KSBL_TIFF

Research Desk – Stock Broking

 

Morning Moves

 

 

Nov 30, 2017

 

 

 

Market View

 

Markets likely to open in red, Sell if it sustains below 10340 levels: Nifty pared earlier gains to end lower on Wednesday at 10361 levels with a marginal decline of 0.09% ahead of the November series expiry. The sentiment was cautious following North Korea's missile test, while investors await key macroeconomic data and the outcome of OPEC meeting due on Thursday. Market participants expect GDP growth may likely rise to 6.4% YoY in the July-September quarter, from 5.7% in the previous period. Apart from the GDP numbers, releasing at 5:30 PM today, Fiscal deficit numbers for the month of October will be released around 3:30 PM to which traders may keenly watch. Technically, Nifty may trade with a positive bias with the broader trend being bullish. Any dips in the index may be used for accumulation in the short run as the bullish sentiment in the short term may continue to persist unless and until 10094 levels are taken off from upside.

Nifty View for the day: Sell NIFTY if sustains below 10340 levels for the targets of 10270-10280 levels, placing a stop loss below 10390 levels. (SPOT LEVELS)

 Nifty Option: Buy Nifty Nov 10300PE around 20| SL: 3 | TGT: 50 | TF: Intraday |

Index

Support

Pivot

Resistance  

Nifty

10340

10367

10388

Bank Nifty

25736

25807

25867

 

Intraday Recommendations (Refer Page– 2)

Scrip Code

Act

Entry

SL

TGT

HEXAWARE

L

336

330

344

HINDUNILVR

L

1275

1260

1298

RELCAPITAL

S

443

450

433

HINDALCO

S

247

251

241

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

Institutional Activity

Cash Market

Net Value

Futures (FIIs)

Net Value

FII

-859.27

Index

1281.26

DII

771.07

Stock

-562.62

Source: NSE India                | Value Rs. in Cr |

 

Global Indices

Global Indices

    (Close)

      (Pts)

Chg (%)

SGX Nifty*

10,316.50

-43.50

-0.42

Dow Jones

23,940.68

103.97

0.44

NASDAQ

6824.39

-87.97

-1.27

S&P 500

2626.07

-0.97

-0.04

FTSE 100

7393.56

-67.09

-0.90

Nikkei 225*

22547.15

-50.05

-0.22

Hang Seng*

29289.74

-334.09

-1.13

Source: Bloomberg and other leading websites

Market Buzz

·         L&T gets EPC order worth $250 mn in Bangladesh

·         Srei Equipment Finance files IPO papers with Sebi, to sell 4.4 mn shares

·         Future Supply Chain IPO opens on Dec 6, price band at Rs 655-660 per share

·         Moody's upbeat on steel, says Tata Steel to benefit from govt's measures

·         Cairn India set to increase gas production by 2019

·         Jet Airways says Air France-KLM pact won't impact ties with Etihad

·         Top NSE listed firms log best profit growth in six quarters

Source: Bloomberg, leading business newspapers & websites

 

 

 

 

 

 

Intraday Recommendations

 

Stock

Action

Entry

Stop loss

Target

HEXAWARE

L

336

330

344

HEXAWARE has rallied more than 5% in last trading session and closed well above its major moving averages on daily chart with notable volume, indicating positive momentum in the stock is likely to continue. -period RSI is pointing northwards and poised with bullish bias. Hence, one may go long in the counter with stop loss of 330 for higher target of 344 levels.

Stock

Action

Entry

Stop loss

Target

HINDUNILVR

L

1275

1260

1298

HINDUNILVR has closed on a positive note in the last trading session and holding well above its major moving averages on daily chart. RSI is also poised with bullish bias.  Derivative data also suggests short closure in the counter in the last trading session. Hence, buy recommendation for the day.

 

Stock

Action

Entry

Stop loss

Target

RELCAPITAL

S

443

450

433

RELCAPITAL is trading with weak bias and closed on a negative return of more than 2% in the last trading session. Technically, the stock has closed below its major moving averages on daily chart, , exhibiting underlying weakness in the stock.  Hence, one may go short in the stock around 443 levels for the lower target of 433 with a stop loss of 450 levels’

Stock

Action

Entry

Stop loss

Target

HINDALCO

S

247

251

241

HINDALCO has closed at lowest point of trade with a loss of more than1.5% in the previous trading session. Technically, the stock has closed below its short term moving averages on daily chart, indicating weakness is likely to continue in the stock.  Derivative data also suggests short addition in the counter r in the last trading session. Hence, short recommendation for the day.

 

Index Tracker

Index Dynamics

Particulars

Current

Previous

% Chg

Nifty Spot

10361.30

10370.25

-0.09

Nifty Fut

10360.70

10377.55

-0.16

Nifty Near  OI

1.41

1.60

-12.26

Nifty COC%

-2.11

12.85

-14.96

Nifty PCR Vol

0.91

0.89

2.33

Nifty PCR OI

1.05

1.11

-5.38

Bank Nifty Spot

25795.70

25846.40

-0.20

Bank Nifty Fut

25815.50

25876.00

-0.23

Bank Nifty Near OI

0.17

0.20

-14.92

Bank Nifty COC%

28.02

20.90

7.12

Market OI (Rs Cr.)

