Update on Nifty levels, Bank Nifty levels and Derivative out look of the day 28th Sept 2017
Nifty 9735 /Sensex 31159/ Bank Nifty 23813
5 Advances / 46 Declines/ 0 Unchanged
Benchmarks clobber out of shape on penultimate day of F&O expiry
Wednesday turned out to be a daunting day of trade for Indian equity benchmarks where frontline gauges clobbered out of shape, tumbling below their crucial 31,200 (Sensex) and 9,750 (Nifty) levels, as traders opted to remain on sidelines on penultimate day of September F&O expiry. Markets failed to take any advantage of positive start and soon entered into negative terrain. Afterwards, market never looked confident of recovering and gradually extended its losses till end to close near intraday lows, as sentiments remained dampened on report that collections under goods and services tax declined to Rs 90,669 crore for August from a revised figure of Rs 94,063 crore for July. Of the tax collected, Rs 14,402 crore have come in as Central GST, Rs 21,067 crore as State GST and Rs 47,377 crore as Integrated GST, which is levied on inter-state movement of goods and imports and Rs 7,823 crore as compensation cess. Some cautiousness also crept with report that the Asian Development Bank (ADB) expecting the RBI to go for another round of rate cut in the latter part of 2017-18 in view of sluggish economic activities but does not see possibility of any major fiscal stimulus.
Markets extended losses in last leg of trade on report that India slipped one place to rank 40th in Global Competitiveness Index out of 137 countries surveyed, while Switzerland, the US and Singapore were ranked as the top three countries. Meanwhile, the Indian Army has conducted another surgical strike at Naga Insurgent Camp, Myanmar border. There was no casualty to Indian forces during surgical strike but there are heavy casualties at Naga Insurgent camp in Myanmar border. Traders overlooked Niti Aayog Vice Chairman Rajiv Kumar’s statement that the extra fiscal stimulus will help the economy do well and there is no harm in relaxing the fiscal deficit target to allow for more capital expenditure in order to lift the slowing Indian economy.
On the global front, European markets were trading in green on growing expectations of another rate hike in the United States before the year-end. British retail sales growth unexpectedly surged to a two-year high during the first part of this month, industry data showed, potentially giving the Bank of England confidence to raise interest rates as soon as November. Asian markets ended mixed, as the dollar retained modest gains after Federal Reserve Chair Janet Yellen boosted expectations for an interest-rate rise in December.
Back home, ICICI Lombard General Insurance Company, which made a tepid start, managed to went home with the gain of over 3% on the bourses. On the sectorial front, telecom stocks ended in red after the telecom regulator rejected a request by operators for an additional six months to implement a new penalty regime for call drops, which is set to kick in from October 1. In new rules issued on August 18, TRAI set penalties of up to Rs 10 lakh per circle in a quarter on operators failing to meet voice quality benchmarks. Pharma stocks edged lower after India Ratings and Research, a rating firm of Fitch Group highlighted that Indian Pharma exporters’ road to recovery might still take time as weak economic and political conditions in Africa and currency volatility in Latin America (LATAM) are likely to weigh on the consumption of pharmaceutical formulations. This fluctuation is expected to put pressure on the medium term growth prospects for India’s exporters.
FII’s Activity 27-Sept-17
The FIIs as per Wednesday’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 3807.82 crore against gross selling of Rs 5464.14 crore. Thus, FIIs stood as net sellers of Rs 1656.32 crore in equities.
In the debt segment, the gross purchase was of Rs 1516.98 crore with gross sales of Rs 2147.97 crore. Thus, FIIs stood as net sellers of Rs 630.99 crore in debt.
Now what to expect???
Nifty Levels
We clearly indicate nifty looks bearish below 9825 level marks, its crashed vertically and made low of 9718. We are holding short from 10100 mark
Now what to expect???
Break and sustain below 9688 will see more downside panic till 9604---9555 (May take dead cat bounce in between range of 9604---9555) else it could test its resistance level of 9905 again.
Close above 9905 will see more upside rally till 9950---9985 and then to 10065 mark.
Major hurdle at 10200 which is unlikely to breach for time being
Bank Nifty Level
Too indicated that bank nifty looks bearish below 24000 level marks, it also crashed vertically and made low of 23776 but not able to sustain and close around 23817.
Now what to expect???
Break and sustain below 23750 will see more downside panic till 23580---23450 and then to 23300 mark else it could test its resistance level of 24000 again.
Daily Derivative Outlook 28th September 2017
• Nifty (Sep) futures closed at a Premium of 3.90
point versus a discount of 4.55 points.
• Maximum call writing seen at 9800, Maximum put writing seen at 9600.
• Maximum positions are at 9900 CE and 9600 PE.
• SIEMENS (26%), BHARATFORG (18%), GMRINFRA(11%), SUZLON (9%) and CANBK (8%) were the top gainers in open interest in the market.
• NIITTECH (-15%), UBL (-13%), SRTRANSFIN (-11%), NTPC (-11%) and RELCAPITAL (-11%) were the top losers in open interest in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 0.85 for September month contract.
Hexaware gain around 59.00% of open interest as short build up on Wednesday’s trade. It is trading near its major support level of 260, while also trading below its 21 and 55 DEMA.
Now what to expect??
Support at 260, Below 260 panic remain continue till 253—250 and then to 245 ++ mark in days to come.
Hurdle and stop loss below 265.00
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation (28th Sep 2017)
Sell Hexaware around 258—260 Stop loss 265.00 (on closing basis) Target 253-250and then to 245.00.
Today will have expiry day... So trade safely.
Corporate Action
Bharat Electronics Limited-Bonus 1:10
Bharat Heavy Electricals Limited-Bonus 1:2
Bharat Forge Limited-Bonus 1:1
More Will Update Soon!!
