KSBL_TIFF

Research Desk – Stock Broking

 

Morning Moves

 

 

Dec 06, 2017

 

 

 

Market View

 

Markets likely to open lower; sell if sustains below 10100:  Nifty made a lower high and a lower low for the fifth straight trading session to end on a subdued note in yesterday’s trading session ahead of the RBI’s Monetary Policy announcement which will come in later today. Going into today’s session, traders are advised to adhere to a disciplined trading approach as volatility is here to stay with the volatility index surging every now and then As far as the technical setup of Nifty is concerned, the index has formed a perfect ‘Long Legged Doji’ candlestick with its yesterday’s open and close being exactly the same, this clearly indicates indecisiveness among market participants ahead of today’s macroeconomic event.  The immediate supports for the Nifty index can be seen around 10070-10050 cracking below which the next levels of respite for traders could be around 10020-9990. Whereas on the upside, a sustainable up move above 10160-10180 will trigger hopes of a relief rally towards 10220-10250.

Nifty View for the day: Sell Nifty if sustains below 10100 levels for the targets of 10050-30  levels, placing a stop loss above 10150 levels. (SPOT LEVELS)

Nifty Option: Buy Nifty DEC 10000 PE around 100 | SL: 70 | TGT: 120 | TF: Intraday |

NIFTY5.JPEG

Index

Support

Pivot

Resistance  

Nifty

10033

10112

10191

Bank Nifty

24792

25088

25384

 

Intraday Recommendations (Refer Page– 2)

Scrip Code

Act

Entry

SL

TGT

BHARATFORG

L

695

680

718

SUNTV

L

855

837

882

DRREDDY

S

2220

2250

2170

TITAN

S

795

803

783

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

Institutional Activity

Cash Market

Net Value

Futures (FIIs)

Net Value

FII

-1470.56

Index

-1978.62

DII

1074.56

Stock

277.62

Source: NSE India                | Value Rs. in Cr |

 

Global Indices

Global Indices

    (Close)

      (Pts)

Chg (%)

SGX Nifty*

10,122.00

-21.50

-0.21

Dow Jones

24180.64

-109.41

-0.45

NASDAQ

6,762.21

-13.16

-0.19

S&P 500

2629.57

-9.87

-0.37

FTSE 100

7338.97

38.48

0.53

Nikkei 225*

22,491.75

-130.63

-0.58

Hang Seng*

28,872.26

29.46

0.10

Source: Bloomberg and other leading websites

Market Buzz

 

·         ADB approves $583 million loan facility to Reliance Power project

·         BHEL to renovate ESP package at Kahalgaon plant for Rs 215 crore

·         Lanco Infratech seeks to sell four renewables assets

·         Govt's public debt rises by 2.53% at Rs 65.65 lakh cr in Jul-Sept quarter

·         Indian Oil evaluates Rs 20K-cr coke gasification project at Paradip

Source: Bloomberg, leading business newspapers & websites

 

 

 

 

 

 

Intraday Recommendations

 

Stock

Action

Entry

Stop loss

Target

BHARATFORG

L

695

680

718

SUNPHARMA.GIF

BHARATFORG has been trading above all of its major moving averages in daily chart. Stock has opened in gap up in yesterday and closed with open low as same. Heiken candlesticks in daily chart suggesting positive trend in the counter.

Stock

Action

Entry

Stop loss

Target

SUNTV

L

855

837

882

SUNPHARMA.GIF

SUNTV is trading above 50/100/200 day exponential moving averages in daily chart. Stock has formed primary reversal candle near lower band in Bollinger bands and is moving towards upper band suggesting positive momentum.

 

Stock

Action

Entry

Stop loss

Target

DRREDDY

S

2220

2250

2170

SUNPHARMA.GIF

DRREDDY has closed below all of its major moving averages in daily chart. Parabolic SAR and Heiken candlesticks suggest negative trend in the counter. MACD in daily chart suggesting negative momentum in the counter.

