Market Outlook 17 Mar 2017

Life Time Highs Again, Nifty Closes Above 9100 For The First Time; Bull Market In Fine Shape, Narrow Range In Nifty Suggests Process Of Contraction May Come To An End Soon; Trend Up; Buy On Dips market research analysis report 

NIFTY:

Nifty hits fresh lifetime highs again. It started the day at 9129.65, up 47 points from previous close. Index went through a rally and then consolidated in a narrow range but it started a nice up move in last hour to touch days and life time highs at 9158 and eventually closed near the highs.

Today the nifty and bank nifty made a lifetime high. A life time high is one more milestone in an ongoing bull market. Lifetime highs have a message, which is: this is a bull market. For investors, higher levels in the nifty are just one more step in the journey of the long-term bull market.

Investors should be philosophical about the gains. Just as new highs are welcome, they also have to understand that markets will also go through deep corrections. Gains and corrections are both part of a trend; both should be accepted without much emotion.

On the daily charts, Nifty made two consecutive NR7 in a row; narrow range in the markets suggests process of contraction may come to an end soon.

For swing traders; they should wait for a dip or consolidation to re-enter into the market. Wait for it, that opportunity will come sooner rather than later.

Intraday traders can look for a buying opportunity only…

BANK NIFTY:

Bank Nifty had a narrow day in the markets; prices started with a gap up of 80 points near 21237 and made a high in opening ticks just below 21300. After that prices consolidated inside narrow range and closed at 21266 with a gain of nearly 108 points.

On the daily charts, the index has made a pattern of NR7. Prices are in a narrow range from last three days; prices found resistance near 21300 and coming down. NR7 suggests that this narrow range may see a breakout soon.

From last couple of days, the index is trading narrow with the boundaries 21000-21300. Trend is up, so we may again see a move above 21300 very soon and that would be a buying opportunity for swing traders.

However, as far as prices are trading inside this narrow range, traders should look to avoid carrying positions and trade on intraday basis only on the long side on dips and consolidation patterns.

Swing traders should wait for the close above 21300 for a buying opportunity

 TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
BEML 1332 SELL Intermediate and short term trend is up in BEML. The stock has seen an upside rally and then started consolidating. Prices are trading range bound from last one and half month. Prices are now at the verge of breakout. Buy this stock above 1335. If this trade executes then place your stop just below 1315 and a target near 1375.
CESC 842 BUY Intermediate and short term trend is up in CESC. The stock has seen an upside rally and then saw a correction. That correction seems over as prices have closes higher. Buy this stock above 845. If this trade executes then place your stop just below 830 and a target near 875.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
BEML MAR FUT BUY 1338 CMP 1320 1365 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI   Stocks Price Price% OI % OI
RELCAPITAL.17.03 Mar 609.25 9.05 20.15 12270000 MCDOWELL-N.17.03 Mar 2222.6 -2.55 2.96 3290750
PCJEWELLER.17.03 Mar 418.5 7.96 15.8 1033500 CADILAHC.17.03 Mar 443.5 -0.89 3.73 3784000
GMRINFRA.17.03 Mar 17.35 5.15 6.6 2.11E+08 CONCOR.17.03 Mar 1242 -0.79 6.82 1363500
Bharat Electronics Limit 165.2 4.92 912.78 31392000 UBL.17.03 Mar 774 -0.73 3.77 1388800
ADANIPORTS.17.03 Mar 325.5 4.68 12.89 12697500 ICIL.17.03 Mar 189.05 -0.63 1.15 4599000
                                                                           Short covering                                                                               Long Unwinding
SAIL.17.03 Mar 5.88 -6.72 47652000 63.9 NIFTYMID50.17.03 Mar 4010 -5.62 -50 200
TORNTPOWER.17.03 Mar 5.87 -5.11 5343000 203.05 SRTRANSFIN.17.03 Mar 1054 -1.43 -0.54 2663400
JINDALSTEL.17.03 Mar 4.99 -1.31 35343000 129.35 JPASSOCIAT.17.03 Mar 14.95 -0.66 -2.29 1.51E+08
JSWSTEEL.17.03 Mar 4.95 -3.77 41235000 193 CEATLTD.17.03 Mar 1254.85 -0.36 -0.36 2515800
HINDALCO.17.03 Mar 4.15 -2.27 43704500 199.7 MRF.17.03 Mar 56411 -0.21 -0.54 52260

