Morning Moves

Research Desk –Stock Broking

   31st  August, 2016

 

 

Global Indices Market

Global Indices

(Close)

(Pts)

Chg (%)

SGX Nifty

8799.50

-5.50

-0.06

Dow Jones

18454.30

-48.69

-0.26

NASDAQ

5222.99

-9.34

-0.18

S&P 500

2176.12

-4.26

-0.20

FTSE 100

4,457.49

33.24

0.75

Nikkei 225*

8,799.50

130.80

0.78

Hang Seng*

23026.96

10.85

0.05

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

 

Sectoral Gainers/Losers

Sector

(Close)

(Pts)

Chg (%)

S&P BSE AUTO

21931.04

390.22

1.81

S&P BSE It

10480.46

182.62

1.77

S&P BSE Telecom

1220.85

-14.89

-1.20

S&P BSE CD

12396.69

66.13

0.54

Source: BSEIndia; IT:INFORMATION TECHNOLOGY

 

Nifty: Top Gainers & Losers

Gainers

%Chg

Losers

%Chg

AMBUJACEM

3.97

BHARTIARTL

-3.08

BOSCHLTD

3.94

IDEA

-0.64

GRASIM

3.55

ZEEL

-0.21

ACC

3.50

BHEL

-0.18

EICHERMOT

3.24

     -

-

Source: NSE India

 

Institutional Activity

Cash Market

Net Value

Futures (FIIs)

Net Value

FII

390.63

Index

2066.36

DII

485.14

Stock

-454.32

Source: NSE India | Value (Rs in Crs)

 

Intra-day Recommendations

Scrip Code

Act

Entry

SL

TGT

M&M

L

1436-1437

1415

1470

ITC

L

256-257

254

262

VEDL

L

175-176

172

182

UNIONBANK

L

141-142

139

147

BHARTIARTL

S

BLW 331

336

323

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

Market Watch

ü  Auto industry to grow to Rs 20 lakh crore in 10 years: Nitin Gadkari

ü  Labour unions reject Centre's sops, to go ahead with September 2 strike

ü  Need to provide more capital to PSBs to deal with NPAs: RBI

ü  Spicy Entertainment and Media to hit capital markets to raise Rs 4.82 crore

ü  Green panel clears SAIL's Rs 5,419-cr modernisation plans

ü  Canara Bank launches UPI mobile app, named "empower".

ü  Indian tobacco industry asks stakeholders to include them in FCTC Conference

 Source: Bloomberg, leading business web  

Market View

Bullish momentum likely to continue, trade with positive bias: Indian Benchmark Indices ended on a strong note for the second consecutive session amid strong global cues. After a gap up opening, the index continued the upward momentum, crushing the bears and surpassing 8700 levels decisively in the intraday trade. The rally was mainly led by PSU Banks, Auto and IT counters with no sector ending in negative territory. On the other hand, INDIAVIX which is the gauge for measuring volatility in the domestic markets, cooled down again by shedding more than 1% in yesterday’s trade. We expect the existing momentum in the index to continue further towards 8800-8850 levels in short term with 8700 levels acting as a good buying opportunity. Technically, Nifty gave a decisive breakout above 8680 levels and ended well above the same coupled by BANKNIFTY which also gave breakout above 19500 levels in the last trading session. This indicates the overall sentiment of the market remains bullish for the targets of 8800-8850 levels in the near term. Going ahead, Nifty has immediate support around 8680 levels followed by 8650-8600 levels and resistance is pegged around 8750-8800 levels. Therefore, for the day, we recommend short term traders to buy Nifty on any dips towards 8720 levels for the targets of 8780-8800 levels keeping stop loss below 8670 levels.

 

Nifty Option: Buy Nifty SEPT. 8800 CE @ 105-108 | SL: 80 | TGT: 140-145 | TF: Intraday

 

 

  Morning Moves

                                                       31st August, 2016

DERIVATIVES INSIGHT

 

 

Nifty Tracker

Particulars

(Close)

(Previous)

Chg (%)

Nifty Spot

8744.35

8607.45

1.59

Nifty Near Fut.