Stock

Action

Entry

Stop loss

Target

TITAN

S

795

803

783

TITAN.JPEG

 

TITAN ended the day in red for the third consecutive session.14 day RSI is trading below its 9 period averages in daily chart and showing negative divergence whereas stochastic also suggesting negative momentum likely to continue

 

 

Index Tracker

Index Dynamics

Particulars

Current

Previous

% Chg

Nifty Spot

10118.25

10127.05

-0.09

Nifty Fut

10146.70

10159.25

-0.12

Nifty Near  OI

1.95

1.84

5.95

Nifty COC%

4.46

4.84

-0.37

Nifty PCR Vol

0.87

0.82

6.40

Nifty PCR OI

0.88

0.90

-2.07

Bank Nifty Spot

25124.85

25075.10

0.20

Bank Nifty Fut

25225.00

25185.85

0.16

Bank Nifty Near OI

0.19

0.18

3.34

Bank Nifty COC%

6.33

6.72

-0.39

Market OI (Rs Cr.)

289,970

278,919

3.96

India VIX

15.01

14.86

1.01

Nifty Dec Future is trading at a premium of 28.45 points as compared to a premium of 32.20 points in the last trading session. On the options front, Nifty Dec 9900 PE has witnessed addition of 5.65 lakh shares in Open Interest with maximum OI in Nifty Dec 10000 PE of 80.43 lakh shares. While Nifty Dec 10200 CE has seen addition of 7.57 lakh shares, while maximum OI on higher side stands at  Nifty Dec  10500 CE to the tune of 62.30 lakh shares.

Bank Nifty Dec future is trading at a premium of 100.15 points as compared to a premium of 110.75 points. On the options front, Bank Nifty 7 Dec 25000 PE has seen shedding of 4800 shares while Bank Nifty 7 Dec 25500 CE has seen addition of 2.15 lakh shares in OI.

Bank Nifty View for the Day: Sell  Bank Nifty around 25100 levels keeping a stop loss of 25250 for the target of 24900 levels. (SPOT LEVELS)

 

 Bank Nifty Option: Buy Bank Nifty 7 Dec 25100 PE around 100 | Stop Loss: 60 | Target: 170 | TF: Intraday

 

Positional Recommendations

 

BHARATFIN DEC FUTURES : Buy between 990-993 for a potential upside target of  1035 with a stop loss placed below 963 (spot levels): BHARATFIN has witnessed a short covering move in yesterday’s session with the stock rising as much as 1.3% with decrease in open interest by -2.55%. The stock can witness a sharp surge once the psychological 1000 mark is crossed. Hence we recommend positional traders to go long in the counter for the mentioned target levels.

ONGC DEC FUTURES : Sell between 178-179 for a potential downside target of 170 with a stop loss placed above 183 (spot levels): The stock has made a Bearish Head & Shoulder chart pattern on daily charts and has also closed below all of its shorter term SMA levels, indicating bearishness.. The stock’s failed attempt to close the gap down in yesterday’s session, suggests the grip of bears in the counter. The stock has also added 1.67% in open interest with a fall in price, indicating short term negativity.

 

Hybrid Strategy

 

BEAR PUT SPREAD IN AMBUJACEM

AMBUJACEM DEC Future has total open interest of 1,00,42,500.while AMBUJACEM DEC 260 PE witnessed shedding of 2,500 OI and making a total OI of 97,500 and AMBUJACEM DEC 250 PE witnessed shedding of 7,500 OI and making total OI of 82,500 in the previous trading session. Technically, the stock is in the cycle of lower highs and lower lows from highs of 288.80 on the daily charts and is also trading below its short term moving averages and even the momentum indicators also indicate the stock may fall further low in the coming sessions. Hence, we recommend building Bear put spread strategy in the counter.

