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.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
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.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
NO CALLS

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
Sectors Price Change % Quantity
Hindustan Unilever Ltd 923.85 0.01 1200252 1773424 88.37   Nifty 50 9150.8 -0.57 24329018
MUTHOOTFIN 389.6 1.87 922344 3365669 84.18 Nifty Bank 21686.6 0.09 10290450
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

                                      Domestic
•WPI Data on 17th April, 2017. (Tentative) •US Crude Oil Inventories on 19th April, 2017.

•US Initial jobless claims on 20th April, 2017.

CORPORATE NEWS

•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                             .

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
ORIENTPPR Dividend 17-Apr-17 OMAXAUTO Results 18-Apr-17
PVP Issue of Securities 17-Apr-17 MUTHOOTCAP Bonus 18-Apr-17
GRUH Results/Dividend 17-Apr-17 MUTHOOTCAP Meeting Updates 18-Apr-17
HINDOILEXP Results 18-Apr-17 INSECTICID Others 18-Apr-17
VSTIND Results/Dividend 18-Apr-17 INDUSINDBK Results/Dividend 19-Apr-17
TCS Results/Dividend 18-Apr-17 YESBANK Results/Dividend 19-Apr-17
SHILPI Conversion 18-Apr-17 TV18BRDCST Results 19-Apr-17
TNTELE Results/Others 18-Apr-17 SASKEN Results/Dividend 19-Apr-17

CORPORATE ACTION

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

 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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