8794.60

8649.75

1.67

Nifty Near Fut. OI

3.05

2.78

9.68

Nifty COC %

6.99

5.79

1.21

Nifty PCR Vol

1.09

1.03

5.41

Nifty PCR OI

1.14

1.13

0.98

Bank Nifty Spot

19531.55

19217.00

1.64

Bank Nifty Fut.

19638.80

19314.45

1.68

Bank Nifty Fut. OI

0.26

0.22

18.09

Bank Nifty COC %

6.68

5.97

0.71

Market OI (Rs. cr.)

216,255

198,793

8.78

India VIX

13.02

13.17

-1.14

 

 

Options Activity (Near Month)

OPEN INTEREST

 

OPEN INTEREST CHANGE

 

Hybrid Strategy Payoff

 

 

Nifty Dynamics

ü  Nifty Sept. future is trading at a premium of 50.25 points as compared to a premium of 42.30 points in the last trading session. Bank Nifty Sept. future is trading at a premium of 107.25 points as compared to a premium of 97.45 points.

ü  On the options front, Nifty Sept. 8600 PE witnessed addition of 14.35 lakh shares in Open Interest while Nifty Sept. 9000 CE witnessed addition of 12.28 lakh shares. The highest OI is seen in Nifty Sept. 8500 PE to the tune of 61.06 lakh shares, whereas on the higher side, the maximum OI is seen in Nifty Sept. 9000 CE to the extent of 52.33 lakh shares.

ü  Nifty put options witnessed addition of 38 lakh shares in open interest, while Nifty call options witnessed addition of 29 lakh shares in open interest. India VIX ended at 13.02 from 13.17 while Nifty historical volatility increased to 13.44% from 11.36%.

ü  Nifty call options average Implied Volatility (IV) increased to 13.25% from 12.22% and Nifty Put options average Implied Volatility (IV) decreased to 13.14% from 13.19% with market’s open interest at Rs.216255 Crore

 

Positional Recommendations

NTPC Sept. Futures: Buy @ 161-161.50 for the targets of 167 with a stop loss at 158 (SPOT): NTPC Sep Futures witnessed addition of longs in the last trading session with increase in the stock price and increase in OI of over 3% in the last trading session. Technically, the stock has taken support around 157-158 levels and formed a base around the same and made smart pullback. We recommend short term traders to go long in the stock around 161-161.50 levels keeping strict stop loss below 158 levels for the target of 167 levels.

IDEA Sept Futures: Sell below 93 levels for the target of 89 with a stop loss of 95.50 (SPOT): IDEA Sep Futures witnessed addition of shorts in the last trading session with decrease in the stock price and increase in open interest of over 1.50% in the last trade. On the technical front, the stock is looking weak and any decisive break down below 93 levels may drag the counter towards the levels of 89 in short term perspective. Hence, one may go short in the counter below 93 levels with a stop loss of 95.50 levels.

ACC Sept. 1720 CE: Buy @ 32-33 with a stop loss of 21 for the target of 53: ACC Sep 1720 strike CE has OI of 5,200 and with IV’s at 20.29% in the last trading session. Hence, long positions may be assumed in the call option around 32-33 with a stop loss placed at 21 for target of 53 levels in the short term.

 

Hybrid Strategy

 

BULL CALL SPREAD IN SBIN

 

SBIN Sept. Future has total OI of 8,43,66,000 shares while SBIN Sept. 255 CE witnessed addition of 1,32,000 shares making a total OI of 19,14,000 and SBIN Sept. 265 CE witnessed shedding of 24,000 shares making total OI of 7,74,000 shares in the previous trading session. The counter is in uptrend forming higher highs and higher lows on the daily charts and also trading above major moving averages. Hence, we recommend building a Bull Call Spread strategy in this counter.

