MARKET OUTLOOK – 28 June, 2017

Short Term Down Trend Begins As Nifty Closes Decisively Below 9560; Banks Fail To Rally, It Moves Lower; Correction Likely To Continue; Rallies May Be Used To Build Short Positions With Lower Volumes;

NIFTY: Markets continue to fall. The Nifty, Bank Nifty both had a steady decline throughout the trading day after a strong opening. Barring some feeble up moves, it fell in an almost straight line which shows that bears now have the upper hand in this market. The short term trend is down therefore traders have to either go short or step aside.

The index moved lower below its support of 9560, which hints at further downside in the market paving way for 9350 support. Although the primary trend is still up but short term traders should remain alert to the possibility of a deeper correction, which means that the downside could be tradable. For Position traders, it may be wise to avoid buying into this dip, since the end of the dip is not clear.morning outlook

The pace of this decline has been rather ferocious. In three days of lower prices, the Nifty has wiped off more than 225 points from a high of 9700 to a low made today at 9473. Sellers had strength, while buyers were weak.

We must understand that we are looking at a correction, which is a counter trend movement in an ongoing bull market. When we have an uptrend; prices move up rapidly. Taking a position with the trend is usually profitable..

 

 

 

 

 

 

 

BANK NIFTY: Bank Nifty has seen another decline today. The index opened near 23637 with a gap up of 87 points. The index made its intraday high near 23640 and then seen sharp decline that pushed prices to intraday low near 23050. Prices closed near 23210 with a loss of 340 points.

On the daily charts, the index was trading inside a range 23300 – 23700. This range got extended to 23300 – 23800. Today, prices have seen a significant breakdown from this range and closed lower. With that decline, short term trend has changed to down in Bank Nifty now. Index witnesses a decline of more than 800 points in last three days from a high near 23900 to a low made today at 23055. Short term trend is down but we may see choppy price action ahead of F&O Expiry. Therefore, we do not have any new trade in the index for positional traders. Intraday traders can look for a trading opportunity on short side on rallies and consolidations.

PSU BANKS are under performing the index. Traders can continue to look for a shorting opportunity in PSU BANKS like BANK INDIA, BANK BARODA, CANARA BANK.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
ABIRLANUVO 1809 BUY Intermediate and Short Term Trend is up In ABIRLANUVO. The stock has made new 52-week high today and broke out from bullish head & shoulder pattern. We may see higher levels in Nifty. Buy this stock above 1815. If this trade executes then place a stop just below 1780 and a target at 1885
SIEMENS 1307 SELL Intermediate and Short Term Trend is sideways in SIEMENS. Prices are now at the verge of breakdown from its support levels. Sell this stock below 1305. If this trade executes then place a stop just above 1330 and a target at 1255.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
GRASIM JUNE FUT BUY 1214.8 CMP 1190 1235-1250 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI   Stocks Price Price% OI % OI
ADANIENT.17.06 Jun 132.2 4.18 3.49 22768000 SYNDIBANK.17.06 Jun 72.4 -5.61 1.86 17289000
ABIRLANUVO.17.06 Jun 1808.5 3.8 6.09 2063200 CANBK.17.06 Jun 323.55 -4.73 8.94 14957400
GRASIM.17.06 Jun 1214.8 3.68 5.03 6105000 CAPF.17.06 Jun 655.65 -4.44 3.86 3426400
SRTRANSFIN.17.06 Jun 992 2.46 2.13 2759400 DALMIABHA.17.06 Jun 2365 -4.4 13.28 862200
MFSL.17.06 Jun 617 2.4 5.66 4852000 ESCORTS.17.06 Jun 651 -4.21 4.33 3842300
                                                                           Short covering                                                                               Long Unwinding
JPASSOCIAT.17.06 Jun 10.61 -13.43 1.52E+08 20.85 GMRINFRA.17.06 Jun 19.2 -10.28 -7.64 2.08E+08
RCOM.17.06 Jun 2.81 -1.44 92520000 21.95 INDIACEM.17.06 Jun 187.7 -6.87 -6.61 22407000
WOCKPHARMA.17.06 Jun 2.78 -10.02 2752200 587.25 ICIL.17.06 Jun 165.55 -6.12 -1.33 8599500
INFIBEAM.17.06 Jun 2.13 -13.53 698000 1057.7 PNB.17.06 Jun 136.35 -5.18 -9.73 40897500
NATIONALUM.17.06 Jun 2.03 -3.17 4640000 62.9 FORTIS.17.06 Jun 164 -5.04 -4.71 24769800

