Update on Nifty levels, Bank Nifty levels and Equity Pick of the day 31st Oct 2017
Nifty 10363 /Sensex 33147/ Bank Nifty 25022
30 Advances / 20 Declines/ 0 Unchanged
Markets hit fresh record highs; Nifty surpasses 10,350 levels
Continuing their record run one after another, Indian equity benchmarks once again settled at new record closing high levels on Monday, surpassing their crucial 10,350 (Nifty) and 33,200 (Sensex) bastions. After an optimistic start, markets traded with traction but in particular range to end near all-time high levels. Sentiments remained up-beat since beginning with traders taking encouragement with the private report that the government’s recapitalization plan for public sector banks is likely to propel credit growth by up to 700 basis points to 15% and as consequence push up GDP numbers to 7% in the next fiscal. The report highlighted that the industry is likely to see a 7% growth in 2018-19 from 5% in the current fiscal. Services are projected to grow at 7.3% in the current fiscal and rise to 7.5% in the succeeding year. Also, the street reacted positively to the meeting outcome of the ministerial panel working to make GST composition scheme more attractive, which suggested slashing tax rate to 1% for manufacturers and restaurants, while easier norms for traders opting for it. Meanwhile, FM Arun Jaitley has enlightened that individual tax base is growing with India having the lowest direct tax slab in the world, digital transactions are rising, and the new insolvency law will yield positive results.
Some support also came with report that India expecting a big jump in the World Bank’s ease of doing business ranking that will be released soon, thanks to multiple reforms initiated by the government beginning to show results. Ranked at 130 in the last reckoning, the government has set itself a target of breaking into the top 50. Reports that Reserve Bank is likely to cut rates at its December 6 policy review meet as retail inflation remains muted and the October number is expected to be about 3.3 percent, too aided sentiments. Adding to the optimism, foreign investors have pumped in close to $3 billion in the Indian capital markets so far this month due to high nominal and real yields and stable macroeconomic conditions.
Positive opening in European counters too aided sentiments. The UK Net Lending rose to 3.85 billion, from 3.93 billion in the preceding month, which was revised down from 4.04 billion. The amount of lending is correlated to consumer confidence and spending. Asian markets exhibited mixed trend on Monday. Activity in China’s manufacturing sector likely grew at a slightly slower pace in October as the government began a major crackdown on air pollution.
Back home, Railways and Coal Minister Piyush Goyal has said that India will grow at over 8% consistently due to reforms. Goyal added that the railways looking to invest over $150 billion over the next five years which would help create one million additional jobs. On the sectoral front, auto stocks remained in top gear, as the Union road transport ministry approved the timeline for the implementation of system which requires all cars manufactured after July 1, 2019, to be equipped with airbags, seat-belt reminders, alert systems for speeds beyond 80kmph, reverse parking alerts, as well as manual override over the central locking system for emergencies. Real estate stocks closed mostly in green on report that real estate investment in India’s six major cities doubled to $2.87 billion in the year ended June 2017 as Mumbai attracted maximum capital and was ranked 81st globally. These six cities were able to attract capital because of strong economic drivers, acceleration in reforms, high yields and rapidly modernizing business base.
FII’s Activity 30th-Oct-17
The FIIs as per Monday’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 6124.41 crore against gross selling of Rs 5931.79 crore. Thus, FIIs stood as net buyers of Rs 192.62 crore in equities.
In the debt segment, the gross purchase was of Rs 2102.38 crore with gross sales of Rs 1582.87 crore. Thus, FIIs stood as net buyers of Rs 519.51 crore in debt.
Nifty Levels
Above 10400 will see more upside rally till 10450 and then to 10485---10530 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 25125 will see more upside rally till 25255 and then to 25350---25550 mark else it could test its support again.
Break and sustain below 24800 will see more downside panic till 24700 and then to 24600---24450 mark
Trade within a range
Daily Derivative Outlook 31st Oct 2017
• Nifty (Oct) futures closed at a Premium of 24.80 points versus a premium of 33.80 points.
• Call writing was seen at Nifty 10400 strike and Put writing was seen at Nifty 10100 strikes.
• Maximum positions are at 10500 CE and 10200 PE.
• BATAINDIA (40%), KAJARIACER (29%), CANBK (25%), UBL (23%) and JETAIRWAYS (21%) were the top gainers in terms of open interest.
• TATAGLOBAL (-10%), NIITTECH (-6%), CHENNPETRO (-6%), HCC (-5%) and COLPAL (-4%) were the top losers in terms of open interest.
• Advance Decline ratio in F&O segment was at 2.56, Advance (156) + Decline (61) + Unchanged (1) = 219
Derivative Idea (31-10-2017)
Syndicate Bank gain 2.9% of open interest as long build up on Monday’s trade. Current chart pattern too indicate fresh surge in price.
Now what to expect??
Resistance at 85.50. Break and sustain above 85.50 will see upside rally till 92.00—95.00+++ mark.
77.00 will act as major support.
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation(31 Oct 2017)
Buy Syndicate Bank above 85.50 with stop loss of 77.00 for the initial target 92.50—95.00
Tata Motors- Top Pick
RSI & MACD analysis, Tata motors is technically looks strong.
During the final trading hours Tata Motors was seen to be priced at Rs.429.9 while being 7.85 points above the day’s lowest and 4.45 points below the day’s highest. With this, the day's high was Rs.434.35 and the day's low was Rs.422.05.
A total of 7,414,741 shares were traded by this time of the day with the 5 day average volume being 4,348,689 , 10 day average volume being 5,330,798 and 30 day average volume being 7,009,353 .
Now what to expect???
On Daily chart, Tata Motors break and sustain above 440 will see nonstop rally till 455--460++ in weeks to come.
Looks bearish only if close below 425 marks.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (31th Oct 2017)
Buy Tata Motors cash above 440 with stop loss below 425 (on a closing basis) Target 455--460.
Corporate Action--Ex-date
Infosys Limited-Interim Dividend - Rs 13/- per Share (Purpose Revised)
Asian Paints Limited-Interim Dividend - Rs 2.65 per Share (Purpose Revised)
Infosys Limited-Buyback
Result Today
Cholamandalam Investment and Finance Company Limited
Syndicate Bank
Strides Shasun Limited
KPIT Technologies Limited
JSW Steel Limited
IDBI Bank Limited
InterGlobe Aviation Limited
Escorts Limited
Capital First Limited
Dr. Reddy's Laboratories Limited
Divi's Laboratories Limited
Ajanta Pharma Limited
Dabur India Limited
Bharti Airtel Limited
Container Corporation of India Limited
More Will Update Soon!!!
