Nifty 10323 /Sensex 33157/ Bank Nifty 24839
27 Advances / 23 Declines/ 0 Unchanged
Benchmarks end flat on profit booking
Profit booking which took place in last leg of trade mainly played spoil sports for the Indian equity benchmarks and pulled them to end flat on Friday. Key gauges made a positive start and traded mostly in green but in tight band throughout the session, as traders taking encouragement with credit rating agency Fitch’s report that the recent recapitalisation plan announced by the government for public sector banks will provide substantial funds to the lenders to address the capital shortages that has a major negative impact on their ratings. Meanwhile, markets regulator SEBI revising the framework for 'block deals' by providing two separate trading windows of 15 minutes each and increasing the minimum order size to Rs 10 crore. The move is aimed at ensuring confidentiality of the large trades and stable prices for such transactions.
Adding to the optimism, Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek expressed hope that India’s ranking is likely to improve significantly in the World Bank’s ease of doing business report, as they have worked very hard. The government’s optimism regarding the improvement in India’s rank comes on the back of reforms taken to improve the efficiency in granting construction permits, starting a business and resolving insolvency. Sentiments also got some support with Niti Aayog CEO Amitabh Kant’s statement who pitched for channeling insurance and pension funds for financing infrastructure projects as also for a complete re- examination of the Viability Gap Funding (VGF) scheme. However, markets witnessed sharp selloff in final hour of trade, with traders opting to book all of their initial profit to pull benchmarks lower and end mixed with negative bias.
Global cues remained supportive with all the European counters trading in green in early deals amid prospect of continuing stimulus in Europe. Euro zone inflation could be higher than earlier expected in five years’ time, the European Central Bank’s survey of professional forecasters showed, partly underpinning the ECB's decision to curb stimulus a day earlier. Asian markets closed mostly in green. Japan’s core consumer prices marked a ninth straight month of annual gains in September but failed to accelerate from the previous month, underscoring the central bank’s huge task as it struggles to meet an ever-elusive 2% inflation target.
Back home, power sector stocks remained on buyers’ radar, as the Power Minister R.K. Singh said that the government is working to make obligations under power purchase agreement (PPA) statutory binding, ensuring all discoms have PPAs to cover 100 percent requirement. On the sectoral front, telecom stocks remained under lot of pressure despites reports that the government is making efforts to double India’s telecom infrastructure by the year 2020.
FII’s Activity 27th-Oct-17
The FIIs as per Friday’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 11584.53 crore against gross selling of Rs 10204.39 crore. Thus, FIIs stood as net buyers of Rs 1380.14 crore in equities.
In the debt segment, the gross purchase was of Rs 1975.59 crore with gross sales of Rs 1316.58 crore. Thus, FIIs stood as net buyers of Rs 659.01 crore in debt.
Nifty Levels
Above 10360 will see more upside rally till 10400 and then to 10450---10485 mark else it could test its support level of 10250 again.
Closed below 10250 will see more downside panic in Nifty.
Trade within a range.
Bank Nifty
Close above 25000 will see more upside rally till 25255 and then to 25350---25500 mark else it could test its support again.
Break and sustain below 24700 will see more downside panic till 24600 and then to 24500---24000
Trade within a range
Daily Derivative Outlook - 30th Oct 2017
• Nifty (Nov) futures premium decreased significantly from 32.50 points to 16.75 points with 2.31 crore shares in open interest.
• Call writing was seen at Nifty 10400 strike and Put writing was seen at Nifty 10200 strikes.
• Maximum positions are at 10500 CE and 10000 PE.
• VGUARD (59%), JSWENERGY (26%), AJANTPHARM (26.5%), ADANIPORTS (22%) and PVR (20%) were top gainers in terms of open interest.
• BALKRISIND (25%), BEL (10%), SAIL (9.6%), Bharti Airtel (3%) were top loosed in terms of open interest.
Derivative Idea (30-10-2017)
Tata Global gain 3.6% of open interest as long build up 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 Tata Global forming symmetrical triangle having breakout point 217.....Minor resistance at 224. Break and sustain above 224 will see upside rally till 232--235 mark and then to 240++ mark.
217 will act as major support.
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation
Buy Tata Global above 224 with stop loss of 217 for the initial target 232—235 and then to 240++
EIH Ltd - Top Pick
The stock closed at Rs149.35 on 27th October 2017. It made a 52-week low at Rs91.25 on 27th December 2016 and a 52-week high of Rs149.90 on 27th October 2017.
The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs128.93
Last week, the stock gained over 9 percent and gave the breakout of pattern and also managed to close above the same along with huge volume.
Now what to expect???
On Daily chart, EIH Ltd break and sustain above 150 will see nonstop rally till 162--168+++ mark in weeks to come.
Looks bearish only if close below 140 marks.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (30th Oct 2017)
Buy EIH Ltd cash above 150 with stop loss below 140 (on a closing basis) Target 160--170.
Result Today
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More will update soon!!