 

Buy one lot of SBIN SEP 255 CE @ 7.25 and Sell one lot of SBIN SEP 265 CE @ 3.70 | Maximum Profit: 19350 | Maximum Loss: 10650 | BEP: 258.55 |

 


   Morning Moves

31st August, 2016

 

 

 

PIVOT TABLE

SYMBOL

CMP

S2

S1

PIVOT

R1

R2

SENSEX

28343.01

28076.44

27809.87

28277.23

28543.8

28744.59

NIFTY

8744.35

8674.20

8604.05

8712.40

8782.55

8820.75

NIFTYBANK

19531.55

19376.583

19221.617

19461.467

19616.433

19701.317

ADANIPORTS

262.95

260.23

257.52

262.82

265.53

268.12

ASIANPAINT

1146.20

1121.47

1096.73

1134.73

1159.47

1172.73

AXISBANK

591.15

586.72

582.28

592.98

597.42

603.68

BAJAJ-AUTO

2978.90

2913.97

2849.03

2961.98

3026.92

3074.93

BHARTIARTL

331.85

325.70

319.55

334.90

341.05

350.25

CIPLA

576.10

568.72

561.33

575.08

582.47

588.83

COALINDIA

334.65

332.67

330.68

334.38

336.37

338.08

DRREDDY

3090.75

3054.50

3018.25

3077.25

3113.50

3136.25

GAIL

386.70

380.85

375.00

385.05

390.90

395.10

HDFC

1392.10

1379.05

1366.00

1386.65

1399.70

1407.30

HDFCBANK

1268.65

1251.57

1234.48

1261.03

1278.12

1287.58

HEROMOTOCO

3477.50

3436.07

3394.63

3460.53

3501.97

3526.43

HINDUNILVR

924.80

912.83

900.87

919.57

931.53

938.27

ICICIBANK

256.25

253.20

250.15

255.05

258.10

259.95

INFY

1040.40

1028.60

1016.80

1036.80

1048.60

1056.80

ITC

257.30

254.27

251.23

256.08

259.12

260.93

LT

1475.65

1463.07

1450.48

1470.43

1483.02

1490.38

LUPIN

1508.70

1488.47

1468.23

1500.23

1520.47

1532.23

M&M

1436.00

1427.68

1419.37

1433.32

1441.63

1447.27

MARUTI

5067.65

4977.80

4887.95

5040.85

5130.70

5193.75

NTPC

161.75

159.63

157.52

160.97

163.08

164.42

ONGC

241.70

238.43

235.17

240.47

243.73

245.77

POWERGRID

183.30

180.73

178.17

182.27

184.83

186.37

RELIANCE

1066.40

1056.77

1047.13

1062.63

1072.27

1078.13

SBIN

252.25

250.40

248.55

251.65

253.50

254.75

SUNPHARMA

774.85

764.87

754.88

770.93

780.92

786.98

TATAMOTORS

529.00

525.13

521.27

527.97

531.83

534.67

TATASTEEL

377.75

375.33

372.92

377.42

379.83

381.92

TCS

2544.15

2513.67

2483.18

2531.73

2562.22

2580.28

WIPRO

489.45

481.58

473.72

486.02

493.88

498.32

 

 

 

 

 

 

 

Corporate Actions

Company

     Series

Ex-Date

Record Date

 

Purpose

THYROCARE

EQ

1 -SEPT-16

-

 

 AGM/DIVIDEND – RS 2.50/- Per Share

GSFC

EQ

1-SEPT-16

-

 

DIVIDEND RS 2.20/PER SHARE

CHAMBLFERT

EQ

1-SEPT-16

-

 

 Dividend - RS 1.90/- Per Share

SUBEX

EQ

1-SEPT-16

-

 

 ANNUAL GENERAL MEETING

 

 

 

Results

BPCL|  ANSALAPI ABFRL| AFL| HATHWAYGVKPIL| INDORAMA| LLOYDELENG| KANORICHEM| NET4| POWERMECH| SADBHAV| SADBHIN| SADBHIN| UBHOLDINGS

 

 

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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