Update on Nifty levels, Bank Nifty levels & Derivative Outlook of the day 17th Oct 2017
Nifty 10230 /Sensex 32182/ Bank Nifty 24361
34 Advances / 16 Declines/ 0 Unchanged
Benchmarks hit record high on positive macro data
Indian equity benchmarks started the Diwali week on a very strong note, with Sensex and Nifty hitting all time highs and ending above their crucial 32,600 and 10,200, respectively for the first time ever. Markets started the trade with gap-up opening, as sentiments remained jubilant with report that India’s exports recorded a robust growth of 25.67 percent to $ 28.61 billion in September, mainly on account of rise in shipments of engineering, chemicals, and petroleum products. Imports too rose by 18.09 percent to $ 37.59 billion in September from $ 31.83 billion in the year-ago month and the trade deficit narrowed to 7-month low of $ 8.98 billion in the month under review from $ 9.07 billion in September 2016. Some support also came with IMF chief Christine Lagarde’s statement, who just days after the International Monetary Fund (IMF) slashed India’s GDP growth rate to 6.7 percent in 2017, slower than the 7.2% it had forecast in April, said that the Indian economy is on a firm footing.
Traders booked most of their initial gains in afternoon session, but fresh amount of buying in late trade helped markets to end near intraday high levels. Sentiments turned positive with data showing that India’s annual wholesale price inflation (WPI) eased to 2.60% in September from the provisional 3.24% in the previous month. Build up inflation rate in the financial year so far was 0.97% compared to a build up rate of 3.44% in the corresponding period of the previous year. Adding to the optimism, Niti Aayog Vice Chairman Rajiv Kumar said that slowdown in India's economic growth that began in 2013-14 has bottomed out and Gross Domestic Product (GDP) is likely to grow 6.9 to 7 percent in the fiscal 2017-18 and 7.5 percent in 2018-19. Traders also took some support with the private report indicating that India’s economy will grow by more than 10% annually in the coming decade, buoyed by demographics, reforms and globalization.
Firm opening in European counters too aided sentiments, as investors gear up for the latest in political news coming out of Austria, Spain and the UK. Euro zone’s trade surplus shrank in August as the stronger euro fueled an import boom that was only partly offset by a rise in exports. Asian markets ended mostly in green terrain on Monday, as commodity prices advanced. China’s producer price inflation unexpectedly accelerated to a six-month high in September as a construction boom shows no signs of abating.
Back home, investors took note of a poll report that the Nifty50 which rose to a fresh record high just ahead of Diwali week may come under pressure and could well move below 10,000 by December 2017. There is a sense of caution as valuations remain high and the recent macro data is raising questions on the stable macro picture which India had among other key emerging markets. Meanwhile, Godrej Agrovet made a stellar debut today and went home with a gain of around 30% on BSE, the initial public offer was oversubscribed 95.41 times.
FII’s Activity 16th-Oct-17
The FIIs as per Monday’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 5505.38 crore against gross selling of Rs 7060.48 crore. Thus, FIIs stood as net sellers of Rs 1555.10 crore in equities.
In the debt segment, the gross purchase was of Rs 887.31 crore with gross sales of Rs 436.75 crore. Thus, FIIs stood as net buyers of Rs 450.56 crore in debt.
Now what to expect ??
Nifty Levels
Above 10260 will see more upside rally till 10400 and then to 10550---10700 mark else it could test its support level of 10000 again.
Closed below 10000 will see more downside panic in Nifty. Trade within a range
Bank Nifty
Above 24900 will see more upside rally till 25050 and then to 25300---25550 mark else it could test its support again.
Break and sustain below 24400 will see more downside panic till 24000 and then to 23875---23750
Trade within a range
Daily Derivative Outlook 17th Oct 2017
• Nifty October 2017 futures closed at 10255.95 on Monday at a premium of 25.10 points over spot closing of 10230.85.
• Maximum call writing seen at 10400, Maximum put writing seen at 10200.
• Maximum positions are at 10200 CE and 10000 PE.
• FEDERALBNK (21.5%), COLPAL (14.9%), ICICIPRULI (11.2%), BERGEPAINT (9.6%) and SREINFRA (6.4%) were the top gainers in terms of open interest.
• INFRATEL (-10.2%), NBCC (-6.8%), M&M (-6.1%), BOSCHLTD (-3.3%) and JPASSOCIAT (-3.2%) were the top losers in terms of open interest.
• The Nifty Put Call Ratio (PCR) finally stood at 1.70 for October month contract.
Derivative Idea (17-10-2017)
Tata Motors DVR witness short unwinding on Monday’s trade. It is trading above its resistance level of 242.
Now what to expect??
Minor hurdle at 248….Above 248 rally remain continue till 260—265 and then to 275++ mark in days to come.
Support and stop loss below 240
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation (17 Oct 2017)
Buy TATA Motors DVR above 248 Stop loss 240(on closing basis) Target 260—265 and then to 275++.
Result Today
Bajaj Auto Limited
Wipro Limited
Axis Bank Limited
ACC Limited
More Will Update Soon!!
