KSBL_TIFF

Research Desk – Stock Broking

 

Morning Moves

 

 

Dec 22, 2017

 

 

 

Market View

 

Markets to remain range bound; Buy around 10420-30: After clocking a fresh lifetime high of 10494.45 in the previous trading session, Nifty made a lower high & a lower low and remained in the negative terrain throughout yesterday’s trade. The index ended on a flat note as stock specific movement was evident across most sectors. As far as the technical setup of Nifty is concerned, we expect positive momentum to be regained but only if it manages to cross and sustain above the zone around 10470-10494.45. On the other hand, the Nifty is likely to take immediate support around 10400-10380 below which the next imperative levels to watch out for will be 10330-10300. Whereas on the upside, if the index manages to cross the immediate resistance around the 10480-10494.45 zone, then an extended rally towards the next projected supply zone around 10540-10560 may be seen. Hence intraday traders must remain cautious at higher levels and maintain a disciplined approach.

 

Nifty View for the day: Therefore, for the day we recommend traders to buy Nifty around 10420-430 levels for the targets of 10480-500 levels, placing a stop loss below 10370 levels. (SPOT LEVELS)

 

Nifty Option: Buy Nifty December 10500 CE around 30 | SL: 10 | TGT: 50-60 | TF: Intraday |

 

NSE NIFTY 23.JPEG

Index

Support

Pivot

Resistance

Nifty

10400

10447

10494

Bank Nifty

25443

25564

25685

 

Intraday Recommendations (Refer Page– 2)

Scrip Code

Act

Entry

SL

TGT

HEXAWARE

L

329

324

336

LICHSGFIN

L

570

563

580

LT

L

1257

1245

1275

SUNPHARMA

S

BLW 525

532

515

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

Institutional Activity

Cash Market

Net Value

Futures (FIIs)

Net Value

FII

-383.99

Index

-183.53

DII

1574.30

Stock

56.09

Source: NSE India                | Value Rs. in Cr |

 

Global Indices

Global Indices

    (Close)

      (Pts)

Chg (%)

SGX Nifty*

10461.50

7.00

0.07

Dow Jones

24782.29

55.64

0.23

NASDAQ

6965.36

4.40

0.06

S&P 500

2684.57

5.32

0.20

FTSE 100

7603.98

78.76

1.05

Nikkei 225*

22884.76

18.66

0.08

Hang Seng*

29505.05

137.99

0.47

Source: Bloomberg and other leading websites

Market Buzz

 

·         Telecom Commission discusses 100% FDI via auto route

·         Mahindra Group invests in Finland start-up

·         India assures contracts for local solar equipment makers in government projects

·         Azim Premji Trust sells 2.73% stake in Wipro

·         Dr Reddy's board gives nod to induct third generation leadership into the company

Source: Bloomberg, leading business newspapers & websites

 

 

 

Intraday Recommendations

 

Stock

Action

Entry

Stop loss

Target

HEXAWARE

L

329

324

336

HEXAWARE.JPEG

HEXAWAREgained more than 1.50% in the last trading session with notable volumes. The stock found support around its 50-DEMA from where it staged a bounce. The stock is looking good and has given a closing above its 21-DEMA on the daily charts in the last trading session. The RSI indicator is pointing northwards suggesting upside in the counter in the near term.

Stock

Action

Entry

Stop loss

Target

LICHSGFIN

L

570

563

580

LICHSGFIN.JPEG

LICHSGFIN ended on a flat to positive note in the last trading session. The stock has witnessed sharp bounce after finding support around the lower levels accompanied with decent volumes. The stock is expected to continue to bounce towards 580 levels in today’s trading session. The RSI indicator is re-affirming the bullish biasness in the counter for the day.

