Update on Nifty levels, Bank Nifty levels and Derivative Outlook of the day 24th Oct 2017
Nifty 10184 /Sensex 32506/ Bank Nifty 24088
26 Advances / 24 Declines/ 0 Unchanged
Benchmarks manage positive close on Monday
Indian equity benchmarks managed to end volatile session of trade in green terrain on Monday, with frontline gauges ending above their crucial 10,150 (Nifty) and 32,500 (Sensex) levels. Markets witnessed immense volatility during the trade as traders remained watchful ahead of F&O expiry and Infosys earnings due later this week. Key gauges kicked off the session on optimistic note with traders taking encouragement with Hasmukh Adhia’s statement that policymakers are considering steps to ease the compliance burden related to the Goods and Services Tax (GST) on small businesses and to make product classification for taxation less complicated. Some support also came with report that foreign investors have poured a whopping $2 billion into the Indian debt markets so far this month due to lower currency volatility coupled with positive real interest rates. However, markets pared all of their early gains and entered into red terrain in noon deals on report that foreign portfolio investors (FPIs) however pulled out Rs 3,408 crore ($523 million) from equities on account of profit booking during this period.
Fresh bout of buying in last leg of trade helped markets to end with a gain of over one third of a percent. Sentiments turned up-beat with Prime Minister Narendra Modi’s statement that the Indian economy is on track and is going in the right direction on back of various reforms and hard decisions. He also assured that the government will continue to take important decisions regarding the economic reforms. Some support also came with Union Minister of Minority Affairs Mukhtar Abbas Naqvi’s statement that the GST will remain as a Good and Simple Tax in the coming days to come. Adding some optimism, the private report stated that the Indian economy is expected to see a rebound in the July-September quarter of this year with a GVA growth rate of 6.3 percent.
Positive opening in European counters too aided sentiments with CAC, DAX and FTSE trading in green in early deals, as investors monitored fresh corporate earnings and awaited any further developments from Spain's ongoing constitutional crisis. Asian markets ended mostly in green led by Japanese Nikkei on the back of weaker yen, as an election win for Shinzo Abe’s ruling bloc gave a green light for more policy stimulus.
Back home, telecom stocks rang loud during the trade after Reliance Jio raised data tariffs last week, signalling more pricing discipline in the sector, while strong global markets also boosted sentiment. Port and shipping related stocks remained buzzing in trade today, as Union Minister Nitin Gadkari said a blueprint of 142 expansion projects has been finalized to modernize 12 major ports and develop new harbours at a cost of about Rs 90,000 crore. Meanwhile, Indian Energy Exchange (IEX) made a tepid debut on the exchange today as the scrip got listed at a discount to its issue price of Rs 1,650. However, it managed to trim most of its initial losses and went home with marginal losses of around one and a half percent. The issue, which was sold between October 9 and October 11, had been subscribed 2.28 times.
FII’s Activity 23rd-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 4508.26 crore against gross selling of Rs 4760.54 crore. Thus, FIIs stood as net sellers of Rs 252.28 crore in equities.In the debt segment, the gross purchase was of Rs 1351.41 crore with gross sales of Rs 843.32 crore. Thus, FIIs stood as net buyers of Rs 508.09 crore in debt.
Now what to expect ??
Nifty Levels
Close above 10230 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 24230 will see more upside rally till 24500 and then to 24650---24800 mark else it could test its support again.
Break and sustain below 23800 will see more downside panic till 23650 and then to 23600---23550
Trade within a range.
Daily Derivative Outlook 24th Oct 2017
• Nifty October 2017 futures closed at 10189.70 on Monday at a premium of 4.85 points over spot closing of 10184.85.
• Maximum call writing seen at 10500, Maximum put writing seen at 10100.
• Maximum positions are at 10200 CE and 10000 PE.
• DISHTV (10%), RCOM (9.2%), AXISBANK (7.1%), GMRINFRA (5.1%) and ULTRACEMCO (3.6%) were the top gainers in terms of open interest.
• TORNTPOWER (-3.2%), DHFL (-2.5%), GODREJIND (-2.5%), INFIBEAM (-2.2%) and PVR (-2.1%) were the top losers in terms of open interest.
• The Nifty Put Call Ratio (PCR) finally stood at 1.49 for October month contract.
Derivative Idea (24-10-2017)
Grasim loss 7.53% of open interest as short windup on Monday’s trade. It is trading near its resistance level of 1190.
Now what to expect??
Above 1190 rally remain continue till 1250—1280++ mark in days to come.
Support and stop loss below 1160
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation (24-10-2017)
Buy Grasim above 1190 Stop loss 1160(on closing basis) Target 1250--1280++.
Result Today
Can Fin Homes Limited
Zee Entertainment Enterprises Limited
Raymond Limited
HDFC Bank Limited
Infosys Limited
ICICI Prudential Life Insurance Company Limited
Asian Paints Limited
Ambuja Cements Limited
More will update soon....!!
