Nifty 9,915 /Sensex 32,028/ Bank Nifty 24,257
26 Advances / 25 Declines/ 0 Unchanged
Final hour buying helps Sensex to regain 32K mark; Nifty reclaims 9,900 level
Buying in final hour of trade helped markets to end the session with gain of around half a percent, with frontline gauges recapturing their crucial 32,000 (Sensex) and 9,900 (Nifty) bastions. Markets started the day on optimistic note with traders taking some encouragement with an Asian Development Bank’s (ADB) supplement report stating that India is expected to achieve the projected growth rate of 7.4% in 2017 and further up 7.6% next year on strong consumption demand, with South Asia leading the growth chart in Asia and the Pacific. Upbeat earnings from market heavyweight Reliance Industries too aided sentiments with company reporting a consolidated quarterly net profit increase of 28%, helped by higher-than-expected refining and petrochemicals margins and a one-time gain. Net profit rose to Rs 9,079 crore in the quarter ended June from Rs 7,077 crore a year earlier. Revenue rose to Rs 92,661 crore, an increase of 25.5% from Rs 73,829 crore a year ago.
Markets in the second half took U-turn and entered into red terrain, as anxiety spread among the investors with ADB’s statement that the goods and services tax is expected to boost growth in the medium term, however there may be some teething pains as firms adjust to the new system. Domestic bourses even went to test psychological 31,800 (Sensex) and 9,850 (Nifty) levels, but the key gauges got some support near those intraday low levels as they trim their losses from thereon and ended near intraday high levels, as investors continued hunt for fundamentally strong stocks. Some support also came with the private report stating that strong import growth in June points to continued recovery in India’s domestic demand and highlighted that economic expansion will accelerate from the April-June quarter.
On the global front, European markets were trading mostly in red in early deals, as a fresh flow of corporate earnings failed to change the mood of the previous session, dragged down by the European Central Bank’s policy meeting, which pushed the euro close to a two-year high. Asian markets ended mostly in negative terrain on Friday, with Hong Kong’s Hang Seng Index closing in red.
Back home, stocks related to realty counter edged lower despite reports that foreign investment in Indian real estate sector jumped more than two-fold at $ 7.6 billion during 2014-16 period compared with the previous three years. US accounted for more than 40% of the foreign investments, followed by Canada (18%) and Singapore (17%). Telecom stocks Bharti Airtel, Idea cellular, Reliance Communications, MTNL and Tata Teleservices (Maharashtra) closed in red after Reliance Industries’ Chairman and Managing Director Mukesh Ambani announced the launch of much-awaited 4G feature phone at the company’s 40th annual general meeting. DTH & Digital Cable TV Providers such as Dish TV India and Hathway Cable & Datacom too closed in red on Jio’s New TV-Enabled Phone.
FII’s Activity 21-July-17
The FIIs as per Friday’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 4314.40 crore against gross selling of Rs 4139.31 crore. Thus, FIIs stood as net buyers of Rs 175.09 crore in equities.
In the debt segment, the gross purchase was of Rs 494.90 crore with gross sales of Rs 1639.16 crore. Thus, FIIs stood as net sellers of Rs 1144.26 crore in debt.
Nifty Levels
Enjoyed or not???
Not able to breach 9830 and skyrocketed. Above 9950 will see rally till 9980---10035 mark.
Panic will see only close below 9830 level only
Bank Nifty Levels
Support at 24000 and resistance at 24250
Close above 24250 will take to 24500---24650+++ mark.
Support and stop loss below 24000 on closing basis
Trade with levels only
Daily Derivative Outlook 24th July
• Nifty July 2017 futures closed at 9910.55 on Friday at a discount of 4.70 points over spot closing of 9915.25.
• Maximum call buying was seen at 9000 strikes and maximum call writing was seen at 10200 strike, and maximum put writing was seen at 9900 strikes.
• Maximum positions are at 10000 CE and 9800 PE. Nifty likely to trade in range of 10000--9800
• ARVIND (14.00%), RELIANCEI (12.5%), SUZLON (16%), BEML (5.10%), and ICIL (5.00) were the top open interest gainers in the market.
• CUMMINS (-13.60%), DLF (-11.90%), FORTIS(-6.70%), Adani Power(-1.50%) and KPIT (-1.40%) were the top open interest losers in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.44 against 1.35 for Tuesday’s trade.
Derivative Idea
Adani Power losses around 1.50% of open interest as Short Unwinding on Daily basis.
On Daily charts, Above 32.50 rally remain continue till 35.00—38.00 and then to 40++ mark.
Support and stop loss below 29.40
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation
Buy Adani Power (July) Future above 32.50 Stop Loss 29.40 Target 35.00—38.00 and then to 40.00++
Today's Top Pick
Bata India... Above 580---582 will see upside rally till 594---615++ mark in days to come.
Looks weak only if close below 568.
Any sharp down fall will be buying opportunity in it.
Corporate Action Ex-Date Today
Titan Company Limited- Dividend - Rs 2.60 Per Share
Lupin - Annual general meeting/ Dividend- Rs 7.50 Per Share
Tata Consultancy Services Limited - Interim Dividend - Rs 7/- Per Share
Wockhardt Limited- Annual general meeting
Results Today
Ambuja Cements Limited
Zee Entertainment
Enterprises Limited
Tata Communications Limited
IRB Infrastructure Developers Limited
Mahindra & Mahindra Financial Services Limited
Just Dial Limited
HDFC Bank Limited
Bharti Infratel Limited
Indiabulls Housing Finance Limited
Indiabulls Real Estate Limited
More will update soon!!