Top Delivery Percentage

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
Bharti Airtel Limited 371.45 1.43 3809505 4326511 84.5   Nifty 50 9511.4 -0.66 73815
THE RAMCO CEMENTS 680.7 -0.45 357686 435343 80.51 Nifty Bank 23216.25 -1.39 73815
Dabur India Ltd. 290 0.07 2409994 1297325 75.8 Nifty IT 10068.85 -1 73815
HDFC Ltd. 1651.05 -0.02 3611862 1946085 75.12   INDIA VIX 12.51 8.2 73815
NTPC Limited 157.9 0.03 3122146 2901398 74.99   Nifty Energy 11778.3 0.08 73815
Shree Cements Ltd. 16691.4 -1.44 25055 19768 74.64   Nifty Pharma 9467.9 -0.11 73815
NESTLEIND 6599.95 -0.6 32822 22828 74.43   Nifty Realty 260.05 -1.29 73815
Infosys Limited 927.05 -1.72 3451989 2359021 73.68   Nifty Infrastructure 3184.35 -0.46 73815
Hero MotoCorp Limited 3695.2 0.96 365879 260537 70.2   Nifty PSU Bank 3328 -3.38 73815
TECH MAHINDRA LIMITED 380.1 -0.16 4315299 1210190 69.49   Nifty Auto 10576.2 -0.58  

73815

Upcoming Economic Data

                                      Domestic                                                                                                                International
•Nikkei Manufacturing PMI on 03rd July, 2017.

•Nikkei Service PMI on 05th July, 2017.

•US Crude Oil Inventories on 28th June, 2017.

•US GDP (QoQ) (Q1) on 29th June, 2017.

Corporate News

•Bharat Heavy Electricals Ltd (BHEL) has secured an order for setting up a 15 MW solar photovoltaic power plant on EPC basis in Gujarat.

•Oil and Natural Gas Corporation (ONGC) has received environmental clearance for drilling five wells to explore shale gas and oil in the KG basin of Andhra Pradesh at an estimated cost of Rs 217 crore.

•Glenmark Pharmaceuticals has received final approval from the US health regulator for its generic version of anti-inflammatory drug Indomethacin tablets. The approval granted to Glenmark Pharmaceuticals Inc by the US Food and Drug Administration (USFDA) is for Indomethacin extended-release capsules of 75 mg strength.

•Sun Pharmaceutical Industries Ltd and National Institute of Virology (NIV) have signed a pact to test new medicines developed by the company to combat zika, chikungunya and dengue diseases.                                                                                                                                                                                                             Source: Economics Times

Corporate Action

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
ELNET Dividend – Rs. – 1.4000 28-Jun-17 AHLWEST Final Dividend – Rs. – 1.0000 3-Jul-17
ENGINERSIN Buy Back of Shares 28-Jun-17 FEDERALBNK Dividend – Rs. – 0.9000 3-Jul-17
INDIANHUME Final Dividend – Rs. – 2.4000 28-Jun-17 JYOTHYLAB Dividend – Rs. – 6.0000 3-Jul-17
CENTUM Final Dividend – Rs. – 3.0000 29-Jun-17 PETRONET Bonus issue 1:1 3-Jul-17
EASTRED Final Dividend – Rs. – 0.5000 29-Jun-17 PLASTIBLEN Bonus issue 1:1 3-Jul-17
GULPOLY Final Dividend – Rs. – 0.3000 29-Jun-17 SANWARIA Bonus issue 1:1 3-Jul-17
HDFCBANK Dividend – Rs. – 11.0000 29-Jun-17 SOUTHBANK Dividend – Rs. – 0.4000 3-Jul-17
JAYAGROGN Final Dividend – Rs. – 1.2500 29-Jun-17 CCL Dividend – Rs. – 2.5000 4-Jul-17
NUCLEUS Buy Back of Shares 29-Jun-17 ESSELPRO Final Dividend – Rs. – 2.4000 4-Jul-17
NUCLEUS Final Dividend – Rs. – 5.0000 29-Jun-17 MAYURUNIQ Final Dividend – Rs. – 0.2500 4-Jul-17
SKPSEC Buy Back of Shares 29-Jun-17 SUNDARMFIN Final Dividend – Rs. – 6.5000 4-Jul-17
STRTECH Final Dividend – Rs. – 0.7500 29-Jun-17 TRITONV Dividend – Rs. – 15.0000 4-Jul-17
HEROMOTOCO Final Dividend – Rs. – 30.0000 30-Jun-17 ABIRLANUVO Amalgamation 5-Jul-17
JSWENERGY Dividend – Rs. – 0.5000 30-Jun-17 DABUR Final Dividend – Rs. – 1.0000 5-Jul-17
TATACOFFEE Dividend – Rs. – 1.5000 30-Jun-17 GREENPLY Dividend – Rs. – 0.6000 5-Jul-17
TATACOFFEE Special Dividend – Rs. – 0.2500 30-Jun-17 MONEYMATF Dividend – Rs. – 0.3000 5-Jul-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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