Nifty 10121 /Sensex 32370/ Bank Nifty 24799
17 Advances / 33 Declines/ 1 Unchanged
Benchmarks trim losses to end flat; extend consolidation for third straight day
Erasing their initial losses, Indian equity benchmarks ended the session flat with negative bias and extended their consolidation for third straight day on Thursday. After making a decent start, markets witnessed sharp sell-off which dragged key gauges below their crucial 32,200 (Sensex) and 10,100 (Nifty) levels in early deals, as traders turn concerned with report that advance tax payments by top corporate for September quarter has increased only marginally. Adding to the pessimism, a survey found that optimism level among India’s Chief Financial Officers during July-September touched a one and half year low amid concerns related to subdued demand and strain on corporate balance sheet. The Composite CFO Optimism Index for the September quarter of this year declined by 11% year-on-year and by 5.7% on a quarter-on-quarter basis.
However, markets got support near those psychological levels and started trimming their losses with traders taking solace after Finance Minister Arun Jaitley hint at a package of measures to boost the economy, while virtually ruling out any cut in duties on petroleum products to check the spike in fuel prices. Jaitley said the government is considering additional measures to bolster economy that has hit a three-year low of 5.7 percent in the first quarter of the current fiscal. He said an announcement with regard to the additional steps will be made after consulting Prime Minister Narendra Modi. Traders also get some comfort with World Bank President Jim Yong Kim’s statement that India has been growing pretty ‘robustly’ and predicted a strong global growth this year.
Firm opening in European counters too aided sentiments as banking shares drove the bourses higher. German’s Finance Ministry said that the country’s economy weakened at the start of the third quarter after a strong performance in the first half of the year, but indicators suggest its solid growth will continue. However, Asian markets ended mostly in red, digesting the Fed views on rates and the latest Bank of Japan review.
Back home, Pharma stocks edged higher as traders paid no heed on reports that some drugs used in the treatment of cancer, hepatitis B, tuberculosis, measles and malaria are expected to get cheaper as the country’s drug pricing watchdog has limited their maximum prices. The National Pharmaceutical Pricing Authority (NPPA) said it has fixed and revised the ceiling prices of 39 drug formulations. The move is expected to slash prices of some of these drugs, like Hepatitis B immunoglobulin, by as much as 20%. However, auto stocks edged lower despite Moody’s Investors Service in its latest report stated that car sales in India are expected to grow by 9% this year riding on the back of GST regime as well as new product launches.
FII’s Activity 21-Sept-17
The FIIs as per Thursday’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 6311.25 crore against gross selling of Rs 7197.13 crore. Thus, FIIs stood as net sellers of Rs 885.88 crore in equities.
In the debt segment, the gross purchase was of Rs 439.19 crore with gross sales of Rs 270.53 crore. Thus, FIIs stood as net buyers of Rs 168.66 crore in debt.
Now what to expect??
Nifty Levels
Nifty Levels above 10200 will see more upside rally till 10400---10500 marks else it could test its support level of 10050 again.
Below 10050 will see more downside panic till 9980.
Trade with levels only
Daily Derivative Outlook 22nd September 2017
• Nifty (Sep) futures closed at a Premium of 16.95 points versus a premium of 26.40 points
• Maximum call writing seen at 10100, Maximum put writing seen at 10100.
• Maximum positions are at 10200 CE and 10000 PE.
• TORNTPHARM (35%), STAR (22%), AJANTPHARM (20%), WOCKPHARM (16%) and RELCAPITAL (13%) were the top gainers in in the market.
• MFSL (-10%), DIVISLAB (-10%), JUSTDIAL (-8%), ANDHRABANK (-8%) and NIITTECH (-7%) were the top losers in open interest in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.52 for September month contract.
Derivative Idea (22-09-2017)
Voltas gain around 3.7% of open interest as short build up on Thursday’s trade. It has also breach its immediate support level of 535 on the lower side with noticeable rise in volume.
Now what to expect??
Break and sustain below 535.00 will take it to 515--508 and then to 500++ mark in days to come.
Hurdle and stop loss above 548.00
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation (22-09-2017)
Sell VOLTAS (SEPT) future below 535.00 Stop loss 548.00 on closing basis) Target 515.00—508.00 and then to 500.00++ mark.
NIIT Technologies - Top Pick
In NIIT Technologies, a very good pricing volume breakout has been taking place. The lowest price in 52 weeks was Rs. 370 while highest in 52 weeks was Rs. 601.00.
Price just got above its 50-day simple moving average which is a positive signal. According to simple moving average analysis, niittech is in an uptrend.
Now what to expect???
NIIT Technologies break and sustain above 540 will see upside rally till 560—570 mark in days to come.
Looks bearish only if close below 520 marks.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (22nd September 2017)
Buy NIIT Technologies above 540 with stop loss of 520 (on a closing basis) Target 560---570
More Will Update Soon!!
