KSBL_TIFF

Research Desk – Stock Broking

Morning Moves

 

 

Apr 16th, 2018

 

Market View

Markets likely to open lower; Sell if sustains below 10450: Benchmark Index witnessed seven straight sessions of gains which is their longest winning streak since November last year. Going forward in the current week, investors will look forward to the earnings season which kicked off in the last week followed by the respective stock specific activity post declaration of their results. The market will also be reacting to US-France-UK joint strike on Syria, which could play a significant role in the near term and could impact the movement of oil prices in the international markets.  Technically, Nifty has witnessed third consecutive positive weekly closing after witnessing sharp sell off from the all time high levels. We expect markets to take a breather after the recent rally and may continue to trade with positive bias in the range of 10300-10650 levels. For the day, the key supports are placed at 10450-10390 while resistance is pegged at 10520-10550 levels.

 

Nifty View for the day: Therefore, for the day we recommend traders to SELL Nifty if sustains below 10450 levels for the targets of 10380-10400 levels, placing a stop loss of 10500 levels. (SPOT LEVELS)

 

Nifty Option: Buy Nifty APRIL 10400 PE above 72 | SL: 53 | TGT: 93-103 | TF: Intraday |

NSE NIFTY.JPEG

Index

Support

Pivot

Resistance

Nifty

10448

10484

10517

Bank Nifty

25048

25230

25382

 

 

Intraday Recommendations (Refer Page– 2)

Scrip Code

Act

Entry

SL

TGT

BIOCON

L

ABV 629

618

646

SUNTV

L

879

863

903

DLF

S

BLW 206.5

213

196.5

PCJEWELLER

S

304

315

287

Act= Action | SL: Stop Loss | TGT: Target | L= Long | S= Short  |

Institutional Activity

Cash Market

Net Value

Futures (FIIs)

Net Value

FII

-399.59

Index

-248.69

DII

306.05

Stock

835.70

Source: NSE India                | Value Rs. in Cr |

Global Indices

Global Indices

    (Close)

      (Pts)

Chg (%)

SGX Nifty

10,449.00

-54.00

-0.52

Dow Jones

24360.14

-122.91

-0.50

NASDAQ

7106.65

-33.60

-0.47

S&P 500

2656.30

-7.69

-0.29

FTSE 100

7264.56

6.22

0.09

Nikkei 225

21,855.24

76.50

0.35

Hang Seng

30,708.22

-100.16

-0.33

Source: Bloomberg and other leading websites |

Market Buzz

 

·         Tata Projects wins Mumbai Metro orders worth Rs 1,048 cr

·         Yes Bank to lend to small businesses based on GST returns

·         Jaguar Land Rover to cut output and jobs due to Brexit, diesel slump

·         Tata Steel India production falls 4% in January-March

·         FIIs pull out $250 mn from India amid trade war & geopolitical worries

Source: Bloomberg, leading business newspapers & websites

 

 

 

 

 

 

 

 

Intraday Recommendations

Stock

Action

Entry

Stop loss

Target

BIOCON

L

ABV 629

618

646

SUNPHARMA.GIF

BIOCON is trading above its 21/50/100/200 DEMA levels in daily chart. Parabolic SAR in daily chart suggesting positive trend in the counter. Stock has given breakout from a slopping down trend line drawn from its all time highs in daily line chart.

Stock

Action

Entry

Stop loss

Target

SUNTV

L

879

863

903

SUNPHARMA.GIF

SUNTV is trading above its 21/50/100/200 DEMA levels in daily chart. 14 day RSI is trading above the 9 period averages suggesting positive momentum in the counter. Heiken candlesticks suggest fresh leg of uptrend in the counter.

Stock

Action

Entry

Stop loss

Target

DLF

S

BLW 206.5

213

196.5

SUNPHARMA.GIF

DLF has been trading below its 21/50/100 DEMA levels in daily chart. Parabolic SAR in daily chart suggesting negative trend in the counter. Heiken candlesticks suggest fresh leg of downtrend in the counter.

 

 

 

Stock

Action

Entry

Stop loss

Target

PCJEWELLER

S

304

315

287

SUNPHARMA.GIF

PCJEWELLER has closed below its 21/50/100/200 day exponential moving averages in daily chart. Stock is sustaining below a gap in daily chart. Heiken candlesticks in daily chart suggesting negative trend in the counter.

