Wednesday, January 17, 2018

Update on Nifty levels, Bank Nifty levels and Derivative Outlook of the day 17th Jan 2018

 Update on Nifty levels, Bank Nifty levels and Derivative Outlook of the day 17th Jan 2018

Nifty 10700 /Sensex 34771/ Bank Nifty 25974

17 Advances / 33 Declines/ 0 Unchanged

Benchmarks snap three days winning streak; Sensex gives up 34,800 mark

Snapping three days gaining streak, Indian equity benchmarks ended the volatile day of trade with marginal losses on Tuesday, as traders opted to book profit at higher levels. Markets altered between green and red throughout the session to end marginally in red, as traders remained a bit cautious with the merchandise export growth slowing sequentially to 12.4% in December, while imports jumping 21.1% during the month, aided by a spike in crude oil prices and a favorable base. The trade deficit widened to its highest level in over three years in December to $14.9 billion, a three-year peak. However, excluding the almost 35% rise in oil purchases from overseas, overall imports rose 17.2% in December. Traders also remained on sidelines ahead of GST Council meeting scheduled to be held on January 18, which will also be the last meeting before Budget 2018. The council is likely to revise rates for electric vehicles, farm equipment, ease compliance & modify the reverse charge mechanism. The recommendations of the law review committee are also likely to be taken up for consideration by the GST Council, comprising Centre and states.

However, losses remained capped, as International Monetary Fund (IMF) highlighted that India is reclaiming its place as a growth leader after a short period of slowdown in the economy. Some relief also came with Prime Minister Narendra Modi promising more economic reforms to further improve the ease of doing business in India as he invited Israeli companies to invest in India. PM further noted that India is the fastest growing economy with FDI inflows at all-time high. Traders also took some solace with private report stating that two Asian economies - India and Indonesia - will see a pick-up in GDP growth in 2018, reaping benefits of the economic reforms. It further noted that in the Indian context, adapting to the new GST regime, economic reforms aiding growth and recapitalization plan for public sector banks will lead to increased investment growth and economic activity over the coming quarters.
On the global front, European markets were trading in green in early deals, as investors monitored the release of corporate earnings while keeping an eye on the euro, which hovered near a three-year peak. Asian markets rallied on Tuesday, following a holiday for US markets as investors looked ahead to American corporate earnings.

Back home, shares of Information Technology (IT) stocks remained on buyers’ radar, as investors reacted to a weaker rupee at the interbank foreign exchange after concerns over trade deficit ballooning to a three-year high. The export oriented stocks remained in focus, as the various export bodies have expressed concern over delay in refunds under GST and have written to the Union Commerce Ministry seeking faster refunds. Mixed reactions were displayed in Jewellery stocks on report that the Commerce Ministry has pitched for reduction in import duty on gold in the forthcoming Budget with an aim to promote gold Jewellery exports. The Gems and Jewellery Export Promotion Council (GJEPC) has demanded cut in import duty on gold to 4% from the current 10%.

FII’s Activity 16th -Jan-18

The FIIs as per Tuesday’s data were net buyers in equity segment, while they were net sellers in debt segment, according to data released by the NSDL.

In equity segment, the gross buying was of Rs 5152.89 crore against gross selling of Rs 5000.15 crore. Thus, FIIs stood as net buyers of Rs 152.74 crore in equities. In the debt segment, the gross purchase was of Rs 1037.56 crore with gross sales of Rs 1899.59 crore. 

Thus, FIIs stood as net sellers of Rs 862.03 crore in debt. In the hybrid segment, there was no buying against gross selling of Rs 2.29 crore. Thus, FIIs stood as net sellers of Rs 2.29 crore in hybrid segment.

Now what to expect ??

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Nifty Levels

Support at 10681 and Resistance at 10816

Below 10681 will see panic till 10590---10540 mark else could touch its resistance level of 10816 again.

Trade with levels only 

Bank Nifty 

As we clearly indicated bank nifty looks bullish above 26080. It made high of 26121 but unable to sustain at upper level and crash vertical because of profit booking in it.

Now what to expect???

Support at 25850 and Resistance at 26150

Below 25850 will see panic till 25650---25580 mark else could touch its resistance level of 26150.

Daily Derivative Outlook 17th January 2018

•Nifty (January) futures closed at a premium of 9.10 points versus a premium of 1.75 points.

• CHOLAFIN (27%), BEL (22%), ORIENTBANK (12%), NATIONALUM (12%) and PCJEWELLER (10%) were the top gainers in terms of open interest.

• CAPF (-12%), SRF (-11), DISTHTV (-10%), HAVELLS (-10%) and AMARAJABAT (-10%) were the top losers in terms of open interest.

• Maximum call writing was seen at Nifty 10900 strike and maximum put buying was seen at Nifty 10500 strikes.

• Maximum positions are at 11000 CE and 10500 PE.

• The Nifty Put Call Ratio (PCR) finally stood at 1.46 for January month contract.

• Advance Decline ratio in F&O segment was at 0.22, Advance (39) + Decline (177) + Unchanged (1) = 217

Derivative Idea (17-01-2018)

Market seems dicey at this stage so we’ll wait for clear direction and will provide fresh call and updates later on.

Results Today

Adani Power Limited

Zee Entertainment Enterprises Limited

SREI Infrastructure Finance Limited

MindTree Limited

Bharti Infratel Limited

Hindustan Unilever Limited.

DCB Bank Limited

More Will Update Soon!!