MARKET OUTLOOK – 02 Mar, 2017

Trading Range Persists In Nifty; Support At 8860 And Resistance At 8980; Break Beyond The Range Should Give A New Trade; Avoid Trading Inside This Range, Metal Stocks Continue To Outperform; Look For A Buying Opportunity.

market research analysis

NIFTY:

Nifty closed on a 6-month high, suggesting that a brief correction may be getting over. If this is so, then we could well see the Nifty move on to life time highs this month. But, there is always the possibility of the Markets failing to gather momentum after initial rally. However, if the markets remain stable in the week or two, we could have strong chance of the rally continuing all the way to 9100 and maybe beyond.

However, few days back, Nifty found resistance near 9000 levels and came down. Prices then bounced back from support (8850) and again coming back to its resistance zone.

The important message will come if and when the Nifty manages to close above the resistance 8980 or below support at 8860. Inside this range, we have to trade day by day, keeping the daily context in mind..

BANK NIFTY:

Bank Nifty traded narrow on second consecutive day but with a bullish bias today. Prices started the session with a gap up of 90 points near 20700 and went through a rally initially. Index made a high of 20833 but then traded sideways and closed below 20800 with a gain of nearly 180 points.

The index is basically trading inside (20450-21050) from last eight trading days. A breakout is looking imminent but direction is still unknown. Therefore, traders should prepare to take trade in the direction of the breakout.

Look to buy if Bank Nifty breaks above 21100; OR;

Look to sell if a price breaks below 20400.

Take one trade only whichever executes first and stops in either case would come at 20750.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
HINDUNILVR 876 BUY Intermediate trend is up in HINDUNILVR. The stock has been consolidating inside a range. Prices have seen a breakout and closes higher. We may see an upside rally here. Buy this stock above 878. If this trade executes then place your stop just below 870 and a target near 895.
IGL 1051 BUY Intermediate and short term trend is up in IGL. The stock has seen an upside rally and then started trading range bound. Prices are now at the verge of breakout from this range. Buy this stock above 1053. If this trade executes then place your stop just below 1041 and a target near 1080.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
INFY MAR FUT BUY INFY CMP 504 518-523 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
IBREALEST.17.03 Mar 84.8 4.56 9.03 39490000 BHARATFIN.17.03 Mar 824.3 -2.87 9.36 11468000
TATAGLOBAL.17.03 Mar 145 4.39 2.62 30487500 BAJFINANCE.17.03 Mar 1078.45 -2.86 11.33 4479000
SAIL.17.03 Mar 63.95 4.07 0.55 48156000 IDEA.17.03 Mar 113.1 -2.58 0.12 90174000
TATASTEEL.17.03 Mar 503.4 3.68 9.26 21576000 EICHERMOT.17.03 Mar 23790 -1.81 14.28 198850
IRB.17.03 Mar 240.7 3.19 5.34 11092500 NTPC.17.03 Mar 161.15 -1.65 21.12 27364000
                                                                           Short covering                                                                               Long Unwinding
HINDZINC.17.03 Mar 2.28 -2.43 7465600 313.7 DCBBANK.17.03 Mar 154.25 -1.69 -1.6 4423500
JINDALSTEL.17.03 Mar 1.23 -5.43 46719000 127.4 GMRINFRA.17.03 Mar 15.8 -1.56 -0.1 1.87E+08
JUSTDIAL.17.03 Mar 1.13 -0.96 2599200 534.95 BEML.17.03 Mar 1338 -0.73 -1.13 2052600
PAGEIND.17.03 Mar 0.72 -2.6 29950 14502 ADANIENT.17.03 Mar 98.4 -0.51 -0.37 21640000
NIFTYIT.17.03 Mar 0.61 -1.14 38950 10786 MINDTREE.17.03 Mar 473.5 -0.5 -1.38 3009600

