Update on Nifty levels, Bank Nifty levels and Derivative Outlook of the day 15th Feb 2018
Nifty 10500 /Sensex 34155 / Bank Nifty 25341
14 Advances /36 Declines/ 0 Unchanged
Late sell-off drag benchmarks lower; Nifty holds 10,500 mark
Indian equity benchmarks ended the choppy day of trade in red terrain on Wednesday, mainly on the back of late hour selloff. Markets traded with volatility and altered between green and red throughout the session as traders remained on sidelines ahead of Wholesale Price Index (WPI) data to be released on February 15. Traders took some solace with India’s Retail inflation, measured by the consumer price index (CPI), easing to 5.07% in January 2018, after rising to 5.21% in the month of December. Meanwhile, India’s index of industrial production (IIP) for the month of December 2017 came at 7.1% as compared to 8.4% in last month. As per the street expectations it was likely to come at 6.4%. The cumulative growth for the period April-December 2017 over the corresponding period of the previous year stood at 3.7%. Traders also took some encouragement with a survey by economic think tank NCAER enlightened that the Business Confidence Index rose 9.1% in December quarter 2017 over the previous three months as overall sentiment remained buoyant. The NCAER Business Confidence Index (N-BCI) had declined 12.9% in the September quarter as the economy was still adjusting to the implementation of goods and services tax (GST), affecting business sentiments.
However, it was the last leg of trade which played spoil sports for the domestic markets and key gauges even broke their crucial 10,500 (Nifty) and 34,100 (Sensex) levels, led by selling in banking shares mainly public sector undertaking (PSU) banks after the Reserve Bank of India (RBI) on Monday after market hours came out with a new non-performing assets (NPA) resolution. In the RBI’s new rules, banks would have to harmonise the treatment of specific accounts across their books. If one bank has treated a particular account as an NPA, other lenders on the same account will have to treat it as an NPA in their books as well. However, markets got some support near those crucial levels with Sensex ending comfortably above 34,100 marks, while Nifty somehow managed to end tad above its psychological 10,500 bastion. Investors drew some comfort with Union minister Piyush Goyal’s statement that the country’s economic growth is likely to cross 7.5% in the next fiscal. Some support also came from private report that Inflation is peaking off and the RBI is expected to cut rates by 25 bps in August if monsoon is normal.
On the global front, European counterparts were trading in green in early deals, supported by strong results and German economic data. Strong exports drove robust growth in Germany at the end of last year while inflation stayed subdued in January, suggesting Europe’s biggest economy is on track to extend its upswing well into 2018. Asian stocks ended mostly in green ahead of Lunar New Year holidays and the US inflation report due later in the day, which may provide further cues on interest-rate changes in the world’s largest economy.
Back home, Care Ratings in its latest report ‘Corporate Performance: Q3-FY18’ has said that India Inc witnessed much lower revenue growth in the third quarter of the current fiscal at 9.3% as against 17.7% in the previous year, on the back of factors like ongoing restocking process, adjustment to GST especially at the SME level, limited pick-up in demand and high base effect. Meanwhile, shares of basmati rice producers rallied on back of heavy volumes in otherwise subdued market after the Pabrai Investment Fund bought nearly three percentage point stake in KRBL through open market purchases.
FII’s Activity 14th-Feb-18
The FIIs as per Wednesday’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 4354.54 crore against gross selling of Rs 5233.87 crore. Thus, FIIs stood as net sellers of Rs 879.33 crore in equities.
In the debt segment, the gross purchase was of Rs 1071.18 crore with gross sales of Rs 875.09 crore. Thus, FIIs stood as net buyers of Rs 196.09 crore in debt.
In the hybrid segment, there was no buying against gross selling of Rs 0.14 crore. Thus, FIIs stood as net seller of Rs 0.14 crore in hybrid segment.
Now what to expect ??
Nifty Levels
Resistance at 10600. Break and sustain above 10600 will take it to 10750---10820 mark
Support intact at 10400
Trade with levels only
Bank Nifty
Support at 25250. Break and sustain below 25250 will take it to 25000---24800 mark.
Resistance intact at 25800
Trade with levels only
Daily Derivative Outlook 15th February 2018
• Nifty February 2018 futures closed at 10495.20 on Wednesday, at a discount of 5.70 points over spot closing of 10500.90.
• Long Build-up: REPCOHOME (10.8%), NCC (10.50%), JISLJALEQS (9.8%), RCOM (9.6%) and VGUARD (10.5%).
• Short Build-up: PNB (26.20%), BANKINDIA (20.9%), ORIENTBANK (-15.9%), INFRATEL (11%) and ALBK (9.9%).
• Maximum call writing was seen at Nifty 10600 strike and maximum put writing was seen at Nifty 10500 strikes.
• Maximum positions are at 11100 CE and 10000 PE.
• The Nifty Put Call Ratio (PCR) finally stood at 0.87 for February month contract.
• Advance Decline ratio in F&O segment was at 4.61, Advance (175) + Decline (38) + Unchanged (3) = 217
Trading Recommendation (15th Feb 2018)
Sell Axis Bank below 541 with stop loss above 565 (on a closing basis)
Target 525—517.
Corporate action-Ex-date
Hero MotoCorp Limited-Interim Dividend Rs 55/- Per Share
Rural Electrification Corporation Limited-Interim Dividend Rs 7.40 Per Share
Muthoot Finance Limited-Interim Dividend Rs 10/- Per Share (Purpose Revised)
IRB Infrastructure Developers Limited-Interim Dividend Rs 2.50 Per Share (Purpose Revised)
Page Industries Limited-Interim Dividend Rs 35/- Per Share (Purpose Revised)
Cummins India Limited-Interim Dividend Rs 5/- Per Share
Torrent Pharmaceuticals Limited-Interim Dividend Rs 9/- Per Share (Purpose Revised)
Bharat Heavy Electricals Limited-Interim Dividend Re 0.80 Per Share (Purpose Revised)
SRF Limited-Interim Dividend Rs 6/- Per Share (Purpose Revised)
More Will Update Soon!!