Index Tracker

Index Dynamics

Particulars

Current

Previous

% Chg

Nifty Spot

10480.60

10458.65

0.21

Nifty Fut

10490.40

10465.00

0.24

Nifty Near  OI

2.55

2.48

2.83

Nifty COC%

2.63

1.58

1.04

Nifty PCR Vol

1.26

1.32

-4.66

Nifty PCR OI

1.38

1.36

1.74

Bank Nifty Spot

25200.60

25195.10

0.02

Bank Nifty Fut

25219.10

25184.30

0.14

Bank Nifty Near OI

0.17

0.18

-4.61

Bank Nifty COC%

2.06

-1.12

3.18

Market OI (RsCr.)

328969

320882

2.52

India VIX

14.14

14.53

-2.68

Nifty APR Future is trading at a premium of 9.80 points as compared to a premium of 6.35 points in the last trading session. On the options front, NIFTY APR 10700 CE has witnessed good accumulation of open interest from past four sessions and may act as a next stiff resistance for the markets. On the flip side, Nifty APR 10400 PE has witnessed accumulation in the last as well as today's session which may act as immediate support for the Index.

 

Bank Nifty APR Future is trading at a premium of 18.50 points as compared to a discount of 10.80 points. On the options front, BANKNIFTY 19 APR 25500 CE has highest open interest of more than 5.43 lakh shares in OI while BANKNIFTY 19 APR 24800 PE is having highest amount of open interest accumulation which may act as immediate support.

 

Bank Nifty View for the Day:  Sell Bank Nifty if sustains @ 25100 levels keeping stop loss of 25300 for the target of 24800 levels. (SPOT LEVELS)

 

Bank Nifty Option: Buy Bank Nifty 19 Apr 2018 25100 PE Above 170 | Stop Loss: 120 | Target: 250 | TF: Intraday

Positional Recommendations

JINDALSTEL APR FUTURES: Buy between 246-248 for a potential upside target of 260 with a stop loss placed below 241 (spot levels): The stock has witnessed addition of long position with good volumes. The stock added 3.22% in open interest with rise in price in the last trade. Hence we recommend positional traders to go long in the counter for the mentioned target levels.

SUNPHARMA APR FUTURES: Sell between 516-518 for a potential downside target of 500 with a stop loss placed above 530 (spot levels): The stock has witnessed addition of short position in last session and added 0.95% in open interest with fall in price in last trade. Hence we recommend positional traders to go short in the counter for the mentioned target levels.

Hybrid Strategy

COVERED CALL STRATEGY IN  ESCORTS

 

ESCORTS APR Future has total open interest of 33,40,700 contracts while ESCORTS APR 960 CE witnessed addition of 70,400 contracts making a total OI of 246,400 shares in the previous trading session. Technically, the stock is looking strong as it has witnessed addition of long position and expected to go around 960-970 level. Hence, we recommend constructing covered call strategy in the counter.

 

Buy one lot of ESCORTS APR FUT @ 940-942 & Sell one lot of ESCORTS APR 960 CE @ 17-18| Max Profit: 38,500 | Max Loss: Unlimited below BEP | BEP: 925 | Positional SL: Below 925 (Spot levels) |

Stock Specific Activity

Long Accumulation

VGUARD

NATIONALUM

ESCORTS

TECHM

TVSMOTOR

Short Closure

APOLLOTYRE

EXIDEIND

MRF

NMDC

AMARAJABAT

Short Accumulation

BPCL

SIEMENS

BEL

JUSTDIAL

WOCKPHARMA

Long Closure

JPASSOCIAT

DISHTV

IRB

CHENNPETRO

MGL

 

Stocks in Ban in F&O Segment

 

BALRAMCHIN

IRB

JPASSOCIAT

TV18BRDCST

-

-

-

-

-

-

-

-

 

 

 

 

 

 

 

 

 

Derivative Insights

 

Open Interest

Change in Open Interest

 

Top Traded Stock Options

 

Call

Put

 

Symbol

Strike Price

LTP

Volume (Contracts)

INFY

1200

17.65

10555

TCS

3200

43.90

6659

RELIANCE

940

14.35

4310

MARUTI

9300

75.10

4083

Symbol

Strike Price

LTP

Volume (Contracts)

INFY

1100

8.10

7398

TCS

3100

41.55

4598

ICICIBANK

280

4.20

2761

AXISBANK

540

11.35

2542

 

