Nifty 10,014 /Sensex 32,309/ Bank Nifty 24811
22 Advances / 29 Declines/ 0 Unchanged
Markets start new F&O series on pessimistic note; Nifty holds 10k mark
Recovery in last leg of trade helped Indian equity benchmarks to pare most of their early losses, but was not enough to pull indices into green terrain on Friday. Markets went home with modest cut, as traders opted to book profit ahead of Reserve Bank of India’s two-day monetary policy meeting, which is set to begin next week on August 1. Domestic bourses made a weak start to the new F&O series with both Nifty and Sensex declining below their crucial 10,000 and 32,300 levels respectively. Traders remained concerned with banking major ICICI reporting an eight percent fall in first quarter profit from a year earlier to Rs 2,049 crore, though the bank said it was optimistic about containing its bad loans after the three months to June saw the smallest rise in soured assets for seven quarters. Markets extended sell-off in afternoon trade and even went to test crucial 9,950 (Nifty) and 32,100 (Sensex) levels, as some anxiety spread among the investors with Niti Aayog chief Amitabh Kant’s statement that the government needs to adopt the model of build, operate and transfer (BOT) for infrastructure projects. These projects then should be given to private companies as the government is incapable of handling the maintenance and operations of such projects.
However, the key gauges got some support near those intraday low levels as they trim most of their losses from thereon and ended above their crucial 10,000 (Nifty) and 32,300 (Sensex) levels, as investors continued hunt for fundamentally strong stocks. Traders got some support with report from the prestigious Massachusetts Institute of Technology (MIT), which said that monsoon has strengthened over north central India in the last 15 years, indicating a reversal in the general perception that the region has dried up in over a decade. Traders also get some solace after Standard & Poor’s (S&P) ratings in its latest report said that the credit quality of top corporates which is on the path of recovery is likely to improve over the next two years and will lead to revenue growth.
On the global front, European markets were trading in red in early deals, as fresh political tensions in Washington dampened market sentiment. Euro zone economic sentiments rose slightly for a third consecutive month in July to a new 10-year high, against expectations of a dip from June. Asian markets ended mostly in red, as investors looked ahead to more corporate earnings and were cautious on the dollar.
Back home, gems and jewellery stocks remained on buyers’ radar, as the government expects export growth of six per cent a year for the industry, which is going to be the new normal. Gems and jewellery net exports declined in FY’16 to $32 billion, as compared to $36.2 billion the previous year. Meanwhile, Dr Reddy’s Lab extended fall to the second straight day after the Mumbai-based pharma company reported disappointing earnings for the June quarter. Biocon fell by over two percent after its consolidated net profit fell 51.2% year-on-year to Rs 81.3 crore in the quarter ended June, missing estimates, mainly due to weakening of the US dollar and destocking ahead of implementation of goods and services tax (GST).
FII’s Activity 28-July-17
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 9743.08 crore against gross selling of Rs 7303.92 crore. Thus, FIIs stood as net buyers of Rs 2439.16 crore in equities.
In the debt segment, the gross purchase was of Rs 1748.08 crore with gross sales of Rs 973.82 crore. Thus, FIIs stood as net buyers of Rs 774.26 crore in debt.
Now what to expect??
Nifty Levels
Support at 9950 and Resistance at 10200
Above 10070 will see rally till 10130---10200 mark else it could test its support level of 9950 again.
Trade with levels only
Bank Nifty Levels
Support at 24600 and resistance at 24800
Close above 24800 will take to 25050---26200+++ mark.
Support and stop loss below 24600 on closing basis
Trade with levels only
Daily Derivative Outlook 31th July
•Nifty (Aug) futures closed at a Premium of 27.75 points versus a premium of 42.90 points.
• Maximum call writing was seen at 10500 strike, and maximum put writing was seen at 9700 strike.
• Maximum positions are at 10500 CE and 9800 PE. Nifty expected trading range spread to 10500--9800
• MGL (35%), INFIBEAM (32%), REPCOHOME (28%), LT (28%) and LICHSGFIN (25%) were the top gainers in open interest in the market
• CANBK (-9%), CUMMINSIND (-5%), HDFCBANK (-5%), BANKINDIA (-4%) and PNB (-4%) were the top losers in open interest in the market
• The Nifty Put Call Ratio (PCR) finally stood at 0.99.
• Advance Decline ratio in f&O segment was at 1.33, Advance (124) + Decline (93)+ Unchanged (2) = 219
Derivative Idea (31-07-2017)
Reliance Capital gain around 17.8% of open interest as long buidlup on Friday’s trade.
On Daily charts, Reliance Capital has given fresh break out above 695 level. Reliance Capital has support 695 and resistance at 725, Break and sustain above 725 will take it to 750-780 and then to 800++ mark.
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation
Buy Reliance Capital (AUG) Future above 725 Stop loss 695 Target 750--780 and then 800++
Top Pick 31st July
EID Parry
Above 330 will see upside rally till 344--350++ mark in days to come.
Looks bearish only if close below 316 any sharp downside fall will be buying opportunity in it.
Corporate Action
Eicher Motors Limited- Annual General Meeting/Dividend - Rs 100/- Per Share
IRB Infrastructure Developers Limited-Annual General Meeting
Tata Chemicals Limited-Annual General Meeting/ Dividend -Rs 11/- Per Share
Adani Ports And Special Economic Zone Limited-Annual General Meeting/Dividend - Rs 1.30 Per Share
Adani Enterprises Limited-Annual General Meeting/Dividend - Re 0.40 Per Share
Results Today
Balrampur Chini Mills Limited
V-Guard Industries Limited
Torrent Pharmaceuticals Limited
Tech Mahindra Limited
Sintex Industries Limited
Siemens Limited
Shree Cements Limited
UPL Limited
Shriram Transport Finance Company Limited
Reliance Power Limited
Hexaware Technologies Limited
InterGlobe Aviation Limited
Godrej Consumer Products Limited
Container Corporation of India Limited
Bharat Electronics Limited
More Will Update Soon!!
