Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 9th Jan 2018
Nifty 10623 /Sensex 34352/ Bank Nifty 25676
37 Advances / 13 Declines/ 0 Unchanged
Bulls take control over Dalal Street; Nifty surpasses 10,600 mark
Bulls tightened their grip on Dalal Street and key gauges traded jubilantly throughout the session with Sensex and Nifty surpassing their crucial 34,300 and 10,600 levels, hitting fresh record highs, respectively. After making a gap-up start, Indian equity benchmarks traded with traction to end at fresh closing high levels, as traders took some encouragement with report that credit growth after a long gap grew in double digits to 10.65% at Rs 80,96,727 crore in the fortnight ended December 22, 2017 due to the base effect. Sentiments also remained up-beat from Economic Advisory Council to the Prime Minister (EAC-PM), Bibek Debroy’s statement that India's advance GDP growth estimate of 6.5% for this fiscal shows reform measures taken by the government is yielding results and growth will accelerate to over 7% in 2018-19.
Besides, report that overseas investors poured in a staggering Rs 1.5 lakh crore in the Indian debt markets in 2017 on the back of higher bond yields and stable currency, after pulling out massive funds in the preceding year, too aided sentiments. Traders completely ignored Central Statistics Office’s (CSO) first advance estimates of GDP growth for current financial year which highlighted that the Indian economy is expected to grow at a slower 6.5% in 2017-18 compared to the 7.1% in 2016-17. According to CSO, the Gross Domestic Product (GDP) at constant (2011-12) prices for 2017-18 is likely to attain a level of Rs 129.85 lakh crore. Meanwhile, the agriculture ministry said that the country’s agriculture sector is expected to grow higher than projected 2.1% growth by the CSO for the current fiscal, following better rabi crop prospects. The ministry added that the agriculture sector can, therefore, be expected to register a much higher GVA for the year 2017-18, when final estimate figures are released.
Firm opening in European markets too aided sentiments. Retail sales in the euro zone rose more than expected in November. In a report, Eurostat said that euro zone retail sales rose to 1.5% in November from a negative 1.1% in the preceding month. Asian markets rallied on Monday after Wall Street boasted its best start to a year in over a decade.
Back home, aviation stocks exhibited mixed performance, as the government said that if capping of airfares get implemented it would result in increased cost of air travel for 99% of the passengers. Telecom stocks Bharti Airtel, Idea Cellular and Reliance Communications ended in red after Reliance Jio Infocomm (Jio) unleashed another price disruption in an heavily debt-riddled industry, wherein all existing tariff plans with 1GB data have been revised to offer either 50% more data or a Rs 50 discount, a move which could hit the average revenue per user of rivals such as Bharti Airtel, Vodafone India and Idea Cellular.
FII’s Activity 8th-Jan-18
The FIIs as per Monday’s data were net buyers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 5854.69 crore against gross selling of Rs 4962.35 crore. Thus, FIIs stood as net buyers of Rs 892.34 crore in equities.
In the debt segment, the gross purchase was of Rs 1027.77 crore with gross sales of Rs 864.86 crore. Thus, FIIs stood as net buyers of Rs 162.91 crore in debt.
In the hybrid segment, the gross buying was of Rs 2.68 crore against gross selling of Rs 3.76 crore. Thus, FIIs stood as net sellers of Rs 1.08 crore in hybrid segment.
Now what to expect ??
Nifty Levels
Support at 10460 and Resistance at 10640
Above 10640 will see rally till 10750---10900 mark else could touch its support level of 10460 again
Trade with levels only
Bank Nifty
Support at 25500 and Resistance at 25780
Above 25780 will see rally till 26000---26300 mark else could touch its support level of 25500 again
Trade with levels only
Daily Derivative Outlook 9th January 2018
• Nifty (January) futures closed at a premium of 7.80 points versus a premium of 14.35 points.
• RBLBANK (36%), MINDTREE (27%), ZEEL (15%), MUTHOOTFIN (15%) and CUMMINSIND (14%) were the top gainers in terms of open interest.
• JINDALSTEL (-18%), RCOM (-7), OFSS (-6%), TORNTPOWER (-6%) and JISLJALEQS (-5%) were the top losers in terms of open interest.
• Maximum call buying was seen at Nifty 10500 strike and maximum put writing was seen at Nifty 106s00 strikes.
• Maximum positions are at 11000 CE and 10400 PE.
• The Nifty Put Call Ratio (PCR) finally stood at 1.30 for January month contract.
• Advance Decline ratio in F&O segment was at 2.57, Advance (154) + Decline (60) + Unchanged (3) = 217
Derivative Idea (09-01-2018)
Oriental Bank losses around 2.00% of open interest as short unwinding on Monday’s trade.
OBC has hurdle at 126.50. Break and sustain above 126.50 will it to 130---133 and then to 140++ mark in days to come.
Fresh selling can be initiated below 123 mark
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation (9th Jan 2018)
Buy Oriental Bank future above 126.50 with stop loss of 123 for the initial target 130—133 and then to 140++ mark.
Can Fin Homes Ltd.- Top Pick
As the trading hours came to an end Can Fin Homes Ltd. was observed to be priced at Rs. 482 which was 10 points higher than the day's low and 2 points lower than the day's high while the day low was Rs. 472 and day high was Rs. 484.
By this time of the day, a total of 1,217,920 shares were traded with the 5 day average volume being 898,500 , 10 day average volume being 970,855 and 30 day average volume being 784,325.
The 5 day average volume rose 86401 stocks, 10 day average volume fell 145404 stocks and 30 day average volume rose 26607 stocks relative to the previous day' s values.
Now what to expect???
On Daily chart, Can Fin Homes having bottom out pattern above 484 will see rally till 496---510 in weeks to come.
Support intact at 472.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (9th Jan 2018)
Buy Can Fin Homes above 484 with stop loss below 472 (on a closing basis) Target 496—510.
Result Today
The South Indian Bank Limited
More Will Update Soon!!
