Morning Moves

Research Desk –Stock Broking

   28th June, 2016

 

 

Global Indices Market

Global Indices

(Close)

(Pts)

Chg(%)

SGX Nifty

20,047.97

-179.33

-0.89

Dow Jones

17,140.24

-260.51

-1.50

NASDAQ

4,594.45

-113.53

-2.41

S&P 500

2,000.54

-36.87

-1.81

FTSE 100

5,982.20

-156.49

-2.55

Nikkei 225*

15,325.46

16.25

0.11

Hang Seng*

20,047.97

-179.33

-0.89

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

 

Sectoral Gainers/Losers

Sector

(Close)

(Pts)

Chg (%)

S&P BSE Hc

15226.47

300.75

2.01

S&P BSE BM

2042.84

38.27

1.91

S&P BSE IT

11095.61

-210.41

-1.86

S&P BSE TECK

5971.19

-100.71

-1.66

Source: BSE India  HC-Healthcare BM -Basic Materials, IT-Information Technology

 

Nifty: Top Gainers & Losers

Gainers

%Chg

Losers

%Chg

BANKBARODA

3.19

TCS

-3.00

ULTRACEMCO

3.15

INFY

-2.47

AUROPHARMA

3.15

ZEEL

-1.97

DRREDDY

3.00

INDUSINDBK

-1.45

CIPLA

2.95

ASIANPAINT

-1.44

Source: NSE India

 

Institutional Activity

Cash Market

Net Value

Futures (FIIs)

Net Value

FII

-146.11

Index

-287.41

DII

-147.07

Stock

60.58

Source: NSE India | Value (Rs in Crs)

 

Intra-day Recommendations

Scrip Code

Act

Entry

SL

TGT

ABIRLANUVO

L

1118

1099

1162

LUPIN

L

1476

1460

1505

ULTRACEMCO

L

3395

3362

3480

TCS

S

BLW 2482

2509

2440

ZEEL

S

BLW 437

443.5

427

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

Market Watch

ü  Reliance May oil imports down 13.2%

ü  Reliance Retail launches second ultra-premium smartphone LYF Earth 2

ü  PMO keeping an eye on black money scheme

ü  NSE to file for domestic IPO by Jan 2017, list globally by Apr

ü  Tata group's coorg coffee finds its way into starbucks in seattle

ü  Hiranandani to launch commercial tower at IFSC during Vibrant Gujarat Summit

ü  McDonald's to invest over Rs 700 crore to expand

 Source: Bloomberg, leading business web  

Market View

 

Global weakness likely to drag market lower: Taking cues from the Asian peers, Nifty ended flat on Monday at 8095 levels up by 0.08% trying to recover from the turmoil of last week's Brexit polls. IT companies led declines, given their hefty exposure to Europe. Tata Consultancy Services dropped as much as 3.55 percent, while, Infosys and HCL Technologies fell about 2.80 per cent each. The index provisionally closed the day's trade tad in green after a volatile day of trade. Healthy buying was witnessed in stocks of healthcare, capital goods and consumer durables. Oil marketing companies rallied on Monday after crude prices slumped. On the positive front, IMD forecasted that monsoon rains were likely to end later than usual this year, with plentiful showers towards the latter stages of the season, helping farmers recover from two straight droughts. On the international data front, focus may prevail among the global markets ahead of the US GDP data release for the Q1 at 6 PM today. Technically for the day, Nifty has supports at 8030 followed by 7950 levels and resistance placed at 8150 followed by 8200 levels. Therefore for the day, we recommend to sell Nifty on rise towards 8100 levels for the downside target of 8020-8050 levels by keeping stop loss above 8150 levels. (Spot Levels)

Nifty Option: Buy Nifty June 8000 PE on dip 25-28 | SL: 15  | TGT: 50-55  | TF: Intraday

 

Morning Moves

                                                                 28th June, 2016

DERIVATIVES INSIGHT

 

 

Nifty Tracker

Particulars

(Close)

(Previous)

Chg (%)

Nifty Spot

8094.70

8088.60

0.08

Nifty Near Fut.

8104.60

8086.90

0.22

Nifty Near Fut. OI

1.21

1.34

-9.81

Nifty COC %

14.88

-1.28

16.16

Nifty PCR Vol

1.00

0.99

0.94

Nifty PCR OI

1.12

1.14

-2.03

Bank Nifty Spot

17514.95

17426.05

0.51

Bank Nifty Fut.

17490.05

17393.00

0.56

Bank Nifty Fut. OI

0.17

0.18

-6.35

Bank Nifty COC %

-17.30

-11.54

-5.76

Market OI (Rs. cr.)

238689

229176

4.15

India VIX

18.53

18.62

-0.53

 

 

Options Activity (Near Month)

OPEN INTEREST

 

OPEN INTEREST CHANGE

 

 

 

Hybrid Strategy Payoff

 

 

Source: NSE India | Value (Rs in Crs)

 

 

Nifty Dynamics

ü  Nifty June future is trading at a premium of 9.90 points as compared to a discount of 1.70 points in the last trading session. Bank Nifty June future is trading at a discount of 24.90 as compared to discount of 33.05 points.

ü  On the options front, the data suggests that Nifty has support around psychological levels of 8000 where highest put writing is witnessed with 73.80 lakhs shares standing in open interest. On the higher side, the gains may be capped around 8400 levels where highest call writing is seen with open interest standing at 60.50 lakhs shares.

ü  Nifty put options witnessed addition of 16 lakhs shares in open interest, while Nifty call options witnessed addition of 27 lakhs shares in open interest. India VIX ended at 18.53 from 18.62 while Nifty historical volatility decreased to 17.52% from 18.28%.

