Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 17th Nov 2017
Nifty 10214 /Sensex 32106/ Bank Nifty 25446
37 Advances / 13 Declines/ 0 Unchanged
Bulls go brisk on Dalal Street; Sensex recaptures 33,100 level
Thursday turned out to be a remarkable day of trade for Indian equity benchmarks where bulls tightened their grip on Dalal Street, with Nifty and Sensex recapturing their crucial 10,200 and 33,100 levels, respectively. The markets’ mood remained up-beat throughout the day and benchmarks fervently gained from strength to strength to end near intraday high levels, as investors continued hunt for fundamentally strong stocks. Key gauges made a positive opening with Finance Minister Arun Jaitley’s statement that with greater digitisation and formalisation of financial activities and businesses, India is set to become an “extremely attractive” country to do business. He, however, acknowledged short-term challenges for the country in implementing strategic initiatives such as demonetisation and the GST. Adding to the optimism, Arun Jaitley said that India's economic slowdown has bottomed out and now it should start moving upwards after recovering from the temporary blip seen during the recent structural changes. The finance minister also assured investors of a strong banking sector in India.
Some support also came with Chief economic adviser (CEA) Arvind Subramanian’s statement that recent move by the Goods and Services Tax (GST) Council to cut tax on 178 items, though, will have marginal impact on the revenue but that will be compensated by compliance benefits. He also feels that fall in prices will also help keep inflation under control. Investors took note of a private survey which showed that Prime Minister Narendra Modi remains by far the most popular figure in Indian politics, releasing the main findings of its latest survey conducted among 2,464 respondents in India. The report enlightened that the public’s positive assessment of Modi is buoyed by growing contentment with the Indian economy: more than eight-in-ten say economic conditions are good.
Firm opening in European markets too aided sentiments with CAC, DAX and FTSE trading in green in early deals as the cyclical sectors which had driven a market-wide sell-off made a comeback. Retail sales in the UK rose more than expected in October, bolstering optimism over the British economy. Asian markets exhibited mixed trend as traders remained on sidelines ahead to the US House vote on a sweeping tax reform bill later today.
Back home, auto stocks remained on buyers’ radar with Centre’s announcement of the introduction of BS-VI grade automobile fuel in the national capital Delhi being advanced by two years to April 2018. Export oriented stocks remained buzzing, as the GSTN utility for exporters to claim refunds has been activated. With the new utility RFD-1A, a merchant exporter can claim refund of GST paid at the time of buying goods which he has exported in the relevant month.
FII’s Activity 17th-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 7564.20 crore against gross selling of Rs 5733.42 crore. Thus, FIIs stood as net buyers of Rs 1830.78 crore in equities.
In the debt segment, the gross purchase was of Rs 1591.20 crore with gross sales of Rs 1746.32 crore. Thus, FIIs stood as net sellers of Rs 155.12 crore in debt.
Now what to expect ??
Nifty Levels
Above 10280 will see more upside rally till 10330 and then to 10370---10420 mark else it could test its support level of 10100 again.
Trade within a range
Bank Nifty
Above 25560 will see more upside rally till 25650 and then to 25700---25800 mark else it could test its resistance level of 25260 again.
Trade within a range
Daily Derivative Outlook 17th Nov 2017
• Nifty (Oct) futures closed at a Premium of 36.15 points versus a premium of 36.30 points.
• Maximum Call buying was seen at Nifty 10300 strike and Maximum Put writing was seen at Nifty 10200 strikes.
• Maximum positions are at 10500 CE and 10200 PE.
• PAGEIND (30%), VOLTAS (29%), BANKINDIA (16%), HDIL (15%) and INDIANB (13%) were the top gainers in terms of open interest.
• RCOM (-10%), BALKRISIND (-10%), RELCAPITAL (-7%), NCC (-7%) and RAMCOCEM (-5%) were the top losers in terms of open interest.
• Advance Decline ratio in F&O segment was at 1.13, Advance (172) + Decline (45) + Unchanged (1) = 218
Derivative Idea (17-11-2017)
ICIL gain 0.50 % of open interest as long build up on Tuesday trade. On Daily chart ICIL is trading above 21 and 55 DEMA which indicate upside momentum is certain in it.
Now what to expect??
Hurdle at 128.80, Break and sustain above 128.50 will take it to 140—145 and then to 155+++ mark in days to come.
120 will act as major support.
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation (17th Nov 2017)
Buy ICIL above 128.50 with stop loss of 120 for the initial target 140—145 and then to 155++ mark.
NCC - Top Pick
Yesterday NCC shown more than 2.63% upside move
On daily chart NCC has formed Piercing candlestick pattern on chart which indicate downside movement limited in it and we can expect sharp upside move in it.
Now what to expect???
NCC has a hurdle at 104.50 break and sustain above 104.50 will see rally till 109--115++ in days to come. Further upside will see if closes above 115.
Support intact at 100
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (17th Nov 2017)
Buy NCC above 104.50 with stop loss below 100 (on a closing basis) Target 109—115+++.
Corporate Action
Sun TV Network Limited-Interim Dividend - Rs 2.50 per Share (Purpose Revised)
More Will Update Soon!!
