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.

NIFTY

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:

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.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
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.

DERIVATIVE PICKS

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
Sectors Price Change % Quantity
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

                                      Domestic
•RBI Monetary Policy on 06th April, 2017.

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

CORPORATE NEWS

•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                             .

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
PRIMESECU Results 6-Apr-17 IBVENTURES Others 7-Apr-17
RSYSTEMS Others 6-Apr-17 HINDCOMPOS Bonus/Stock Split/Dividend 10-Apr-17
GMBREW Results/Dividend 6-Apr-17 BIGBLOC Others 11-Apr-17
AVTNPL Others 6-Apr-17 PINCON Others 11-Apr-17
GOKEX Results 7-Apr-17 GOACARBON Results/Dividend 11-Apr-17
SVOGL Others 7-Apr-17 INFY Results/Dividend 13-Apr-17
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

CORPORATE ACTION

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

 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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