ü  Nifty call options average Implied Volatility (IV) increased to 25.96% from 17.55% and Nifty Put options average Implied Volatility (IV) increased to 26.34% from 23.06% with market’s open interest at Rs.2,38,689 Crore.

 

Positional Recommendations

COLPAL JULY Future: Buy ABOVE 892 for the targets of 930-935 with stop loss placed below 874 (spot levels): COLPAL witnessed long addition in the last trading session. The stock has come out of its consolidation range and is trading above its short and medium term moving averages. The stock added around 475.42 % of shares in open interest in July series on last trading day with price remaining flat. Hence, we expect the stock to rally till 930-935 levels in short term.

TATAELXSI JULY Future: Sell around 1690-1695 for the targets of 1620-1625 with stop loss placed above 1725 (spot levels): TATAELXSI witnessed significant addition of shorts in the last trading day. The stock added around 51.00% of shares in open interest in July series in last trading session with fall in price. The stock is in short term downtrend and lost around 1.75% with notable volumes in the last trading session.  Hence, we expect the stock to test 1620-1625 levels in short term.

BUY WOCKPHARMA JUNE 900 CE: WOCKPHARMA JUNE 900 Strike CE option has open interest of 2, 01,375 shares. It added 12,000 shares in last trading session with IVs at 40.22. Long positions can be created in the option ABOVE Rs 15 with stop loss at Rs 8 for the targets of Rs 26-27.

 

Hybrid Strategy

COVERED PUT IN TCS

TCS June Future has total open interest of 30,44,200 shares ,while TCS JUNE 2400 PE witnessed addition of 14,600 shares making a total OI of 84,800 shares with an IVs trading around 38 during the last trading session. The stock has given a breakdown from a ascending channel pattern at 2535 levels and well closed below the same indicating negative momentum for near term view. Hence, we recommend building COVERED PUT strategy in the counter.

STRATEGY: Sell one lot of TCS June Futures @ 2498 and sell one lot of TCS 2400 PE at 5.50 | Maximum Profit: 20700 | Maximum Loss: Unlimited | Break Even Point: 2503.50| SL: Above 2550 | Time Frame: Expiry.


Morning Moves

28th June, 2016

 

 

 

PIVOT TABLE

SYMBOL

CMP

S2

S1

PIVOT

R1

R2

SENSEX

26402.96

26155.61

26279.28

26386.40

26510.07

26617.19

NIFTY

8094.70

8003.60

8049.15

8084.90

8130.45

8166.20

NIFTYBANK

17514.95

17225.92

17370.43

17490.82

17635.33

17755.72

ADANIPORTS

203.85

200.18

202.02

203.83

205.67

207.48

ASIANPAINT

974.30

956.47

965.38

979.17

988.08

1001.87

AXISBANK

514.45

502.62

508.53

513.07

518.98

523.52

BAJAJ-AUTO

2648.45

2605.62

2627.03

2665.02

2686.43

2724.42

BHARTIARTL

351.15

344.75

347.95

352.95

356.15

361.15

BHEL

119.05

116.98

118.02

119.28

120.32

121.58

CIPLA

489.05

467.68

478.37

484.68

495.37

501.68

COALINDIA

308.10

303.10

305.60

309.05

311.55

315.00

DRREDDY

3246.60

3079.53

3163.07

3215.53

3299.07

3351.53

GAIL

379.95

370.28

375.12

378.93

383.77

387.58

HDFC

1214.60

1199.10

1206.85

1218.30

1226.05

1237.50

HDFCBANK

1159.95

1144.72

1152.33

1160.67

1168.28

1176.62

HEROMOTOCO

3052.00

2992.37

3022.18

3052.82

3082.63

3113.27

HINDUNILVR

858.85

844.05

851.45

862.65

870.05

881.25

ICICIBANK

232.70

227.03

229.87

232.13

234.97

237.23

INFY

1166.20

1146.60

1156.40

1169.80

1179.60

1193.00

ITC

358.95

350.85

354.90

358.15

362.20

365.45

LT

1466.75

1413.32

1440.03

1454.72

1481.43

1496.12

LUPIN

1479.15

1448.52

1463.83

1476.32

1491.63

1504.12

M&M

1391.80

1367.07

1379.43

1390.37

1402.73

1413.67

MARUTI

4025.10

3973.17

3999.13

4030.07

4056.03

4086.97

NTPC

149.20

144.80

147.00

149.20

151.40

153.60

ONGC

210.15

205.42

207.78

210.07

212.43

214.72

RELIANCE

955.65

933.62

944.63

951.52

962.53

969.42

SBIN

217.15

207.22

212.18

215.52

220.48

223.82

SUNPHARMA

773.75

745.25

759.50

767.55

781.80

789.85

TATAMOTORS

448.95

436.28

442.62

449.93

456.27

463.58

TATASTEEL

310.50

305.13

307.82

310.18

312.87

315.23

TCS

2495.85

2444.15

2470.00

2508.50

2534.35

2572.85

WIPRO

548.00

542.30

545.15

550.05

552.90

557.80

 

 

 

 

 

 

 

Corporate Actions

Company

     Series

Ex-Date

Record Date

 

Purpose

HAVELLS

EQ

29-Jun-16

-

 

AGM / Dividend -Rs 3/- Per Share

UNITEDTEA

EQ

29-Jun-16

-

 

AGM/ Dividend  -Rs 1.70 Per Share

HDFCBANK

EQ

29-Jun-16

30-Jun-16

 

Dividend - Rs 9.50/- Per Share

DABUR

EQ

29-Jun-16

-

 

AGM/ Dividend - Re 1/- Per Share

 

 

 

 

 

 

 

 

 

 

 

 

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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