Market Outlook – 31 January 2018

The index is likely to remain choppy until budget announcements. Next move in market will depend on reaction to the budget.

daily market view

NIFTY:

NIFTY opened at 11120.85 with a minor gap down of just 10 points. The index made its intraday high at 11121.10 and started moving down. Prices have made its intraday low near 11033.90 and finally closed at 11049.65 with a loss of 80 points. Today all the sectoral indices closed in loss led by REALTY and FINANCIAL. Within the NIFTY 50, HINDPETRO and IOC were the biggest gainers. KOTAKBANK and EICHERMOT were the biggest losers.

UNION BUDGET – A BIG NEWS EVENT: Markets are always uncertain. Traders have to take trades within this uncertainty. Now, this is the normal state of affairs. Add some more uncertainty and volatility due to a big news event and you have a completely unpredictable situation. High risk and unknown reward! HOW TO APPROACH THE BUDGET DAY: This one is easy. We never trade or keep positions in big news events. Step aside during the budget. Do not keep any position

NIFTY VIEW: The index takes some rest after a stunning rally of more than 1100 points in last two months. Last four days of price action is around 11050 – 11080 and very choppy. The index is likely to remain choppy until budget announcements. Next move in market will depend on reaction to the budget.

 

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
LICHSGFIN 540.35 SELL Intermediate and Short term trends are down in LISHSGFIN. The stock has seen a decline and then started trading inside a range. Prices have seen a breakdown and closed lower. Sell this stock below 540. If this trade executes then place a stop at 546 and a target at 528.

 

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
HAVELLS FEB FUT SELL 555 BET(562-563) 570 542 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
RCOM.18.02 Feb 30.35 11.17 26.35 93436000 WOCKPHARMA.18.02 Feb 831 -8.79 20.09 4202100
BALKRISIND.18.02 Feb 1161.4 4.58 3.37 1446400 JUSTDIAL.18.02 Feb 519.9 -7.75 17.24 3361400
KPIT.18.02 Feb 219.4 4.53 10.42 15826500 PCJEWELLER.18.02 Feb 526.3 -7.14 6.53 17205000
HEXAWARE.18.02 Feb 383.4 2.38 0.27 4392000 SRTRANSFIN.18.02 Feb 1379 -4.18 6.31 1990800
BIOCON.18.02 Feb 630.5 2.33 3.08 8019000 HAVELLS.18.02 Feb 555.05 -4.1 9.47 3976000
                                                                           Short covering                                                                               Long Unwinding
HINDPETRO.18.02 Feb 3.24 -1.31 26619075 389 CHOLAFIN.18.02 Feb 1284.5 -2.4 -1.69 1105500
IDFC.18.02 Feb 2.06 -0.55 1.98E+08 56.95 KOTAKBANK.18.02 Feb 1091.65 -1.91 -1.49 12036000
CUMMINSIND.18.02 Feb 1.32 -3.55 554400 908.25 TORNTPHARM.18.02 Feb 1352.2 -1.75 -2.34 375000
MARICO.18.02 Feb 1.24 -1.84 5132400 314.2 SREINFRA.18.02 Feb 96.6 -1.73 -0.75 19875000
JPASSOCIAT.18.02 Feb 0.98 -1.94 2.35E+08 20.55 HDFC.18.02 Feb 1943.15 -1.41 -0.28 18916500

Top Delivery Percentage

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
NTPC Limited 170.3 -0.44 7670738 0 88 Nifty 50 11049.65 -0.73 79170
DALMIA BHARAT LIMITED 2941.2 -1.52 150858 0 84.77 Nifty Bank 27269.05 -0.83 79170
ASIAN PAINTS LIMITED 1126.7 -2.2 1404578 0 82.3 Nifty IT 13107.95 -1.02 79170
Godrej Cons Products Ltd 1057.7 -0.22 273474 0 81.93 INDIA VIX 16.41 -8.24 79170
Power Grid Corporation o 194.95 0.41 12839776 0 79.4 Nifty Energy 14368.55 -0.09 79170
Hindustan Unilever Ltd 1400.25 0.21 1310365 0 76.18 Nifty Pharma 9563.55 -0.61 79170
Hindustan Petroleum Corp 393 4.76 8974769 0 74.38 Nifty Realty 344.8 -1.08 79170
BHARTI INFRATEL LIMITED 344.45 -2.53 3724844 0 72.36 Nifty Infrastructure 3635.85 -0.36 79170
Hero MotoCorp Limited 3687.85 1.27 540432 0 72.19 Nifty PSU Bank 3702.6 -0.06 79170
HCL Technologies Ltd. 1000.4 -1.15 1355676 0 71.13 Nifty Auto 11627.9 -0.43 79170

