Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 9th Nov 2017
Nifty 10303 /Sensex 33685/ Bank Nifty 25300
22 Advances / 27 Declines/ 1 Unchanged
Benchmarks end lower on Wednesday; Nifty holds 10,300 mark
Indian equity benchmarks ended the Wednesday’s trade in red terrain and key gauges went home with around half a percent cut amid feeble global cues. After a cautious start, markets traded choppy for most part of the day, as there was some cautiousness in the India Inc with the Insolvency and Bankruptcy Board of India (IBBI) tightening the due diligence framework on resolution applicants, including promoters. Corporate resolution applicants including promoters will now be put through a stringent test as regards their credibility and creditworthiness before a resolution plan is approved by the committee of creditors. Selling, which emerged in last leg of trade, mainly dragged the benchmarks lower to end near intraday lows, though losses remained restricted near their support levels of 10,300 (Nifty) and 33,200 (Sensex). Sentiments also remained down beat on a private survey highlighting that India has slipped to the 7th position this quarter in business optimism ranking. Last quarter, India was ranked second in the survey. India has also slipped from its 1st position last quarter to 8th position this time in terms of revenue expectations.
Traders lacking any supportive cues were eyeing the movement of international crude oil prices, which may lift inflation and hit economic growth. Traders largely overlooked report that net direct tax collections rose by 15.2 percent to Rs 4.39 lakh crore between April and October this fiscal. This amounts to 44.8 percent of the total Budget estimate of direct taxes of Rs 9.8 lakh crore for 2017-18. Arvind Panagariya’s statement that the country as a place for business is a lot more attractive than its ranking suggests, too failed to boost investors’ confidence. Market participants also failed to get any solace with report that private equity (PE) and venture capital (VC) investments in India touched a new high of $21.8 billion in 2017 till date (January-October), surpassing the previous record of $19.6 billion in 2015.
Weakness in European counters too dampened sentiments, with CAC, DAX and FTSE trading lower in early deals amid corporate earnings reports. The Bank of England said that British companies are likely to keep on increasing investment at a modest pace over the next year before weaker increases over the following two years. Asian markets ended mostly in red, as investors remained cautious, in an address to the South Korean parliament, Trump addressed tensions with North Korea, saying that it has interpreted America’s past restraint as weakness.
Back home, there was some cautiousness due to further weakness of rupee too, which after witnessing a massive plunge of 35 paise to a fresh one-week low was showing further weakness on increased demand for the US currency from importers. On the sectoral front, telecom stocks edged lower, despite the Department of Telecommunications (DoT) planning to finalise the new telecom policy by February 2018. Talking about BharatNet, the flagship project of the government to provide broadband services in rural and remote areas, the government said telecom service providers (TSP) have come forward for utilising the BharatNet connectivity. Select real estate sector stocks were under pressure on private report that post demonetization and structural reforms, business sentiment in the real estate sector has hit the lowest levels of optimism, especially in the northern and western markets of the country and the next 12 to 18 months are likely to be the ‘under observation’ period for the sector.
FII’s Activity 8th-Nov-17
The FIIs as per Wednesday’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 5652.99 crore against gross selling of Rs 4974.19 crore. Thus, FIIs stood as net buyers of Rs 678.80 crore in equities.
In the debt segment, the gross purchase was of Rs 1046.32 crore with gross sales of Rs 1412.78 crore. Thus, FIIs stood as net sellers of Rs 366.46 crore in debt.
Now what to except ??
Nifty Levels
Below 10330 will see more downside panic till 10280---10250 mark else it could test its resistance level of 10430---10480 again.
Trade within a range
Bank Nifty
Below 25200 will see more downside panic till 25000 mark else it could test its resistance level of 25400---25550 again.
Daily Derivative Outlook 09th Nov 2017
• Nifty November 2017 futures closed at 10354.90 on Wednesday, at a premium of 51.75 points over spot closing of 10303.15.
• Call writing was seen at Nifty 10400 strike and Maximum Put writing was seen at Nifty 10100 strikes.
• Maximum positions are at 10400 CE and 10000 PE.
• JETAIRWAYS (10.00%), DCBBANK (8.00%), ORIENTALBANK (7.1%), HCC (6.00%) and AXISBANK (5.50%) were the top gainers in terms of open interest.
• BALKRISIND (-19.20%), CASTROL (-7.1%), MANAPPURAM (-5.7%), WOCKPHARMA (-5.6%) and PVR (-4.5%) were the top losers in terms of open interest.
Derivative Idea (09-11-2017)
PC Jewellers gain 3.2% of open interest as short build up on Wednesday’s trade. It is trading below its major support level of 340.00
Now what to expect??
Minor Support at 329...Break and sustain below 329 will take it to 310—300 mark in days to come.
350 will act as major resistance.
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation (9th Nov 2017)
Sell PC Jewellers below 329 with stop loss of 350 for the initial target 310—300 mark
Trent - Top Pick
A total of 319,406 shares were traded by this time of the day with the 5 day average volume being 90,354 , 10 day average volume being 116,606 and 30 day average volume being 179,114 .
In the last 52 weeks the lowest price observed was Rs. 175.00 while the highest price was Rs. 328.95 .
Now what to expect???
On Daily chart, Trent break and sustain above 313 will see rally till 318--320++ in weeks to come.
Looks bearish only if close below 306 marks.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (9th Nov 2017)
Buy Trent above 313 with stop loss below 306 (on a closing basis) Target 317++.
Corporate Action
Indraprastha Gas Limited-Face Value Split (Sub-Division) - From Rs 10/- Per Share to Rs 2/- Per Share
Result Today
Amara Raja Batteries Limited
Tata Motors Limited (DVR)
Tata Motors Limited
SRF Limited
Page Industries Limited
NHPC Limited
Steel Authority of India Limited
PTC India Limited
Jindal Steel & Power Limited
Hindustan Petroleum Corporation Limited
The India Cements Limited
Granules India Limited
CG Power and Industrial Solutions Limited
Aurobindo Pharma Limited
More Will Update Soon!!
