Nifty 9820 /Sensex 31531/ Bank Nifty 24217
19 Advances / 32 Declines/ 0 Unchanged
Geopolitical tension drag benchmarks lower for fourth straight session
Indian equity benchmarks extended their southward journey for fourth straight session, breaching their crucial 9,850 (Nifty) and 31,600 (Sensex) levels on escalating tensions between the US and North Korea. Markets started the session on pessimistic note and traded sluggish throughout the day, as Geopolitical worries continue to weigh on the sentiments. In the latest escalation of tensions between Washington and Pyongyang, the isolated Asian country threatened a missile strike at US territory Guam. That saber-rattling came a day after US President Donald Trump said he would respond with fire and fury like the world has never seen if the country doesn’t halt its threats. Back on regional turf, traders remained concerned with the report that India’s retail inflation is expected to have picked up slightly in July after cooling in the previous three months, but likely remained well below the central bank's 4 percent medium-term target. Sentiments also remained downbeat on report that that India’s agricultural exports have declined to $33.87 billion in 2016-17 from $43.23 billion in 2013-14. The primary reasons for decline in export of agricultural commodities are low commodity prices in the international market, which has made exports uncompetitive.
Meanwhile, traders failed to get any sense of relief with report that a contraction in refund outgo, rich dividends from ‘Operation Clean Money’ and more assessees coming under the income tax net post demonetisation, net direct tax collections surged 19.1 percent to Rs1.90 lakh crore during April-July. Investors also paid no heed to Adi Godrej’s statement that despite certain teething problems under the new tax regime, the Goods and Services Tax (GST) will lead to considerable increase in the GDP in the next six months.
Markets extended its losses tracking weak opening in European counters, while Asian markets ended mostly in red, as investors fretted on lingering North Korea tensions, sending Seoul shares skidding to two-month lows even as the previous day’s rush into safe-haven assets appeared to slow.
Back home, some selling also crept in on foreign brokerage’s report that India’s industrial production is expected to be anemic 0.3 percent for June, partly on account of retailers reducing stocks before the implementation of GST. The report added that before the implementation of GST, destocking was triggered largely owing to a steep fall in demand from consumers as they delayed purchases on expectation of getting better price post the new indirect tax regime. On the sectoral front, banking stocks edged lower with the Global credit rating agency, Care Ratings' latest research report that the Indian banking industry continued to remain under pressure in the first quarter of current financial year because of slower pace in growth rate of credit and deposits, it added that the non-performing assets (NPAs) also remained high as of June 2017.
FII’s Activity 10-Aug-17
The FIIs as per Thursday’s data were net sellers in equity segment, while they were net buyers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 3644.31 crore against gross selling of Rs 4073.05 crore. Thus, FIIs stood as net sellers of Rs 428.74 crore in equities.
In the debt segment, the gross purchase was of Rs 1607.96 crore with gross sales of Rs 274.40 crore. Thus, FIIs stood as net buyers of Rs 1333.56 crore in debt
Now what to expect next ??
Nifty Levels
Support at 9800 and resistance at 9920
Weekly close below 9800 will see more downside panic till 9650---9520 mark in days to come else it could test it's resistance level of 9920 again
Above 9920 will see more upside rally till 9980---10050 mark
Major hurdle intact at 10200 which is unlikely to breach in near terms unless and until any major news comes out from developed economics.
Daily Derivative Outlook 11th August
• Nifty August 2017 futures closed at 9854.75 on Thursday at a premium of 34.50 points over spot closing of 9820.25.
• Maximum call writing was seen at 10000 & 9900 Strike and Put writing was seen at 9400 and max put buying (unwinding by option writers) was seen at 9700 PE and 10500 CE strike.
• Maximum positions are at 10100 CE and 10000 PE. Nifty expected trading range spread to 10100—9500.
• BRITANNIA (13%), UBL (6%), TORNTPHARM (5%), INFIBEAM (5%) and BHEL (5%) were the top gainers in open interest gainers in the market.
• BEML (-16%), IGL (-16%), RAMCOCEM (-15%), INDIGO (-14%) and MUTHOOTFIN (-13%) were the top losers in open interest losers in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 0.85.
• Advance Decline ratio in F&O segment was at 0.10, Advance (20) + Decline (199) + Unchanged (1) = 219
Derivative Idea (11-08-2017)
Jet Airways loss around 12.00% of open interest as long unwinding on Thursday’s trade.
Support 550. Below 550 panic remain continue till 520--510 and then to 480 mark.
Hurdle and stop loss above 580.00
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation
Sell Jet Airways (AUG) future below 550.00 Stop loss 580(on closing basis) Target 520-510 and then to 480
Results Today
Cadila Healthcare Limited
Sun TV Network Limited
Sun Pharmaceutical Industries Limited
Strides Shasun Limited
TVS Motor Company Limited
Tata Global Beverages Limited
Oil India Limited
Oracle Financial Services Software Limited
Steel Authority of India Limited
Rural Electrification Corporation Limited
State Bank of India
Oriental Bank of Commerce
JSW Energy Limited
Hindalco Industries Limited
Housing Development and Infrastructure Limited
Godrej Industries Limited
GMR Infrastructure Limited
Bharat Petroleum Corporation Limited
Bosch Limited
More Will Update Soon!!
