Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 24th Jan 2018
Nifty 11083 /Sensex 35260/ Bank Nifty 26537
35 Advances / 15 Declines/ 0 Unchanged
Bulls take control on Dalal Street; Nifty conquers 11K markJan
Indian equity benchmarks ended the Friday’s trade at record high levels with frontline gauges conquering fresh highs for sixth straight day, settling above their crucial 36,100 (Sensex) and 11,050 (Nifty) levels for the first ever time. Sentiments remained up-beat on report that the International Monetary Fund (IMF) has revised its forecast for world economic growth in 2018 and 2019, saying sweeping US tax cuts were likely to boost investment in the world’s largest economy and help its main trading partners. Traders took encouragement from report that International Monetary Fund (IMF) in its latest World Economic Outlook (WEO) has projected that India will grow at 7.4% in 2018 as against China’s 6.8%, making it the fastest growing country among emerging economies following last year’s slowdown due to demonetization and the implementation of the Goods and Services Tax (GST).
Markets continued to extend gains on the back of report that India has moved up on a global index of talent competitiveness to the 81st position, but remains a laggard among the BRICS nations. Some support also came after the United Nations Conference on Trade and Development (UNCTAD), in its latest ‘Investment Trends Monitor’ report has stated that India has been ranked at the tenth position among the top host economies for Foreign Direct Investment (FDI) inflows in 2017, backed by inflow of $45 billion overseas investment, while US, China and Hong Kong secured top three places in the list. Investors took note that India’s oil ministry is pushing for a cut in excise duty on petrol and diesel in the upcoming 2018-19 budget to cushion the impact of rising oil prices on its vast consumer base. Prime Minister Narendra Modi, who faces elections in key states later this year, and a nationwide election in early 2019, has faced pressure over a rise in retail prices of petrol and diesel to a record level.
Global cues too remained supportive with European markets trading in green in early deals, as sentiment was boosted by news a deal to temporarily end the US government shutdown was made and following upbeat quarterly reports from companies in the region. Asian markets ended in green after the three-day US government shutdown ended and the Bank of Japan maintained its massive monetary stimulus program.
Back home, realty stocks ended on firm note on private report that residential property markets across India’s top 30 cities have shrugged off the impact of de-monetization and absorbed the short-term blow of several regulatory changes aimed at formalizing the real-estate sector. The report added that in the quarter-ended September, these property markets, including tier I and II cities, started showing initial signs of returning to normalcy as sales registered the best performance in five quarter. Banking stocks edged higher despite report that India’s banking sector will be saddled with gross non-performing assets (GNPAs) worth a staggering Rs 9.5 lakh crore by March-end, up from Rs 8 lakh crore in the year-ago period. The high level of stressed assets in the banking system however provide enormous opportunity for asset reconstruction companies (ARCs) which are important stakeholders in the NPA resolution process.
FII’s Activity 23rd -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 6986.64 crore against gross selling of Rs 5442.82 crore. Thus, FIIs stood as net buyers of Rs 1543.82 crore in equities.
In the debt segment, the gross purchase was of Rs 919.71 crore with gross sales of Rs 1169.70 crore. Thus, FIIs stood as net sellers of Rs 249.99 crore in debt.
In the hybrid segment, the gross buying was of Rs 51.48 crore against gross selling of Rs 26.49 crore. Thus, FIIs stood as net buyers of Rs 24.99 crore in hybrid.
Now what to expect ??
Nifty Levels
As we clearly indicated Nifty looks bullish above 10816 mark.
Yesterday made high of 11094 and achieved our target successfully.
Now what to expect???
Above 11130 will see more upside rally till 11230---11280 and then to 11450+ mark else it could touch its support level of 10900.
Trade with levels only
Bank Nifty
As we clearly indicated Bank Nifty looks bullish above 26200 level.
Yesterday made high of 27415 and achieved our target successfully.
Now what to expect???
Above 27415 will see rally till 27600---27750 mark else could touch its support level of 26900 again
Daily Derivative Outlook 24th January 2018
•Nifty (January) futures closed at a premium of 1.80 points versus a premium of 6.35.
• TORNTPOWER (23%), SHREECEM (21%), PIDILITIND (21%), JISLJALEQS (20%) and ZEEL (18%) were the top gainers in terms of open interest.
• JUSTDIAL (-19%), ESCORTS (-14%), NIITTECH (-12%), ICIL (-10%) and DHFL (-9%) were the top losers in terms of open interest.
• Maximum call buying was seen at Nifty 11000 strike and maximum put buying was seen at Nifty 11000 strikes.
• Maximum positions are at 11200 CE and 10500 PE.
• The Nifty Put Call Ratio (PCR) finally stood at 2.17 for January month contract.
• Advance Decline ratio in F&O segment was at 1.99, Advance (124) + Decline (92) + Unchanged (0) = 217
Derivative Idea (24-01-2018)
UNION BANK losses around -225% of open interest as short unwinding on Tuesday’s trade.
Union bank trading above its resistance level of 145.00.
Now what to expect???
Minor Hurdle at 146.50, Above 146.50 rally remain continue till 152--155 and then to 158++ mark in days to come.
Support and stop loss below 140
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation(24th Jan 2018)
Buy UNION BANK future above 146.50 with stop loss of 140 for the initial target 152--155 and then to 158++ mark.
Lupin- Top Pick
MACD too has given the positive crossover (Buy signal) which indicates that upper side seems certain in it.
Daily 14 period RSI has also risen from higher levels to around 68 this could mean Continuation of upside momentum in the stock price ahead possibly a breakdown this time.
Now what to expect???
On Daily chart, Hurdle at 945 will see rally till 972--976 in weeks to come.
Support intact at 918.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (24th Jan 2018)
Buy Lupin above 945 with stop loss below 918 (on a closing basis) Target 972—976.
Corporate Action-Ex date
MindTree Limited-Interim Dividend Rs 2/- Per Share (Purpose Revised)
Results Today
Canara Bank
Mahindra & Mahindra Financial Services Limited
Raymond Limited
Pidilite Industries Limited
InterGlobe Aviation
Limited
KPIT Technologies Limited
Idea Cellular Limited
Biocon Limited
Container Corporation of India Limited
Capital First Limited
More Will Update Soon!!
