Morning Moves

Research Desk –Stock Broking

   4th July, 2016

 

 

Global Indices Market

Global Indices

(Close)

(Pts)

Chg (%)

SGX Nifty

8,395.50

38.00

0.45

Dow Jones

17,949.37

19.38

0.11

NASDAQ

4,862.57

19.90

0.41

S&P 500

2,102.95

4.09

0.19

FTSE 100

6,577.83

73.50

1.13

Nikkei 225*

15,681.26

-1.22

-0.01

Hang Seng*

20,939.80

145.43

0.70

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

 

Sectoral Gainers/Losers

Sector

(Close)

(Pts)

Chg (%)

S&P BSE OIL & GAS

9989.54

268.59

2.76

S&P BSE CG

15186.53

311.74

2.1

S&P BSE IT

11158.27

-41.68

-0.37

S&P BSE TECK

6059.21

-9.61

-0.16

Source: BSE India  CG-CAPITAL GOODS,IT- Information Technology

 

Nifty: Top Gainers & Losers

Gainers

%Chg

Losers

%Chg

ONGC

5.87

TCS

-2.13

BHEL

3.33

KOTAKBANK

-1.42

LT

3.14

ZEEL

-1.15

DRREDDY

2.97

ADANIPORTS

-1.14

ITC

2.95

AMBUJACEM

-0.90

Source: NSE India

 

Institutional Activity

Cash Market

Net Value

Futures (FIIs)

Net Value

FII

-187.51

Index

254.32

DII

907.05

Stock

18.80

Source: NSE India | Value (Rs in Crs)

 

Intra-day Recommendations

Scrip Code

Act

Entry

SL

TGT

BHEL

L

131.5

130

134

DRREDDY

L

3480

3439

3550

LT

L

1540

1528

1560

KOTAKBANK

S

754

761

740

ZEEL

S

452.5

459.5

439

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

Market Watch

ü  Coal India June production at 42.72 million tones

ü  SBI signs agreements with World Bank for US$ 625mn facility

ü  SC asks Unitech to deposit Rs. 5 crore

ü  GMR sells two transmission projects to Adani

ü  Quess Corp subscribed about 144 times

ü  Bosch board approves share buyback for over Rs 2K cr

ü  UK drugs regulator halts approvals for Indian clinical trials firm

ü  June passenger vehicle sales up 2.7 per cent

ü  Jindal Stainless allots shares to pay Rs 366 crore due to JSHL

 Source: Bloomberg, leading business web  

Market View

 

Markets likely to open higher; buy on dips: Nifty ended at 11 month high at 8328.35 levels on Friday, up by 0.49% from previous close. For the week, Banking, Energy and FMCG counters led the rally from the front while IT stocks remained on the sidelines. On the other hand, rate sensitive stocks like Auto and Financials continued the bullish momentum on hopes of higher sales and improving business environment in rural areas supported by good monsoon. On the domestic front, government also came out with various reforms with cabinet approving mineral exploration policy, Model Shops and Establishment (Regulation of Employment and Conditions of Service) Bill, 2016 and recommendations made by the Seventh Pay Commission report which may probably enhance ease of doing business in the country. On the global front, US & European markets has managed to recoup their weekly losses post Brexit panic sell off. For the coming week, momentum in the global equities mainly the European markets will play a key role in deciding the domestic market trend. On the other hand, US economy data such as ADP nonfarm employment change, Unemployment claim may also create a knee jerk reaction in the global markets. On the other hand, any positive development with respect to passage of GST bill in the monsoon session of parliament may boost investor sentiment in the market. At current juncture, markets are poised with positive momentum trading with Index witnessing buying strength on any deep cuts. For now Nifty has immediate support placed around 8280 followed by 8200 levels while on the higher side resistance is seen around 8400 followed by 8450 levels. For the day, we recommend traders to buy Nifty around 8350 levels for the upside target of 8400-8420 levels by keeping stop loss below 8300 levels. (Spot Levels)

Nifty Option: Buy Nifty July 8400 CE on dip 100-105 | SL: 75  | TGT: 130-140  | TF: Intraday

 

Morning Moves

                                                                 4th July, 2016

DERIVATIVES INSIGHT

 

 

Nifty Tracker

Particulars

(Close)

(Previous)

Chg (%)

Nifty Spot

8328.35

8287.75

0.49

Nifty Near Fut.

8355.15

8321.05

0.41

Nifty Near Fut. OI

1.88

1.84

1.79

Nifty COC %

4.35

5.24

-0.89

Nifty PCR Vol

1.03

1.06

-3.03

Nifty PCR OI

1.04

1.00

3.45

Bank Nifty Spot

17985.65

17935.40

0.28

Bank Nifty Fut.

18054.80

18002.60

0.29

Bank Nifty Fut. OI

0.18

0.18

-0.46

Bank Nifty COC %

5.20

4.88

0.31

Market OI (Rs. cr.)

155933

145368

10.02

India VIX

15.73

16.29

-0.56

 

 

Options Activity (Near Month)

OPEN INTEREST

 

OPEN INTEREST CHANGE

 

 

 

Hybrid Strategy Payoff

 

 

Source: NSE India | Value (Rs in Crs)

 

 

Nifty Dynamics

ü  Nifty July future is trading at a premium of 26.80 points as compared to a premium of 33.33 points in the last trading session. Bank Nifty July future is trading at a premium of 69.15 as compared to premium of 67.20 points.

ü  On the options front, the data suggests that Nifty has support around 8000 levels where highest put writing is witnessed with 42.13 lakh shares standing in open interest. On the higher side, the gains may be capped around 8500 levels where highest call writing is seen with open interest standing at 43.11 lakh shares.

