Nifty Crosses 9250 For The First Time; All Eyes On RBI Policy Tomorrow
Market Outlook – 06 April 2017
Lifetime Highs Again, Bull Market in Fine Shape, Nifty Crosses 9250 For The First Time; All Eyes On RBI Policy Tomorrow; May See Intraday Volatility; Markets Likely To Enter Consolidation Phase Soon.
It’s normal for the markets to trade in narrow ranges after big moves like the one we witnessed lately. Nifty has made a pattern of DOJI (when the open and close are same or near) on Japanese candlestick charts. This pattern is often formed at market tops. Though we are in a strong uptrend and at present looking for buying opportunities only, as traders we should be open to all possibilities. This means, that if the markets decide to decline, we will obey market commands. Again to be clear there is no short trade in Nifty for swing traders as of now.
On the daily charts, Nifty has witnessed sixth back to back higher closing. There is no argument against momentum that the up move is getting extended as we have seen such phases many times earlier too.
But then we should also be extra cautious as euphoria’s are built from situation like this. All markets retrace and correct but when, is the million dollar question the answer of which nobody knows. For those already long, the best way to ride this bull phase is continually trailing your stops as the market goes higher and let the market decide where it wants you to get out. Although, we had already advised our readers taking profits from their long positions.
Our view is to expect narrow movements, as markets begin a process of consolidation.
Swing trades should be kept to the minimum, if at all. The markets are not going anywhere. Let us be patient, allow markets to catch their breath.
Bank Nifty had a narrow day today but with a bullish bias. Index started well with a gap up above 21600 but went through a dip which took prices to intraday low below 21550. Prices found support there and rallied taking index to intraday high near 21700. However, last hour decline (may be due to profit booking) pushed prices lower to close at 21613 with a gain of 115 points.
On the daily charts, prices are trading narrow from last couple of days that may lead to expansion soon. Uptrend persists in Bank Nifty, so we may see expansion on the upside. Traders were carrying long positions in the Index from 21350 when prices broke out from a trading range. We had advised our readers taking profits from these positions at 09:20.
Bank Nifty was located at 21534 at 09:20 so we took an exit there with a gain of 185 points. Now, we may see consolidation in the index; hence wait for next trading opportunity.
Besides this, PSU Banking stocks like PNB, SBIN and Financial stocks like RECLTD, HDFCBANK are in a strong uptrend. Traders can also look for a buying opportunity in these stocks on dips and consolidations.
|BHEL||171||BUY||Intermediate and Short Term Trend is up in BHEL. The stock has seen an upside rally and then started trading range bound. Prices are now at the verge of breakout. Buy this stock above 172. If this trade executes then place a stop just below 169 and a target at 178.|
|HINDALCO||198||BUY||Intermediate and Short Term Trend is up in HINDALCO. The stock has seen an upside rally and then started a process of consolidation. Prices are now at the verge of breakout from an Ascending Triangle. Buy this stock above 199. If this trade executes then place a stop just below 196 and a target at 205.|
|Stock Name||Strike Price||Buy/Sell||CMP||Initiation||Stop Loss||Target||Remarks|
|ZEEL||APR FUT||BUY||543.5||CMP||539||552||OI Increase|
|Long Buildup||Short Buildup|
|Stocks||Price||Price%||OI %||OI||Stocks||Price||Price%||OI %||OI|
|TITAN.17.04 Apr||493.1||6.79||21.98||6094500||BHARATFIN.17.04 Apr||801.4||-2.53||10.09||20411000|
