Nifty Trend Remains Sideways Despite Sharp Two Days Correction
Market Outlook – 17 April 2017
Seven Days Trading Range Breaks On The Downside; Nifty Trend Remains Sideways Despite Sharp Two Days Correction; Metals And IT Have A Rough Day With Large Declines in Many Stocks; Infy Tumbles Nearly 4% Post Earnings; Stay On Side-Lines Till New Patterns Emerge.
NIFTY: The Nifty had a decline today, falling over half a percent, in the process breaking below the lows and support levels of a seven days trading range. This decline should be taken in context. A rally from 7893 to 9275 saw a gain of nearly 1400 points. From these highs, the Nifty has fallen just 75 points or about 5% of the up move. Even a normal correction can witness a 38% retracement of the rally. Thus, 5% pullback remains a minor move in what looks like a robust up trend. The short term trend for the Nifty is sideways while the intermediate trend is also sideways. Opposing these neutral signals is the fact that the Nifty has broken down from a trading range. This is not bullish, also for the fact that INFY results reported below estimates, that gives something in the favour of bears. We do not have a trade for the Index. Going short in an uptrend is not a good idea. Not yet. We need some bearish patterns to justify a short position. Also, there is no buy signal. Thus, for short term traders, the best trade is to step aside and wait for new patterns.
BANK NIFTY: Bank Nifty continues trading sideways. Prices started the session with no change but rallied in early trades making an intraday high near 21759.However, after lunch, Bank Nifty moved lower and closed near 21680 levels. On the daily charts, prices are trading narrow and sideways inside 21250-21750 from last ten trading days. Furthermore, prices have made a high near 21750 levels on last couple of occasions that will act as a resistance level in the index. Also today the index traded very narrow and made a pattern of NR 7 with INSIDE DAY which suggests a breakout is very near. Hence, traders should avoid trading as far as prices trading inside this range. As of now we do not have a new pattern which suggests a new trading opportunity here. So, avoid taking positional trade in the index. Traders can look to trade only intraday according to early morning momentum.
|DLF||159||BUY||Intermediate and Short Term Trend is up in DLF. The stock has seen an upside rally and then started trading choppy and narrow. We may see a big move here. Buy this stock above 160. If this trade executes then place a stop just below 158.5 and a target at 163.|
|TATAMOTORS||455||SELL||Intermediate and Short Term Trend is down in TATAMOTORS. The stock has seen a sharp decline and then started a process of consolidation. Prices have seen a breakdown from its support levels and closed lower. Sell this stock below 454. If this trade executes then place a stop just above 460 and a target at 442.|
|Stock Name||Strike Price||Buy/Sell||CMP||Initiation||Stop Loss||Target||Remarks|
|Long Buildup||Short Buildup|
|Stocks||Price||Price%||OI %||OI||Stocks||Price||Price%||OI %||OI|
|PEL.17.04 Apr||2247.7||7.92||10.29||315000||VEDL.17.04 Apr||244.5||-5.49||6||40698000|
|IBREALEST.17.04 Apr||106.55||7.74||54.53||39020000||HINDALCO.17.04 Apr||183.75||-4.87||3.3||40267500|
|NCC.17.04 Apr||91.9||3.72||7.25||27576000||INFY.17.04 Apr||936.3||-3.45||9.97||37851000|
