Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 9th Oct 2017
Nifty 9979/Sensex 31814/ Bank Nifty 24190
41 Advances / 9 Declines/ 0 Unchanged
Bulls back on Dalal Street; Nifty ends near 10k mark
Bulls made comeback on Dalal Street after a day’s break, with key gauges garnering gains of around a percent on Friday. Sentiments remained up-beat since start, as traders took some encouragement with Commerce and Industry Minister Suresh Prabhu’s statement that he is working closely with the finance ministry and other departments to firm up policy initiatives along with fiscal incentives to give a fillip to industrial growth and job creation. Markets continued with jubilation throughout the day after World Bank President Jim Yong Kim said that the Goods and Services Tax (GST) is going to have a hugely positive impact on the Indian economy. He added that the recent slowdown in India’s economic growth is an aberration mainly due to the temporary disruptions in preparation for the GST, pointing out that it will get corrected in the coming months. Some support also came with Minister of Railways and Coal Piyush Goyal’s statement that India is undergoing a change in the economic narrative and rebranding itself with technology driving growth.
Adding to the optimism, retirement fund body EPFO is mulling to give its subscribers an option to set aside a higher proportion of their provident fund money for equity asset class. EPFO has been raising the amount it invests in equities since 2015, when it started with 5% of the corpus. Its investment in FY16 was Rs 6,577 crore, rising to Rs 14,982 crore or 10% of its incremental corpus in the following year. Meanwhile, investors were eyeing the GST Council meet where it is expected to provide relief to businesses by tweaking rates and procedures. The package of measures expected to be taken up by the council may include an increase in the threshold limit for the composition scheme to Rs 1-1.5 crore from Rs 75 lakh to aid micro, small and medium enterprises, a more liberal exemption limit, and a lower compliance burden with quarterly rather than monthly filing apart from steps to boost exports.
Global cues too remained supportive with European counters making a firm start with investors’ focus turning from a separatist crisis in Catalonia. A survey showed that growth in the number of workers hired in Britain via recruitment agencies slowed last month and fell in London for the first time in nearly a year as Brexit makes it harder for companies to find staff. Asian markets ended mostly in green on Friday, riding on economic optimism ahead of a US job report later in the day.
Back home, banking stocks remained on buyers’ radar on the Moody’s latest report that the sale of stake by few Indian banks in their insurance arms is credit positive for these lenders as the proceeds received would strengthen their loss-absorbing buffers. Stocks related to garment sector too remained buzzing, as the government has slashed duty drawback to two per cent from 7.5 per cent with effect from October 1. Aviation stocks ended mixed on report that India’s domestic passenger traffic grew by 16 percent in August. India’s domestic demand -- revenue passenger kilometers (RPK) -- was highest amongst major aviation markets like Australia, Brazil, China, Japan, Russia and the US.
FII’s Activity 6th-Oct-17
The FIIs as per Thursday’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 3978.38 crore against gross selling of Rs 4488.97 crore. Thus, FIIs stood as net sellers of Rs 510.59 crore in equities.
In the debt segment, the gross purchase was of Rs 2172.46 crore with gross sales of Rs 514.23 crore. Thus, FIIs stood as net buyers of Rs 1658.23 crore in debt.
Now what to expect ??
Nifty Levels
We clearly indicate nifty looks bullish above 9960 level marks, its flared and made a high of 10017. We are holding long from 9905 mark
Now what to expect???
Close above 10020 will see more upside rally till 10065 and then to 10120---10170 mark again else it could test its support again
Break and sustain below 9880 will see more downside panic till 9800 and then to 9765---9720
Trade within a range
Bank Nifty
Close above 24250 will see more upside rally till 24470 and then to 24580---24720 mark else it could test its support again.
Break and sustain below 24000 will see more downside panic till 23860---23750 and then to 23580
Trade within a range
Daily Derivative Outlook 9th Oct 2017
• Nifty (Oct) futures closed at a premium of 23.70 points versus a premium of 20.00 points, in the previous session.
• Maximum call writing seen at 10000, Maximum put writing seen at 9900.
• Maximum positions are at 10000 CE and 9800 PE.
• GRANULES (18%), GAIL (16%), RBLBANK (12%), TATASTEEL (12%) and STAR (10%) were the top gainers in terms of open interest.
• ACC (-12%), BEML (-8%), JUBLFOOD (-8%), NIITTECH (-8%) and LICHSGIN (-7%) were the top losers in terms of open interest.
• The Nifty Put Call Ratio (PCR) finally stood at 1.37 for October month contract.
Derivative Idea (09-10-2017)
KSCL gain around 6.30% of open interest as long build up on Friday’s trade. It is trading near its resistance level of 540.
Now what to expect??
Hurdle at 540, above 540 rally remain continue till 570—590++ and then to 620++ mark in days to come.
Support and stop loss below 515.00
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation (9th Oct 2017)
Buy KSCL above 540.00 Stop loss 515.00(on closing basis) Target 570—590++ and then to 620++.
JBF Industries Ltd. - Top Pick
JBF Industries closed at Rs. 185.8 which was 16.8 points more than today's lowest price and -0 points less than the days highest with the days lowest being Rs. 169 and highest being Rs. 185.8.
A total of 348,782 shares were traded by this time of the day with the 5 day average volume being 71,248 , 10 day average volume being 51,867 and 30 day average volume being 78,965 .
Compared to the previous day the 5 day average volume rose 23237 stocks, 10 day average volume rose 9242 stocks and 30 day average volume rose 2361 stocks.
The price went up to as much as Rs. 326.00 and went down as low as Rs. 136.00 in the last 52 weeks.
Now what to expect???
JBF Industries.... Break and sustain above 186 will see nonstop rally till 210++ in weeks to come.
Looks bearish only if close below 170 marks.
Trading Recommendation (9th Oct 2017)
Buy JBF Industries above 186 with stop loss below 170 (on a closing basis) Target 210.
More Will Update Soon!!