Top OI change in Stock Options

 

Call

Put

 

Symbol

Strike Price

LTP

Change in OI

GMRINFRA

20

0.95

2340000

SUZLON

15

0.05

1645000

SBIN

260

2.90

1206000

ITC

270

1.10

1125600

Symbol

Strike Price

LTP

Change in OI

RCOM

20

0.60

1288000

INFY

1160

26.05

1024200

SAIL

72.50

0.80

756000

HINDALCO

230

3.35

668500

 

Stock Option Recommendations

 

Symbol

Strike Price

Option Type

Entry

Stop Loss

Target

IV

Change in OI

OI

BIOCON

640

CE

Above 12.2

8

20.5

38.14

-88200

      723600

SUNTV

880

CE

22

15

36

36.40

-9000

80000

DLF

210

PE

Above 7.7

4.5

14

41.06

580000

3225000

PCJEWELLER

300

PE

10.8

6.8

19.5

61.92

10500

379500

 

 

 

 

 

 

 

 

Pivot Table

 

SYMBOL

CMP

S2

S1

PIVOT

R1

R2

SENSEX

34192.65

33993

34093

34203

34303

34413

NIFTY

10480.6

10416

10448

10484

10517

10552

NIFTYBANK

25200.6

24895

25048

25230

25382

25564

TCS

3153.3

3067

3110

3175

3219

3284

INFY

1171.45

1134

1153

1169

1188

1205

SBIN

250.95

246

248

252

255

258

RELIANCE

938.85

923

931

936

944

949

ICICIBANK

288.25

283

286

288

291

294

AXISBANK

542.55

525

534

545

553

564

TATASTEEL

594.05

582

588

596

602

611

YESBANK

309.55

301

305

310

314

319

HINDALCO

237.8

233

235

237

239

241

TECHM

671.55

629

650

662

683

695

BPCL

405.4

392

399

410

417

429

HDFC

1840.6

1815

1828

1835

1848

1856

KOTAKBANK

1151.1

1128

1140

1148

1160

1168

VEDL

291.65

285

289

292

295

298

MARUTI

9123.95

9005

9064

9166

9225

9326

* Pivot Levels for the stocks mentioned above are top traded stocks of Nifty 50 of previous day.

For other stocks, click here

 

Corporate Actions

 

Company

Series

Ex-Date

Record Date

Purpose

PHILIPCARB

EQ

19-Apr-18

20-Apr-18

Face Value Split (Sub-Division) - From Rs 10/- Per Share To Rs 2/- Per Share

CASTROLIND

EQ

25-Apr-18

-

Annual General Meeting/Dividend - Rs 2.50 Per Share

NBCC

EQ

25-Apr-18

26-Apr-18

Face Value Split (Sub-Division) - From Rs 2/- Per Share To Re 1/- Per Share

MINDTREE

EQ

25-Apr-18

26-Apr-18

Interim Dividend

 

RESULTS

 

JAYBARMARU

-

-

-

-

-

 

 

 

 

 

 

 

 

Page 1: FII= Foreign institutional investor, DII= Domestic institutional investor.| Page 2: Fut=Futures; COC=Cost of Carry; PCR = Put Call Ratio; Vol = Volume; OI = Open Interest; VIX = Volatility Index | Page 3: Pivot Point: Intra-day trading tool that applies stop loss based on NSE prices.| Pivot Point: This is a trigger point for intra-day buy/sell based on the price range of the previous day, based on NSE prices.| R1 (Resistance 1): First resistance over pivot point; R2 (Resistance 2): Second resistance over R1.| S1 (Support 1): First support below pivot point; S2 (Support 2): Second support below S1.| As per the tool, the trader should take a BUY position just above the pivot point; the stop loss should be kept at the pivot point and the first target would be R1. If R1 is crossed, then R2 becomes the next target with the stop loss at R1. Similarly, if the price falls below the pivot point, the trader should SELL, keeping the pivot point as the stop loss and the first target as S1. If S1 is crossed, then S2 becomes the next target with the stop loss at S1.

Legends: BPP: Book part profits; BFP: Book full profits; AP: Average profits; EMA: Exponential moving average; SA: Simple average; RVS: Revised stop loss level.

 

 

KARVY RESEARCH DESK – STOCK BROKING

 

JK Jain                                                                                                   Head Research

 

 

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