Market Outlook – 26 July 2017

Nifty Scripts New Lifetime High With A Historic 10000 Mark; A Gap Up Of 45 Points Did Not Sustain, But Trend Continues To Be Bullish; Midcap Outperforms With Blue Chips Continue To Hit Fresh Highs; Look For A Buying Opportunity On Dips.

NIFTY:

It was a day of extreme volatility with wild swings of a percent or more seen in Nifty during the session. Both bulls and bears tried their best to wrest control of the market but from intraday perspective its bulls who have won the battle by managing to close near the highs above 9900 at 9915 with a gain of 0.42%.

On the daily charts, prices are consolidating in a trading range (9780-9930) from last two weeks and today, prices closed in the upper side of this range. We may see a breakout on the upside soon. Bank Nifty, IT also gained with Nifty. WIPRO and TCS were the leading gainers in IT and gains were mainly added by KOTAKBANK in Bank Nifty. Look to trade on the long side of the market only on dips as far as prices are trading above 9780 levels.

Trend is still sideways in Nifty but for shorter time frame our view is mildly bullish and so despite the index being close to resistance, traders should avoid any kind of short positions in it. If Nifty can able to attain new highs again then 10000 level is also not far away.

BANK NIFTY:

Bank Nifty again had a choppy day in the markets; prices started with a minor gap up but dip in the first half took prices near 24050. The second half went in the favour of bulls as they managed to pulled back prices to intraday high at 24290. Final closing of the index was near the highs at 24280 with a gain of 0.18%.

On the daily charts, Bank Nifty is trading just below its lifetime high and if Nifty able to cross resistance then Bank Nifty can also perceive uncharted zone again. Yesterday, we had taken a profit from our long positions which were taken near 24000.

Now, the index has realized a rally of 1300 points in less than a month. After a run up like these, prices tend to consolidate. Thus, we may see consolidation or even a correction here. Consequently, swing traders should wait for a next trading opportunity.

Though, Trend is up in Bank Nifty so intraday should look for a buying opportunity on Monday. Avoid short selling.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
ADANIPORTS 382 BUY Intermediate and Short Term Trend is up in ADANIPORTS. The stock has seen an upside rally and then started trading narrow. Prices have made a pattern of Ascending Triangle. We may see a breakout here. Buy this stock above 383. If this trade executes then place a stop at 378 and a target at 393.
TATAMOTORS 464 BUY Intermediate and Short Term Trend is up in TATAMOTORS. The stock has seen a decline and then made a bullish head & shoulder. We may see a breakout here. Buy this stock above 465. If this trade executes then place a stop at 460 and a target at 475.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
APOLLOTYRE JULY FUT BUY 265.5 CMP 250 273 OI Increase

 

Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
M&MFIN.17.07 Jul 398.05 9.47 16.46 9072500 NBCC.17.07 Jul 209.1 -2.79 16.27 4224000
IDEA.17.07 Jul 96.6 5.11 4.62 56714000 ZEEL.17.07 Jul 536.4 -2.69 1.03 7685600
APOLLOTYRE.17.07 Jul 265.5 4.69 1.88 11544000 SINTEX.17.07 Jul 37.05 -2.63 1.79 21859500
VEDL.17.07 Jul 276.1 4.17 0.23 42318500 JETAIRWAYS.17.07 Jul 587 -2.01 2.55 3574800
BALKRISIND.17.07 Jul 1669.9 3.1 8.43 426800 PFC.17.07 Jul 125.05 -1.96 5.71 35790000
                                                                           Short covering                                                                               Long Unwinding
SRTRANSFIN.17.07 Jul 3.87 -12.01 4122000 1001.8 JPASSOCIAT.17.07 Jul 26.85 -2.89 -8.8 1.28E+08
CHENNPETRO.17.07 Jul 3.73 -8.72 1131000 398.75 SREINFRA.17.07 Jul 129.3 -2.56 -2.82 6370000
TATACOMM.17.07 Jul 3.62 -3.6 7844900 672.55 LUPIN.17.07 Jul 1123.25 -1.84 -1.05 5902800
MRPL.17.07 Jul 3.44 -1.72 10539000 123.2 RECLTD.17.07 Jul 178.65 -1.73 -7.45 24822000
IBULHSGFIN.17.07 Jul 3.43 -5.48 8260800 1196.6 DIVISLAB.17.07 Jul 678 -1.5 -2.58 6653600