 

Buy one lot of AMBUJACEM DEC 260 PE @ 6.65 and Sell one lot of AMBUJACEM DEC 250 PE @ 2.55| Max Profit:14750| Max Loss:10250|BEP:255.90|

 

 

Stock Specific Activity

 

Long Accumulation

BALKRISIND

HEXAWARE

JETAIRWAYS

SRTRANSFIN

JUSTDIAL

Short Closure

PETRONET

VOLTAS

FEDERALBNK

UNIONBANK

CUMMINSIND

Short Accumulation

M&M

HEROMOTOCO

KPIT

IRB

APOLLOTYRE

Long Closure

JINDALSTEL

MINDTREE

OIL

TITAN

DIVISLAB

 

Stocks in Ban in F&O Segment

 

--

--

--

--

--

--

--

--

--

--

--

--

 

 

 

 

 

 

 

 

 

Derivative Insights

 

Open Interest

Change in Open Interest

 

Top Traded Stock Options

 

Call

Put

 

Symbol

Strike Price

LTP

Volume (Contracts)

INFY

1000

17.2

5196

RELIANCE

920

22.9

3971

TATAMOTORS

410

11.05

3380

SBIN

320

10.2

2364

Symbol

Strike Price

LTP

Volume (Contracts)

RELIANCE

900

15.6

2624

INFY

980

21

2360

TATAMOTORS

400

11.3

2039

SBIN

310

5.6

1318

 

Top OI change in Stock Options

 

Call

Put

 

Symbol

Strike Price

LTP

Change in OI

RCOM

10

1.85

3066000

JPASSOCIAT

20

0.35

2040000

GMRINFRA

20

0.25

2025000

ASHOKLEY

120

2.4

1750000

Symbol

Strike Price

LTP

Change in OI

DLF

220

5.75

2625000

RCOM

10

0.55

2296000

GMRINFRA

17.5

0.85

855000

IRB

200

5.65

622500

 

Stock Option Recommendations

 

Symbol

Strike Price

Option Type

Entry

Stop Loss

Target

IV

Change in OI

OI

BHARATFORG

700

CE

20

15

27.5

28.78

50400

175200

SUNTV

860

CE

30

22

42

36.75

18000

43000

DRREDDY

2200

PE

60

40

90

32.96

1000

39400

TITAN

790

PE

19

15

26

30.18

6,000

34,500

      *December Series Options

 

 

 

Pivot Table

 

SYMBOL

CMP

S2

S1

PIVOT

R1

R2

SENSEX

32,802.44

32,582.14

32692

32793

32903

33,003.20

NIFTYBANK

25,124.85

24,791.55

24958

25088

25255

25,384.35

NIFTY

10,118.25

10,032.92

10076

10112

10154

10,190.62

RELIANCE

913.7

884.7

899.2

910.0

924.5

935.3

INFY

984.35

964.8

974.6

988.8

998.6

1012.8

SBIN

319.1

304.3

311.7

316.2

323.6

328.1

HDFC

1679.5

1651.0

1665.3

1677.6

1691.9

1704.2

AXISBANK

533.15

526.8

530.0

533.9

537.1

541.0

TATAMOTORS

402.25

392.5

397.4

401.4

406.3

410.4

LT

1209.9

1182.1

1196.0

1205.3

1219.2

1228.4

ICICIBANK

305.25

301.6

303.4

305.5

307.3

309.4

YESBANK

308.7

297.0

302.9

306.4

312.3

315.8

ITC

253.85

251.1

252.5

253.9

255.3

256.8

TATASTEEL

675.7

662.9

669.3

677.4

683.8

692.0

EICHERMOT

28928.8

28043.6

28486.2

28942.6

29385.2

29841.5

INDUSINDBK

1665.4

1634.2

1649.8

1661.7

1677.3

1689.3

ADANIPORTS

388.85

375.5

382.2

385.7

392.4

395.9

VEDL

288.45

282.1

285.3

288.2

291.3

294.2

* 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

LOVABLE

EQ

07-Dec-17

08-Dec-17

Buyback

NESTLEIND

EQ

11-Dec-17

12-Dec-17

Interim Dividend

RENUKA

EQ

12-Dec-17

-

Annual General Meeting

ATULAUTO

EQ

13-Dec-17

14-Dec-17

Interim Dividend- Rs 2.75 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.

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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