Nifty Hovering Inside 9050-9200 Levels, No New Trades Inside This Range
MARKET OUTLOOK – 22 March, 2017
Consolidation Within An Uptrend Is Normal; Nifty Hovering Inside 9050-9200 Levels, No New Trades Inside This Range; Bank Nifty Shows Sign Of Weakness; Should Be Avoided.
It was a day of extreme choppiness with swings of half percent or more seen in Nifty during the session. Both bulls and bears tried their best to wrest control of the market from the other group. From intraday perspective, bulls had an upper hand as they managed a recovery in the last half an hour and closed near the yesterday’s close at 9121.50.
On the daily charts, Nifty is consolidating in a narrow range roughly within 9050 and 9200. The momentum on the upside has been waning for the past 2-3 sessions. This waning of momentum represents contraction suggesting that an expansion is coming. We do not know in which direction the break out will be but momentum will pick up once again only when Nifty breaks out from above suggested range.
Markets trade in cycles of expansion and contraction and Nifty is presently in the contraction phase. Now these ranges also cannot continue endlessly and we will have large directional moves whenever this range is broken but when it will actually end we don’t know and till then just bear it out.
Bank Nifty again had a narrow range day where prices opened with a minor change above 21100 and made a high near 21150. Prices took a sharp dip before finding intraday support near 21000. Last hour rally removed prices back above 21050 and eventually closed there with a loss of 60 points.
On the daily charts, prices were in a narrow range from last five days inside 21050-21350. The index broke below 21050 but quickly moved back inside range that suggests buyers support in the Bank Nifty.
Broadly, the index is consolidating with the boundaries 20850-21300. Primary Trend is up, so we may see a move above 21330 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 trading as trading in the choppy environment may result in excessive loss due to direction-less moves.
Any shorting opportunity in the Bank Nifty may come below its support area. Nonetheless, traders should wait for the prices to close below 20850 to initiate a short trade. Till then, avoid the index completely..
|BEML||1295||SELL||Intermediate and short term trend is sideways in BEML. The stock has seen an upside rally and then started a process of consolidation at is top. We may see a breakdown here. Sell this stock below 1290. If this trade executes then place your stop just above 1305 and a target near 1260.|
|DISHTV||107||BUY||Intermediate and short term trend is up in DISHTV. The stock has seen an upside rally and then saw a minor correction in a shape of bullish flag. Prices have seen a breakout from his pattern and closes higher. Buy this stock above 108. If this trade executes then place your stop just below 106 and a target near 112.|
|Stock Name||Strike Price||Buy/Sell||CMP||Initiation||Stop Loss||Target||Remarks|
|UPL||MAR FUT||BUY||727.9||CMP||719||742||OI Increase|
|Long Buildup||Short Buildup|
|Stocks||Price||Price%||OI %||OI||Stocks||Price||Price%||OI %||OI|
|MRF.17.03 Mar||58190||3.6||4.31||55965||DRREDDY.17.03 Mar||2618||-4.55||12.25||3725800|
|IFCI.17.03 Mar||30.55||3.56||4.86||66440000||AXISBANK.17.03 Mar||490.75||-2.74||8.84||32775600|
|HDIL.17.03 Mar||78.7||2.94||8.23||26408000||IBULHSGFIN.17.03 Mar||941.5||-2.62||5.16||15916000|
|GRASIM.17.03 Mar||1095.3||2.7||6.62||6996750||UNIONBANK.17.03 Mar||152.25||-2.37||1.47||22624000|
