Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 13th Oct 2017
Nifty 10096 /Sensex 32182/ Bank Nifty 24361
40 Advances / 10 Declines/ 0 Unchanged
Benchmarks stage splendid performance; bulls wake up in late trade
Bulls which woke up in last leg of trade mainly helped the benchmarks to end near intraday high levels on Thursday, with frontline gauges ending near their crucial 10,100 (Nifty) and 32,200 (Sensex) levels, as investors took to hefty across the board buying ahead of macroeconomic data such as consumer price index (CPI)-based inflation for September and Index of Industrial Production (IIP) for August due later in the day. Markets, soon after a cautious start gained momentum and traded with traction through the session, as sentiments remained upbeat on report that direct tax collections in the first six months of the current fiscal stood at Rs 3.86 lakh crore, growing by 15.8 per cent over the same period last year. Gross collections (before adjusting for refunds) have increased by 10.3 per cent to Rs 4.66 lakh crore during April to September. Traders also took some encouragement with report that the newly constituted Economic Advisory Council to the Prime Minister (EAC-PM) wants the government to stick to its fiscal consolidation road map and has suggested that stimulus to the industry should not be at the cost of fiscal prudence.
Markets extended gains in last leg of trade after index heavyweight Reliance Industries (RIL) hit its record high ahead of its second quarter earnings slated to be released on Friday. A strong rally in Tata Consultancy Services also contributed to the gains. TCS is scheduled to report its Q2 numbers later in the day. Some support also came with finance minister Arun Jaitley’s statement that the series of reforms like demonetization and Goods and Services Tax (GST) has put Indian economy on a far stronger track. Jaitley added that these are structural changes. And these structural changes, I think have put the Indian economy on a far more sound track so that we can look forward for a much cleaner much bigger India economy in the days and years to come. Separately, Department of Economic Affairs (DEA) Secretary Subhash Chandra Garg expressed hope that India’s GDP might return to 7% plus growth by next year as all indicators point to an economic turnaround. The country’s economic slowdown has hit its bottom and will be riding the growth wave one again.
Firm trading in European counters too aided sentiments with investors awaiting data and monitoring speeches from central bankers at the International Monetary Fund’s (IMF) annual meeting in Washington D.C. Euro zone industrial output rose by far more than expected and at its highest rate in nine months in August. Asian markets ended mostly in green after the latest FOMC minutes showed Fed officials expressing a strong degree of caution over the timing of future interest-rate increases.
Back home, stocks related to oil and gas counter edged higher, as the government rationalised the tax rates on upstream oil and gas operations, while the Petrol pump dealers called off their proposed strike on October 13. Mixed reactions were witnessed in telecom stocks on report that the Telecom Commission’s recent move to extend the tenure of payments for auctioned airwaves will improve telcos’ cash flows over the next 6-7 years, but the industry said it will still end up paying nearly an additional Rs 30,000 crore to the government as the payouts will continue for a much longer span.
FII’s Activity 12th-Oct-17
The FIIs as per Thursday’s data were net buyers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 6411.40 crore against gross selling of Rs 5541.86 crore. Thus, FIIs stood as net buyers of Rs 869.54 crore in equities.
In the debt segment, the gross purchase was of Rs 2355.08 crore with gross sales of Rs 1393.50 crore. Thus, FIIs stood as net buyers of Rs 961.58 crore in debt.
Now what to expect ??
Nifty Levels
Close above 10130 will see more upside rally till 10175 and then to 10200---10220 mark again else it could test its support again
Closed below 9850 will see more downside panic till 9800 and then to 9765---9700 mark else it could test its resistance 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 13th Oct 2017
• Nifty (Oct) futures closed at a premium of 15.00 points versus a premium of 7.70 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.
• CANFINHOME (377%), NBCC (55%), NESTLEIND (18%), HINDALCO (17%) and BRITANNIA (17%) were the top gainers in terms of open interest.
• OFSS (-7%), ARVIND (-7%), HEXAWARE (-5%), CGPOWER (-5%) and BEL (-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 (13-10-2017)
Marico gain around 3.3% of open interest as Short build up on Thursday’s trade. It is trading near its resistance level of 320.50.
Now what to expect??
Minor hurdle at 322. Above 322 rally remain continue till 335--340 and then to 350++ mark in days to come.
Support and stop loss below 310.00
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation
Buy Marico above 322 Stop loss 310(on closing basis) Target 335—340 and then to 350++.
Granules India Limited - Top Pick
On Daily chart, Granules India Limited is showing breakout point above 135 level. Break and sustain above 135 will see nonstop rally till 139---144+++ in weeks to come.
Looks bearish only if close below 131 marks.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (13th Oct 2017)
Buy Granules above 135 with stop loss below 131 (on a closing basis) Target 139 –144.
Result Today
The Karnataka Bank Limited
Reliance Naval and Engineering Limited
Reliance Industries Limited
More Will Update Soon!!
