Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 22nd Jan 2018
Nifty 10817 /Sensex 35260/ Bank Nifty 26537
19 Advances / 31 Declines/ 0 Unchanged
Bulls go brisk on Dalal Street; Sensex conquers 35,500 level
Friday turned out to be a remarkable day of trade for Indian equity benchmarks where bulls tightened their grip on Dalal Street, with Sensex conquering its crucial 35,500 level, Nifty end just shy of 10,900 mark for the first time ever. Despite some initial hiccups, domestic bourses gained momentum and traded in green terrain for most part of the day, but rally in last leg of trade mainly helped markets to end at fresh record high levels. Sentiments remained up-beat, as traders took some encouragement with India Ratings and Research’s projection that the country’s economic growth will improve to 7.1 percent in the next fiscal year 2018-19 from 6.5 percent in the current year 2017-18. It said that the growth will be supported by robust consumption demand and low commodity prices. Traders also reacted positively on report that GST Council decided to cut tax rates on 29 products and 53 services, in what is seen as the biggest overhaul since the launch of GST. Finance Minister Arun Jaitley also said that the panel at its next meeting may also consider bringing under the Goods and Services Tax (GST) purview items like petroleum and real estate which are currently outside the new regime.
At one point of time it looked like markets will end up near neutral lines, but rally which emerged in final hour of trade mainly pulled markets higher to end at their fresh all time high levels. Sentiments remained optimistic with Union Minister Suresh Prabhu’s statement that the commerce ministry is working on a strategy to diversify India's export basket in a bid to boost shipments. Some support also came with Vice-President M Venkaiah Naidu’s statement that various decisions of the central government, including demonetisation and GST, are likely to have a positive impact in the coming years.
Firm opening in European markets too aided sentiments, as investors watch out for developments in US politics, new earnings and fresh data. Retail sales in the UK declined much more than expected in December, dampening optimism over the British economy. Asian markets ended mostly in green, supported by stronger-than-expected Chinese GDP data and expectations for strong corporate earnings.
Back home, to make REITs and InvITs more attractive, markets regulator Securities and Exchange Board of India (SEBI) has allowed strategic investors like registered NBFCs and international multilateral financial institutions to invest up to 25% of the total offer size of such trusts. On the sectoral front, stocks related to power sector edged higher after Power Minister R.K. Singh said that the central government will set up a $350 million fund to finance solar power projects, as it steps up efforts to achieve its ambitious goal of to increasing renewable power capacity to 175 gigawatts (GW) by the year 2022.
FII’s Activity 19th -Jan-18
The FIIs as per Friday’s data were net buyers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 9015.80 crore against gross selling of Rs 7097.88 crore. Thus, FIIs stood as net buyers of Rs 1917.92 crore in equities.
In the debt segment, the gross purchase was of Rs 3182.71 crore with gross sales of Rs 1902.89 crore. Thus, FIIs stood as net buyers of Rs 1279.82 crore in debt.
In the hybrid segment, the gross buying was of Rs 2.30 crore against gross selling of Rs 5.91 crore. Thus, FIIs stood as net sellers of Rs 3.61 crore in hybrid segment.
Now what to expect ??
Nifty Levels
Support at 10780 and Resistance at 10925
Above 10925 will see rally till 11030---11080 mark else could touch its support level of 10780.
Trade with levels only
Bank Nifty
Support at 26500 and Resistance at 26800
Above 26800 will see rally till 27200---27500 mark else could touch its support level of 26500 again
Daily Derivative Outlook 22nd January 2018
•Nifty (January) futures closed at a premium of 6.35 points versus a discount of 6.20.
• NIITTECH (45%), ICICIPRULI (24%), M&MFIN (18%), JUBLFOOD (17%) and BIOCON (16%) were the top gainers in terms of open interest.
• JSWENERGY (-13%), TORNTPOWR (-12%), VOLTAS (-11%), BERGEPAINT (-9%) and CANBK (-9%) were the top losers in terms of open interest.
• Maximum call buying was seen at Nifty 10800 strike and maximum put buying was seen at Nifty 10900 strikes.
• Maximum positions are at 11000 CE and 10500 PE.
• The Nifty Put Call Ratio (PCR) finally stood at 1.64 for January month contract.
• Advance Decline ratio in F&O segment was at 3.67, Advance (169) + Decline (64) + Unchanged (0) = 217
Derivative Idea (22-01-2018)
Bajaj Finance losses around -3.60% of open interest as short unwinding on Friday’s trade.
Bajaj Finance unable to breach its major support level of 1630 and bounced back sharply.
Now what to expect??
Hurdle at 1715 , Above 1715 rally remain continue till 1780—1820++ mark in days to come
Support and stop loss below 1650.00
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation (22nd Jan 2018)
Buy Bajaj Finance future above 1715 with stop loss of 1680 for the initial target 1780—1820++ mark.
ICICI Prudential Life Insurance- Top Pick
Price just got above it's 200-day simple moving average which is a positive signal and according to simple moving average analysis, icicipruli is in a uptrend.
Now what to expect???
On Daily chart, Hurdle at 425 will see rally till 446--450 in weeks to come.
Support intact at 404.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (22nd Jan 2018)
Buy ICICI Prudential above 425 with stop loss below 404 (on a closing basis) Target 446—450.
Corporate Action
Tata Consultancy Services Limited--Rs 7 Per Share
Results Today
Asian Paints Limited
V-Guard Industries Limited
Just Dial Limited
Havells India Limited
Dewan Housing Finance Corporation Limited
Axis Bank Limited
More Will Update Soon!!