|FEDERALBNK.17.03 Mar||89.2||2.59||3.96||63228000||CANBK.17.03 Mar||287.75||-2.33||9.26||16113900|
|Short covering||Long Unwinding|
|ONGC.17.03 Mar||1.44||-1.73||41865000||194.1||WOCKPHARMA.17.03 Mar||727.1||-2.79||-4.6||3347400|
|UPL.17.03 Mar||1.28||-2.73||6619200||727.9||ENGINERSIN.17.03 Mar||148.9||-2.62||-0.37||22869000|
|DABUR.17.03 Mar||1.18||-0.61||12620000||283.4||JSWENERGY.17.03 Mar||62.05||-1.9||-1.79||58888000|
|BATAINDIA.17.03 Mar||1.06||-1.16||3654200||543.5||PCJEWELLER.17.03 Mar||432.5||-1.86||-12.89||963000|
|AJANTPHARM.17.03 Mar||0.78||-2.7||590800||1836.5||JETAIRWAYS.17.03 Mar||467.05||-1.58||-2.77||5295000|
TOP DELIVERY PERCENTAGE
|Stocks||Price||%Chg||Vol||Delivery||Del %||% Change|
|UltraTech Cement Limited||4007.8||0.2||341340||474634||85.27||Nifty 50||9121.5||-0.06||80430|
|Petronet LNG Limited||395.05||0.28||1243293||1901599||82.95||Nifty Bank||21019||-0.43||80430|
|Indian Oil Corp. Ltd.||372.1||0.31||3275266||4166817||82.77||Nifty IT||10787.2||0.1||80430|
|HDFC Bank Ltd.||1440.95||0.34||1389320||1674293||82.25||INDIA VIX||11.94||-0.64||80430|
|TECH MAHINDRA LIMITED||476.95||-1.03||4422809||3000142||80.34||Nifty Pharma||10493.75||-2.02||80430|
|Development Credit Bank||165.6||0.94||2930358||8453108||79.28||Nifty Infrastructure||3056.05||0.03||80430|
|Power Grid Corporation o||193.25||-0.18||4571337||4154835||78.76||Nifty Auto||9963.75||-0.46||80430|
|Dr. Reddys Lab Ltd||2623.25||-4.06||1453633||313522||78.17||Nifty Metal||3119.4||-0.23||80430|
|Hindustan Petroleum Corp||505.2||-1.2||2807323||2647453||77.45||Nifty Financial Services||8561.95||-0.25||80436|
UPCOMING ECONOMIC DATA
|•Nikkei Manufacturing PMI on 03rd April , 2017.
•IIP Data on 12th April , 2017. (Tentative)
|•Existing Home Sales (Feb) on 22nd March, 2017.|
|•Glenmark Pharmaceuticals USA has received approval from the United States Food and Drug Administration (USFDA) for Clobetasol Propionate Ointment, used for treatment of various skin conditions.
•Jubilant Life Sciences subsidiary Jubilant Pharma will negotiate a potential acquisition of a specialty business in the US.
•State Bank of India which will see five associate banks merge into it on April 1, has decided to shut down almost half the offices of these banks, including the head offices of three of them. This process will start from April 24.
•Tata Motors has commenced pre-bookings for Tata Tigor with a booking amount of Rs 5000.
Source: Economic Times, Business Standard
|Company Name||Purpose||Meeting Date||Company Name||Purpose||Meeting Date|
|DELTACORP||Issue of Securities||22-Mar-17||MUTHOOTFIN||Dividend||23-Mar-17|
|INFRATEL||Dividend||22-Mar-17||BANKBARODA||Issue of Securities||23-Mar-17|
|HINDZINC||BM Rescheduled||22-Mar-17||MURUDCERA||Allotment of Securities||24-Mar-17|
|AGARIND||Allotment of Securities||22-Mar-17||SBIN||Meeting Updates||24-Mar-17|
|Company Name||Purpose||Ex-Date||Company Name||Purpose||Ex-Date|
|BEARDSELL||Interim Dividend – Rs. – 1.5000||22-Mar-17||NILE||Interim Dividend – Rs. – 3.0000||23-Mar-17|
|PHL||Interim Dividend – Rs. – 7.5000||22-Mar-17||SVCRES||Consolidation of Shares||23-Mar-17|
|SUNTV||Interim Dividend – Rs. – 5.0000||22-Mar-17||VERONICAPRO||Consolidation of Shares||23-Mar-17|
|AJANTPHARM||Interim Dividend – Rs. – 7.0000||23-Mar-17||POLYMED||Bonus issue 1:1||24-Mar-17|
|ASAHISONG||Interim Dividend – Rs. – 3.0000||23-Mar-17||IBVENTURES||Interim Dividend – Rs. – 1.0000||27-Mar-17|
|AUDICH||Interim Dividend – Rs. – 3.5000||23-Mar-17||PTL||Spin Off||27-Mar-17|
|ENGINERSIN||Interim Dividend – Rs. – 2.5000||23-Mar-17||MAHLIFE||Right Issue of Equity Shares||30-Mar-17|
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