Nifty Breaks Out From Five Days Of Narrow Movement
Market Outlook – 30 March 2017
Nifty Breaks Out From Five Days Of Narrow Movement; Bank Nifty On Lifetime High; Hold On To Long Positions In Nifty And Bank Nifty; PSU bank Out Performance Continues; Look For Buying On Dips
Nifty had a positive day in the markets; prices started with a 20- point gap up near 9130 but then traded in just 30 points till last hour. Towards the end, Nifty found buyers and took index to intraday high above 9150 and closed near to it.
We had described three scenarios in our newsletter dated 23rd March 2017. One of the scenarios was, ‘After a rally from 7900 to recent high 9200, markets may start a process of consolidation’.
Markets had seen a narrow trading from last five days that displays consolidation (after four days of down move). Now, Nifty just broke out from five days of narrow range (110 points) that suggests expansion. Though, Nifty has a strong resistance placed near 9200 which may or may not break.
Traders should be long in the Nifty as we suggested buying above 15-minutes high. Now they should hold these long positions. If index manages to cross its resistance at 9200 then it would leave prices in unchartered area. However, if nifty hails down from resistance then trailing stop will hit. This is a risk worth taking.
Bank Nifty is outperforming the major index Nifty at the moment. The Bank index breaks out from a trading range today which may lead to a rally in the Nifty also.
PSU Banking stocks continue to outperform; traders should look for a buying opportunity.
Bank Nifty has finally seen a breakout from trading range which was going on from last month. The index opened with a gap up and then traded higher slowly but steadily throughout the day. Prices made a new lifetime highs and closed just below 21400 with a gain of 170 points.
On the daily charts, prices were inside a trading range (20450-21300) and yesterday we had mentioned the possibility of a breakout from this range as prices were trading in the higher side. Bank Nifty broke out comprehensively and not only crossed 20300 but also closed above to it.
We had suggested a trade in the Bank Nifty on the long side above 21350. Prices crossed this level intraday so traders should be long there. Now, traders should hold on to these positions with a redefined stop loss of 21150.
Furthermore, traders should also consider Banking and Financial stocks for buying only on dips and consolidation breakouts.
|EXIDEIND||220||BUY||Intermediate and short term trend is up in EXIDEIND. The stock has made a pattern of bullish head & shoulder in its 60 minutes timeframe chart. Prices have seen a breakout today and closed higher. Buy this stock above 221. If this trade executes then place your stop just below 217 and a target near 229.|
|HAVELLS||463||BUY||Intermediate and short term trend is up in HAVELLS. The stock has seen an upside rally and then started trading narrow for last seven trading days. Prices have seen a breakout today from this narrow range and closed higher. Buy this stock above 464. If this trade executes then place your stop just below 458 and a target near 476.|
|Stock Name||Strike Price||Buy/Sell||CMP||Initiation||Stop Loss||Target||Remarks|
|ITC||MAR FUT||BUY||282.9||CMP||278||289||OI Increase|
|Long Buildup||Short Buildup|
|Stocks||Price||Price%||OI %||OI||Stocks||Price||Price%||OI %||OI|
|INFRATEL.17.03 Mar||337||5.89||36.05||9739200||BHARATFIN.17.03 Mar||803.45||-3.89||6.69||10942000|
|VOLTAS.17.03 Mar||414.35||5.7||12.89||5658000||HEROMOTOCO.17.03 Mar||3237||-2.96||8.3||1205200|
|RECLTD.17.03 Mar||180.75||4.6||12.79||22812000||ASHOKLEY.17.03 Mar||84.25||-2.54||0.33||59311000|
|TORNTPOWER.17.03 Mar||226.2||4.02||3.24||2487000||JUSTDIAL.17.03 Mar||557.55||-2.41||0.29||2090400|
