Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 11th Dec 2017
Nifty 10166 /Sensex 32597/ Bank Nifty 24851
38 Advances / 12 Declines/ 0 Unchanged
Bulls tighten grip on Dalal Street; Nifty regains 10,250 mark
Extending previous session’s northward journey, Indian equity benchmarks displayed spirited performance on Friday, with frontline gauges recapturing their crucial 33,200 (Sensex) and 10,250 (Nifty) levels. The markets' mood remained up-beat throughout the day and benchmarks, after a gap-up opening, fervently gained from strength to strength, as investors continued hunt for fundamentally strong stocks amid firm global cues. Sentiments remained positive since beginning with International Energy Agency's (IEA) report that India is emerging as a 'major driving force' in global energy trends, with all modern fuels and technologies playing a part. Meanwhile, the finance ministry has said that the FRDI Bill, under consideration of a joint parliamentary committee, is depositor friendly and provides more protection to them compared to existing provisions. It has clarified that the provisions in the FRDI Bill do not modify current protections for depositors adversely at all, the ministry held, maintaining that these rather provide additional protections in a more transparent manner.
Markets extended rally in later part of the trade with pre-poll surveys showing Bharatiya Janata Party would win the Gujarat elections this month. Heightened uncertainty about the BJP’s prospects in the state elections had weighed on investors’ sentiments in recent days. The survey came as a relief for investors, who want political stability as the government attempts to steer the economy out of the slump. Buying in banking stocks too aided sentiments on report that bank loan growth rate rose to a three-year high in November indicating businesses are ramping up output after the Goods and Services Tax (GST) induced disturbances. Separately, a foreign brokerage report highlighted that the Indian economy is expected to witness cyclical growth recovery, with real GDP growth likely to accelerate from 6.4 percent this year to 7.5 percent in 2018 and further to 7.7 percent in 2019.
Firm opening in European counters too aided sentiments with British manufacturing output expanding for the sixth month in a row during October, the longest such run in at least 20 years, helped by the production of cars for export. Asian markets too ended in green, as economic news from China and Japan beat all expectations. China’s exports and imports unexpectedly accelerated last month after slowing in October.
Back home, stocks related to power sector remained on buyers’ radar, as Minister of State (Independent Charge) for Power and Renewable Energy, RK Singh, has coaxed State governments to reduce the number of slabs for selling power. Stocks related to auto component sector edged higher after ICRA in its latest report said, the industry is expected to grow by 9-11 percent and noted that the domestic passenger vehicle (PV) and two-wheeler (2W) segments will be the main drivers for growth in FY18. Aviation stocks flied higher with Union Minister of State for Civil Aviation Jayant Sinha’s statement that India’s aviation market would surpass the US and China by crossing a billion passenger trips per year in the next 10 to 15 years.
Finally, the BSE Sensex soared 301.09 points or 0.91% to 33,250.30, while the CNX Nifty was up by 98.95 points or 0.97% to 10,265.65.
FII’s Activity 8th-Dec-17
The FIIs as per Friday’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 4555.51 crore against gross selling of Rs 5518.33 crore. Thus, FIIs stood as net sellers of Rs 962.82 crore in equities.
In the debt segment, the gross purchase was of Rs 1298.50 crore with gross sales of Rs 963.57 crore. Thus, FIIs stood as net buyers of Rs 334.93 crore in debt.
Now what to expect ??
Nifty Levels
Above 10300 will see rally till 10380---10430.
More and more upside rally will see only close above 10430 else it could test 10150 again.
Trade within a range
Bank Nifty
Above 25400 will see more upside rally till 25550---25700 mark.
More and more upside rally will see only close above 25700 else it could test 25000 again.
Trade within a range
Daily Derivative Outlook 11th December 2017
• Nifty (Dec) futures closed at a premium of 26.00 points versus a premium of 36.25 points.
• Maximum call buying was seen at Nifty 10400 strike and Maximum Put writing was seen at Nifty 10200 strikes.
• Maximum positions are at 10500 CE and 10000 PE.
• PIDILITIND (29%), BALKRISIND (20%), JPASSOCIAT (19%), CHENNPETRO (17%) and MINDTREE (16%) were the top gainers in terms of open interest.
• HAVELLS (-15%), JETAIRWAYS (-11%), GODREJIND (-6%), NESTLEIND (-6%) and MFSL (-5%) were the top losers in terms of open interest.
• Advance Decline ratio in F&O segment was at 1.13, Advance (163) + Decline (50) + Unchanged (0) = 217
Derivative Idea (11-12-2017)
Union Bank gain around 10.30% of open interest as short build up Friday’s trade. Union Bank formed a squat bar on daily chart, while it is trading below 21 and 55 DEMA which indicate momentum is downward.
Now what to expect??
Support at 154.50, Break and sustain below 154.50 will take it to 148—145 mark.
Hurdle intact at 158.50
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation (11th Dec 2017)
Sell Union Bank below 154.50 with stop loss of 158.50 for the initial target 148--145 mark.
Havells - Top Pick
Yesterday havells shown more than 2.00% upside move
According to exponential moving average analysis, havells is in a strong uptrend.
Now what to expect??
Break and sustain above 541 will see rally till 552---560 in days to come. Further upside will see if closes above 560.
Support intact at 528.
Trading Recommendation (11th Dec 2017)
Buy Havells above 540 with stop loss below 528 (on a closing basis) Target 552--560.
More Will Update Soon!!
