Wednesday, August 2, 2017

Update on Nifty levels, Bank Nifty levels and Derivative Outlook along with Equity Pick of the day 2nd Aug 2017


Nifty 10,114 /Sensex 32,575/ Bank Nifty 25122

35 Advances / 16 Declines/ 0 Unchanged

Late buying take benchmarks to fresh closing highs; Nifty surpasses 10,100 mark

Buying in last leg of trade comes as the saving grace for the markets and helped them to settle at fresh record closing highs, with Nifty surpassing its crucial 10,100 mark, as traders remained optimistic ahead of outcome interest rate decision from two-day Monetary Policy Committee meeting that started today. The street is expecting a rate cut of at least 25 basis points by RBI tomorrow. Markets traded with huge volatility throughout the day, with frontline gauges swinging between green and red for most part of the day, but bulls which woke up in dying hour of trade mainly supported the markets to hit another record high. Traders also took encouragement with report that the collection of Integrated Goods and Services Tax from imports crossed Rs 20,000 crore in July - the first month of the roll out of the new indirect tax regime. Adding to the optimism, global rating agency Moody’s has reported that India's GDP growth will remain in the range of 6.5-7.5 percent over the next 12-18 months and GST will support the momentum for faster growth.
However, gains remained capped as some cautiousness crept in the markets after the growth of eight core sectors slowed to 0.4% in June due to contraction in output of coal, refinery products, fertilizer and cement. The growth rate of eight infrastructure sectors was 7% in June last year. Some anxiety also spread among the investors, as PMI survey data indicated that the introduction of the goods & services tax (GST) weighed heavily on the Indian manufacturing industry in July. The Nikkei/IHS Markit Manufacturing Purchasing Managers’ Index fell to 47.9 in July from June's 50.9, its first reading below the 50 mark that separates growth from contraction since December and its lowest reading since February 2009. Some concerns also came with the report that investments in the domestic capital market through participatory notes (P-notes) slumped to Rs 1.65 lakh crore in June amid stringent norms put in place by Sebi to curb the inflow of illicit funds.
On the global front, European markets have made a positive start, moving higher after two straight months of declines thanks to a positive flow of earnings released on Monday. Asian markets ended mostly in green, as investors prepared to assess a fresh round of corporate earnings reports and data releases on the global economy, starting with an upbeat Chinese factory numbers.
Back home, stocks of oil marketing companies remained on buyers’ radar, as the government asked oil marketing companies to raise the prices of subsidised cooking gas by Rs 4 per cylinder every month. Stocks related to Auto space too caught speed on strong sales performances in the month of July by companies like Tata Motors, Mahindra & Mahindra, Ashok Leyland and Maruti Suzuki.

FII’s Activity 1-Aug-17

The FIIs as per Tuesday’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 5467.30 crore against gross selling of Rs 6685.14 crore. Thus, FIIs stood as net sellers of Rs 1217.84 crore in equities.
In the debt segment, the gross purchase was of Rs 1081.20 crore with gross sales of Rs 615.12 crore. Thus, FIIs stood as net buyers of Rs 466.08 crore in debt.

Now what to expect??

Nifty Levels

Support at 9950 and Resistance at 10200

Close above 10200 will see rally till 10450---10600+++ mark else it could test its support level of 9950 again.

Trade with levels only

Bank Nifty Levels

Support at 24700 and resistance at 25225

Close above 25225 will take to 25500---25800 and then to 26200+++ mark.

Support and stop loss below 24700 on closing basis

Trade with levels only

Daily Derivative Outlook 02nd August

• Nifty August 2017 futures closed at 10138.45 on Tuesday at a premium of 23.80 points over spot closing of 10114.65.

• Maximum call writing was seen at 10350 strike, and maximum put writing was seen at 10100 strike.

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

• MARICO (77.7%), CHENNPETRO(50.5%), TECHM (28.3%), VOLTAS (22.7%) and EICHERMOT (19%) were the top gainers in open interest in the Market.

• PETRONET (-6.8%), EXIDEIND (-6.5%), PAGEIND (-8%), MRPL (-3.9%) and ICICIPRULI (-3.3%) were the top losers of open interest in the market.

• The Nifty Put Call Ratio (PCR) finally stood at 1.12.

• Advance Decline ratio in f&O segment was at 1.48, Advance (131) + Decline (87)+ Unchanged (1) = 219 

Derivative Idea (02-08-2017)

Wipro losses around 0.33% of open interest as short Unwinding on Monday’s trade.

On Daily charts, Wipro has given fresh breakout above 294 level. 

Above 294 rally remain continue till 300—305 and then to 312++ mark in day to come. Support and stop loss below 287.50

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

Trading Recommendation

Buy Wipro (AUG) Future around 294. Stop loss 287. Target 300--305 and then 312++

Top Pick 2nd August

Shriram Transport Finance 

Above 1036 will see upside rally till 1065--1071+++ mark in days to come.

Looks bearish only if close below 1007.

Trade with strict stop loss

Corporate Action

Page Industries Limited-Annual General Meeting- Rs 25/- Per Share

Indiabulls Housing Finance Limited- Interim Dividend - Rs 9/- Per Share

Godrej Industries Limited- Dividend - Rs 1.75 Per Share

Nestle India Limited- Interim Dividend Rs 15/- Per Share

Ambuja Cements Limited- Interim Dividend - Rs 1.60 Per Share

Results Today

Capital First Limited

Wockhardt Limited

Voltas Limited

Reliance Infrastructure Limited

Punjab National Bank

Lupin Limited

Bata India Limited

More Will Update Soon!!