Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 18th Oct 2017
Nifty 10234 /Sensex 32609/ Bank Nifty 24645
24 Advances / 25 Declines/ 1 Unchanged
* Benchmarks witness consolidation on Tuesday*
Indian equity benchmarks witnessed consolidation with frontline gauges ending almost unchanged on Tuesday, as traders opted to book some of their profit after three days of continuous rally. Markets traded choppy through the session with frontline gauges swinging between green and red for most part of the day, as sentiments remained downbeat on geopolitical tension after North Korea’s deputy U.N. ambassador warned a nuclear war may break out any moment. Traders also remained on sidelines ahead of second quarter results from Wipro and Axis Bank, slated to be released later in the day. However, traders took some solace with statement of NITI Aayog Vice-Chairman Rajiv Kumar, who has pitched for fiscal stimulus to boost growth with a rider that additional expenditure should be used only for increasing productivity and capital expenditure. He said that faced with slowing economic growth, the industry has been clamouring for a stimulus package from the government.
Some comfort also came with the International Monetary Fund suggesting India to consider setting up an independent fiscal council, saying this institution has contributed to better outcomes in the countries where it has been introduced. Some support also came with Economic Affairs Secretary Subhash Chandra Garg’s statement that getting investment in the infrastructure sector and bankruptcy reforms are the two issues which are on the top of the government's agenda. Besides, the private report stating that India’s foreign reserves, which touched a record $ 402.5 billion in September, are high enough to cushion the country against the external vulnerabilities, also helped the indices to trade in green territory.
On the global front, European markets made cautious start with UK’s FTSE trading flat before inflation data and a testimony by Bank of England Governor Mark Carney later in the day. Asian markets exhibited mixed on Tuesday. Japanese shares extended gains for an 11th straight day as the dollar held gains against the yen and euro and investors remained hopeful that Prime Minister Shinzo Abe will win Sunday’s Lower House election.
Back home, depreciation in Indian Rupee against the US currency dampened sentiments, following continued bouts of dollar demand from banks and importers amid higher dollar overseas. However, private report that WPI inflation is expected to moderate further in the coming months, and is likely to average 2.8% in 2018, lent some support to Indian equity markets. On the sectoral front, mixed reaction was witnessed in pharma stocks on report that the proposed amendment to Drug Price Control Order (DPCO) will put prices of non-scheduled drugs under check, kill competition, and prove negative for industry growth. National Pharmaceutical Pricing Authority (NPPA) and the Department of Pharmaceuticals (DoP) had put forward a proposal that suggests scrapping the current system of fixing the ceiling price of drugs on the National List of Essential Medicines (NLEM) by accepting simple average price of brands having a market share of over 1%.
FII’s Activity 17th-Oct-17
The FIIs as per Tuesday’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 5485.70 crore against gross selling of Rs 5311.44 crore. Thus, FIIs stood as net buyers of Rs 174.26 crore in equities.
In the debt segment, the gross purchase was of Rs 1078.00 crore with gross sales of Rs 204.93 crore. Thus, FIIs stood as net buyers of Rs 873.07crore in debt.
Now what to expect ??
Nifty Levels
Close 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 18th Oct 2017
• Nifty (Oct) futures closed at a premium of 19.25 points versus a premium of 25.10 points.
• Maximum call writing seen at 10300, Maximum put writing seen at 10200.
• Maximum positions are at 10200 CE and 10000 PE.
• TORNTPHARM (30%), BEML (18%), ZEEL (15%), NBCC (13%) and ACC (13%) were the top gainers in terms of open interest.
• ESCORTS (-7%), BERGERPAINT (-6%), FEDERALBNK (-6%), VEDL (-6%) and ULTRACEMCO (-4%) were the top losers in terms of open interest.
• The Nifty Put Call Ratio (PCR) finally stood at 1.67 for October month contract.
Derivative Idea (19-10-2017)
HEXAWARE gain 7.89% of open interest as long build up on Tuesday’s trade. It is trading above its resistance level of 285.
Now what to expect??
Minor hurdle at 285….Above 285 rally remain continue till 300--310++ mark in days to come.
Support and stop loss below 275
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation (18th Oct 2017)
Buy HEXAWARE above 285 Stop loss 275(on closing basis) Target 300—310++.
LIC Housing Finance - Top Pick
As the trading hours came to an end LIC Housing Finance was observed to be priced at Rs. 671.05 which was 10.65 points higher than the day's low and 4.1 points lower than the day's high while the day low was Rs. 660.25 and day high was Rs. 675.50 .
By this time of the day, a total of 2,381,825 shares were traded with the 5 day average volume being 1,273,115 , 10 day average volume being 1,547,771 and 30 day average volume being 1,634,108 .
The 5 day average volume fell 170223 stocks, 10 day average volume fell 50177 stocks and 30 day average volume fell 21284 stocks relative to the previous day’s values.
According to RSI & MACD analysis, LIC Housing Finance is marginally strong
Now what to expect???
On Daily chart, LIC Housing Finance above 675 level. Break and sustain above 675 will see nonstop rally till 690--700++ in weeks to come.
Looks bearish only if close below 660 marks.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (17th Oct 2017)
Buy LIC Housing Finance above 675 with stop loss below 660 (on a closing basis) Target 690 –700.
Corporate Action
IFCI Limited--AGM
Result Today
NIIT Technologies Limited
UltraTech Cement Limited
More Will Update Soon!!
