Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 12th Oct 2017
Nifty 9884 /Sensex 31592/ Bank Nifty 24058
14 Advances / 35 Declines/ 1 Unchanged
Last hour sell off drag benchmarks lower; Nifty breaches 10K mark
Paring all of their initial gains, Indian equity benchmarks ended the trade in red terrain on Wednesday. Selling which crept in final hour of trade mainly played spoil sport for the key gauges and pulled them below their crucial 10,000 (Nifty) and 31,900 (Sensex) levels, as traders opted to book profit at higher levels ahead of Q2 numbers of TCS and Reliance scheduled to be released on October 12 and October 13 respectively. Though, markets started the session on optimistic note, as sentiments remained upbeat with OPEC’s statement that India is experiencing some of the greatest structural changes as bold new reforms like note ban and GST have put the country firmly on a sustainable growth path. Some support also came with report that Private Equity/Venture Capital (PE/VC) investments touched a record high of $8.7 billion in the September quarter, a sharp increase over the last year, largely driven by big-ticket transactions. The surge was driven by large transactions, with nine $200-million-plus deals in the said quarter. Adding to the optimism, former RBI Governor C Rangarajan said that he expects that the economy would grow at 6.5% for the year 2017-18. He also said the job opportunities and economic growth of the country are inter-related.
However, markets took U-turn and entered into negative terrain as traders booked profit ahead of key economic data of August IIP and September CPI, which are scheduled to be released tomorrow. Some cautiousness also crept on report that US President Donald Trump discussed a ‘range of options’ with his top military advisors to respond to North Korea’s aggression and prevent it from threatening the US and its allies. North Korea has fired 22 missiles during 15 tests since February, drawing a sharp reaction from the US and its allies. Sentiments also turned downbeat on report that International Monetary Fund (IMF) pared India’s growth forecast for FY18, citing the lingering impact of demonetisation and disruption caused by the goods and services tax (GST), though it expects a revival as structural reforms bear fruit.
Weak opening in European counters too dampened sentiments. The German government will raise its 2017 growth forecast for Europe’s biggest economy to 2.0 percent, a sharp increase from its earlier estimate of 1.5 percent and the strongest rate since 2011. Asian markets ended mixed ahead of the release of the latest Fed meeting minutes and a key Chinese communist party meeting next week.
Back home, India Ratings & Research reported that the much awaited recovery in corporate capital expenditure in India has been delayed further and is now expected to happen only in the fiscal year ended 2021 two years later than earlier thought as highly leveraged stressed companies will drag down investment recovery. On the sectorial front, telecom stocks rang loud on the buzz of anticipated tower deal. Also, an anticipation of good set of quarterly revenues by the telecom companies is helping the upswing. Agri related stocks remained buzzing, as the Union Minister for Water Resources Nitin Gadkari said that the Centre plans to launch 285 irrigation projects covering a total of 1.88 crore hectares of farmland by next year.
FII’s Activity 12th-Oct-17
The FIIs as per Wednesday’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 3606.93 crore against gross selling of Rs 4011.06 crore. Thus, FIIs stood as net sellers of Rs 404.13 crore in equities.
In the debt segment, the gross purchase was of Rs 2082.81 crore with gross sales of Rs 359.03 crore. Thus, FIIs stood as net buyers of Rs 1723.78 crore in debt.
Now what to expect ??
Nifty Levels
Closed below 9850 will see more downside panic till 9800 and then to 9765---9700 mark else it could test its resistance again.
Close above 10100 will see more upside rally till 10150 and then to 10180---10220 mark again else it could test its support again
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 24000 will see more downside panic till 23850---23750 and then to 23600
Trade within a range
Daily Derivative Outlook 12th 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 10100, Maximum put writing seen at 10000. Maximum Put buying was seen at 9900 PE and 9700 PE.
• Maximum positions are at 10000 CE and 9800 PE.
• CANBK (14%), SOUTHBK (11%), ALBK (9%), UNIONBANK (9%) and VOLTAS (9%) were the top gainers in terms of open interest.
• IGL (-9%), HEXAWARE (-8%), HAVELLS (-7%), BATAIND (-7%) and NATIONALALUM (-7%) 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 (12-10-2017)
Maruti gain around 3.1% of open interest as Short build up on Wednesday’s trade. It is trading below its support level of 7840.
Now what to expect??
Below 7840 panic remain continue till 7650—7500 and then to 7300 mark in days to come.
Hurdle and stop loss above 8000.00
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation (12th Oct 2017)
Sell Maruti below 7820 Stop loss 8000.00(on closing basis) Target 7650—7500 and then to 7300.
Result Today
IndusInd Bank Limited
Tata Consultancy Services Limited
Corporate Action Today
Can Fin Homes Limited-Face Value Split (Sub-Division) - From Rs 10/- Per Share to Rs 2/- Per Share
More Will Update Soon!!
