Market Outlook – 12 December 2017

NIFTY RALLY CONTINUES FOR THE THIRD CONSECUTIVE SESSION TODAY; ALL SECTORAL INDICES ENDED IN GREEN EXCEPT REALTY; ALL EYES ON FED MEET, GUJARAT POLLS; STAY LONG IN NIFTY AND BANK NIFTY WITH SUGGESTED STOP LOSS AND TARGET;

NIFTY: NIFTY opened with a gap up of 45 points at 10310.50. The index first seen an intraday decline and made its intraday low at 10282.05. After that a sharp upside rally brings prices to its intraday high near 10329.20. Prices finally closed higher at 10322.25 with a gain of 56 points.

Price continued its upside move today also. However the range was very narrow. This is normal after two days of sharp upside move.

The only concept works in the market is expansion and contraction. Prices have seen two days of sharp upside move. That’s an expansion. After that today’s range was very narrow. This is a contraction. Most of the times, the expansion, comes in the direction of main trend.

Today’s narrow movement indicates a contraction which may lead prices to another expansion. Trend is up here. Stay long with suggested stop and target

BANK NIFTY: BANK NIFTY opened at 25434.75 with a gap up of 134 points. Prices have made its intraday low at 2525318.70 and high at 25448.85. The index settled at 25396.40 with a gain of 56 points.

Intraday price action in the Bank Nifty was choppy and narrow. This is normal after two days of one sided move. Markets go through the cycle of expansion and contraction.Today narrow range was a contraction.
Trend is up here and we should look for buying only. Use intraday dip and consolidation breakout to buy.

We have a long position in BANK NIFTY FUTURE from 25242 with a stop 25000. Now traders should hold this long position with a revised stop loss at 25200. Also place a target at 25700.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
LUPIN 841.40 BUY Intermediate and Short term trends are down in LUPIN. The stock has seen a sharp decline and then finds support near 810. Prices are now trading inside a range and at the verge of breakout. Buy this stock above 845. If this trade executes then place a stop at 830 and a target at 875.
CASTROLIND 405.90 BUY Short and Intermediate term trends are up in CASTROLIND. The stock has seen an upside move and then a minor correction. Prices have seen a breakout and closed higher. We may see an upside rally here. Buy this stock above 406. If this trade executes then place a stop at 401 and a target at 420.

 

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
ADANIENT(POSITIONAL) DEC FUT BUY 154 CMP 145 172 OI Increase

 

Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
WOCKPHARMA.17.12 Dec 754.5 6.54 22.48 3856800 FORTIS.17.12 Dec 139.45 -5.59 5.26 56540700
TATACOMM.17.12 Dec 723.8 6.26 5.78 7844200 NBCC.17.12 Dec 255.2 -2.18 15.44 10545000
M&MFIN.17.12 Dec 479.5 5.45 14.27 7186250 BANKINDIA.17.12 Dec 182.7 -1.77 11.4 15240000
PCJEWELLER.17.12 Dec 434.5 4.02 6.95 13684500 INFRATEL.17.12 Dec 370 -1.52 10.35 11505600
DALMIABHA.17.12 Dec 3234 3.82 6.94 748500 INDIACEM.17.12 Dec 172.9 -1.4 1.36 27321000
                                                                           Short covering                                                                               Long Unwinding
JETAIRWAYS.17.12 Dec 4.14 -5.1 6650400 695.25 JPASSOCIAT.17.12 Dec 17.5 -3.58 -1.48 2.37E+08
IDBI.17.12 Dec 1.92 -0.35 20768000 61 HDIL.17.12 Dec 55.8 -2.62 -3.26 38024000
SUNPHARMA.17.12 Dec 1.47 -0.37 46429600 531.8 IFCI.17.12 Dec 24 -1.84 -0.22 87846000
APOLLOHOSP.17.12 Dec 1.01 -0.21 1645500 1198.7 JISLJALEQS.17.12 Dec 117.6 -1.09 -0.53 52254000
GSFC.17.12 Dec 0.86 -0.17 21249000 141.25 PVR.17.12 Dec 1298 -0.92 -1.17 539600

