Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 24th Nov 2017
Nifty 10348 /Sensex 33588/ Bank Nifty 25736
21 Advances / 29 Declines/ 0 Unchanged
Markets end in green for sixth straight session; eke out slender gains
Indian equity benchmarks managed to keep their head above water and went home with slender gains, extending their winning streak to sixth day. Markets started with caution but gradually gained momentum and traded with traction in first half of the session, as traders took some support with rating agency Moody’s latest report where it expecting an improvement in the credit profiles of India Inc next year, driven by better sales as it expects GST-related disruptions to wane, leading to an all-round recovery in economic activities. Some support also came with NITI Aayog vice-chairman Rajiv Kumar’s statement that India GDP growth rate in Q2 is likely at 6.2-6.3% and for the full year could be closer to 7% and for Second-half growth has to be 7.5%. The Budget for 2018-19 should focus on the social sector and an attempt should be made to provide universal health insurance cover to citizens. Markets also find some support with private report highlighting that Corporate India witnessed significant deal activity in the September quarter this year, as private equity invested $8.7 billion and M&A transactions attracted $2.1 billion. The investment of private equity and venture capital increased 180 percent in value terms over the last year to reach $8.7 billion in the July-September quarter of 2017.
However, markets took U-turn and entered into red terrain with traders turning cautious on the back of rally in oil prices which continued to reduce expectations of rate cuts ahead of the Reserve Bank of India’s policy meeting early next month. Traders took note on report that the government is likely to tighten the Insolvency and Bankruptcy Code (IBC) through an ordinance to ensure that wilful defaulters and promoters of companies in loan default over an extended period of time won’t be able to get their hands back on assets during the resolution process. Also, there will be buzz with the Cabinet giving its nod for constitution of the 15th Finance Commission that will decide the tax-sharing formula between the Centre and states for five years beginning FY21. Its recommendations will have to be in place before April 1, 2020. Though, recovery in last leg of trade helped markets to end marginally in green.
On the global front, European markets were trading mostly in red in early deals on expected lower trading flows due to Thanksgiving. The UK economy expanded in the third quarter as expected. Asian markets closed mostly in red, while Chinese stocks edged lower after Beijing took steps to halt the proliferation of small online lenders.
Back home, shares of insurance companies declined after the Finance Ministry formed a task force to study and submit a report on redrafting of the direct tax code within six months. Mixed reactions were displayed in aviation stocks. In order to provide a major boost to air connectivity in the Northeast, 92 new routes will be opened in the region in the second round of the government’s ‘Udaan’ scheme. Separately, passengers should brace themselves for a fare increase, as the government is likely to raise the passenger services fee (PSF) by at least 38% to meet the cost of security at Indian airports.
FII’s Activity 23rd-Nov-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 4760.36 crore against gross selling of Rs 5003.72 crore. Thus, FIIs stood as net sellers of Rs 243.36 crore in equities.
In the debt segment, the gross purchase was of Rs 435.15 crore with gross sales of Rs 383.00 crore. Thus, FIIs stood as net buyers of Rs 52.15 crore in debt.
Now what to expect ??
Nifty Levels
Above 10400 will see more upside rally till 10450 and then to 10500---10600 mark else it could test its support level of 10280 again.
Bank Nifty
Above 25900 will see more upside rally till 26200 and then to 26400---26600 mark else it could test its support level of 25600 again.
Trade within a range
Daily Derivative Outlook 24th Nov 2017
• Nifty (Nov) futures closed at a Premium of 17.90 points versus a premium of 15.65 points.
• Maximum Call buying was seen at Nifty 10600 strike and Maximum Put writing was seen at Nifty 10300 strikes.
• Maximum positions are at 10500 CE and 10300 PE.
• SRF (11%), TATAGLOBAL (9%), BHEL (9%), MOTHERSUMI (7%) and ICICIPRULI (7%) were the top gainers in terms of open interest.
• CEATLTD (-8%), HDIL (-6%), RCOM (-6%), PAGEIND (-6%) and SUNTV (-6%) were the top losers in terms of open interest.
• Advance Decline ratio in F&O segment was at 0.90, Advance (100) + Decline (115) + Unchanged (3) = 218
Derivative Idea (24-11-2017)
Syndicate Bank gain 7.00% of open interest as long build up on Thursday’s trade. On Daily chart India Cement is trading near immediate resistance level 91.50 while trading above its 21 and 55DEMA which indicate upside momentum is certain in it.
Now what to expect???
Minor Hurdle at 93.50, Break and sustain above 93.50 will take it to 100—105 and then to 110++ mark in days to come.
86.00 will act as major support.
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation (24th Nov 2017)
Buy Syndicate Bank above 93.50 with stop loss of 86 for the initial target 100--105 and then to 110++ mark.
Balrampur Chini-Top Pick
Yesterday Balrampur Chini shown more than 3.5% upside move
According to MACD analysis, a bullish crossover just happend and it's a positive signal.
Now what to expect??
Balrampur Chini has a hurdle at 166 break and sustain above 166 will see rally till 172---175++ in days to come.Further upside will see if closes above 175.
Support intact at 160.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (24th Nov 2017)
Buy Balrampur Chini above 166 with stop loss below 160 (on a closing basis) Target 172--175+++.
More Will Update Soon!!
