rs. – 2.0000 22-Jun-17
ICICIBANK Dividend – Rs. – 2.5000 20-Jun-17 PTL Dividend – Rs. – 1.2500 22-Jun-17
GHCL Final Dividend – Rs. – 3.5000 21-Jun-17 SHRIRAMCIT Final Dividend – Rs. – 10.0000 22-Jun-17
HAVELLS Final Dividend – Rs. – 3.5000 21-Jun-17 SMSPHARMA Spin Off 22-Jun-17
PCJEWELLER Dividend – Rs. – 1.0000 21-Jun-17 TVSELECT Dividend – Rs. – 0.5000 22-Jun-17
SRTRANSFIN Final Dividend – Rs. – 6.0000 21-Jun-17 UPL Dividend – Rs. – 7.0000 22-Jun-17
SUPREMEIND Final Dividend – Rs. – 7.0000 21-Jun-17 VOITHPAPR Dividend – Rs. – 4.0000 22-Jun-17
SUPREMEIND Special Dividend – Rs. – 5.0000 21-Jun-17 WELSPUNGUJR Dividend – Rs. – 0.5000 22-Jun-17
UNIMOVR Reduction of Capital 21-Jun-17 WELSPUNIND Final Dividend – Rs. – 0.6500 22-Jun-17
VIRAT Final Dividend – Rs. – 2.5000 21-Jun-17 STEELCAS Dividend – Rs. – 0.6000 23-Jun-17
ARCOTECH Stock  Split From Rs.10/- to Rs.2/- 22-Jun-17 APOLLOTYRE Dividend – Rs. – 3.0000 27-Jun-17
BANKBARODA Dividend – Rs. – 1.2000 22-Jun-17 FCH Final Dividend – Rs. – 2.6000 27-Jun-17
GOACARBON Final Dividend – Rs. – 3.0000 22-Jun-17 ELNET Dividend – Rs. – 1.4000 28-Jun-17
GODREJCP Bonus issue 1:1 22-Jun-17 INDIANHUME Final Dividend – Rs. – 2.4000 28-Jun-17
HINDUNILVR Final Dividend – Rs. – 10.0000 22-Jun-17 CENTUM Final Dividend – Rs. – 3.0000 29-Jun-17
KITEX Bonus issue 2:5 22-Jun-17 EASTRED Final Dividend – Rs. – 0.5000 29-Jun-17

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

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