403,905

402,847

0.26

India VIX

13.06

13.15

-0.68

Nifty Nov Future is trading at a discount of 0.60 points as compared to a premium of 7.30 points in the last trading session On the options front, Nifty Nov 10350 PE has witnessed shedding of 3.26 lakh shares in Open Interest with maximum OI in Nifty Nov 10000 PE of 56.12 lakh shares. While Nifty Nov 10450 CE has seen addition of 9.75 lakh shares, while maximum OI on higher side stands at 10500 CE to the tune of 73.93 lakh shares.

Bank Nifty Nov future is trading at a premium of 19.80 points as compared to a premium of 29.60 points. On the options front, Bank Nifty 30 Nov 25700 PE has seen addition of 0.63 lakh shares while Bank Nifty 30 Nov 26000 CE has seen addition of 3.04 lakh shares in OI.

Bank Nifty View for the Day: Sell Bank Nifty Nov Fut below 25700 levels keeping stop loss of 25850 for the target of 25500 levels. (SPOT LEVELS)

 

Bank Nifty Option: Buy Bank Nifty 30 Nov 25700 CE @ 55 | Stop Loss: 30 | Target: 95-100 | TF: Intraday

 

Positional Recommendations

 

IGL DECEMBER FUT: Buy ABOVE 330 levels for the target of 344 levels with stop loss of 318 (spot levels): The stock has witnessed addition of long positions in last trading session. Technically the stock has given a fresh breakout above its resistance around 325 levels and closed above it hence a buy call is recommended.

CHOLAFIN DECEMBER FUT: Buy ABOVE 1295 levels for the target of 1340 levels with stop loss of 1264 (spot levels): The stock has seen addition of long positions in the last trading session with increase in price. Technically the stock is in uptrend forming higher highs and higher lows and finding support around 1270 levels hence a buy call is recommended.

 

Hybrid Strategy

 

COVERED CALL IN SAIL

SAIL Dec Futures has added open interest of 15108000 in previous session making the total open interest to 49332000. SAIL DEC 85 CE has the highest open interest for the next series which witnessed an addition of 384000 in OI making a total OI of 1140000 in the previous trading session, which indicates the stock may face resistance at around 85 zone for next series. Technically, the stock has approached its very short term moving averages which also coincides with the previous swing lows. Even the momentum indicators have slipped from overbought levels indicating the stock may rebound towards the current swing highs in the coming sessions. Hence, we recommend building Covered Call Strategy in the counter.

Buy one lot of SAIL Dec  Futures at 78.25 and Sell one lot of SAIL DEC 85.00 CE @ 2.00 | Max Profit: 105000 | Max Loss: Unlimited Below BEP | BEP:76.25 SL : 74

 

Stock Specific Activity

 

Long Accumulation

SOUTHBANK

JUSTDIAL

HEXAWARE

ESCORTS

NBCC

Short Closure

M&MFIN

NHPC

BEL

MOTHERSUMI

INDIANB

Short Accumulation

DALMIABHA

PETRONET

DCBBANK

PAGEIND

ALBK

Long Closure

IBREALEST

AJANTPHARM

TATAGLOBAL

CGPOWER

ZEEL

 

Stocks in Ban in F&O Segment

 

DHFL

RCOM

GMRINFRA

 

INFIBEAM

 

TV18BRDCST

JPASSOCIAT

JSWENERGY

 

ORIENTBANK  

 

 

 

 

 

 

 

 

 

 

Derivative Insights

 

Open Interest

Change in Open Interest

 

Top Traded Stock Options

 

Call

Put

 

Symbol

Strike Price

LTP

Volume (Contracts)

RELIANCE

950

3.6

5341

SBIN

340

0.4

4911

TATASTEEL

710

3.9

4596

INFY

1000

1.7

4398

Symbol

Strike Price

LTP

Volume (Contracts)

RELIANCE

940

3.15

4343

TATASTEEL

700

1.6

2551

MARUTI

8600

19.6

2381

SBIN

330

2.7

2354

 

Top OI change in Stock Options

 

Call

Put

 

Symbol

Strike Price

LTP

Change in OI

SAIL

80

0.3

2328000

NCC

125

0.45

976000

DLF

230

2.3

830000

BHARTIARTL

570

0.1

732700

Symbol

Strike Price

LTP

Change in OI

ADANIPOWER

35

0.1

740000

RPOWER

35

0.05

552000

NCC

120

1.25

472000

GRANULES

115

1.7

285000

 

Stock Option Recommendations

 

