Update on Nifty levels, Bank Nifty levels and Derivative Outlook of the day 27th Sept 2017
Nifty 9871 /Sensex 31599/ Bank Nifty 24165
22 Advances / 28 Declines/ 1 Unchanged
Benchmarks erase losses to end flat
Indian equity benchmarks ended the session flat with negative bias on Tuesday, as traders remained on sidelines ahead of the September F&O expiry later this week. Markets made a cautious start and extended their southward movement, as traders opted to offload risky bets amid rising tensions in the Korean peninsula after North Korean Foreign Minister Ri Yong Ho claimed recent comments by President Donald Trump represent a declaration of war. Sentiments also remained dampened after the Asian Development Bank (ADB) trimmed its growth forecast for South Asia to 6.7 percent this year and 7.0 percent next year, compared with estimates of 7.0 percent and 7.2 percent made in July. India’s growth was seen at 7.0 percent and 7.4 percent for this year and next, weaker than the July forecasts of 7.4 percent and 7.6 percent. ADB added that long-term interest rates in many Asian economies are closely linked to those in the US, policymakers need to strengthen their financial positions further and monitor debt levels and asset prices.
Domestic bourses even went to test their 31,500 (Sensex) and 9,800 (Nifty) levels, but the key gauges got some support near those intraday low levels as they trim most of their losses to end flat, as investors continued hunt for fundamentally strong stocks. Traders took some solace with Prime Minister Narendra Modi constituting an Economic Advisory Council in a bid to bring in economic reforms. NITI Aayog member and a former professor at the Centre for Policy Research, Bibek Debroy has been appointed as Chairman of Economic Advisory Council. It will address issues of macroeconomic importance' and present its views to the prime minister. Some support also came with Finance Minister Arun Jaitley’s statement that the government was in the process of undertaking measures to change the environment and provide a boost to the Indian economy.
Firm trade in European counters too aided sentiments with CAC and DAX trading in green terrain, erasing their initial losses. According to a report, hopes for higher wage growth across Britain are receding, apart from in a few sectors of the labor market that suffer from acute skill shortages. Asian markets closed mostly in red on reports of rising tensions between North Korea and the United States.
Back home, auto stocks remained on buyers’ radar, as the Road Transport and Highways Minister Nitin Gadkari hinted that automobile industry could continue exports of petrol and diesel cars even as government will go ahead with its plan to transition India to all-electric mobility by 2030. However, oil marketing companies and aviation stocks remained under pressure, following sharp rally in crude oil prices in international markets.
FII’s Activity 26-Sept-17
The FIIs as per Tuesday’s data were net sellers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 6698.60 crore against gross sell of Rs 6727.43 crore. Thus, FIIs stood as net sellers of Rs 28.83 crore in equities.
In the debt segment, the gross purchase was of Rs 1274.84 crore with gross sales of Rs 2230.55 crore. Thus, FIIs stood as net sellers of Rs 955.71 crore in debt.
Now what to expect??
Nifty Levels
Break and sustain below 9825 will see more downside panic till 9780---9730 and then to 9680 mark else it could test its resistance level of 9900 again.
Close above 9900 will see dead cat bounce in the market.
Major hurdle at 10200 which is unlikely to breach for time being
Bank Nifty Level
Break and sustain below 24000 will see more downside panic till 23850---23700 and then to 23580 mark else it could test its
resistance level of 24500---24700 again which is unlikely for time being.
Daily Derivative Outlook 27th September 2017
• Nifty September 2017 futures closed at 9866.95 on Tuesday at
a discount of 4.55 points over spot closing of 9,871.50.
• Maximum call writing seen at 9900, Maximum put writing seen at 10000.
• Maximum positions are at 10000 CE and 9800 PE.
• Long Build-up: DHFL (20.8%), OIL (11.30%), WOCKPHARMA (10.40%), BHARATFORGE (5.20%) and IBREALEST (0.40%).
• Short Build-up: JPASSOCIAT (13.50%), JETAIRWAYS (3.70%), BATAINDIA (3.60%), INFRATEL (2.4%) and BPCL (0.10%).
• The Nifty Put Call Ratio (PCR) finally stood at 0.80 for September month contract.
Derivative Idea (27-09-2017)
ONGC losses around 3.3% of open interest as short unwinding on Tuesday’s trade. It is trading above its major resistance level of 171, while also trading above its 21 and 55 DEMA.
ONGC also forming double bottom pattern on daily chart having breakout point at 171.00
Now what to expect??
Minor Hurdle at 173. Break and sustain above 173 will take it to 182—188 and then to 195++ mark in days to come.
Support and stop loss below 165.00
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation (27-09-2017)
Buy ONCG above 173 Stop loss 165.00 (on closing basis) Target 182—188 and then to 195.00.
More Will Update Soon!!
