Update on Nifty levels, Bank Nifty levels and Equity Pick of the day 27th Oct 2017
Nifty 10343 /Sensex 33147/ Bank Nifty 25022
33 Advances / 17 Declines/ 0 Unchanged
Benchmarks hit fresh record highs; Nifty surpasses 10,300 mark
Wednesday turned out to be a fabulous day of trade for Indian equity benchmarks with frontline gauges hitting record highs and ending above their crucial 33,000 (Sensex) and 10,250 (Nifty) levels for the first time ever after the Union Cabinet on Tuesday announced various measures to boost economy. Markets made a firm start and traded jubilantly throughout the session, as sentiments remained up-beat with Union Cabinet approving a massive recapitalisation plan for public sector banks (PSBs) worth Rs 2.11 lakh crore. Of this amount, Rs 1.55 lakh crore would be raised through recapitalisation bonds. Another Rs 76,000 crore would be available from budgetary support and raised through market borrowings. The whopping Rs 14 lakh crore package announced by the Union Cabinet apart from the massive recapitalisation plan for public sector banks, also include investments in key development sectors such as Rural Roads, Housing, Railways, Power, Highways and Digital Infrastructure. Traders also took some encouragement with Union Finance Minister Arun Jaitley’s statement that the Indian economy was on a strong wicket with sound macro-economic fundamentals.
Some support also came on report that the government has collected Rs 92,150 crore as Goods and Services Tax (GST) in September from 42.91 lakh business. The finance ministry said that of this, Rs 14,042 crore is on account of central GST, while state GST is to the tune of Rs 21,172 crore. Integrated GST collections stood at Rs 48,948 crore, of which Rs 23,951 crore was on account of imports. Adding to the optimism, Finance Minister Arun Jaitley said that Indian economy is on a strong wicket with sound macro-economic fundamentals. He added that In dia has been the fastest growing major economy for the last three years and the attempt is to maintain high growth rate in coming years.
Positive trade in European counters too aided sentiments, as investors reacted to new earnings reports and monitored fresh economic data. Britain’s economy unexpectedly picked up speed in the three months to September, putting the Bank of England firmly on track to raise interest rates next week for the first time a decade. Asian markets ended mixed on Wednesday. Japan’s government may be able to declare that the economy has made a sustained exit from deflation before it implements a scheduled sales tax hike in October 2019.
Back home, Economic Affairs Secretary Subhash Garg said that GST has been the biggest tax reform, along with other ones like demonetization and the battle against black money. The secretary added that the current economic slowdown is bottoming out. Fiscal deficit is under control and that the government is unlikely to overshoot its target of 3.2 percent fiscal deficit at the end of the current fiscal year. On the sectoral front, IT sector stocks remained on buyers’ radar reacting to the Infosys numbers, which reported a net profit of Rs 3,726 crore for the quarter ended September 30, 2017, up 7 per cent sequentially and 3.4 per cent year-on-year. But, the Nasdaq-listed company has cut its full-year revenue guidance, forecasting slower-than-industry growth. Infosys said FY18 revenue would grow at 5.5-6.5% in constant currency.
FII’s Activity 26th-Oct-17
Extending their northward journey for fourth straight session, Indian equity benchmarks ended the F&O expiry day in green terrain, hitting fresh record highs with Sensex and Nifty surpassing their crucial 33,100 and 10,300 levels for the first time, respectively. Markets started on sluggish note, as sentiments remained dampened with Chief Economic Adviser Arvind Subramanian’s statement that bad loans and stressed assets in Indian Banks are estimatedThe 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 16522.70 crore against gross selling of Rs 9710.28 crore. Thus, FIIs stood as net buyers of Rs 6812.42 crore in equities.
In the debt segment, the gross purchase was of Rs 2588.34 crore with gross sales of Rs 1990.78 crore. Thus, FIIs stood as net buyers of Rs 597.56 crore in debt.
Nifty Levels
Weekly close above 10360 will see more upside rally till 10400 and then to 10450---10485 mark else it could test its support level of 10150 again.
Closed below 10150 will see more downside panic in Nifty.
Trade within a range
Bank Nifty
Close above 25225 will see more upside rally till 25350 and then to 25450---25600 mark else it could test its support again.
Break and sustain below 24700 will see more downside panic till 24500 and then to 24400---24000
Trade within a range
Daily Derivative Outlook 27th Oct 2017
• Nifty (Nov) futures premium decreased significantly from 32.50 points to 16.75 points with 2.31 crore shares in open interest.
• Market wide rollover was at 85.81% v/s 84.98%, whereas rollover in Nifty futures was at 72.69% v/s 69.87% in the last expiry.
• IBREALEST (96%), JSWENERGY (96%), FORTIS (95%), CASTROLIND (95%) and JSWSTEEL (94%) witnessed good rollover in the next series.
• POWERGRID (61%), BATAINDIA (65%), BPCL (65%), COALINDIA (67%) and GAIL (68%) witnessed low rollover in the next series.
• Advance Decline ratio in F&O segment was at 1.93, Advance (143) + Decline (74) + Unchanged (1) = 219
Derivative Idea (27-10-2017)
M&M Finance losses 90% of open interest as short unwinding on Thursday trade. It has also breached its immediate resistance level on the upper side with noticeable rise in volumes.
Now what to expect??
On Daily chart Adani power forming symmetrical triangle having breakout point 32.00.....Minor resistance at 32.65. Break and sustain above 32.65 will see upside rally till 36.00—38.00+++ mark.
30.00 will act as major support.
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation (27-10-2017)
Buy Adani Power 32.65 with stop loss of 30.00 for the initial target 36.00—38.00++
Result Today
Canara Bank
PVR Limited
Maruti Suzuki India Limited
ITC Limited
Kaveri Seed Company Limited
ICICI Bank Limited
Indian Oil Corporation Limited
More Will Update Soon!!