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
NTPC Limited 159.95 -1.84 9818253 12450635 88.67 Nifty 50 8945.8 0.75 89040
Indian Oil Corp. Ltd. 381.7 -0.87 4726693 4730051 80.65 Nifty Bank 20783.75 0.86 89187
BHARTI INFRATEL LIMITED 288.95 1.65 5145017 9881048 79.22 Nifty IT 10748.05 0.63 89187
ITC Ltd. 268.5 2.4 14578413 6518388 79.1 INDIA VIX 13.57 -1.56 89040
Dr. Reddys Lab Ltd 2923.3 2.57 898063 428439 78.95 Nifty Energy 11277.35 -0.73 89187
Hindustan Unilever Ltd 875.5 1.11 1199589 1085100 76.99 Nifty Pharma 10700.8 1.09 89187
UltraTech Cement Limited 3731.1 -1.15 281751 270444 74.36 Nifty Realty 204.85 3.88 89187
HCL Technologies Ltd. 849.1 1.07 1096847 848251 74.21 Nifty Infrastructure 2994.75 -0.1 89187
SHRIRAM TRANS FIN CO. LT 925.65 -0.38 691605 395469 73.43 Nifty Auto 9670.6 0.17 89187
HDFC Ltd. 1400.55 2.23 2163448 1701769 73.41 Nifty Metal 3184.6 1.83 89187

UPCOMING ECONOMIC DATA

                                      Domestic                                                                                                        International      
•IIP Data (YoY) on 10th March, 2017.

•WPI Data on (Feb) YoY on 14th March , 2017.

•US Service PMI (Feb) on 3rd March, 2017.

•ISM Non Manufacturing PMI (Feb) on 3rd Feb, 2017.

CORPORATE NEWS

•Ashok Leyland has reported a 4.93 per cent increase in total sales at 14,067 units in February.

•Infrastructure company Gayatri Projects has bagged Rs 1,363 crore irrigation contract from Karnataka Neeravari Nigama Ltd.

•Royal Enfield, the two-wheeler division of Eicher Motors has reported a 18.88 per cent jump in total sales at 58,439 units in February.

•Jindal Stainless (Hisar) Limited, has signed a licensing agreement with Defence Research & Development Organisation (DRDO), an arm of the defence ministry for transfer of technology for manufacturing High Nitrogen Steel (HNS) for Armour applications.

•Reliance Jio, has tied-up with TeamF1 Networks, a subsidiary of D-Link (India) Limited, to launch fixed-line digital services with the help of a home gateway solution

Source: Economic Times, Business Standard

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
NATIONALUM Dividend 2-Mar-17 DIAPOWER Appointment 4-Mar-17
TATAMTRDVR Meeting Updates 2-Mar-17 COALINDIA Dividend 6-Mar-17
SUPREMEINF Issue of Securities 2-Mar-17 TVSMOTOR Dividend 6-Mar-17
HARITASEAT Dividend 3-Mar-17 EMAMILTD Dividend 6-Mar-17
RUCHIRA Preferential issue 3-Mar-17 BLS Stock Split/Others 6-Mar-17
MOTOGENFIN Others 3-Mar-17 BRFL Board meeting Rescheduled 6-Mar-17
HDFC Dividend 3-Mar-17 CADILAHC Dividend 7-Mar-17

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
HEXAWARE Interim Dividend – Rs. – 1.0000 2-Mar-17 TEJNAKSH Bonus issue 1:1 8-Mar-17
MODISNME Interim Dividend – Rs. – 1.0000 2-Mar-17 GAIL Bonus issue 1:3 9-Mar-17
ROHLTD Interim Dividend – Rs. – 1.0000 2-Mar-17 SOTL Interim Dividend – Rs. – 13.5000 9-Mar-17
SYMPHONY Interim Dividend – Rs. – 1.0000 2-Mar-17 VIAANINDUS Stock  Split From Rs.10/- to Rs.1/- 9-Mar-17
TECHNO Buy Back of Shares 2-Mar-17 BHAGYNAGAR Reduction of Capital 10-Mar-17
EIDPARRY Interim Dividend – Rs. – 4.0000 3-Mar-17 BHAGYNAGAR Spin Off 10-Mar-17
NAUKRI Interim Dividend – Rs. – 1.5000 3-Mar-17 DICIND Dividend – Rs. – 4.0000 14-Mar-17
ASHFL Bonus issue 1:1 7-Mar-17 ACC Dividend – Rs. – 6.0000 16-Mar-17
CASTROLIND Special Dividend – Rs. – 2.0000 7-Mar-17 AMBUJACEM Final Dividend – Rs. – 1.2000 16-Mar-17

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