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

Daily share market analysis

NIFTY

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:

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.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
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.

DERIVATIVE PICKS

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
Sectors Price Change % Quantity
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

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

•IIP Data on  12th April , 2017. (Tentative)

CORPORATE NEWS

•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                             .

BOARD MEETINGS

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
MONNETISPA Appointment 30-Mar-17 LAKPRE Results 31-Mar-17
JINDALSTEL Raising of Funds 30-Mar-17 APCOTEXIND Meeting Updates 31-Mar-17
INDNIPPON Dividend 30-Mar-17 GUFICBIO Meeting Updates 3-Apr-17
CYBERMEDIA Meeting Updates 31-Mar-17 AVTNPL Others 6-Apr-17

CORPORATE ACTION

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

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

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