Wednesday, January 31, 2018

Update on Nifty levels, Bank Nifty levels and Equity Pick of the day 31st Jan 2018

 Update on Nifty levels, Bank Nifty levels and Equity Pick of the day 31st Jan 2018

Nifty 11049 /Sensex 36033/ Bank Nifty 27269

13 Advances / 36 Declines/ 0 Unchanged

 Benchmarks end lower ahead of Budget

Tuesday turned out to be a daunting day of trade for Indian equity benchmarks, with frontline gauges settling below their crucial 36,100 (Sensex) and 11,050 (Nifty) levels. Markets kick-started the session on pessimistic note, as traders remained concerned over valuations after recent strong gains. Traders also remained on sidelines ahead of upcoming budget, as this will be the last full year budget of the government before next year’s Lok Sabha election. Afterwards, markets traded in a tight band throughout the session, as sentiments remained dampened with Chief Economic Adviser Arvind Subramanian’s statement that the scope for the Reserve Bank of India (RBI) to lower interest rate may be limited with growth picking up and inflation hardening. He added however that it would be inappropriate for him to comment on rate cut as it is the domain of the RBI. 

Traders also remained nervous with NITI Aayog Vice Chairman Rajiv Kumar’s statement that the government may settle for slightly higher fiscal deficit in 2018-19 as well. The government aims to restrain the fiscal deficit for 2017-18 to 3.2% of the GDP and 3% in 2018-19.Some anxiety spread among the investors after yesterday’s Economic Survey, while painting a bright picture for India’s short and medium term growth, pointed out some pitfalls. It enlightened that despite better-than-expected GST revenue growth, India is headed for some fiscal slippage and could miss the target of 3.2% of GDP. 

The survey also added that agriculture income may fall by up to 25% in the medium term because climate change will hit crop yields, making it imperative to replace power and fertilizer subsidies by direct income support and to drastically expand irrigation. Market participants shrugged off report that Securities and Exchanges Board of India (SEBI) may tighten net worth norms, bring in new shareholding rules and ease directorship conditions for stock exchanges, depositories and clearing corporations.Weak opening in European markets too dampened sentiments as global markets took a risk-averse turn, with cyclical sectors including mining and financials suffering the sharpest losses. Gross Domestic Product (GDP) in the euro zone rose as expected in the fourth quarter. 

The GDP rose a seasonally adjusted 0.6% in the final three months of 2017. Asian markets ended in red, as oil extended declines and US bond yields rose to their highest levels in nearly four years.Back home, Oil marketing companies i.e. Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) edged higher after strong numbers from IOC. IOC’s Q3 earnings beat expectations and the company announced the bonus issue in the ratio of 1:1. The Gross Refining Margin (GRM) for the quarter ended December 2017 stood at $12.30 a barrel, which was far ahead of street expectation of $8.20 a barrel. Aviation companies like InterGlobe Aviation (IndiGo), SpiceJet and Jet Airways ended in green after CAPA report enlightened that backed by record capacity expansion, airlines will fly more than 150 million domestic passengers in FY19. The capacity addition will be led by IndiGo. Meanwhile, Amber Enterprises made stellar debut and ended with a gain of over 44% on the BSE.

FII’s Activity 30th -Jan-18

The FIIs as per Tuesday’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 8805.37 crore against gross selling of Rs 8161.52 crore. Thus, FIIs stood as net buyers of Rs 643.85 crore in equities.

In the debt segment, the gross purchase was of Rs 1287.70 crore with gross sales of Rs 855.94 crore. Thus, FIIs stood as net buyers of Rs 431.76 crore in debt.

In the hybrid segment, the gross buying was of Rs 2.46 crore against gross selling of Rs 3.51 crore. Thus, FIIs stood as net sellers of Rs 1.05 crore in hybrid segment.

Now what to expect ??

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Nifty Levels 

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Above 11130 will see rally till 11240---11360 mark 

Fresh selling will do only close below 11000 mark 

Trade with levels only 

Bank Nifty 

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Above 27500 will see rally till 27650---27800 mark else could touch its support level of 27200 again

Trade with levels only

Manappuram Finance - Top Pick

Manappuram Finance forming rounding top with high of 120 and low of 113.55, below 113.50 stock may turn negative and crash to the nearest level of 109—107.

Now what to expect???

On Daily chart, below 113 will see panic till 109---107 in days to come.

Resistance intact at 117.

Any sharp upside rally will be selling opportunity in it.

Trading Recommendation (31st Jan 2018)

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Sell below 113.50 with stop loss above 117 (on a closing basis) Target 109—107.

Corporate Action-Ex date

Tata Steel Limited-Rights - 4:25 Fully Paid Up Shares @ Premium Rs 500/- Per Share / 2:25 Partly Paid Up Shares @ Premium Rs 605/- Per Share

Piramal Enterprises Limited-Rights 1:23 @ Premium Rs 2378/-

Wipro Limited-Interim Dividend - Re 1 Per Share (Purpose Revised)

Results Today

Dabur India Limited

Vedanta Limited

Petronet LNG Limited

NTPC Limited

Reliance Infrastructure Limited

PVR Limited

Larsen & Toubro Limited

Kajaria Ceramics Limited

JSW Steel Limited

IDBI Bank Limited

ICICI Bank Limited

Hindustan Construction Company Limited

Exide Industries Limited

Escorts Limited

Equitas Holdings Limited

Arvind Limited

More Will Update Soon!!