Short Term Down Trend Begins As Nifty Closes Decisively Below 9560
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.
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.
|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.|
|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|
|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|
|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||
Upcoming Economic Data
|•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.
|•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
|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|
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