Nifty 9796 /Sensex 31388/ Bank Nifty 24129
4 Advances / 47 Declines/ 0 Unchanged
Benchmarks fell sharply on Tuesday on caution post N Korea missile launch
Domestic benchmark indices ended lower on Tuesday, snapping a four-trading-day rising streak, as investors globally turned cautious after
North Korea fired a ballistic missile over Japan.While shares across Asia and Europe slumped, global gold prices rallied to their highest level since the US presidential elections in November.
Volatility index India VIX jumped 7.1%."The stock market is in a sombre mood and there is selling across the board,.
Shares of Infosys ended down 1.4% at 927.45 rupees, after having risen for
four trading sessions as late on Monday, Infosys had said that some promoters might participate in the company's share buyback of 113.04 mln shares, or 4.9% of the total share
capital, at 1,150 rupees a share.The government's sale of stake in power generation company NTPC, and the revision of the benchmark Nifty 50 index also led to selling pressure.
Most of the shares involved in the changes in the Nifty 50, effective Sep 29, ended lower. Shares of Tata Power Co, Tata Motors - Differential Voting Rights, ACC, and Bank of Baroda all ended down, as these stocks will be
excluded from the Nifty 50.Among those to be included in the Nifty 50, shares of UPL and Hindustan Petroleum Corp ended higher, but Bajaj Finance ended down 3.1%.
FII’s Activity 29-Aug-17
In the cash market today, FII’s sold -1459.64 crores stock whereas DII’s bought 1391.33 crores worth of stock.
In the derivative market, FII’s bought 241.43 crores of Index futures and sold -957.84 crores worth of Index options.
In the Stock futures segment, FII’s sold -67.5391 crores worth of stock futures and sold -134.77 crores of stock options.
Now what to expect next??
Nifty Levels
Above 9880 will see upside rally till 9920---9950 and then to 10050 marks else it could test its support level of 9700 again.
Close below 9700 will see more downside panic in it.
Trade with levels only.
Daily Derivative Outlook 30th August 2017
• Nifty (Aug) futures closed at a Premium of 2.95 points versus a premium of 4.25 points.
• Maximum call writing seen at 9800, Maximum put writing seen at 9650 and maximum option buying (unwinding by option writers) was seen at 9900 PE and 10100 CE strike.
• Maximum positions are at 10000 CE and 9800 PE.
• NTPC (79%), DLF (28%), JETAIRWAYS (14%), CHENNPETRO (12%) and IDBI (8%) were the top open interest gainers in the market.
• RBLBANK (-36%), SINTEX (-15%), RELCAPITAL (-13%), PIDILITIND (-11%) and SHREECEM (-9%) were the top open interest losers in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.09 for August month contract.
• Advance Decline ratio in F&O segment was at 1.49, Advance (24) + Decline (194) + Unchanged (1) = 219
Derivative Idea (30-08-2017)
NTPC gain around 79% of open interest as short build up on Tuesday’s trade. It has also breached its immediate support level on the lower side with noticeable rise in volumes.
Now what to expect??
Support at 166.50 and Resistance at 170
Break and sustain below 166.50 will take it to 163--161 and then to 159++ mark in days to come.
Hurdle and stop loss above 170.00
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation(30-Aug-17)
Sell NTPC (AUG) future below 166.50 Stop loss 170(on closing basis) Target 163--161 and then to 159++
InterGlobe Aviation- Top Pick(30-Aug-17)
As the trading hours came to an end InterGlobe Aviation was observed to be priced at Rs. 1185.95 which was 18.35 points higher than the day's low and 13.9 points lower than the day's high while the day low was Rs. 1167.6 and day high was Rs. 1199.85.
A total of 740,868 shares were traded by this time of the day with the 5 day average volume being 644,157 , 10 day average volume being 631,574 and 30 day average volume being 628,210 .
In contrast to previous day’s values, the 5 day average volume rose 56817 stocks, 10 day average volume fell 1600 stocks and 30 day average volume fell 5396 stocks.
The price went up to as much as Rs. 1346.70 and went down as low as Rs. 790.10 in the last 52 weeks.
According to bollinger bands, indigo has hit the lower band which is a negative signal.
Now what to expect??
Break and sustain below 1162 will see downside panic till 1120---1100++ mark in days to come.
Looks bullish only if close above 1202 marks.
Any sharp upside rally will be selling opportunity in it.
Trading Recommendation (30th August 2017)
Sell InterGlobe Aviation below 1162 with stop loss of 1200(on a closing basis) Target 1120---1100+++
More Will Update Soon!!
