Nifty 10006 /Sensex 31882/ Bank Nifty 24672
33 Advances / 17 Declines/ 1 Unchanged
* Benchmarks witness spirited performance; Nifty reclaims 10K mark*
Bulls tightened their grip on Dalal Street on Monday with Nifty recapturing their crucial 10,000 level, while Sensex ended just shy of 31,900 mark, as global investors relieved from the fact that North Korea did not indulge in any fresh provocative move that would flare up geopolitical tensions. Sentiments remained jubilant since morning with frontline gauges started the session with gap-up opening as traders reacted positively to the outcome of the crucial meeting of the Goods and Services Tax (GST) Council that took place on Saturday, where the council cut GST rate for over 40 items of mass consumption. Markets extended their rally on foreign brokerage firm’s report that India’s trade deficit is expected to improve in August to about $10.3 billion from $11.5 billion in July, largely on moderation in export as well as import growth. According to the global financial services major, the moderation, on a year-on-year basis, is likely owing to higher oil prices and unfavorable base effects. It estimates a moderation of export growth to 3.4% year-on-year in August from 3.9% in July and imports of 11.3% in August from 15.4% in July.
Meanwhile, welcoming the decision of the GST Council of reducing the rate on supply of various scrips from 12% to 5%, the Federation of Indian Export Organizations (FIEO) said the move will give a boost to the exports sector. Market participants shrugged off report that the investments in the domestic capital market through participatory notes (P-notes) slumped to a five-year low of Rs 1.35 lakh crore in July amid stringent norms put in place by SEBI.
Firm global cues too aided sentiments with European counters trading in green in early deals, as market recovered from the European Central Bank’s most recent policy statement and as investors continued to track the advancement of Hurricane Irma in the US. Asian markets ended mostly in green. China’s producer price inflation accelerated more than expected to a four-month high in August, fueled by strong gains in raw materials prices and pointing to strong, sustained growth for both factory profits and the economy.
Back home, majority of auto companies closed in green as domestic car companies sounded relieved after the GST Council on Saturday raised the vehicle cess by less than the maximum possible, although luxury automakers were more circumspect in their assessment of the new rates. Power stocks remained buzzing, as Fitch Ratings in its report said that India may produce surplus power in the current financial year but sporadic outages continue to plague the country and 24% households are yet to be electrified. Hotel stocks remained on buyers’ radar taking cues from a survey that the domestic hotel industry is expected to see room revenue rising at about 11-13% CAGR over the next five years, mainly on the back of economic growth. According to the study by CARE Ratings, the industry is expected to register an overall healthy increase in revenue on back of economic growth and consistently growing middle-class along with rising disposable income.
FII’s Activity 11-Sept-17
The FIIs as per Monday’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 3843.82 crore against gross selling of Rs 3970.38 crore. Thus, FIIs stood as net sellers of Rs 126.56 crore in equities.
In the debt segment, the gross purchase was of Rs 471.93 crore with gross sales of Rs 338.61 crore. Thus, FIIs stood as net buyers of Rs 133.32 crore in debt.
Now what to expect next??
Now what to expect next??
Nifty Levels
Above 10050 will see more upside rally till 10080---10150 marks else it could test its support level of 9920 again.
Below 9920 will see more downside panic till 9880---9850 and then to 9700 mark
Daily Derivative Outlook 12th September 2017
• Nifty September 2017 futures closed at 10025.90 on Monday at a premium of 19.85 points over spot closing of 10006.05.
• Maximum call writing seen at 10000, Maximum put writing seen at 10000.
• Maximum positions are at 10000 CE and 9900 PE.
• Long build up: BATAINDIA (21.6%), BERGERPAINT (16.4%), Havells (15.9%), INDUSINDBK (13.9%) and PETRONET (13.5%) were the top gainers in open interest in the market.
• Short build up: CADILAHC (18.3%), RBLBANK (16.7%), TORNTPHARM (14.9%), SBIN (4.7%) and IRB (4.00%) were the top losers in open interest in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.24 for September month contract.
Derivative Idea (12-09-2017)
PFC losses around 2.4% of open interest as Short Unwinding on Monday’s trade. It has also breached its immediate resistance level of 126.50 on the upper side with noticeable rise in volume while it is also trading above 21 and 55 DEMA on daily chart.
Now what to expect??
Hurdle at 128, Above 128 rally likely to remain continue till 135--138 and then to 142++ mark in days to come. Further upside rally will see on close above 142.00
Support and stop loss below 123.00
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation(12-09-17)
Buy PFC(SEPT) future above 128.00 Stop loss 123(on closing basis) Target 135--138 and then to 142++ mark.
BHEL- Top Pick(12-09-17)
BHEL break and sustain above 132 will see upside rally till 137—140 mark in days to come.
Looks bearish only if close below 127 marks.
Trading Recommendation (12th September 2017)
Buy BHEL above 132 with stop loss of 127 (on a closing basis) Target 137---140.
Corporate Action
HCL Technologies Limited - Annual General Meeting
Oracle Financial Services Software Limited-Annual General Meeting
Muthoot Finance Limited-Annual General Meeting
Container Corporation of India Limited-Dividend - Rs 7.50 per Share
Dalmia Bharat Limited-Annual General Meeting/Dividend - Rs 2.20 per Share
Results Today
Jet Airways (India) Limited
More Will Update Soon!!
