Nifty 10086 /Sensex 32241/ Bank Nifty 24912
23 Advances / 28 Declines/ 0 Unchanged
Benchmarks ekes out slender gains
Indian equity benchmarks ended the choppy day of trade with slender gains on Thursday, as initial optimism fizzled out in second half and market pared most of their gains. Markets started the session on positive note with traders taking encouragement with private report stating that India’s GDP growth is expected to be around 7.1% this fiscal following a likely pick up in industrial production as firms resort to restocking post GST especially ahead of festive season. Some support also came with report that industry body ASSOCHAM has sought from the government slew of tax relief for companies against whom insolvency proceedings have been initiated. It added that the resolution plans approved after factoring in these reliefs/concessions will result in quick revival of assets, freeing up liquidity for banks for further lending, increased economic activity, job creation, increased contribution to the exchequer and will have multiplier effect on the associated economy.
However, markets took U-turn in noon deals and pared most of their initial gains after the sharp rise seen in CPI based inflation, the latest data released by the government has shown that the WPI inflation rate too registered significant increase in August month. Surge in prices of foods articles, vegetable and fuel products mainly pulled the country’s WPI higher to 3.24% in August against 1.09% increase in the same month a year ago and 1.88% recorded in the previous month. Sentiments also remained dampened on report that India has been placed at a low 103 rank, the lowest among BRICS economies, on the WEF’s Global Human Capital Index, which has been topped by Norway. India also ranks among the lowest in the world when it comes to the employment gender gap.
On the global front, European markets were trading mostly in red, as investors assessed geopolitical developments and looked ahead to the Bank of England’s latest policy decision. Asian markets ended mostly in red terrain, following a burst of Chinese data which was largely weaker than markets expected. China’s fixed-asset investment, factory output and retail sales all grew less than expected, reinforcing views that the world's second-largest economy is gradually beginning to lose steam in the face of rising borrowing costs.
Back home, CRISIL Ratings said that banks have only recognized two-thirds of their stressed loans as non-performing assets, and estimated the bad loan ratio to rise by 1% point to 10.5% by March 2018. The agency estimates the total amount of stressed loans, which includes NPAs and standard assets that are under pressure currently and could deteriorate into NPAs, to be at Rs 11.5 trillion or 14% of the system.
FII’s Activity 14-Sept-17
The FIIs as per Thursday’s data were net buyers in equity segment, while they were net sellers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 7085.53 crore against gross selling of Rs 4499.24 crore. Thus, FIIs stood as net buyers of Rs 2586.29 crore in equities.
In the debt segment, the gross purchase was of Rs 1139.23 crore with gross sales of Rs 1415.25 crore. Thus, FIIs stood as net sellers of Rs 276.02 crore in debt.
Now what to expect??
Nifty Levels
Above 10150 will see more upside rally till 10175---10200 marks else it could test its support level of 10035 again.
Below 10035 will see more downside panic till 9980---9930 and then to 9880 mark
Trade with levels only
Daily Derivative Outlook
• Nifty September 2017 futures closed at 10114.45 on Thursday at a premium of 27.85 points over spot closing of 10086.60.
• Maximum call writing seen at 10000, Maximum put writing seen at 10000.
• Maximum positions are at 10200 CE and 9900 PE.
• Long build up: BHEL (30.00%), TORNTPHARMA (14.00%), CONCOR (10.00%), HCC (08.40%) and PEL (7.9%).
• Short build up: INDIGO (19.9%), APOLLOHOSP (10.8%) VEDL (10.2%), OIL (6.6%) and INFIBEAM (6.00%).
• The Nifty Put Call Ratio (PCR) finally stood at 1.44 for September month contract.
Derivative Idea
HCC gain around 8.50% of open interest as long build up on Thursday’s trade. It has also breach its immediate resistance level of 3800 on the upper side with noticeable rise in volume.
Now what to expect??
Hurdle at 39.00, Break and sustain above 39.00 will take it to 44.00-- 46.00 and then to 48.00 mark in days to come.
Support and stop loss below 35.00
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation
Buy HCC (SEPT) future above 39.00 Stop loss 35.00 on closing basis) Target 44.00—46.00 and then to 48.00++ mark.
Bata India - Top Pick
According to Bollinger bands, Bata India looks positive and RSI analysis seems to be technically strong.
Break and sustain above 728 will see upside rally till 746—758 mark in days to come.
Looks bearish only if close below 710 marks.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (15th September 2017)
Buy Bata above 728 with stop loss of 710 (on a closing basis) Target 746---758.
Corporate Action
Divi's Laboratories Limited--Annual General Meeting/Dividend - Rs 10/- Per Share
More Will Update Soon!!