 

Upcoming Economic Data

International
•Interest rate decision on 7th February 2018

•CPI (YoY) (Jan) on 12th February 2018

•WPI Inflation (YoY) (Jan) on 14th February 2018

•Manufacturing PMI (Jan) on 1st February 2018

•Initial Jobless Claim on 1st February 2018

•Service PMI (Jan) on 5th February 2018

News Updates

•Maruti Suzuki will start making its first affordable electric vehicle (EV) by 2020 based on technology from parent Suzuki Motor, ahead of products developed in partnership with Toyota. The company and its parent are focusing on in-house capabilities but are also looking for partners to put in place the ecosystem for electric vehicles, Maruti Suzuki managing director Kenichi Ayukawa told ET in an interview. The Japanese carmaker will not rely solely on its partner Toyota expertise to build EVS from the ground up.

•Homegrown auto major Tata Motors  will showcase an extended range of six electric vehicles, in personal and mass mobility segments in the upcoming Auto Expo. The company has already announced that it will present 26 smart mobility solutions across its passenger and commercial vehicles at the expo to be held from February 9-14. These six electric vehicles will be among those exhibits.

•Adani Power has sought approval from the commerce ministry for setting up of a special economic zone for the power sector in Jharkhand, entailing investment of Rs 15,002 crore. The application will be considered by the Board of Approval, the highest decision making body of the SEZs, in its meeting on February 5.  The inter-ministerial board is headed by the commerce secretary.

Source: Economics Times

 

Board Meetings

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
LT Results 31-Jan-18 TATAMOTORS Results 5-Feb-18
VEDL Results 31-Jan-18 HEROMOTOCO Results 6-Feb-18
ICICIBANK Results 31-Jan-18 LUPIN Results 6-Feb-18
NTPC Results/Dividend 31-Jan-18 CIPLA Results 7-Feb-18
BAJFINANCE Results/Others 1-Feb-18 EICHERMOT Results 7-Feb-18
POWERGRID Results/Dividend 1-Feb-18 AUROPHARMA Results 7-Feb-18
HINDALCO Results 2-Feb-18 M&M Results 9-Feb-18
BAJAJ-AUTO Results 2-Feb-18 HINDPETRO Results 9-Feb-18
BOSCHLTD Results 5-Feb-18 SUNPHARMA Results 14-Feb-18

 

Corporate Action

Company Name Ex-Date Purpose Company Name Ex-Date Purpose
JMFINANCIL 31-Jan-18 Interim Dividend – Rs. – 0.7000 KIRLOSENG 01-Feb-18 Interim Dividend – Rs. – 2.5000
PEL 31-Jan-18 Right Issue of Equity Shares RML 01-Feb-18 Interim Dividend – Rs. – 4.5000
REGTRUS 31-Jan-18 Reduction of Capital SUNDARMFIN 01-Feb-18 Spin Off
RNAM 31-Jan-18 Interim Dividend – Rs. – 5.0000 SYMPHONY 01-Feb-18 Interim Dividend – Rs. – 1.0000
TATASTEEL 31-Jan-18 Right Issue of Equity Shares ECLERX 02-Feb-18 Buy Back of Shares
WIPRO 31-Jan-18 Interim Dividend – Rs. – 1.0000 EDELWEISS 02-Feb-18 Interim Dividend – Rs. – 1.0500
BVL 01-Feb-18 Spin Off PERSISTENT 02-Feb-18 Interim Dividend – Rs. – 7.0000
IBULHSGFIN 01-Feb-18 Interim Dividend – Rs. – 14.0000 HYDIND 05-Feb-18 Interim Dividend – Rs. – 10.0000
IRBINVIT 01-Feb-18 Income Distribution (InvIT) MOTILALOFS 05-Feb-18 Interim Dividend – Rs. – 4.0000

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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The index is likely to remain choppy until budget announcements.Elite WealthMorning OutlookTrader ResearchMarket Outlook – 31 January 2018 The index is likely to remain choppy until budget announcements. Next move in market will depend on reaction to the budget. NIFTY: NIFTY opened at 11120.85 with a minor gap down of just 10 points. The index made its intraday high at 11121.10 and started moving...Research Elite wealth Blog