Symbol

Strike Price

Option Type

Entry

Stop Loss

Target

IV

Change in OI

OI

HEXAWARE

340

CE

12.5

10

17

34.73

57000

90000

HINDUNILVR

1280

CE

25

18

37

15.22

2400

37200

RELCAPITAL

420

PE

15

11

20

52.19

4500

20250

HINDALCO

245

PE

7.5

5

11

33.34

45500

73500

      *December Series Options

 

 

 

Pivot Table

 

SYMBOL

CMP

S2

S1

PIVOT

R1

R2

SENSEX

33602.76

33453

33528

33628

33703

33804

NIFTYBANK

25,795.70

25676

25736

25807

25867

25938

NIFTY

10,361.30

10320

10340

10367

10388

10414

HDFC

1,704.15

1684

1694

1711

1721

1737

ICICIBANK

314.85

310

313

314

317

318

SBIN

328.9

323

326

330

333

338

IBULHSGFIN

1200.8

1181

1191

1203

1213

1225

AXISBANK

549.5

537

543

553

559

568

RELIANCE

946.00

937

941

946

950

955

MARUTI

8671.35

8528

8600

8648

8720

8768

BHARTIARTL

495.75

487

491

494

499

502

LT

1217.85

1207

1212

1218

1223

1229

INFRATEL

384.15

373

379

382

387

390

NTPC

182

180

181

183

184

185

ITC

258.05

256

257

258

259

260

TATASTEEL

709.3

699

704

708

713

716

ADANIPORTS

403.45

391

397

401

408

412

TCS

2,658.15

2624

2641

2667

2684

2710

* 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

LAKSHVILAS

EQ

05-Dec-17

06-Dec-17

Rights 1:3 @ Premium Rs 112/-

HMT

EQ

05-Dec-17

-

AGM

VISASTEEL

EQ

05-Dec-17

-

AGM

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

QUERIES & FEEDBACK

 

Toll-Free: 1800 419  8283                                                                                                     Email ID: service@karvy.com

Karvy Stock Broking Limited

Plot No.31, 6th Floor, Karvy Millennium Towers, Financial District, Nanakramguda, Hyderabad, 500 032, India

Tel: 91-40-2331 2454; Fax: 91-40-2331 1968

For More updates & Stock Research, visit www.karvyonline.com

Analyst Certification

The following analyst(s), JK Jain, who is (are) primarily responsible for this report and whose name(s) is/ are mentioned therein, certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.

Disclaimer

 

Karvy Stock Broking Limited [KSBL] is a SEBI (Registration No INH200003265).registered Stock Broker, Depository Participant, Portfolio Manager and also distributes financial products. The subsidiaries and group companies including associates of KSBL provide services as Registrars and Share Transfer Agents, Commodity Broker, Currency and forex broker, merchant banker and underwriter, Investment Advisory services, insurance repository services, financial consultancy and advisory services, realty services, data management, data analytics, market research, solar power, film distribution and production profiling  and related services. Therefore associates of KSBL are likely to have business relations with most of the companies whose securities are traded on the exchange platform. The information and views presented in this report are prepared by Karvy Stock Broking Limited and are subject to change without any notice. This report is based on information obtained from public sources, the respective corporate under coverage and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of KSBL. While we would endeavour to update the information herein on a reasonable basis, KSBL is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent KSBL from doing so. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. KSBL will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither   KSBL nor any associate companies of KSBL accepts any liability arising from the use of information and views mentioned in this report. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Past performance is not necessarily a guide to future performance. Forward-looking statements are not predictions and may be subject to change without notice. Actual results may differ materially from those set forth in projections.

 

·          Associates of KSBL might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months.

·          Associates of KSBL might have received compensation from the subject company mentioned in the report during the period preceding twelve months from the date of this report for investment banking or merchant banking or brokerage services from the subject company in the past twelve months or for services rendered as Registrar and Share Transfer Agent, Commodity Broker, Currency and forex broker, merchant banker and underwriter, Investment Advisory services, insurance repository services, consultancy and advisory services, realty services, data processing, profiling and related services or in any other capacity.

·          KSBL encourages independence in research report preparation and strives to minimize conflict in preparation of research report.

·          Compensation of KSBL’s Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

·          KSBL generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.

·          KSBL or its associates collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report.

·          KSBL or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report and have no financial interest in the subject company mentioned in this report.

·          Accordingly, neither KSBL nor Research Analysts have any material conflict of interest at the time of publication of this report.

·          It is confirmed that KSBL and Research Analysts primarily responsible for this report and whose name(s) is/ are mentioned therein of this report have not received any compensation from the subject company mentioned in the report in the preceding twelve months.

·          It is confirmed that JK Jain, Research Analyst did not serve as an officer, director or employee of the companies mentioned in the report.

·          KSBL may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.

·          Neither the Research Analysts nor KSBL have been engaged in market making activity for the companies mentioned in the report.

·          We submit that no material disciplinary action has been taken on KSBL by any Regulatory Authority impacting Equity Research Analyst activities.