Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 25th Oct 2017
Nifty 10128 /Sensex 32506/ Bank Nifty 24088
29 Advances / 21 Declines/ 0 Unchanged
Benchmarks end higher on Tuesday; Nifty reclaims 10,200 mark
Indian equity benchmarks ended the volatile day of trade with quarter a percent gain on Tuesday, with Sensex and Nifty recapturing their crucial 32,600 and 10,200 levels respectively, Infosys, which declared earnings yesterday, might have been a let-down but expect action in the banking space which should boost the benchmark indices to record highs. Infosys, which declared earnings yesterday, might have been a let-down but we expect action in the banking space which should boost the benchmark indices to record highs,The government announced a Rs 2.11 lakh crore recapitalisation over two years in its bid to shore up finances of public sector banks, boost private investment and revive the economy.Markets traded mostly in green throughout the session, as traders took encouragement with SBI’s report that the government is likely to achieve its fiscal deficit target of 3.2 percent this financial year as the budgeted disinvestment receipts are on track to realise Rs 72,500 crore. The report noted that the government will able to meet the disinvestment target of Rs 72,500 crore as Rs 60,000 crore has already been achieved and hence the fear of low disinvestment receipts is completely unwarranted. Some support also came with Union Minister of Minority Affairs Mukhtar Abbas Naqvi’s statement that the Goods and Services Tax (GST) will remain as a Good and Simple Tax in the coming days to come and will prove to be as a better medium for small traders and businessmen.
Markets witnessed a sharp selloff in last leg of trade to enter into red terrain, but selling proved short-lived and markets soon regained their lost ground with traders taking support with a private report highlighting that post-demonetization and implementation of the GST, the current economic slowdown has bottomed out and the recovery of the economy would critically depend on the initiatives the government takes from now onwards. The report added that the slowdown has bottomed out, however, the stage and pace of recovery would critically depend on the initiatives that the government takes from now onwards to boost the growth momentum, especially the private sector investment. Investors took note that more respite could be on the way Small and Medium Enterprises (SMEs), with the GST council set to ease a string of procedures, including partial relief on penalties on late filing of GST returns. The tax department’s proposal, if approved by the GST Council in its next meeting on November 10 on Guwahati, will lessen the struggles of small businesses still grappling to understand the nuances of the new indirect tax system that was rolled out from July 1.Firm opening in European counters too aided sentiments with CAC, DAX and FTSE were trading in green, as investors continued to monitor the latest corporate earnings and keep a close eye on Spain's constitutional crisis. Asian markets ended mostly in green on Tuesday led by half a percent gain in Japanise Nikkei on the back of a weaker yen and amid relief over the BOJ policies.Back home, the Union Cabinet approved the Phase 1 of Bharatmala project to develop and expand approximately 40,000 km of roads at an investment of Rs 3.5 lakh crore in the next 5 years. On the sectoral front, stocks related to infrastructure sector remained on buyers’ radar on report that 331 infrastructure projects, each worth Rs 150 crore or above, have seen a cost overrun of Rs 1.72 lakh crore because of various reasons including delays. Ministry of Statistics and Programme Implementation monitors infrastructure projects worth Rs 150 and above.
FII’s Activity 24th-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 7115.75 crore against gross selling of Rs 6781.96 crore. Thus, FIIs stood as net buyers of Rs 333.79 crore in equities.
In the debt segment, the gross purchase was of Rs 1178.82 crore with gross sales of Rs 605.13 crore. Thus, FIIs stood as net buyers of Rs 573.69 crore in debt.
Now what to expect ??
Nifty Levels
Above 10245 will see more upside rally till 10280 and then to 10310---10360 mark else it could test its support level of 10080 again.
Trade within a range
Bank Nifty
Above 24310 will see more upside rally till 24420 and then to 24500---24700 mark else it could test its support level of 24000 again.
Break and sustain below 24000 will see more downside panic till 23750---23600
Trade within a range
Daily Derivative Outlook 25th Oct 2017
• Nifty October 2017 futures closed at 10219.30 on Tuesday at a premium of 11.60 points over spot closing of 10207.70.
• Maximum call writing seen at 10200, Maximum put writing seen at 10200.
• Maximum positions are at 10300 CE and 10000 PE.
• LICHSG (20%), NBCC (19%), PNB (17%), INDUSINDBK (14%) and JUBLFOOD (12%) were the top gainers in terms of open interest.
• CANBK (-9%), VOLTAS (-8%), ESCORTS (-7%), RELCAPITAL (-7%) and PVR (-7%) were the top losers in terms of open interest.
• The Nifty Put Call Ratio (PCR) finally stood at 1.61 for October month contract.
Derivative Idea (24-10-2017)
Syndicate Bank gain 8.70% of open interest as long build on Tuesday’s trade. It is trading above its resistance level of 71.50.
Now what to expect??
Minor hurdle at 73.50….Above 73.50 rally remain continue till 78.50—80.00++ mark in days to come.
Support and stop loss below 70.00
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation (25th Oct 2017)
Buy Syndicate Bank above 73.50 Stop loss 70(on closing basis) Target 78.50—80.00++.
Vijaya Bank- Top Pick
On Daily chart, Break and sustain above 62 will see nonstop rally till 66--77++ in weeks to come.
Looks bearish only if close below 58 marks. Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (25th Oct 2017)
Buy Vijaya Bank above 62 with stop loss below 58 (on a closing basis) Target 66–77.
Result Today
Engineers India Limited
V-Guard Industries Limited
Tata Elxsi Limited
Tata Communications Limited
MindTree Limited
RBL Bank Limited
Kotak Mahindra Bank Limited
Mahindra & Mahindra Financial Services Limited
HCL Technologies Limited
Hindustan Unilever Limited
More Will Update Soon!!
