Nifty 10147 /Sensex 32402/ Bank Nifty 25041
23 Advances / 28 Declines/ 0 Unchanged
* Benchmarks end slightly in red ahead of Fed meet *
Tuesday turned out to be a choppy day of trade for Indian equity benchmarks, with frontline gauges ending slightly in red, as traders remained on sidelines ahead of the US Federal Reserve and Bank of Japan’s meetings later this week. After a cautious start, frontline gauges traded near neutral lines swinging between green and red for most part of the day. Investors stayed away from picking any risky assets ahead of meeting of Prime Minister Narendra Modi with Finance Minister Arun Jaitley and other top officials to take stock of the situation and the discussion for remedial measures to bolster growth. PM will analyses the economic situation with Jaitley and secretaries of the finance ministry and explore options to stimulate the economy. Some concern also crept in the market on report that the Centre could be forced to cut infrastructure spending, as GST glitches have hit revenue. Lower-than-expected tax collections and sluggish growth have upset the government`s budget calculations.
However, losses remained capped as traders took some solace with Moody’s latest report that India is likely see increased foreign direct investment (FDI) inflows on the back of reforms such as introduction of the goods and services tax and the bankruptcy code. Some support also came with Union Minister for Road Transport, Highways and Shipping Nitin Gadkari’s statement that the government has managed to save bank loans worth Rs 300,000 crore to the road sector from turning into non-performing assets (NPAs).
On the global front, European markets were trading mixed and Asian shares also wavered, hobbled by uncertainty as traders waited on a Fed meeting for clues on US monetary policy. The Fed is expected to hold interest rates steady, but investors will be looking for clues on the expected pace of further tightening later this year and next. The market is pricing in an approximately even chance of a hike in December.
Back home, a foreign brokerage report highlighted that India’s current account deficit is expected to widen to 1.5% of GDP in 2017, from 0.6% in 2016, but net capital flows are expected to more than fund this deficit. The report added that the wider current account deficit in the second quarter and still- elevated trade deficit so far in July-August suggest that the current account deficit is set to widen sharply this year. Meanwhile, former Prime Minister Manmohan Singh warned of demonetization and hasty implementation of GST adversely impacting GDP growth.
On the sectorial front, Oil sector stocks remained buzzing as the Oil Minister Dharmendra Pradhan said that he has requested the Ministry of Finance to bring petroleum products under the ambit of Goods and Services Tax (GST) in the interest of consumers. Shares of oil marketing companies (OMCs) i.e. Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) remained on buyers’ radar after credit rating agency Moody’s in its report enlightened that higher sales, improved margins and lower dividend payments will improve credit metrics of OMCs, which weakened in the previous year.
FII’s Activity 19-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 3389.47 crore against gross selling of Rs 3468.29 crore. Thus, FIIs stood as net sellers of Rs 78.82 crore in equities.
In the debt segment, the gross purchase was of Rs 631.90 crore with gross sales of Rs 598.40 crore. Thus, FIIs stood as net buyers of Rs 33.50 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 10050---9980 mark
Trade with levels only
Daily Derivative Outlook 20th September 2017
• Nifty September 2017 futures closed at 10168.85 on Tuesday at
a premium of 21.30 points over spot closing of 10147.55.
• Maximum call writing seen at 10200, Maximum put writing seen at 10000
• Long build up: KAJARIACER(32.10%), BEML (16.90%), GAIL (11.60%), ANDHRBANK (7.90%) and DIVISLAB (1.7%).
• Short build up: GRANULES (11.80%), NATIONALUM (7.00%), RAMCOCEM (7.60%), COALINDIA (2.60%) and TATAELXSI (1.70%).
• The Nifty Put Call Ratio (PCR) finally stood at 1.50 for September month contract.
Derivative Idea (20-09-2017)
BEML gain around 17.00% of open interest as long build up on Tuesday ’s trade. It has also breach its immediate resistance level of 1925 on the upper side with noticeable rise in volume.
Now what to expect??
Hurdle at 1955, Break and sustain above 1955.00 will take it to 1990--2010++ mark in days to come.
Support and stop loss below 1920
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation
Buy BEML (SEPT) future above 1955 Stop loss 1920 on closing basis) Target 1990-2010 mark.
Equitas Holdings - Top Pick
Equitas Holdings closed at Rs. 164. A total of 2,843,060 shares were traded by this time of the day with the 5 day average volume being 1,588,306 , 10 day average volume being 2,732,196 and 30 day average volume being 1,849,608.
Now what to expect???
Break and sustain above 166.50 will see upside rally till 173—180 mark in days to come.
Looks bearish only if close below 160 marks.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (20th September 2017)
Buy Equitas Holdings future above 166.5 with stop loss of 160 (on a closing basis) Target 173---180.
Corporate Action
Glenmark Pharmaceuticals Limited-Annual General Meeting/Dividend - Rs 2/- Per Share
TV18 Broadcast Limited-Annual General Meeting
Granules India Limited-Annual General Meeting/Dividend - Re 0.25 per Share (Book Closure Dates Revised)
GMR Infrastructure Limited-Annual General Meeting
More Will Update Soon!!
