Morning Moves

Research Desk –Stock Broking

   19th July, 2016

 

 

Global Indices Market

Global Indices

(Close)

(Pts)

Chg (%)

SGX Nifty

8,539.00

19.50

0.23

Dow Jones

18,533.05

16.50

0.09

NASDAQ

5,055.79

26.20

0.52

S&P 500

2,166.89

5.15

0.24

FTSE 100

6,695.42

26.18

0.39

Nikkei 225*

16,543.91

46.06

0.28

Hang Seng*

21,671.69

-131.49

-0.60

Source: Bloomberg, leading business web   *(as of 7:30 am) IST       

 

Sectoral Gainers/Losers

Sector

(Close)

(Pts)

Chg (%)

S&P BSE AUTO

20494.7

70.93

0.35

S&P BSE IT

10639.84

31.44

0.30

S&P BSE TELECOM

1299.45

-43.37

-3.23

S&P BSE O&G

10026.59

-164.52

-1.61

Source: BSEIndia IT : Information Technology | O&G-Oil & Gas

 

Nifty: Top Gainers & Losers

Gainers

%Chg

Losers

%Chg

BAJAJ-AUTO

2.21

IDEA

-5.76

KOTAKBANK

1.02

ONGC

-5.17

SUNPHARMA

0.95

BHARTIARTL

-4.32

INFRATEL

0.92

BANKBARODA

-3.44

AXISBANK

0.87

HINDUNILVR

-3.24

Source: NSE India

 

Institutional Activity

Cash Market

Net Value

Futures (FIIs)

Net Value

FII

599.09

Index

806.56

DII

-439.09

Stock

-392.71

Source: NSE India | Value (Rs in Crs)

 

Intra-day Recommendations

Scrip Code

Act

Entry

SL

TGT

CEATLTD

L

880-885

860

908

SUNPHARMA

L

ABV 781

773

795

UBL

L

ABV 797

787

813

ARVIND

S

BLW 315.5

325

301

KSCL

S

BLW 420

427

410

Note: Act=Action: Entry=Entry; SL=Stop loss; TGT=Target; L= Long; S= Short,

Market Watch

ü  Exide Q1 profit up 26%, operational performance meets estimates

ü  Mindtree Q1 profit misses estimates, tanks 7%; revenue in line

ü  Tata Steel plans to raise up to Rs 10,000 cr via pvt placement

ü  Ratan Tata-backed Bluestone raises Rs 200 cr in fresh funding

ü  Tea Board wants Assam to roll out insurance scheme for small growers

ü  Gold import nearly halves to $3.90 bn in Apr-Jun

ü  Major telcos' subscriber base crosses 776 mn mark in June

ü  JSW Energy to buy Jaiprakash Power's Bina unit for Rs 2,700 cr

ü  De-register 10-year-old diesel vehicles in Delhi, says NGT

 Source: Bloomberg, leading business web  

Market View

Markets likely to open flat tracking mixed Asian cues: Markets ended lower with Nifty50 slipping below the crucial 8,500 mark as profit booking emerged after benchmark indices hit fresh 2016 highs in an intra-day trade today. Stocks closed lower for the second consecutive session as participants booked profits in recent out performers, after rising earlier on positive sentiment due to a good monsoon, with Nifty closing at 8508.70 posting a loss of 33 Points. With the Monsoon Session of the Parliament which began yesterday, the government is prepared to push major reform bills including the GST Bill. A total of 25 bills are expected to be considered and cleared during the 20 day session concluding on August 12th, 2016. The India VIX has gained 2.2% and ended at 16 levels, indicating volatility which is likely to increase for the near term. In overseas markets, both European and US stocks ended on a flat note on Monday, as investors digested a number of geopolitical event. Going forward, quarterly earnings of major stocks, progress of rains and proceedings of the monsoon session of Parliament will be the key themes for the stock market this week. Technically, Nifty is trading in a broad range of 8450-8600 over last few days, while, we have seen some signs of profits booking in yesterday’s trade. Hence, sustenance beyond the range shall trigger next major move on the index. For now, supports are placed at 8450 and below at 8400 zone, while, resistance is placed at 8600-8620 zones above it at 8660-8680 levels. For the day, we recommend traders to buy Nifty on dips towards 8490-8500 levels for the upside target of 8550-8570 levels by keeping stop loss below 8450 levels. (Spot Levels)

Nifty Option: Buy Nifty July 8500 CE on dip 85-90 | SL: 70  | TGT: 125-130  | TF: Intraday

 

 

 Morning Moves

                                                                 19th July, 2016

DERIVATIVES INSIGHT

 

 

Nifty Tracker

Particulars

(Close)

(Previous)

Chg (%)

Nifty Spot

8508.70

8541.40

-0.38

Nifty Near Fut.

