Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 13th Nov 2017
Nifty 10321 /Sensex 33314/ Bank Nifty 25499
22 Advances / 28 Declines/ 0 Unchanged
Benchmarks eke out slender gains; Nifty holds 10,300 mark
Indian equity benchmarks ended the volatile day of trade with marginal gains on Thursday. Sentiments remained up-beat in the beginning of the trade with traders eyeing on Goods and Services Tax (GST) Council meeting starting in Guwahati today. GST Council is likely to slash the indirect tax rates on as many as 165 items at its meeting in Guwahati, which begins later today. At present, these 165 items attract 28% tax, which could be moved to the 18% category. The street took note that a year after demonetization, India is getting ready to give digital payments yet another push. It could consider providing incentives in the GST regime for payments that are settled electronically. Investors took note that in a move that could unlock defence contracts of more than Rs 25,000 crore, the government is amending its defence procurement manual (DPM), which will enable the armed forces to procure the latest tech in a speedy manner.
Markets pared all of their early gains to enter into red terrain in noon deals, as traders turned cautious with Grant Thornton’s latest International Business Report (IBR) highlighting that India slipped to the 7th position in the September quarter from the 2nd spot in the previous three months in its ‘business optimism index’, showing clear signs of lag in the economy. Investors also took note of the finance ministry’s statement that raising the individual limit of foreign investment up to 15% in power exchanges would be unwise unless a clear business case is established and a strong and adequate regulatory mechanism exists. However, short covering in last leg of trade helped markets to end tad above their neutral lines.
Firm trade in European counters too provided some solace to the domestic markets, as a flurry of corporate earnings for the third quarter triggered sharp prices moves across some sectors and bourses. The European Central Bank is prepared to delay the introduction of stricter rules on bad bank loans after fierce criticism from the European Parliament and Italy. Asian markets exhibited mixed trend on Thursday, as optimism over US President Donald Trump's tax reforms faded and tensions continued to flare in the Middle East.
Back home, broader indices outperformed benchmarks and ended the session with a gain of around a percentage point. On the sectoral front, realty and power sector stocks remained on buyers’ radar despite report that in a significant widening of the tax base of the GST, the Centre and States will discuss including electricity and real estate within the ambit of the indirect levy. The power sector stocks additionally in focus on reports that thermal power plants are facing severe coal shortage and are running at less than half-a-day’s stocks.
FII’s Activity 10th-Nov-17
The FIIs as per Thursday’s data were net buyers in equity segment, while they were net sellers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 12524.10 crore against gross selling of Rs 6536.61 crore. Thus, FIIs stood as net buyers of Rs 5987.49 crore in equities.
In the debt segment, the gross purchase was of Rs 1848.90 crore with gross sales of Rs 2235.65 crore. Thus, FIIs stood as net sellers of Rs 386.75 crore in debt.
Now what to expect ??
Nifty Levels
Above 10400 will see more upside rally till 10430 and then to 10480---10500 mark else it could test its support level of 10280--10250 again.
Trade within a range
Bank Nifty
Above 25670 will see more upside rally till 25750---25850 mark else it could test its support level of 25200---25000 again.
Daily Derivative Outlook 13th Nov 2017
• Nifty (Oct) futures closed at a Premium of 12.25 points versus a premium of 52.85 points.
• Call writing was seen at Nifty 10300 strike and Maximum Put writing was seen at Nifty 10100 strikes.
• Maximum positions are at 10500 CE and 10200 PE.
• OFSS (35%), MRF (21%), GODFRYPHLP (14%), BANKINDIA (13%) and JUSTDIAL (11%) were the top gainers in terms of open interest.
• IGL (-14%), AMARAJABAT (-14%), PIDILITIND (-12%), NIITTECH (-8%) and HEXAWARE (-8%) were the top losers in terms of open interest.
• Advance Decline ratio in F&O segment was at 1.13, Advance (90) + Decline (126) + Unchanged (2) = 218
Derivative Idea (13-11-2017)
DCB Bank losses -3.70% of open interest as short unwinding on Thursday trade. It is trading above its resistance level of 185.00
Now what to expect??
Minor Hurdle at 188.50 Break and sustain above 188.50 will take it to 200—205and then to 210++ mark in days to come.
180 will act as major support.
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation (13th Nov 2017)
Buy DCB Bank above 188.50 with stop loss of 180 for the initial target 200—205 and then to 210+++ mark.
GNFC - Top Pick
The trading hours came to an end with Gujarat Narmada Valley Fertilizers & Chemicals closing with a price of Rs. 446.75 after seeing a high of Rs. 460.5 and a low of Rs. 434 .
With this, 1,866,870 stocks were traded while the 5 day, 10day & 30 day average volumes were observed to be 2,305,924 , 1,931,082 , and 3,182,404 respectively.
In contrast to previous day’s values, the 5 day average volume rose 605076 stocks, 10 day average volume rose 153064 stocks and 30 day average volume rose 115181 stocks.
Now what to expect??
On Daily chart, GNFC break and sustain above 446 will see rally till 470--475++ in weeks to come.
Looks bearish only if close below 425 marks.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (13th Nov 2017)
Buy GNFC above 450 with stop loss below 425 (on a closing basis) Target 475--480++.
Result Today
Apollo Hospitals Enterprise Limited
PC Jeweller Limited
Max Financial Services Limited
NTPC Limited
NMDC Limited
Repco Home Finance Limited
Idea Cellular Limited
Adani Ports and Special Economic Zone Limited
More Will Update Soon!!