TOP DELIVERY PERCENTAGE 

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
MAX FINANCIAL SERVICES L 556.65 0.79 275495 0 83.83 Nifty 50 10322.25 0.55 88053
HDFC Ltd. 1709.95 1.6 2775331 0 83.54 Nifty Bank 25404.85 0.33 88053
THE RAMCO CEMENTS 701.45 1.07 181196 0 82.45 Nifty IT 11324 1.35 88053
Kotak Mahindra Bank Limi 1008.5 -0.05 1084771 0 81.32 INDIA VIX 14.15 3.49 88053
Mah & Mah Ltd. 1418.25 2.17 1323321 0 77.37 Nifty Pharma 9186.1 0.96 88053
HCL Technologies Ltd. 880 1.1 798504 0 76.54 Nifty Realty 322.85 -0.17 88053
Shree Cements Ltd. 17200.3 -0.22 11904 0 76.42 Nifty Infrastructure 3533.1 0.25 88053
Power Grid Corporation o 204.3 0.59 4630220 0 75.78 Nifty PSU Bank 3809.15 1.12 88053
IBULHSGFIN 1198.6 -0.58 1006462 0 74.7 Nifty Auto 11424.6 0.59 88053
ICICI PRUDENTIAL LIFE IN 372.9 -1.36 334496 0 73.62 Nifty Metal 3649.75 0.17 88053

UPCOMING ECONOMIC DATA

                                          Domestic                                                                                                                       International
•CPI YoY (Nov) on 12th December 2017

•WPI Inflation YoY on 14th December 2017

•Manufactiring PMI on 14th December 2017

•Housing Starts MoM  (Nov)  on 19th December 2017

NEWS UPDATES

  • Tata Motors said it will increase prices across its range of passenger vehicles by up to Rs 25000 from Jan 2018 due to rise in input rising input costs. Mayank Pareek, President, Passenger Vehicle Business, Tata Motors, “The changing market conditions, rising input costs and various external economic factors have compelled us to consider the price increase. We are optimistic on maintaining our growth trajectory in the coming year on the back of our robust product portfolio like Tiago, Head and recently launched Nexon.
  • Mahindra & Mahindra, a leading player in electric vehicles in the country, has now set eyes on electrification of some of the models of its South Korean arm SsangYong Motor, a top company official said. The company, which already sells electric vehicles like e-Verito and e2o, is also working to develop electric three- wheelers using lithium ion battery. The company’s CEO Mahesh Babu told Mahindra Electric is working with SsangYong to electrify some of their products.
  • Public sector lender Oriental Bank of Commerce (OBC) today slashed the marginal cost based lending rate (MCLR) by 0.05 per cent for select maturities. The Gurgaon headquartered lender has cut the 1-month, 3- month and one year MCLR by 0.05 per cent each to 8.15, 8.20 per cent and 8.35 per cent. The bank said the new MCLR rate will take effect from December 11, OBC said in a statement.

Source: Economics Times

 

BOARD MEETINGS

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
MVL Results 12-Dec-17 SPMLINFRA Results 12-Dec-17
PODDARHOUS Results/Others 12-Dec-17 MIC Results 12-Dec-17
TECHNOFAB Results/Others 12-Dec-17 SPECIALITY Results/Others 12-Dec-17
INTENTECH Results 12-Dec-17 LINCOLN Results 12-Dec-17
HIRECT Results 12-Dec-17 JMA Results/Others 12-Dec-17
AXISCADES Results 12-Dec-17 CENTEXT Results 12-Dec-17
ORIENTABRA Results/Others 12-Dec-17 JIKIND Results 12-Dec-17
ALBERTDAVD Results 12-Dec-17 SHANKARA Others 12-Dec-17
PRADIP Results 12-Dec-17 GUJAPOLLO Results/Others 12-Dec-17

CORPORATE ACTION

Company Name Ex Date Purpose Company Name Ex Date Purpose
ADVANIHOTR 12-Dec-17 Interim Dividend – Rs. – 0.5000 SHIVTEX 15-Dec-17 Dividend – Rs. – 1.6000
ATULAUTO 13-Dec-17 Interim Dividend – Rs. – 2.7500 SUMEETINDS 15-Dec-17 Right Issue of Equity Shares
GPTINFRA 13-Dec-17 Interim Dividend – Rs. – 1.0000 COLPAL 18-Dec-17 Interim Dividend – Rs. – 4.0000
INDSILHYD 13-Dec-17 Dividend – Rs. – 0.8000 INDOAMIN 20-Dec-17 Final Dividend – Rs. – 1.0000
ADVIKCA 14-Dec-17 Stock  Split From Rs.10/- to Rs.1/- TULIVE 20-Dec-17 Buy Back of Shares
FIBERWEB 14-Dec-17 Interim Dividend – Rs. – 0.5000 BALKRISIND 21-Dec-17 Bonus issue 1:1
IFGLEXPOR 14-Dec-17 Dividend – Rs. – 2.0000 M&M 21-Dec-17 Bonus issue 1:1
KANPRPLA 14-Dec-17 Right Issue of Equity Shares VAKRANG 21-Dec-17 Bonus issue 1:1
HDFCLIFE 15-Dec-17 Interim Dividend – Rs. – 1.3600 WATERBASE 21-Dec-17 Final Dividend – Rs. – 1.0000

 


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

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