8520.50

8554.85

-0.40

Nifty Near Fut. OI

2.24

2.25

-0.62

Nifty COC %

5.06

4.42

0.64

Nifty PCR Vol

1.10

1.01

9.10

Nifty PCR OI

1.08

1.12

-2.96

Bank Nifty Spot

18923.40

18953.65

-0.16

Bank Nifty Fut.

18959.00

18974.35

-0.08

Bank Nifty Fut. OI

0.24

0.24

-0.61

Bank Nifty COC %

6.87

3.07

3.80

Market OI (Rs. cr.)

236,372

233,510

1.23

India VIX

15.99

15.63

2.24

 

 

Options Activity (Near Month)

OPEN INTEREST

 

OPEN INTEREST CHANGE

 

 

Hybrid Strategy Payoff

 

 

 

Nifty Dynamics

ü  Nifty July future is trading at a premium of 11.80 points as compared to a premium of 13.45 points in the last trading session. Bank Nifty July future is trading at a premium of 35.60 as compared to a premium of 20.70 points.

ü  On the options front, Nifty July 8100 PE witnessed shedding of 3.22 lakh shares, 8300 PE witnessed addition of 2.17 Lakh Shares in Open Interest. On the flipside, Nifty July 8600 CE witnessed additions of 7.70 lakh shares. The highest OI is at 8400 PE to the tune of 56.07 lakh shares followed by 8300 PE with OI of 42.36 Lakh shares, whereas, on the higher side, the maximum OI is seen in 8600 CE to the extent of 60.42 lakh shares followed by 51.22 Lakh shares

ü  Nifty put options witnessed addition of 3 lakh shares in open interest, while Nifty call options witnessed addition of 20 lakh shares in open interest. India VIX ended at 15.99 from 15.63 while Nifty historical volatility decreased to 15.35% from 15.71%.

ü  Nifty call options average Implied Volatility (IV) increased to 15.24% from 14.05% and Nifty Put options average Implied Volatility (IV) decreased to 16.94% from 15.97% with market’s open interest at Rs. 236,372 Crore.

 

Positional Recommendations

ABIRLANUVO July Future: Buy @ 1240-1242 levels for targets of 1305-1308 with stop loss at 1200 (Spot levels): ABIRLANUVO witnessed short unwinding in yesterday’s trade. The stock added 0.18% in open interest with rise in price during last trading session. It has gained more than 2% with jump in volume in the last trading session and technically also it is well placed above all its major short to medium term moving averages on the daily chart. We expect the stock to test 1305-1308 levels in the short term.

TCS July Future: Sell below 2426 levels for the targets of 2361 levels with a stop loss @ 2469 (Spot levels): TCS witnessed addition of short positions in yesterday’s trade. The stock added around 2.8% in open interest with fall in price during the last trading session. Technically, the stock is well placed below all its major moving averages on the daily chart, adding bearishness in the counter Hence, we recommend short term traders to go short in the stock below 2426 levels keeping stop loss of 2469 levels for the downside target of 2361 levels. 

BANKBARODA July 160 PE: Buy BANKBAORDA 160-strike Put option having open interest of 8, 64,500 shares. It added 63,000 shares in yesterday’s trade with IVs at 48.13%. Technically, the stock has formed a multi candle short term topping pattern on daily charts, indicating the capping of upside for near term. Hence Long positions can be assumed in the option on any dip towards Rs.3.5-4.00 with stop loss below Rs 2.50 for the targets of Rs 9-10.

 

Hybrid Strategy

BULLCALL SPREAD IN HDFC

HDFC July Future has total open interest of 1,00,18,500 shares while HDFC July 1340 CE witnessed addition of 2,000 shares making a total OI of 78,500 shares and HDFC July 1380 CE witnessed addition of 68,000 shares making a total OI of 1,15,500 shares during the last trading session. Technically, the stock is in the cycle of higher highs and higher lows on the daily basis & is trading above its major moving averages on the daily charts. Hence, we recommend going for a Bull Call spread in this counter.

