Tuesday, August 1, 2017

Update on Nifty levels, Bank Nifty levels and Derivative Outlook of the day 1st Aug 2017

Nifty 10,077 /Sensex 32,309/ Bank Nifty 25103

32 Advances / 19 Declines/ 0 Unchanged

Markets hit fresh record closing highs on RBI rate cut hopes

Indian equity benchmarks ended the splendid performance with a gain of over half a percent on Monday, settling at fresh all time closing high levels. Key gauges traded firmly throughout the session and ended above their crucial 10,050 (Nifty) and 32,500 (Sensex) levels amid rate cut optimism. Market participants expects the Reserve Bank of India (RBI) to cut rates by 25 bps on falling inflation in the coming policy meet, which will start tomorrow. Meanwhile, ahead of the next monetary policy review, Reserve Bank Governor Urjit Patel on Friday called on Finance Minister Arun Jaitley and is believed to have discussed various macro-economic issues. Traders also took some encouragement with Finance Minister Arun Jaitley’s statement, who underlining the government’s push on reforms has said that in the last three years, the prime minister has been forcing one or two important changes. India has to become a country where it is easy to do business and the businesses are done in the most ethical way.
Adding to the optimism, Prime Minister Narendra Modi highlighted the success of the Goods and Services Tax (GST) Bill and said it has transformed the economy. Terming the GST as pro-poor and an example of cooperative federalism, he said the government’s effort is to ensure there is no extra burden on the poor. Markets extended their northward journey in second half as market participants got some boost on report that India’s exports of engineering goods to China saw a whopping 123 percent growth at $629 million during April-June this fiscal, driven by an upsurge in shipments of non-ferrous metals. The country’s shipments to China stood at $282 million in the April-June quarter of the previous fiscal.
Firm opening in European counters too aided sentiments, as Chinese manufacturing data boosted miners and investors focused on positive earnings news from Europe’s largest bank, HSBC. Asian markets closed mixed, as investors turned their attention to a raft of global economic data and earnings this week.
Back home, some support came with Moody’s report that India’s GDP growth will remain in the range of 6.5-7.5% over the next 12-18 months and GST will support the momentum for faster growth. Besides, global brokerage firm lowered its inflation forecast for 2017 to 3.1% from 3.6% earlier citing relatively benign outcomes of GST and monsoon. It, however, said headline inflation troughed in June and the trajectory is still that of a gradual rise in headline inflation.

FII’s Activity 31-July-17

The FIIs as per Monday’s data were net sellers in equity segment, while they were net buyers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 5204.81 crore against gross selling of Rs 5216.26 crore. Thus, FIIs stood as net sellers of Rs 11.45 crore in equities.
In the debt segment, the gross purchase was of Rs 1316.94 crore with gross sales of Rs 275.08 crore. Thus, FIIs stood as net buyers of Rs 1041.86 crore in debt.

Now what to expect??

Nifty Levels

Support at 9950 and Resistance at 10200
Above 10080 will see rally till 10130---10200 mark else it could test its support level of 9950 again.
Trade with levels only

Bank Nifty Levels

Support at 24700 and resistance at 25150
Close above 25150 will take to 25350---26200+++ mark.
Support and stop loss below 24700 on closing basis
Trade with levels only

Daily Derivative Outlook 1 August

•Nifty (Aug) futures closed at a Premium of 25.90 points versus a premium of 27.75 points.

• Maximum call writing was seen at 10400 strike, and maximum put writing was seen at 10000 strike.

• Maximum positions are at 10500 CE and 10000 PE. Nifty expected trading range spread to 10500—10000.

• TORNTPHARM (44%), LICHSGFIN (37%), POWERGRID (25%), INFRATEL (22%) and SINTEX (20%) were the top gainers in open interest in the Market.

• L&TFH (-9%), BEL (-8%), JSWSENERGY (-8%), LT (-5%) and ONGC (-5%) were the top losers of open interest in the market.

• The Nifty Put Call Ratio (PCR) finally stood at 1.07.

• Advance Decline ratio in f&O segment was at 1.48, Advance (129) + Decline (87)+ Unchanged (3) = 219 

Derivative Idea (01-08-2017)

Bank of Baroda losses around 2.0% of open interest as short Unwinding on Monday’s trade.

On Daily charts, Bank of Baroda has support 160 and resistance at 168, Break and sustain above 168 will take it to 175--178 and then to 182++ mark. 

Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.

Trading Recommendation

Buy Bank of Baroda (AUG) Future above 168 Stop loss 160 Target 175--178 and then 182++

Corporate Action

Adani Power Limited-Annual General Meeting

Results Today

JSW Steel Limited

Torrent Power Limited

Power Grid Corporation
 of India Limited

Piramal Enterprises Limited

Reliance Defence and Engineering Limited

PC Jeweller Limited

Marico Limited

More Will Update Soon!!