Nifty 10153 /Sensex 32423/ Bank Nifty 25047
39 Advances / 12 Declines/ 0 Unchanged
Bulls roar on Dalal Street; Nifty hits record high
Bulls tightened their grip on Dalal Street on Monday with Nifty ending at record closing high of over 10,150 mark, while Sensex reclaimed 32,400 level. Markets made gap-up start and traded jubilantly throughout the session, as traders took some encouragement with foreign brokerage report that India is likely to overtake Japan and Germany to become the third largest economy in the next 10 years but needs to be consistent in reforms and focus more on the social sector. Markets continue to trade near higher levels taking support from report that the Modi government has sprung into action after the economy sent out some distress signals as GDP growth slipped to a three-year low, inflation shot up to a five-month high and current account deficit widened to a four-year peak.
Adding to the optimism, Commerce and Industry minister Suresh Prabhu will soon meet the country’s top industrialists individually to seek an investment commitment from each of them for the next few years. The minister will hold one on one meeting with the heads of top 30 domestic companies, followed by group meetings, next month. The market participants shrugged off the report that trade deficit in the month of August widened to $11.64 billion from $7.7 billion during the same month a year ago. India’s exports rose 10.29 percent on a yearly basis to $23.81 billion in August on account of rise in shipments of engineering, petroleum, chemicals and pharmaceuticals products. Imports too increased 21.02 percent to $35.46 billion in August from $29.30 billion in the year-ago month due to rise in inward shipments of crude oil and gold.
Global cues too remained supportive with European counters making a positive start supported by gains among financial and industrial stocks. A survey showed that British households are feeling the tightest squeeze on their finances in three years and the Bank of England’s signal that it is getting close to raising interest rates is likely to make things worse. Asian markets ended mostly in green, as investors regained confidence after the weekend passed with no new provocation by North Korea.
Back home, Union Human Resource Minister Prakash Javadekar said that the central government has saved Rs 65,000 crore through Direct Benefit Transfer (DBT) in various public schemes. Meanwhile, consumer electronics manufacturer Dixon Technologies made a stellar debut on bourses and the stock closed up around 64% over its issue price of Rs 1,766, while Bharat Road Network had a tepid listing but somehow the scrip closed with marginal gains over its issue price of Rs 205.
FII’s Activity 18-Sept-17
The FIIs as per Monday’s data were net buyers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 11850.73 crore against gross selling of Rs 10665.73 crore. Thus, FIIs stood as net buyers of Rs 1185.00 crore in equities.
In the debt segment, the gross purchase was of Rs 723.08 crore with gross sales of Rs 265.35 crore. Thus, FIIs stood as net buyers of Rs 457.73 crore in debt.
Now what to expect??
Nifty Levels
Above 10200 will see more upside rally till 10400---10500 marks else it could test its support level of 10100 again.
Below 10100 will see more downside panic till 10065---10030 and then to 9980 mark
Trade with levels only
Daily Derivative Outlook 19th September 2017
• Nifty September 2017 futures closed at 10175.30 on Monday at
a premium of 22.20 points over spot closing of 10153.10.
• Maximum call writing seen at 10100, Maximum put writing seen at 9900.
• Maximum positions are at 10200 CE and 10000 PE.
• Long build up: JUSTDIAL (16.50%), JUBLFOOD (12.70%), INFIBEAM (6.40%), GRANULES (4.90%) and GSFC (3.5%).
• Short build up: CGPOWER (8.70%), REPCOHOME (6.80%) BALRAMCHINI (3.00%), DIVISLAB (1.70%) and JSWSTEEL (1.00%).
• The Nifty Put Call Ratio (PCR) finally stood at 1.44 for September month contract.
Derivative Idea (19-09-2017)
BIOCON gain around 3.10% of open interest as long build up on Monday’s trade. It has also breach its immediate resistance level of 352 on the upper side with noticeable rise in volume.
Now what to expect??
Hurdle at 360.00, Break and sustain above 360.00 will take it to 375—380++ mark in days to come.
Support and stop loss below 350.00
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation
Buy BIOCON (SEPT) future above 360 Stop loss 350.00 on closing basis) Target 375--380 mark.
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