Nifty 10085 /Sensex 32272/ Bank Nifty 24844
21 Advances / 30 Declines/ 0 Unchanged
Late hour buying help benchmarks to end flat
Buying which emerged in last leg of trade helped markets to erase all of their initial losses to end flat on Friday. Markets started off on pessimistic note, as geo-political worries resurfaced with North Korea’s new provocative move of firing another ballistic missile over Japan. Key gauges traded in red terrain for most part of the day, as sentiments remained dampened with SBI research report stating that country’s GDP is likely to remain below 6 percent in the second quarter of 2017-18 owing to muted agriculture growth and sluggish performance of manufacturing and mining sector. The GDP stood at a three year low at 5.7% for April-June quarter of 2017-18, which the report said has raised concerns about the annual GDP numbers for the fiscal. Traders also remained concerned with United Nations’ report stating that effects of demonetization and rollout of the Goods and Services Tax regime on the informal sector and reduction in pace of credit creation may affect India’s growth prospects and the country unlikely to serve as the ‘growth pole’ for the global economy in the near future.
Domestic bourses even went to test psychological 32,150 (Sensex) and 10,050 (Nifty) levels, but the key gauges got some support near those intraday low levels as they trim their losses from thereon and ended near their neutral lines, as investors continued hunt for fundamentally strong stocks. Traders took some sense of relief with report that India and Japan have signed 15 key agreements including open sky agreement, after the historic launch of India's first bullet train project between Ahmedabad and Mumbai, to further expand the horizon of their bilateral relationship.
Recovery in Asian markets too provided some support to domestic markets with most of the peers ending in green. A poll showed that Japanese manufacturers’ confidence worsened for the first time in four months in September from the previous month's decade-high level and was expected to fall further, weighed by global uncertainty. European markets were trading in red, led by over a percent fall in UK’s market after a blast on a London underground train left some passengers with facial burns.
Back home, Information Technology (IT) stocks remained on buyers’ radar after a senior US official sought to allay India’s concerns on the H-1B visa programme, which is being reviewed by the Trump administration, saying there are no restrictions in place. The official said around 70% of the visas issued under the H-1B category over the past nine months have gone to Indians and that a record 1.2 million visas of Indians were adjudicated by the US last year. Select stocks from textile sector remained in focus, as the Textile Commissioner said that country’s technical textile market has huge growth potential and it is expected to grow at 12% per annum to reach $23 billion (Rs 1,50,000 crore) in 2020.
FII’s Activity 15-Sept-17
The FIIs as per Friday’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 4020.69 crore against gross selling of Rs 4951.98 crore. Thus, FIIs stood as net sellers of Rs 931.29 crore in equities.
In the debt segment, the gross purchase was of Rs 1562.63 crore with gross sales of Rs 1415.22 crore. Thus, FIIs stood as net buyers of Rs 147.41 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 18th September 2017
• 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 10100, Maximum put writing seen at 10000.
• Maximum positions are at 10200 CE and 9900 PE.
• Long build up: ANDHRABANK (25.20%), ALBK (15.00%), BAJAJ-AUTO (14.90%), SYNDIBANK (10.10%) and L&TFH (0.5%).
• Short build up: BERGEPAINT (11.8%), INDIACEM (4.7%) BHEL (3.8%), IDEA (2.6%) and ICIL (0.9%).
• The Nifty Put Call Ratio (PCR) finally stood at 1.44 for September month contract.
Derivative Idea (18-09-2017)
TECHM gain around 7.20% of open interest as long build up on Friday’s trade. It has also breach its immediate resistance level of 444.00 on the upper side with noticeable rise in volume.
Now what to expect??
Hurdle at 448.00, Break and sustain above 448.00 will take it to 465—470++ mark in days to come.
Support and stop loss below 435.00
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation
Buy TECHM (SEPT) future above 448.00 Stop loss 435.00 on closing basis) Target 465--470 mark.
Infosys - Top Pick
MACD too has given the positive crossover (Buy signal) which indicates that upper side seems certain in it.
Now what to expect???
Infosys break and sustain above 910 will see upside rally till 933—940 mark in days to come.
Looks bearish only if close below 893 marks.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (18th September 2017)
Buy Infosys above 913 with stop loss of 893 (on a closing basis) Target 933---940.
Corporate Action
Indraprastha Gas Limited-Annual General Meeting/Dividend - Rs 5 per Share
Sun Pharmaceutical Industries Limited-Annual General Meeting/Dividend - Rs 3.50 per Share
National Aluminium Company Limited-Annual General Meeting
Max Financial Services Limited-Annual General Meeting
Tata Elxsi Limited-Bonus 1:1
More Will Update Soon!!
