Update on Nifty levels, Bank Nifty levels and Derivative Outlook of the day 6th Feb 2018
Nifty 10666 /Sensex 3757/ Bank Nifty 27220
24 Advances /26 Declines/ 0 Unchanged
Bloodbath continues on Dalal Street on Monday; Sensex slips below 34,800 mark
Bears took full control over Dalal Street on Monday, with frontline gauges settling below their crucial 34,800 (Sensex) and 10,700 (Nifty) levels, as traders opted to stay away from risky assets ahead of Reserve Bank of India’s (RBI’s) monetary policy meeting to be start from tomorrow. Markets, after a gap-down start, traded with pessimism throughout the session, as traders remained concerned that Union Budget could push up inflation and prompt the central bank to raise interest rates soon. sentiments also remained dampened with Fitch Ratings’ statement that high debt burden of the government constrains India’s rating upgrade, after Finance Minister Arun Jaitley projecting a fiscal deficit of 3.5 per cent of GDP against the earlier target of 3.2 per cent. Besides, the US-based agency had kept India’s sovereign rating unchanged at ‘BBB-’, the lowest investment grade with stable outlook, citing weak fiscal position. Traders failed to get any sense of relief with report that the Indian service sector remained in expansion mode in January, registering the fastest rise in activity in three months driven by a renewed increase in new business orders. The seasonally adjusted Nikkei Services Business Activity Index improved to 51.7 in January, up from 50.9 in December.
Traders took note of industry body ASSOCHAM’s report stating that the RBI should not over-react to high yield pressures in the bond market and should refrain from hiking interest rates in its next monetary policy review outcome on February 7. ASSOCHAM enlightened in a post-Budget paper that some of the macro indicators, including pegging of higher fiscal deficit of 3.3% for 2018-2019 and 3.5% of the GDP for the current fiscal, look difficult, but reaction of the bond market would ease out soon.
Meanwhile, DEA Secretary Subhash Chandra Garg said that achieving a double-digit economic growth for India in current global scenario is difficult but the country is on path to clock 8% plus expansion by 2020-21. Garg added that achieving double digit growth is difficult as the growth in the global economy is not that high.
Weak opening in European counters too dampened sentiments, as weakness seen in markets overseas weighs on sentiment. Britain’s economy slowed sharply in January, according to a survey which cast doubt on growing expectations among investors that the Bank of England might be gearing up to raise interest rates again in the coming months. Asian markets ended mostly in red, as investors remained worried that rising inflation could prompt central banks to tighten monetary policy faster than expected.
Back home, telecom stocks exhibited mixed trend, as the Telecom Regulatory Authority of India (TRAI) is likely to unveil guidelines on transparent pricing this week, even as it considers challenging Telecom Dispute Settlement and Appellate Tribunal’s directions to it on the subject. Last Thursday, TDSAT directed TRAI to act against Reliance Jio for not adhering to the seven-day limit of reporting the Welcome Offer, besides asking the regulator to frame guidelines around transparent and non-predatory pricing. Stocks related to chemical sector remained in focus on report that the government planning to impose antidumping duty on import of a chemical, used in industries like plastics, from four countries, including China, for three years to guard domestic players from cheap shipments.
FII’s Activity 5th-Feb-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 7721.20 crore against gross selling of Rs 6555.36 crore. Thus, FIIs stood as net buyers of Rs 1165.84 crore in equities.
In the debt segment, the gross purchase was of Rs 2586.62 crore with gross sales of Rs 1288.44 crore. Thus, FIIs stood as net buyers of Rs 1298.18 crore in debt.
In the hybrid segment, there was no buying against gross selling of Rs 0.38 crore. Thus, FIIs stood as net sellers of Rs 0.38 crore in hybrid segment.
Now what to expect ??
Nifty Levels
Below 10600 will see panic till 10300 and then to 10080---10030 mark
Hurdle and stop loss above 10725 on closing basis
Trade with levels only
Bank Nifty
Below 25800 will see panic till 25600--25400 and then to 25000 mark else could touch its resistance level of 26400 again
Trade with levels only
Daily Derivative Outlook 6th February 2018
• Nifty February 2018 futures closed at 10684.60 on Monday, at a premium of 18.05 points over spot closing of 10,666.55.
• GODREJIND (13%), PAGEIND (7%), NIITTECH (6.3%), AJANTPHARM (3%) and HDFC (3.6%) were the top gainers in terms of open interest.
• PCJEWELLER (-16.5%), CENTURYTEX (-5.6%), BHARTIARTL (-3.4%), CANFINHOME (-9%) and MCX (-1.9%) were the top losers in terms of open interest.
• Maximum call writing was seen at Nifty 10700 strike and maximum put writing was seen at Nifty 10600 strikes.
• Maximum positions are at 11500 CE and 10500 PE.
• The Nifty Put Call Ratio (PCR) finally stood at 0.84 for February month contract.
• Advance Decline ratio in F&O segment was at 0.04, Advance (8) + Decline (207) + Unchanged (2) = 217
Top Pick
We will provide during market hours.
Corporate Action
Container Corporation of India Limited-Interim Dividend - Rs 9.60 Per Share
Godrej Consumer Products Limited-Interim Dividend -Re 1/- Per Share
Results Today
Castrol India Limited
Siemens Limited
Tata Chemicals Limited
Punjab National Bank
Rural Electrification Corporation Limited
Oracle Financial Services Software Limited
Lupin Limited
The Ramco Cements Limited
Hero MotoCorp Limited
Gujarat State Fertilizers & Chemicals Limited
Apollo Tyres Limited
Dish TV India Limited
More Will Update Soon!!