 

Stock

Action

Entry

Stop loss

Target

LT

L

1257

1245

1275

LT.JPEG

LThad gained more than 2% in the last trading session.The stock has been heading higher from the last couple of trading sessions with decent volumes and has also surpassed and closed above its resistance which was placed around 1250 levels. The stock is trading above its major moving averages on the daily charts with RSI indicator pointing northwards, suggesting further upside in the stock

Stock

Action

Entry

Stop loss

Target

SUNPHARMA

S

BLW 525

532

515

SUNPHARMA.JPEG

SUNPHARMA after giving a gap up opening surged higher and extended its gains. The stock could not hold onto the gains and slipped from the highs within a couple of hours of trade. The stock did not recover whereas it continued to slide lower. The stock has a crucial support placed around 525 levels, sustaining below which it may extend the weakness towards 515 levels during the day.

 

Index Tracker

Index Dynamics

Particulars

Current

Previous

% Chg

Nifty Spot

10440.30

10444.40

-0.04

Nifty Fut

10462.45

10470.15

-0.07

Nifty Near  OI

1.82

1.93

-5.89

Nifty COC%

11.06

11.25

-0.19

Nifty PCR Vol

1.19

1.29

-7.76

Nifty PCR OI

1.26

1.28

-0.96

Bank Nifty Spot

25554.30

25591.70

-0.15

Bank Nifty Fut

25621.35

25662.95

-0.16

Bank Nifty Near OI

0.13

0.14

-4.00

Bank Nifty COC%

13.68

12.70

0.98

Market OI (Rs Cr.)

374,030

363,504

2.90

India VIX

12.085

12.185

-0.82

Nifty Dec Future is trading at a premium of 22.15points as compared to a premium of 25.75 points in the last trading session. On the options front, Nifty Dec 10300 PE has witnessed shedding of 2.38 lakh shares in Open Interest with maximum OI in Nifty Dec 10000 PE of 79.93 lakh shares. While Nifty Dec 10600 CE has seen addition of 1.46 lakh shares, while maximum OI on higher side stands at  Nifty Dec  10500 CE to the tune of 65.38 lakh shares.

Bank Nifty Dec future is trading at a premium of 67.05 points as compared to a premium of 71.25 points. On the options front, Bank Nifty 28 Dec 25500 PE has seen addition of 1.65 lakhshares while Bank Nifty 28 Dec 26000 CE has seen addition of 1.79lakh shares in OI.

Bank Nifty View for the Day:  Buy Bank Nifty @ 25500 levels keeping stop loss of 25400 for the target of 25650 levels. (SPOT LEVELS)

 

Bank Nifty Option: Buy Bank Nifty 28 December 2017 25600 CE around 135 | Stop Loss: 90 | Target: 200 | TF: Intraday

 

Positional Recommendations

 

DIVISLAB DEC FUTURES: Buy between 1078-1080 for a potential upside target of 1125 with a stop loss placed below 1050 (spot levels): The stock has witnessed addition of long positions with good volumes. The stock added 0.29% 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.

INDIGO DEC FUTURES : Sell around 1145 for a potential downside target of  1100 with a stop loss placed above 1175 (spot levels): The stock has witnessed addition of short positions in the last sessions and has added 1.16% of open interest with fall in price, which is indicating pressure in the counter. Hence traders can short the counter as per the mentioned levels.

 

Hybrid Strategy

 

BULL CALL SPREAD IN BIOCON

BIOCON DEC Future has total open interest of 96,40,800.while BIOCON DEC 540 CE witnessed shedding of 90,000 in OI and making a total OI of 6,57,000 and BIOCON DEC 560 CE  witnessed addition of 1,58,400 in OI and making total OI of 5,68,800 in the previous trading session. Technically, the stock is making in the cycle of higher highs and higher lows from lows of 328 on the daily charts and is also trading above its major moving averages and even the momentum indicators also indicate the stock may move further high in the coming sessions. Hence, we recommend building Bull call spread strategy in the counter.

