Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 28th Nov 2017
Nifty 10399 /Sensex 33724/ Bank Nifty 25892
25 Advances / 25 Declines/ 0 Unchanged
Markets stage splendid recovery to end marginally in green
Recovery which emerged in last leg of trade mainly helped Indian equity benchmarks to end slightly in green terrain on Monday. Markets made a negative start to the crucial week of F&O expiry and traded mostly in red throughout the session, as traders remained on sidelines ahead of GDP and PMI data for the manufacturing sector due later this week. Sentiments also remained dampened with Standard & Poor’s decision of retaining its sovereign rating for India at BBB- with a stable outlook, dashing hopes of another upgrade after rival Moody’s lifted its rating by a notch after a gap of nearly 14 years. Traders also remained concerned with industry body Assocham’s statement that inflation would remain a key concern for the RBI and the government, dimming hopes of a cut in interest rates. The chamber observed that as uncertainty and apprehension loom over crude oil prices and vegetables, mainly on the back of rising retail prices of onion and tomatoes, it is disrupting household budgets.
However, markets took U-turn from intraday lows in final hour of trade and staged splendid recovery to enter into green, as traders took some solace with Niti Aayog Vice Chairman Rajiv Kumar’s statement that the time has come for consolidation of reforms, including GST, bankruptcy code and benami law, initiated by the Modi government in the last 42 months to ensure that the steps deliver the 'desired fruits'. Markets participants also get some comfort after Economic Affairs Secretary Subhash Chandra Garg expressed optimism with government’s various reforms like fiscal consolidation drive and note ban and said that India’s second quarter (Q2) growth will be far better than the first quarter (Q1) of the current financial year. Besides, a foreign brokerage firm has time and again reiterated its bullishness on the Indian economy, saying that the country is slated to see tremendous growth in the near future. It expects the second quarter India’s Q2 GDP number growth to be around 6.5%, which will confirm a turn in the growth environment.
Positive trade in European markets too aided sentiments as financials gained ground amid fresh deal making activity. However, Asian markets ended in red terrain led by around a percent fall in Chinese markets, as investors kept an eye on developments in the bond market.
Back home, stocks related to real estate remained on buyers’ radar on private report that the number of unsold housing units in the seven major cities stood at 6.85 lakh units at the end of September quarter, a fall of 9% from the year-ago period. Shares of wind and solar companies like Suzlon Energy, Ujaas Energy and Indosolar closed in green as the Ministry of New and Renewable Energy on Friday announced auction of up to 21 GW solar and wind capacities by March 2018. Stocks related to gems and jewellery segment remained in focus, as the commerce ministry is working on a package in consultation with the gems and jewellery industry to boost export and create jobs in this labour intensive sector.
FII’s Activity 27th-Nov-17
The FIIs as per Monday’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 4564.89 crore against gross selling of Rs 4457.34 crore. Thus, FIIs stood as net buyers of Rs 107.55 crore in equities.
In the debt segment, the gross purchase was of Rs 232.50 crore with gross sales of Rs 457.98 crore. Thus, FIIs stood as net sellers of Rs 225.48 crore in debt.
Now what to expect ??
Nifty Levels
Above 10435 will see more upside rally till 10480 and then to 10530---10585 mark else it could test its support level of 10275 again.
Bank Nifty
Above 25970 will see more upside rally till 26100 and then to 26200---26400 mark else it could test its support level of 25650 again.
Trade within a range
Daily Derivative Outlook 28th Nov 2017
• Nifty (Nov) futures closed at a Premium of 18.95 points versus a premium of 15.65 points.
• Maximum Call writing was seen at Nifty 10400 strike and Maximum Put buying was seen at Nifty 10300 strikes.
• Maximum positions are at 10500 CE and 10300 PE.
• VOLTAS (21%), NIITTECH (15%), TV18BRDCST (14%), IDBI (14%) and PNB (13%) were the top gainers in terms of open interest.
• SYNDIBANK (-12%), JETAIRWAYS (-11%), IBREALEST (-10%), PCJEWELLER (-8%) and BATAINDIA (-8%) were the top losers in terms of open interest.
• Advance Decline ratio in F&O segment was at 1.65, Advance (135) + Decline (82) + Unchanged (1) = 218
Derivative Idea (28-11-2017)
Yes Bank losses around 22.21% of open interest as short unwinding on Monday’s trade. On Daily chart Yes Bank has formed a squat bar while is trading near immediate resistance level 320 while.
Now what to expect??
Hurdle at 320, Break and sustain above 320 will take it to 340—350 and then to 365++ mark in days to come.
307 will act as major support.
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation (28th Nov 2017)
Buy Yes Bank above 320 with stop loss of 307 for the initial target 340--350 and then to 365+ mark.
IDFC Bank - Top Pick
After being under pressure and trading in a declining trend for the past four weeks, the stock has finally shown signs of reversal.
Now what to expect???
IDFC Bank has a hurdle at 55.40 break and sustain above 55.40 will see rally till 56.40---57++ in days to come. Further upside will see if closes above 57.
Support intact at 54.40
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (28th Nov 2017)
Buy IDFC Bank above 55.40 with stop loss below 54.40 (on a closing basis) Target 56.40—57+++.
More Will Update Soon!!