|MOTHERSUMI.17.03 Mar||381.25||2.49||5.92||7062500||SUNPHARMA.17.03 Mar||688.5||-1.52||8.68||17014900|
|Short covering||Long Unwinding|
|PTC.17.03 Mar||2.57||-3.37||11024000||89.75||M&MFIN.17.03 Mar||321.5||-2.29||-4.81||9737500|
|APOLLOTYRE.17.03 Mar||2.55||-11.54||7518000||209.5||DISHTV.17.03 Mar||106.6||-2.25||-12.89||15897000|
|ORIENTBANK.17.03 Mar||2.35||-4.61||9798000||139.65||GRANULES.17.03 Mar||137.7||-1.96||-0.68||7260000|
|MRF.17.03 Mar||2.2||-20.34||26910||59696.85||DCBBANK.17.03 Mar||168.1||-1.67||-3.52||3451500|
|JPASSOCIAT.17.03 Mar||2.19||-10.91||98872000||14||HINDZINC.17.03 Mar||290.75||-1.36||-19.32||7228800|
TOP DELIVERY PERCENTAGE
|Stocks||Price||%Chg||Vol||Delivery||Del %||% Change|
|Torrent Pharma Ltd.||1459.95||0.99||175937||5939789||97.56||Nifty 50||9143.8||0.47||88356|
|CADILA HEALTHCARE LTD.||448.4||-1||650631||2436088||82.68||Nifty Bank||21391.15||0.78||88356|
|Larsen & Toubro Limited||1556.55||0.8||1520238||1434651||81.86||Nifty IT||10741.25||0.56||88356|
|HDFC Bank Ltd.||1428.6||0.59||2143943||1636848||81.22||INDIA VIX||12.09||-0.27||88356|
|Infosys Limited||1031.85||-0.32||3490593||1930783||80.5||Nifty Energy||11339.2||0.36||88356|
|Dabur India Ltd.||275.7||0.36||1108681||970804||79.78||Nifty Pharma||10419.5||-0.74||88359|
|Power Grid Corporation o||196.85||0.08||3628726||2649326||78.23||Nifty Infrastructure||3073.05||0.77||88359|
|Kotak Mahindra Bank Limi||857.6||-0.22||2483787||2311911||75.82||Nifty Auto||9845.75||-0.43||88359|
|HDFC Ltd.||1522.05||1.19||3595260||1684300||74.11||Nifty Metal||3071.05||0.38||88359|
|TECH MAHINDRA LIMITED||458.25||0.56||3227158||4238461||74.07||Nifty Commodities||3414.6||0.23||88359|
UPCOMING ECONOMIC DATA
|•Nikkei Manufacturing PMI on 03rd April , 2017.
•IIP Data on 12th April , 2017. (Tentative)
|•Bharti Airtel has completed sale of 11.32 per cent stake in its mobile tower arm Bharti Infratel to its wholly-owned subsidiary Nettle Infrastructure for Rs 6,806 crore
•PVR is aiming to double its revenue to around Rs 4,000 crore and screen count to 1,000 across the country in next five years.
•Tata Motors has launched its much awaited compact sedan Tigor at an introductory price of Rs 4.7 lakh to Rs 7.09 lakh ex-showroom New Delhi.
•Britannia Industries has entered into a joint venture with Greek firm Chipita SA for producing and selling ready-to-eat croissants in India.
•Lupin has launched generic Abacavir and Lamivudine tablets used for treatment of human immunodeficiency infection in the American market.
Source: Economic Times, Business Standard .
|Company Name||Purpose||Meeting Date||Company Name||Purpose||Meeting Date|
|COFFEEDAY||Issue of Securities||30-Mar-17||SUMEETINDS||Rights Issue||31-Mar-17|
|VEDL||Dividend||30-Mar-17||MIC||Allotment of Securities||31-Mar-17|
|S&SPOWER||Others||30-Mar-17||MONNETISPA||Board Meeting Postponed||31-Mar-17|
|KOTAKBANK||Raising of Funds||30-Mar-17||MOLDTKPAC||Dividend||31-Mar-17|
|JINDALSTEL||Raising of Funds||30-Mar-17||APCOTEXIND||Meeting Updates||31-Mar-17|
|Company Name||Purpose||Ex-Date||Company Name||Purpose||Ex-Date|
|MAHLIFE||Right Issue of Equity Shares||30-Mar-17||SFCL||Amalgamation||31-Mar-17|
|MPHASIS||Buy Back of Shares||30-Mar-17||TFMDUBA||Dividend On Mutual Fund||31-Mar-17|
|MUTHOOTFIN||Interim Dividend – Rs. – 6.0000||30-Mar-17||OIL||Buy Back of Shares||3-Apr-17|
|PFC||Interim Dividend – Rs. – 5.0000||30-Mar-17||CONCOR||Bonus issue 1:4||5-Apr-17|
|SHARDACROP||Interim Dividend – Rs. – 2.0000||30-Mar-17||COLPAL||Interim Dividend – Rs. – 3.0000||6-Apr-17|
|ASHARI||Bonus issue 4:1||31-Mar-17||SKFINDIA||Buy Back of Shares||6-Apr-17|
|INFRATEL||Interim Dividend – Rs. – 12.0000||31-Mar-17||AEL||Interim Dividend – Rs. – 0.1500||7-Apr-17|
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