 

Buy one lot of BIOCON DEC 540 CE @ 9.10 and Sell one lot of BIOCON DEC 560 CE @ 3.15| Max Profit:25290| MaxLoss:10710|BEP:545.95|

 

Stock Specific Activity

 

Long Accumulation

WOCKPHARMA

CEATLTD

TV18BRDCST

NHPC

IFCI

Short Closure

APOLLOHOSP

INDIACEM

MOTHOOTFIN

CUMMINSIND

VOLTAS

Short Accumulation

MOTHERSUMI

HAVELLS

MARUTI

HINDZINC

CHOLAFIN

Long Closure

RAMCOCEM

INFIBEAM

DLF

PCJEWELLER

BALRAMCHIN

 

Stocks in Ban in F&O Segment

 

BALRAMCHIN

DLF

FORTIS

HDIL

JETAIRWAYS

JPASSOCIAT

DHFL

GMRINFRA

IFCI      

WOCKPHARMA

JSWENERGY

RCOM

 

 

 

 

 

 

 

 

 

Derivative Insights

 

Open Interest

Change in Open Interest

 

Top Traded Stock Options

 

Call

Put

 

Symbol

Strike Price

LTP

Volume (Contracts)

MARUTI

10000

39.90

9190

RELCAPITAL

480

15.00

7419

RCOM

20

0.85

6107

RELINFRA

500

16.95

5841

Symbol

Strike Price

LTP

Volume (Contracts)

RCOM

15

0.35

5099

INFY

1000

4.80

4473

MARUTI

9500

51.60

4207

TATASTEEL

700

3.65

2524

 

Top OI change in Stock Options

 

Call

Put

 

Symbol

Strike Price

LTP

Change in OI

GMRINFRA

22.50

0.20

12780000

RCOM

20

0.85

9310000

IFCI

30

0.80

5214000

SUZLON

17.50

0.05

2910000

Symbol

Strike Price

LTP

Change in OI

RCOM

17.50

1.00

5180000

GMRINFRA

20

0.70

4725000

IFCI

25

0.15

2904000

IDEA

100

1.85

1288000

 

Stock Option Recommendations

 

Symbol

Strike Price

Option Type

Entry

Stop Loss

Target

IV

Change in OI

OI

HEXAWARE

330

CE

5.00

4.00

6.5

28.70

9000

621000

LICHSGFIN

580

CE

5.50

2.5

10

27.27

-8800

440000

LT

1260

CE

13

7.5

21.5

20.81

-39000

365250

SUNPHARMA

520

PE

ABV 5

3

8

25.12

-25600

696800

 

 

 

Pivot Table

 

SYMBOL

CMP

S2

S1

PIVOT

R1

R2

SENSEX

33,756.28

33,621.83

33689

33775

33842

33,928.21

NIFTYBANK

25,554.30

25,443.33

25499

25564

25620

25,685.43

NIFTY

10,440.30

10,400.00

10420

10447

10467

10,494.10

MARUTI

9631.05

9478.8

9554.9

9686.2

9762.3

9893.5

INFY

1022.05

985.9

1004.0

1016.5

1034.5

1047.0

M&M

742.2

721.3

731.8

749.4

759.8

777.4

LT

1258.8

1225.6

1242.2

1253.6

1270.2

1281.6

RELIANCE

912.95

901.7

907.3

915.6

921.3

929.6

HINDALCO

263.3

257.5

260.4

262.5

265.4

267.5

TATASTEEL

714.6

694.7

704.7

711.0

720.9

727.2

HDFCBANK

1868.3

1853.0

1860.7

1872.8

1880.5

1892.6

AXISBANK

548.95

538.4

543.7

550.3

555.6

562.2

SBIN

316.75

314.0

315.4

316.8

318.2

319.6

ICICIBANK

315.45

310.3

312.9

314.7

317.3

319.2

SUNPHARMA

528.2

518.0

523.1

530.9

536.0

543.8

HDFC

1701.9

1687.6

1694.8

1702.4

1709.5

1717.1

BHARTIARTL

524.1

516.2

520.2

526.0

529.9

535.7

VEDL

317.15

310.2

313.7

317.0

320.5

323.8

* 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

JINDWORLD

EQ

26-12-2017

27-12-2017

Face Value Split From Rs 10/- to Rs 5/- Per share

SHALPAINTS

EQ

28-12-2017

29-12-2017

Rights 6:32 @ Premium Rs 138/-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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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