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
IndusInd Bank Ltd. 1376.55 2.09 1144936 1632717 86.25   Nifty 50 9153.7 0.76 84339
Kirloskar Cummins Ltd. 886.95 1.7 636602 753779 85.03 Nifty Bank 21249.9 0.43 84339
Indian Oil Corp. Ltd. 376.15 1.73 3362186 3931805 81.64 Nifty IT 10822.1 1.17 84339
ITC Ltd. 268.45 0.09 8685534 11145621 79.96   Nifty Pharma 10731.2 0.56 84342
Torrent Pharma Ltd. 1372.75 1.63 100783 127406 79.6   Nifty Realty 206.45 1.25 84342
GAIL (India) Limited 378.8 0.93 4272601 3588121 77.65   Nifty Infrastructure 3103.9 1.38 84342
Hero MotoCorp Limited 3348 -1.56 745130 630655 77.49   Nifty PSU Bank 3388.2 1.1 84342
Power Grid Corporation o 195.1 1.11 2903622 3360218 76.86   Nifty Auto 10056.5 0.69 84342
Apollo Hospitals Ltd 1226.05 1.08 327363 604911 76.65   Nifty Metal 3135.55 2.92 84345
BHARTI INFRATEL LIMITED 310.5 0.52 1573157 2016109 76.36   Nifty Commodities 3451.2 1.33 84348

UPCOMING ECONOMIC DATA

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

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

•US Initial Jobless Claims on 16th March, 2017

•Existing Home Sales (Feb) on 22nd March, 2017.

CORPORATE NEWS

 

•ONGC may shift its proposed new basin to Cachar in Assam from Agartala, where initial work had already begun last year. The ONGC board is likely to take a decision on the upcoming second basin of North East in the next six months.

•Larsen & Toubro’s electrical and automation unit has bagged an order worth Rs 500 crore Qatar Rail Company (QRAIL) for Phase 1 of Doha Metro. The order will be executed by L&T Electrical & Automation FZE (LTEAFZE), the competency centre for L&T Electrical & Automation’s automation business in UAE

•Power Finance Corporation has signed a loan agreement with Maharashtra State Electricity Distribution Co (MSEDCL) for financial assistance of Rs 3,000 crore.

•Reliance Capital has announced plans to carve out retail health insurance business from its subsidiary Reliance General Insurance Company to increase its stake in India’s growing health insurance sector.

Source: Economic Times, Business Standard 

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
ABMINTLTD Bonus 17-Mar-17 AJANTPHARM Dividend 18-Mar-17
VGUARD Bonus 17-Mar-17 VENUSREM Others 18-Mar-17
SURANAT&P Issue of Securities 17-Mar-17 VENUSREM Preferential issue 18-Mar-17
MARATHON Buyback 17-Mar-17 INDIANB Raising of Funds 18-Mar-17
MANAPPURAM Others 17-Mar-17 ASAHISONG Dividend 18-Mar-17
IBVENTURES Dividend 17-Mar-17 BODALCHEM Acquisition 20-Mar-17
HOCL Others 17-Mar-17 NLCINDIA Dividend 20-Mar-17

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
SUNCLAYLTD Interim Dividend – Rs. – 16.5000 20-Mar-17 BOCINDIA Dividend – Rs. – 0.7500 7-Apr-17
CRISIL Dividend – Rs. – 9.0000 21-Mar-17 KSBPUMPS Dividend – Rs. – 5.5000 12-Apr-17
SHILPAMED Interim Dividend – Rs. – 0.6000 21-Mar-17 SANOFI Final Dividend – Rs. – 50.0000 25-Apr-17
BEARDSELL Interim Dividend – Rs. – 1.5000 22-Mar-17 MERCK Dividend – Rs. – 11.0000 27-Apr-17
PHL Interim Dividend – Rs. – 7.5000 22-Mar-17 ABB Dividend – Rs. – 4.0000 28-Apr-17
SUNTV Interim Dividend – Rs. – 5.0000 22-Mar-17 ITDCEM Dividend – Rs. – 0.3000 3-May-17
ENGINERSIN Interim Dividend – Rs. – 2.5000 23-Mar-17 VESUVIUS Dividend – Rs. – 6.5000 4-May-17
NILE Interim Dividend – Rs. – 3.0000 23-Mar-17 NESTLEIND Final Dividend – Rs. – 23.0000 19-May-17
VERONICAPRO Consolidation of Shares 23-Mar-17 CASTROLIND Dividend – Rs. – 4.5000 25-May-17
MPHASIS Buy Back of Shares 30-Mar-17

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

Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


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