ü  Nifty put options witnessed addition of 58 lakh shares in open interest, while Nifty call options witnessed addition of 44 lakh shares in open interest. India VIX ended at 15.73 from 16.29 while Nifty historical volatility decreased to 17.25% from 17.36%.

ü  Nifty call options average Implied Volatility (IV) decreased to 14.70% from 15.26% and Nifty Put options average Implied Volatility (IV) decreased to 16.16% from 16.42% with market’s open interest at Rs. 155933 Crore.

 

Positional Recommendations

ONGC JULY Future: Buy around 222-223 for the targets of 239-240 with stop loss placed below 214 (spot levels): ONGC witnessed long addition in the last trading session. The stock has come out of consolidation range and is trading above its short term & medium term moving averages. The stock added around 2.98% of shares in open interest in July series on last trading day with increase in price by 5.46%. Hence, we expect the stock to rally till 239-240 levels in short term.

KPIT JULY Future: Sell around 160-161 for the targets of 150-151 with stop loss placed above 165 (spot levels): KPIT witnessed significant addition of shorts in the last trading day. The stock added around 102.33% of shares in open interest In July series in last trading session with price falling by 14.99%. The stock is in short term down trend and trading well below its short term moving averages. Hence, we expect the stock to test 150-151 levels in short term.

BUY VOLTAS JULY 310 PE: VOLTAS JULY 310 Strike PE option has open interest of 70,000 shares. It added 18,000 shares in last trading session with IVs at 38.72. Long positions can be created in the option around Rs 8.75-8.90 with stop loss at Rs 5 for the targets of 14.

 

Hybrid Strategy

BULL CALL SPREAD IN HDFC

 HDFC July Future has total open interest of 91,95,500 shares while HDFC July 1240 CE witnessed addition of 45,500 shares making a total OI of 80,500 shares during the last trading session. HDFC July 1280 CE witnessed addition of 20,500 shares making a total OI of 35500 shares during the last trading session. HDFC has gained 2% in the last trading week making the chart structure on the daily and weekly charts to higher highs and higher lows. The stock has moved above its all major short term moving averages indicating the short term momentum is upward. Hence, we recommend going for a Bull Call spread in this counter.

Buy one lot of HDFC JULY 1240 CE @ 31 and Sell one lot of HDFC JULY 1280 CE @ 15.90 |Max Profit: 12450 | Max Loss: 7550 | BEP: 1255.10.


Morning Moves

4th July, 2016

 

 

 

PIVOT TABLE

SYMBOL

CMP

S2

S1

PIVOT

R1

R2

SENSEX

27144.91

26967.93

27056.42

27149.89

27238.38

27331.85

NIFTY

8328.35

8283.15

8305.75

8331.25

8353.85

8379.35

NIFTYBANK

17985.65

17885.65

17935.65

18005.30

18055.30

18124.95

ADANIPORTS

204.30

201.23

202.77

205.33

206.87

209.43

ASIANPAINT

1002.50

987.37

994.93

1003.02

1010.58

1018.67

AXISBANK

542.90

531.17

537.03

541.37

547.23

551.57

BAJAJ-AUTO

2671.25

2630.52

2650.88

2685.42

2705.78

2740.32

BHARTIARTL

368.35

357.75

363.05

367.95

373.25

378.15

CIPLA

508.60

496.00

502.30

506.15

512.45

516.30

COALINDIA

310.10

306.50

308.30

311.35

313.15

316.20

DRREDDY

3484.10

3397.53

3440.82

3473.28

3516.57

3549.03

GAIL

395.35

381.88

388.62

392.73

399.47

403.58

HDFC

1242.35

1222.52

1232.43

1247.62

1257.53

1272.72

HDFCBANK

1174.50

1163.90

1169.20

1177.10

1182.40

1190.30

HEROMOTOCO

3186.05

3143.35

3164.70

3181.35

3202.70

3219.35

HINDUNILVR

897.60

877.63

887.62

896.08

906.07

914.53

ICICIBANK

240.35

237.75

239.05

240.85

242.15

243.95

INFY

1172.40

1164.27

1168.33

1174.17

1178.23

1184.07

ITC

252.35

234.42

243.38

251.57

260.53

268.72

LT

1542.65

1485.15

1513.90

1529.45

1558.20

1573.75

LUPIN

1552.85

1534.38

1543.62

1551.28

1560.52

1568.18

M&M

1463.10

1414.43

1438.77

1456.83

1481.17

1499.23

MARUTI

4165.40

4088.33

4126.87

4170.53

4209.07

4252.73

NTPC

156.75

153.85

155.30

156.45

157.90

159.05

ONGC

225.00

210.40

217.70

223.75

231.05

237.10

POWERGRID

165.15

161.45

163.30

164.85

166.70

168.25

RELIANCE

973.45

966.62

970.03

973.42

976.83

980.22

SBIN

219.60

217.73

218.67

219.83

220.77

221.93

SUNPHARMA

763.35

757.55

760.45

764.95

767.85

772.35

TATAMOTORS

457.90

449.07

453.48

459.12

463.53

469.17

TATASTEEL

328.10

323.97

326.03

328.47

330.53

332.97

TCS

2500.85

2449.68

2475.27

2519.93

2545.52

2590.18

WIPRO

558.90

552.37

555.63

560.32

563.58

568.27

 

 

 

 

 

 

 

Corporate Actions

Company

     Series

Ex-Date

Record Date

 

Purpose

HCC

EQ

5-Jul-16

-

 

Annual General Meeting

CANFINHOME

EQ

5-Jul-16

-

 

Dividend - Rs 10 Per Share

SUNDARMFIN

EQ

5-Jul-16

-

 

AGM/ Dividend - Re 1/- Per Share

LGBFORGE

EQ

5-Jul-16

-

 

Annual General Meeting

 

 

 

 

 

 

 

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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