|MUTHOOTFIN.17.04 Apr||392.25||2.11||1.34||1243500||NMDC.17.04 Apr||130.15||-3.05||5.44||30816000|
|ADANIENT.17.04 Apr||116.85||1.87||2.09||19528000||TATASTEEL.17.04 Apr||465.75||-2.91||10.98||30058000|
|Short covering||Long Unwinding|
|BHARATFIN.17.04 Apr||3.57||-0.85||19626000||773.75||CAIRN.17.04 Apr||295.8||-4.57||-5.78||26138000|
|IOC.17.04 Apr||3.03||-3.56||19152000||423.7||JINDALSTEL.17.04 Apr||122.8||-3.57||-2.21||39348000|
|HINDPETRO.17.04 Apr||2.89||-3.79||17463600||559.75||INFRATEL.17.04 Apr||357||-2.86||-1.02||6334400|
|SRF.17.04 Apr||2.56||-2.8||953000||1695.2||ADANIPOWER.17.04 Apr||32.95||-2.8||-6.31||1.16E+08|
|INFIBEAM.17.04 Apr||2.26||-2.44||1343600||1030.55||SAIL.17.04 Apr||62.2||-2.58||-3.01||60288000|
TOP DELIVERY PERCENTAGE
|Stocks||Price||%Chg||Vol||Delivery||Del %||% Change|
|Hindustan Unilever Ltd||923.85||0.01||1200252||1773424||88.37||Nifty 50||9150.8||-0.57||24329018|
|HDFC Ltd.||1474.9||0.56||1773012||2222812||83.45||Nifty IT||10064.2||-2.51||2048952|
|NTPC Limited||164.65||-0.18||3408959||5784225||82.38||Nifty Energy||12018.4||0.88||1357127|
|Colgate Palmolive (India||1015.35||-0.67||325891||433355||78.32||Nifty Pharma||10531.95||0.83||21194134|
|Kirloskar Cummins Ltd.||978.35||-0.8||342989||216817||76||Nifty Realty||228||0.71||9.79E+08|
|CASTROL INDIA LTD.||432.25||1.05||582006||1030516||74.42||Nifty Infrastructure||3160.05||-0.97||70378728|
|GAIL (India) Limited||379.7||0.38||2920352||1765610||74.16||Nifty Auto||9907.4||-0.8||22454447|
|SHRIRAM TRANS FIN CO. LT||1050.85||-1.5||286976||554599||72||Nifty Metal||2985.55||-2.79||73832656|
|Wipro Ltd||495.4||-1.07||1814019||959151||70.48||Nifty Commodities||3491.3||-0.53||10138756|
UPCOMING ECONOMIC DATA
|•WPI Data on 17th April, 2017. (Tentative)||•US Crude Oil Inventories on 19th April, 2017.
•US Initial jobless claims on 20th April, 2017.
|•NBCC will help develop a social housing project and construct a new Supreme Court building in Mauritius, which together are estimated to cost USD 50 million.
•ITC is overhauling its foods portfolio to invigorate its market share in categories that have been showing signs of fatigue more than a decade after the cigarette maker challenged the dominance of most packaged food companies in the country.
•Airtel Digital TV, the DTH arm of Bharti Airtel has launched an Android-enabled set top box (STB) that will allow consumers to watch content available on Internet on television besides regular satellite channels.
Source: Economic Times, Business Standard .
|Company Name||Purpose||Meeting Date||Company Name||Purpose||Meeting Date|
|PVP||Issue of Securities||17-Apr-17||MUTHOOTCAP||Bonus||18-Apr-17|
|Company Name||Purpose||Ex-Date||Company Name||Purpose||Ex-Date|
|RMCHEM||Bonus issue 4:1||18-Apr-17||CAIRN||Interim Dividend – Rs. – 17.7000||26-Apr-17|
|OFSS||Interim Dividend – Rs. – 170.0000||19-Apr-17||ELANTAS||Dividend – Rs. – 4.5000||27-Apr-17|
|FOSECOIND||Final Dividend – Rs. – 7.0000||20-Apr-17||ABB||Dividend – Rs. – 4.0000||28-Apr-17|
|AVANCE||Consolidation of Shares||24-Apr-17||ITDCEM||Dividend – Rs. – 0.3000||3-May-17|
|SANOFI||Final Dividend – Rs. – 50.0000||25-Apr-17||VESUVIUS||Dividend – Rs. – 6.5000||4-May-17|
|CAIRN||Amalgamation||26-Apr-17||GMBREW||Dividend – Rs. – 3.0000||9-May-17|
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