Buy one lot of HDFC JULY 1340 CE @ 28 and Sell one lot of HDFC 1380 CE @ 13 |Max Profit: 12500|Max Loss: 7500| BEP: 1355.


 Morning Moves

19th July, 2016

 

 

 

PIVOT TABLE

SYMBOL

CMP

S2

S1

PIVOT

R1

R2

SENSEX

27746.66

27503.47

27625.07

27819.28

27940.88

28135.09

NIFTY

8508.70

8437.30

8473.00

8530.05

8565.75

8622.80

NIFTYBANK

18923.40

18715.80

18819.60

18988.80

19092.60

19261.80

ADANIPORTS

217.95

212.38

215.17

219.03

221.82

225.68

ASIANPAINT

1028.50

1013.23

1020.87

1032.88

1040.52

1052.53

AXISBANK

571.00

564.47

567.73

572.27

575.53

580.07

BAJAJ-AUTO

2755.35

2684.45

2719.90

2741.45

2776.90

2798.45

BHARTIARTL

362.65

348.95

355.80

367.90

374.75

386.85

CIPLA

506.95

497.85

502.40

509.85

514.40

521.85

COALINDIA

321.65

316.42

319.03

321.52

324.13

326.62

DRREDDY

3567.75

3507.92

3537.83

3573.92

3603.83

3639.92

GAIL

386.15

376.58

381.37

390.28

395.07

403.98

HDFC

1346.35

1308.52

1327.43

1356.92

1375.83

1405.32

HDFCBANK

1227.45

1213.68

1220.57

1229.53

1236.42

1245.38

HEROMOTOCO

3249.70

3206.57

3228.13

3261.57

3283.13

3316.57

HINDUNILVR

921.95

889.58

905.77

926.18

942.37

962.78

ICICIBANK

263.40

257.03

260.22

265.73

268.92

274.43

INFY

1081.95

1044.25

1063.10

1074.00

1092.85

1103.75

ITC

248.90

246.47

247.68

248.82

250.03

251.17

LT

1574.40

1542.37

1558.38

1581.02

1597.03

1619.67

LUPIN

1665.20

1642.67

1653.93

1671.72

1682.98

1700.77

M&M

1468.70

1453.10

1460.90

1471.30

1479.10

1489.50

MARUTI

4454.75

4351.85

4403.30

4483.85

4535.30

4615.85

NTPC

155.60

153.53

154.57

155.68

156.72

157.83

ONGC

218.60

209.67

214.13

221.57

226.03

233.47

POWERGRID

163.20

160.67

161.93

163.87

165.13

167.07

RELIANCE

1006.25

978.58

992.42

1015.58

1029.42

1052.58

SBIN

228.75

224.62

226.68

230.27

232.33

235.92

SUNPHARMA

776.70

766.10

771.40

776.20

781.50

786.30

TATAMOTORS

492.65

480.88

486.77

495.88

501.77

510.88

TATASTEEL

365.65

353.62

359.63

369.52

375.53

385.42

TCS

2433.45

2405.95

2419.70

2444.35

2458.10

2482.75

WIPRO

551.95

541.08

546.52

550.23

555.67

559.38

 

 

 

 

 

 

 

Corporate Actions

Company

     Series

Ex-Date

Record Date

 

Purpose

KTKBANK

EQ

20-Jul-16

-

 

AGM / Dividend - Rs 5.00/- Per Share

ASTRAMICRO

EQ

20-Jul-16

-

 

AGM / Dividend - Rs 1.20/- Per Share

SICAL

EQ

20-Jul-16

-

 

Annual General meeting

INDOCO

EQ

20-Jul-16

-

 

AGM / Dividend - Rs 0.20/- Per Share

 

 

 

Results

WIPRO              uLTRACEMCO         GLFL              LINDEINDIA            

 

 

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.

 

 

KARVY RESEARCH DESK – STOCK BROKING

QUERIES & FEEDBACK

JK Jain

Toll-Free: 1800 425 8283

Head Research

Email ID: service@karvy.com

KARVY STOCK BROKING LTD| Karvy Millenium | Plot No : 31| Financial District |Gachibowli | Hyderabad - 500 032

 

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