Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 11th Oct 2017
Nifty 9888/Sensex 31592/ Bank Nifty 24058
29 Advances / 19 Declines/ 2 Unchanged
Benchmarks end with modest gain ahead of Q2 numbers; Nifty recaptures 10K mark
Indian equity benchmarks managed to garner marginal gains and ended the Tuesday’s trade in green terrain, with frontline gauges settling above their crucial 10,000 (Nifty) and 31,900 (Sensex) levels, as investors went for value buying in the blue-chip stocks ahead of the festival season. Market participants also remained optimistic on second-quarter earnings starting with TCS on October 12 and Reliance Industries on October 13. After making a positive start, markets traded in a particular range throughout the session to end with modest gains, as sentiments remained upbeat with RBI Governor Urjit Patel’s statement that the economy is recovering, after growth slowed to a three-year low of 5.7 percent in the April-June quarter. He added that the GDP growth will pick up in the third and fourth quarters (of the current fiscal year) to above 7 per cent. Traders also took encouragement with Finance Minister Arun Jaitley’s statement that India can become a much cleaner and bigger economy among the emerging economies as it has the capacity to implement bold decisions and scale them up efficiently.
However, gains remained capped with the Reserve Bank of India (RBI) releasing data that indicates pessimism reigns among consumers and there is less hope for improvement in general economic conditions compared to last year. The RBI’s results of the September 2017 round of the Consumer Confidence Survey, reflecting households’ perceptions and expectations on the general economic situation, the employment scenario, the overall price situation and their own income and spending, showed the Current Situation Index waned further into the pessimistic zone.
On the global front, European counters were trading mostly in red in early deals amid ongoing political uncertainty in the Catalonia region of Spain. Repercussions following the Catalonia region of Spain’s recent bid for secession have been seen from the central government in Madrid. Asian markets exhibited mixed trend ahead of minutes from the most recent Federal Reserve meeting due this week for direction.
Back home, some support also came with Agriculture secretary Shobhana K Pattanayak’s statement that India is headed for a good rabi season despite below normal monsoon rains, thanks to a surge of rainfall in the last week of September that replenished soil moisture. The secretary added that the late rains will benefit planting of rabi crops such as wheat and chana. Adding to the optimism, SBI research report highlighted that India has been reasonably successful in reducing corruption, which has had a positive impact on its economic growth.
FII’s Activity 10th-Oct-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 2920.76 crore against gross selling Rs 3359.88 crore. Thus, FIIs stood as net sellers of Rs 439.12 crore in equities.
In the debt segment, the gross purchase was of Rs 462.02 crore with gross sales of Rs 743.22 crore. Thus, FIIs stood as net sellers of Rs 281.20 crore in debt
Now what to expect ??
Nifty Levels
Above 10050 will see more upside rally till 10085 and then to 10130---10180 mark again else it could test its support again
Break and sustain below 9950 will see more downside panic till 9880 and then to 9800---9765
Trade within a range
Bank Nifty
Close above 24400 will see more upside rally till 24500 and then to 24650---24720 mark else it could test its support again.
Break and sustain below 24150 will see more downside panic till 24000---23900 and then to 23750
Trade within a range
Daily Derivative Outlook 11th Oct 2017
• Nifty (Oct) futures closed at a premium of 18.75 points versus a premium of 27.80 points.
• Maximum call writing seen at 10000, Maximum put writing seen at 10000.
• Maximum positions are at 10000 CE and 9800 PE.
• HEXAWARE (30%), HAVELLS (26%), STAR (25%), CUMMINSIND (15%) and INFY (13%) were the top gainers in terms of open interest.
• RELCAPITAL (-9%), SIEMENS (-5%), JINDALSTEL (-5%), POWERGRID (-5%) and ARVIND (-4%) were the top losers in terms of open interest.
• The Nifty Put Call Ratio (PCR) finally stood at 1.39 for October month contract.
Derivative Idea (11-10-2017)
VEDL gain around 7.4% of open interest as Short build up on Tuesday’s trade. It is trading near its support level of 318.50.
Now what to expect??
Support at 318.50, below panic remain continue till 308--305 and then to 298 mark in days to come. Three consecutive close+ weekly close below 298 will see further downside panic in it.
Hurdle and stop loss above 327.00
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation (11th Oct 2017)
Sell VEDL below 318.50 Stop loss 327.00(on closing basis) Target 308--305 and then to 298++.
Motherson Sumi Systems - Top Pick
On Daily chart, Motherson Sumi Systems is showing breakout point above 350 level. Break and sustain above 350 will see nonstop rally till 360--370++ in weeks to come.
Looks bearish only if close below 342 marks.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (11th Oct 2017)
Buy Motherson Sumi Systems above 350 with stop loss below 342 (on a closing basis) Target 360---370.
Result Today
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More Will Update Soon!!