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
NESTLEIND 6819.55 -0.24 35510 25670 85.79 Nifty 50 9964.55 -0.02 81393
GAIL (India) Limited 373.35 -0.97 2936489 2651021 79.42 Nifty Bank 24520.7 0.41 81393
Power Grid Corporation o 217 0.12 3438650 2701451 78.25 Nifty IT 10810.35 -0.12 81393
Bharat Petroleum Ltd 466.9 0.15 4180442 2016961 77.84 Nifty Pharma 9930.55 -0.5 81393
MAX FINANCIAL SERVICES L 613.6 2.46 680133 685826 75.05 Nifty Infrastructure 3380.6 0.33 81393
Petronet LNG Limited 205.9 1.65 5934404 3197166 74.95 Nifty PSU Bank 3590 0.73 81393
Oil & Natural Gas Corp 163.3 0.03 6521103 7693902 74.02 Nifty Auto 10932.5 -0.33 81393
Hero MotoCorp Limited 3709.05 0.45 433381 172608 73.12 Nifty Metal 3227.55 1.26 81393
ASIAN PAINTS LIMITED 1150.1 -0.49 2963793 1505778 72.98 Nifty Commodities 3626.75 0.24 81393
Colgate Palmolive (India 1066.8 -0.29 239411 224680 72.49 Nifty Financial Services 9958.8 0.32 81393

UPCOMING ECONOMIC DATA

                                      Domestic
•RBI Monetary Policy on 02nd August, 2017. •Fed Interest Rate Decision on 26th July, 2017.    


CORPORATE NEWS

•Bank of Baroda has entered into an agreement with Directorate General of Supplies & Disposal (DGS&D) for extending various banking services to Government e-Marketplace (GeM). DGS&D has been mandated to set up GeM, an initiative intended to bring greater transparency and efficiency in public procurements.

•JSW Cement, which is building about 11 million tonnes of capacity, would seek to about double its output to 20 mt in the next three years, as the increasing spend on infrastructure and housing fuels demand for the commodity of which India is the world’s second-largest consumer.

•Bajaj Auto is likely to partner Europe’s iconic motorcycle brand Ducati, encouraged by its existing partnership with KTM, Europe’s largest motorcycle maker.

•Coal India will conduct auctions under government’s Shakti scheme for entering into long term coal supply contract with some 12,000 mw of independent power producers that have long term power purchase agreements with state distribution companies but does not have coal supply contract.

Source: Economics Times

BOARD MEETINGS

Company Name Purpose Date Company Name Purpose Date
AMBUJACEM Results/Dividend 24-Jul-17 IRB Results/Dividend 24-Jul-17
GICHSGFIN Results 24-Jul-17 JMFINANCIL Results 24-Jul-17
HDFCBANK Results 24-Jul-17 JUSTDIAL Results/Buyback 24-Jul-17
HUDCO Results 24-Jul-17 M&MFIN Results 24-Jul-17
IBREALEST Results/Others 24-Jul-17 TATACOMM Results 24-Jul-17
IBULHSGFIN Results/Dividend 24-Jul-17 WENDT Results 24-Jul-17
INFRATEL Results 24-Jul-17 ZEEL Results 24-Jul-17

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
CARERATING Dividend – Rs. – 10.0000 24-Jul-17 PAUSHAKLTD Dividend – Rs. – 3.0000 24-Jul-17
CENTENKA Dividend – Rs. – 7.0000 24-Jul-17 SANGHVIMOV Dividend – Rs. – 4.0000 24-Jul-17
EIHOTEL Dividend – Rs. – 0.9000 24-Jul-17 TAJGVK Dividend – Rs. – 0.4000 24-Jul-17
ITHL Dividend – Rs. – 4.2500 24-Jul-17 TCS Interim Dividend – Rs. – 7.0000 24-Jul-17
KSL Dividend – Rs. – 5.0000 24-Jul-17 THOMASCOOK Dividend – Rs. – 0.3750 24-Jul-17
LUPIN$ Dividend – Rs. – 7.5000 24-Jul-17 TITAN Dividend – Rs. – 2.6000 24-Jul-17
NICCOPAR Final Dividend – Rs. – 0.1500 24-Jul-17 VSTIND Final Dividend – Rs. – 75.0000 24-Jul-17

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

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