Nifty 9908 /Sensex 31798/ Bank Nifty 24374
10 Advances / 41 Declines/ 0 Unchanged
Dalal Street remains in Bear grip for third straight session on geopolitical worries
Bears continued to rule the roost at Dalal Street for third straight session, with frontline gauges breaching their crucial 31,800 (Sensex) and 9,950 (Nifty) levels, as geopolitical worries mainly weighed on the sentiments with remarks by President Donald Trump adding to concerns about rising tensions between the US and North Korea. Indian markets started on pessimistic note and traded under pressure, as investors continued to remain concerned after capital market regulator SEBI directed exchanges to initiate action against 331 suspected shell companies. SEBI’s restrictions on trading in 331 stocks have impacted about 36 lakh investors. These include some big names, such as Rakesh Jhunjhunwala, DSP Blackrock, HDFC Mutual, Reliance Mutual and UTI among domestic investors. Foreign institutions like Goldman Sachs, Fidelity, Blackrock and Smallcap World too are holders of some of these stocks.
In last leg of trade, markets tried to pare their losses, but immense selling in dying hour of trade shattered all their hopes of getting a positive close. Investors failed to get any support with the government’s statement that job loss through automation in India should not be a matter of concern as the ‘growth momentum’ of the economy will result in new job opportunities. Investors paid no heed towards Niti Aayog Vice-Chairman Rajiv Kumar’s statement that the implementation of Goods and Services Tax (GST) has brought down overall tax burden on the economy. Union Power Minister Piyush Goyal’s statement that the newly-introduced GST is crucial for promoting transparency and a corruption-free business environment in the country, too failed to provide markets any strength.
Weak opening in European counters too dampened sentiments as geopolitical concerns restrained investor sentiments. Asian markets closed mostly in red, as heightened tensions on the Korean peninsula sent caution through markets. China’s annual producer price inflation held steady in July, with prices for key raw materials up slightly on expectations of deeper capacity cuts going into the winter months of heavy pollution, while consumer inflation slowed slightly.
Back home, selling was both brutal and wide-based as none of sectoral indices on BSE were spared. Counters, which featured in the list of worst performers, include healthcare, industrial and auto. Investors shrugged off Finance Minister Arun Jaitley’s statement that the total expenditure of the government increased by 27 percent to over Rs 6.50 lakh crore in first quarter (April-June) of 2017-18, as a result of advancing the budget presentation by a month to February
FII’s Activity 09-Aug-17
The FIIs as per Wednesday’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 6587.22 crore against gross selling of Rs 4689.20 crore. Thus, FIIs stood as net buyers of Rs 1898.02 crore in equities.
In the debt segment, the gross purchase was of Rs 1906.64 crore with gross sales of Rs 975.73 crore. Thus, FIIs stood as net buyers of Rs 930.91 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9880 and resistance at 9980---10030---10150
Close below 9880 will take to 9830---9790 and then to 9700 mark else it could test its resistance again
Trade with levels only
Daily Derivative Outlook 10th August
• Nifty August 2017 futures closed at 9926.70 on Wednesday at a premium of 18.65 points over spot closing of 9908.05.
• Maximum call writing was seen at 10000 & 9900 Strike and Put writing was seen at 9800 and max put buying (unwinding by option writers) was seen at 10000 PE and 10300 CE strike.
• Maximum positions are at 10100 CE and 10000 PE. Nifty expected trading range spread to 10100—9800.
• ADANIPORTS (19%), CADILAHC (17%), HAVELLS (16%), UBL (12%) and TITAN (11%) were the top open interest gainers in the market.
• MGL (-24%), BERGERPAINT (-21%), HEXAWARE (-10%), INDIGO (-9%) and JINDALSTEL (-8%) were the top open interest losers in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 0.88.
• Advance Decline ratio in F&O segment was at 0.19, Advance (31) + Decline (187) + Unchanged (1) = 219
Derivative Idea (09-08-2017)
Jindal Steel loss around 8.34% of open interest as long unwinding on Wednesday’s trade.
Below 134 panic remain continue till 125--120 and then to 110++ mark.
Hurdle and stop loss above 144.00
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation
Sell Jindal Steel (AUG) future below 134.00 Stop loss 144.00(on closing basis) Target 125--120 and then to 110
Corporate Action
KPIT Technologies Limited-Annual General Meeting/Dividend - Rs 2.20 per Share
Mangalore Refinery and Petrochemicals Limited- Dividend - Rs 6/- Per Share (Book Closure Dates Revised)
Tata Power Company Limited- Dividend - Rs 1.30/- Per Share
Hexaware Technologies Limited- Interim Dividend - Re 1/- Per Share
Hindustan Zinc Limited - Annual General Meeting
Results Today
Bharat Forge Limited
United Breweries Limited
Union Bank of India
PTC India Limited
Motherson Sumi Systems Limited
Power Finance Corporation Limited
Petronet LNG Limited
Page Industries Limited
Manappuram Finance Limited
Kajaria Ceramics Limited
Indo Count Industries Limited
IFCI Limited
GAIL (India) Limited
Adani Power Limited
Bharat Heavy Electricals Limited
More Will Update Soon!!