|PVR.17.04 Apr||1536||6.29||200||180000||HDFC.17.04 Apr||1498.5||-2.45||7.3||10169000|
|DALMIABHA.17.04 Apr||2098||5.99||50.6||150000||JETAIRWAYS.17.04 Apr||524.3||-1.9||0.94||5663000|
|MFSL.17.04 Apr||598.85||4.94||102.19||2586000||HCLTECH.17.04 Apr||851||-1.79||3.49||8732500|
|RCOM.17.04 Apr||40.95||4.6||3.1||93264000||UJJIVAN.17.04 Apr||408.25||-1.78||31||3848400|
|Short covering||Long Unwinding|
|JISLJALEQS.17.04 Apr||3.16||-1.4||40590000||102.95||TORNTPHARM.17.04 Apr||1482.1||-1.43||-3.04||242800|
|ZEEL.17.04 Apr||2.56||-1.71||7494500||544.85||IBULHSGFIN.17.04 Apr||987.5||-1.35||-1.02||19699200|
|GLENMARK.17.04 Apr||1.91||-1.25||3870300||878.7||INFIBEAM.17.04 Apr||939||-1.15||-2.36||1504400|
|GRASIM.17.04 Apr||1.61||-0.75||6213750||1073||CASTROLIND.17.04 Apr||430.2||-0.77||-0.28||8456000|
|JINDALSTEL.17.04 Apr||1.17||-0.89||36180000||125.3||BEML.17.04 Apr||1368.2||-0.47||-0.46||2330400|
TOP DELIVERY PERCENTAGE
|Stocks||Price||%Chg||Vol||Delivery||Del %||% Change|
|Colgate Palmolive (India||1002.7||-0.39||615910||507067||87.43||Nifty 50||9265.15||0.3||87057|
|Power Grid Corporation o||195||-0.61||3972362||4783067||85.5||Nifty Bank||21652.7||0.49||87006|
|Container Corp of India||1012.8||0.16||1486402||743527||77.47||Nifty IT||10510.3||-0.77||87006|
|Pidilite Industries Ltd||713.95||1.56||754076||271318||77.12||INDIA VIX||11.55||0.52||97320|
|Glenmark Pharma Ltd||877.35||2.29||1001596||517846||76.2||Nifty Energy||11979.3||1.35||87006|
|GAIL (India) Limited||382.4||-0.61||2583642||3519682||75.63||Nifty Pharma||10541.15||0.36||87006|
|MAX FINANCIAL SERVICES L||595.55||4.91||2653585||592588||75.37||Nifty Realty||225.9||3.1||87006|
|Rural Electrification Co||184.45||2.59||4787529||3893957||75.31||Nifty Infrastructure||3195.5||1.53||87006|
|Apollo Hospitals Ltd||1159.85||-1.1||570139||344477||73.79||Nifty Auto||10033.55||1.13||87006|
|Lupin Limited||1454.95||1.42||614057||700529||72.33||Nifty Metal||3137.25||1.02||87006|
UPCOMING ECONOMIC DATA
|•RBI Monetary Policy on 06th April, 2017.
•IIP Data on 12th April , 2017. (Tentative)
|•Adani’s Carmichael coal and mine project in Australia has received approval for a water licence from Queensland state government, a “milestone” in the approval process for the 21.7 billion dollar project.
•NIIT Technologies has received a part payment of Rs 41.9 crore under a settlement agreement for a government contract.
•Aditya Birla Group has received licence from the Reserve Bank of India to start payments bank. the group’s outfit Aditya Birla Nuvo had set up a 51:49 joint venture — Aditya Birla Idea Payments Bank Ltd — with telecom major Idea Cellular to launch payments bank services in the country.
Source: Economic Times, Business Standard .
|Company Name||Purpose||Meeting Date||Company Name||Purpose||Meeting Date|
|SHALPAINTS||Raising of Funds||7-Apr-17||BEPL||Results/Dividend||15-Apr-17|
|RELCAPITAL||Issue of Securities||7-Apr-17||GEMINI||Results||15-Apr-17|
|Company Name||Purpose||Ex-Date||Company Name||Purpose||Ex-Date|
|COLPAL||Interim Dividend – Rs. – 3.0000||6-Apr-17||VEDL||Interim Dividend – Rs. – 17.7000||11-Apr-17|
|SKFINDIA||Buy Back of Shares||6-Apr-17||FAGBEARING||Dividend – Rs. – 12.0000||12-Apr-17|
|AEL||Interim Dividend – Rs. – 0.1500||7-Apr-17||KSBPUMPS||Dividend – Rs. – 5.5000||12-Apr-17|
|BOCINDIA||Dividend – Rs. – 0.7500||7-Apr-17||SANOFI||Final Dividend – Rs. – 50.0000||25-Apr-17|
|MINDTREE||Interim Dividend – Rs. – 2.0000||7-Apr-17||MERCK||Dividend – Rs. – 11.0000||27-Apr-17|
|MOLDTKPAC||Interim Dividend – Rs. – 2.0000||10-Apr-17||ABB||Dividend – Rs. – 4.0000||28-Apr-17|
|VYAPAR||Buy Back of Shares||10-Apr-17||ITDCEM||Dividend – Rs. – 0.3000||3-May-17|
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