Nifty 9,886 /Sensex 32,020/ Bank Nifty 23,937
24 Advances / 27 Declines/ 0 Unchanged
Benchmarks snap four days gaining streak on Friday
Record hitting streak comes to an end on Friday, with frontline gauges settling tad below their neutral lines, as traders opted to book some of their profits after four days of continues rally. Initially, Sensex opened at a new high of over 32,100 mark, while Nifty too hit a new peak of 9,900 mark for the first time ever on strong buzz that a policy rate cut may be on the anvil after inflation touched a ‘record low’. However, markets failed to hold on to their gains and entered into red terrain, breaching their respective crucial levels, as traders remained concerned with disappointing earnings by the Tata Consultancy Services, India’s largest software services exporter whose quarterly profit fell 10 percent sequentially, while revenues declined 0.2 percent. Moreover, another IT bellwether firm Infosys reported a 3.3 per cent sequential drop in net profit at Rs 3,483 crore for June quarter. Investors also remained on sidelines ahead of high-profile meeting chaired by Prime Minister Narendra Modi to review the country’s foreign direct investment policy, where further easing of restrictions may also be discussed.
Losses remained capped with report that India is ranked 116 out of 157 nations on a global index that assesses the performance of countries towards achieving the ambitious sustainable development goals (SDGs). India with a score of 58.1, is behind countries such as Nepal, Iran, Sri Lanka, Bhutan and China. The SDG Index and Dashboards Report shows world leaders need to strengthen their efforts to realize the 17 global goals. Some solace also came with report that the wholesale price index based inflation fell to 0.9 percent in June from 2.17 percent in May. The fall in WPI as well as CPI inflation raised hopes for rate cut by RBI in August monetary policy.
Global stocks scaled record highs on Friday, with Asian equities rising for the fifth straight session, as signs the Federal Reserve will pursue a gradual rate tightening path and hopes of a strong earnings season lifted appetite for risk assets. However, European counters were trading mostly in red in early deals, as investors looked ahead to earnings reports from Wall Street banks and monitored developments from a meeting between the French and US presidents.
Back home, export oriented stocks edged lower after top exporter body FIEO said the Goods and Services Tax (GST) will severely dent the liquidity situation of traders and the compliance cost of merchant exporters may go up. Stocks related to insurance space remained in focus on reports that HDFC Life Insurance may call off its proposed takeover of the Max group’s life insurance business as the two have not been able to arrive at a mutually agreeable alternative structure for the transaction.
FII’s Activity 14-July-17
The FIIs as per Friday’s data were net sellers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 5292.17 crore against gross selling of Rs 5375.44 crore. Thus, FIIs stood as net sellers of Rs 83.27 crore in equities.
In the debt segment, the gross purchase was of Rs 1130.69 crore with gross sales of Rs 1402.47 crore. Thus, FIIs stood as net sellers of Rs 271.78 crore in debt.
Now what to expect??
Nifty Levels
Above 9900 will see rally till 9950---9980 mark.
Soon we will cross 10000 mark
Panic will see only close below 9850 level only
Bank Nifty Levels
Close above 24000 will see further upside rally till 24800---25300+++ mark in days to come.
Support and stop loss below 23400 on closing basis.
Trade with levels only
Daily Derivative Outlook 17th July
•Nifty (Jul) futures closed at a Premium of 13.20 points versus Discount of 4.20 points.
• Maximum call writing was seen at 9900 strikes, and maximum put writing was also seen at 9900 and 9700 strikes.
• Maximum positions are at 10000 CE and 9600 PE. Nifty likely to trade in range of 10000--9600
• CHENNPETRO (37%), ORIENTBANK (38%), NATIONALALUM (16%), MANAPPURAM (15%) and DCBBANK (14%) were the top open interest gainers in the market.
• HINDALCO (-7%), UJJIVAN (-7%), MUTHOOTFIN (-6%), BIOCON (-5%) and EQUITAS (-5%) were the top open interest losers in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.50 against 1.46 for Thursday’s trade.
• Around 0.39 lakh shares were shaded in open interest with increase in price indicating short covering was observed by market participants in Friday’s trade.
• On the options front volatility index has decreased in Friday’s trade by around 1%.
Derivative Idea
PTC added around 20% of open interest as long build up on weekly basis.
On Weekly charts, PTC has given fresh breakout with volumes at 105 mark. PTC is trading above 21 and 55 DEMA indicates upside momentum in it.
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation
(Positional) Buy PTC (July) Future above 116.50 and add more lot around 110. Stop Loss 100.00. Target 130—155 and then to 170+++.
Today's Top Pick
Eros International Media Limited
Above 215 will see upside rally till 225---230++ mark in days to come.
Looks bearish only if close below 205. Any sharp downside fall will be buying opportunity in it.
Corporate Action Today
Dr. Reddy's Laboratories Limited-Annual General Meeting/Dividend - Re 20 per Share
PVR Limited- Dividend - Re 2 per Share
Result Today
ACC Limited
Jubilant Foodworks Limited
More Will Update Soon!!
