Nifty 10093 /Sensex 32158/ Bank Nifty 24784
41 Advances / 10 Declines/ 0 Unchanged
Bulls tighten grip on Dalal Street; Sensex reclaims 32,100 mark
Bulls tightened their grip on Dalal Street with Sensex recapturing its crucial 32,100 level, while Nifty ending just shy of 10,100 mark, ahead of the macro data of industrial production for July scheduled to be announced later in the day. In the extremely buoyant session of trade, benchmark equity indices after getting positive start, went on steadily gaining ground and halted only at day’s high by close of trade. Sentiments remained up-beat since morning with report that direct tax collections in the first five months of the current fiscal grew 17.5% to Rs 2.24 lakh crore, mainly on account of income tax mop-up from individuals. This is 22.9% of the total budget estimates of direct taxes, which comprise personal income and corporate tax, for the current financial year. There was additional encouragement with the reports that government was expecting a double-digit improvement in India’s rank in the global index on ease of doing business, likely to be announced by the World Bank next month, based on the feedback shared by the multinational organization.
Some support also came with Former Reserve Bank of India’s (RBI) governor Raghuram Rajan’s statement that reviving stalled projects and a thrust on infrastructure will be the key to India reaching the 8% economic growth in the short-term. He added that India should focus on removing the bottlenecks on all stalled projects in order to achieve 8-9% growth. Adding to the optimism, global rating agency ARC Ratings, in its latest report has affirmed the ‘BBB+’ rating to the India and maintained a stable outlook on expectation of a strong economic growth. The rating agency also affirmed its ‘A-’ foreign currency and ‘A’ local currency country ceilings for the country. It has said that a solid outlook for economic dynamism continues to drive the sovereign ratings and added that India continues to enjoy solid economic performance and a strong medium term growth outlook, with real GDP growing 7.1% in FY2017.
Markets extended gains with European counters making mostly a green start. British inflation hit its joint highest in more than five years in August as households paid more for fuel and clothing, complicating the Bank of England’s job this week of explaining why it is not raising interest rates. Asian markets rallied on Tuesday, with investors breathing a sigh of relief as North Korean fears eased slightly and the worst-case scenario from Hurricane Irma looked to have been avoided.
Back home, a RBI paper has said that farm loan waiver amounting to Rs 88,000 crore likely to be released in 2017-18 by seven states, including Uttar Pradesh and Maharashtra, may push inflation on permanent basis by 0.2 per cent. On the sectoral front, auto stock remained in top gear after data released by industry body Society of Indian Automobile Manufacturers (SIAM) showed that passenger vehicle sales grew 14% year on year at 2,94,335 units in August, while two-wheeler sales hit a record 18,91,062 units, beating the previous monthly high of 18,68,952 posted in September 2016.
FII’s Activity 12-Sept-17
The FIIs as per Tuesday’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 4042.99 crore against gross selling of Rs 4458.50 crore. Thus, FIIs stood as net sellers of Rs 415.51 crore in equities.
In the debt segment, the gross purchase was of Rs 630.95 crore with gross sales of Rs 289.19 crore. Thus, FIIs stood as net buyers of Rs 341.76 crore in debt.
Now what to expect??
Nifty Levels
We clearly indicating Nifty looks positive above 10050, it’s flared and made high of 10114
Now what to expect???
Above 10120 will see more upside rally till 10150---10175 marks else it could test its support level of 9980 again.
Below 9980 will see more downside panic till 9930---9880 and then to 9820 mark
Trade with levels only
Daily Derivative Outlook 13th September 2017
• Nifty September 2017 futures closed at 10107.90 on Tuesday at a premium of 14.85 points over spot closing of 10093.05.
• Maximum call writing seen at 9900, Maximum put writing seen at 10100.
• Maximum positions are at 10200 CE and 9900 PE.
• Long build up: VOLTAS (29.5%), NCC (10.7%), DIVISLAB (5.0%), ADANIPOWER (3.00%) and KPIT (1.8%) were the top gainers in open interest in the market.
• Short build up: JUBLFOOD (10.00%), ICICIPRULI (5.1%) BAJFINANCE (4.9%), OFSS (4.8%) and NATIONALUM (3.6%) were the top losers in open interest in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.35 for September month contract.
Derivative Idea (13-09-2017)
Adani Power gain around 3.00% of open interest as long build up on Tuesday’s trade. It has also breached its immediate resistance level of 32.10 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 33.75, Above 33.75 rally likely to remain continue till 37.50—39.00 and then to 42.00+++ mark in days to come.
Support and stop loss below 30.50
Trading Recommendation
Buy Adani Power (SEPT) future above 33.75 Stop loss 30.50 on closing basis) Target 37.50—39.00 mark.
Todays Top Pick- Tata Motor
Yesterday we recommend buying in Tata Motors above 382. It spurts and crossed 390 mark.
Now what to expect???
Break and sustain above 391 will see upside rally till 405—415 mark in days to come.
Looks bearish only if close below 377 marks.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (13th September 2017)
Buy Tata motor above 391 with stop loss of 377 (on a closing basis) Target 405---415.
Corporate Action
Repco Home Finance Limited -Dividend - Rs 2/- Per Share
NHPC Limited-Dividend - Re 0.10 Per Share
PTC India Limited-Annual General Meeting/Dividend - Rs 3/- Per Share
Jaiprakash Associates Limited-Annual General Meeting
Sun TV Network Limited-Annual General Meeting
BEML Limited-Annual General Meeting/Dividend - Rs 8 Per Share
More Will Update Soon!!
