KSBL_TIFF

Research Desk – Stock Broking

Morning Moves

 

 

Apr 06th, 2018

 

Market View

Positive momentum likely to continue, Buy near 10300 : The benchmark index Nifty50 closed higher by nearly 2% on Thursday after the Reserve Bank of India (RBI) kept interest rates unchanged and cut its inflation forecast, citing lower food prices triggering a rally in banking stocks and bonds. RBI’s monetary policy committee (MPC) has decided to keep repo rate at 6%. Moreover, global equities also gained as investors hoped a full-blown trade war between Us and China can be averted when the US expressed willingness, to negotiate a resolution to the trade dispute with China, after the Beijing’s retaliation against the proposed US tariffs on $50 billion in Chinese goods, by targeting key American imports. Technically, Nifty surpassed its recent swing high at 10280 levels with a bullish marubozu type candle indicating the underlying strength in the market. However, the low volumes in the yesterday's trading session may remain as a concern for taking bulls into total confidence. The index may need to be looked sceptically until it could surpass and sustain above its 50 days EMA at 10353 levels.

 

Nifty View for the day: Buy Nifty on dips around 10300 for the target of 10380-10400 with a stop loss of 10240 levels.(SPOT LEVELS)

 

Nifty Option: Buy Nifty Apr 10300 CE around 150 | SL: 110 | TGT:  200 | TF: Intraday |

NSE NIFTY.JPEG

Index

Support

Pivot

Resistance

Nifty

10190

10295

10399

Bank Nifty

24211

24655

25099

 

 

Intraday Recommendations (Refer Page– 2)

Scrip Code

Act

Entry

SL

TGT

CANBK

L

284-285

279

292.50

INFY

L

1143

1125

1170

HEROMOTOCO

L

3790

3712

3900

CIPLA

S

BLW558

570

540

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

Institutional Activity

Cash Market

Net Value

Futures (FIIs)

Net Value

FII

-108.02

Index

1194.76

DII

615.28

Stock

1378.67

Source: NSE India                | Value Rs. in Cr |

Global Indices

Global Indices

    (Close)

      (Pts)

Chg (%)

SGX Nifty

10328.50

-27.50

-0.27

Dow Jones

24505.22

240.92

0.99

NASDAQ

7076.82

34.44

0.49

S&P 500

2662.84

18.15

0.69

FTSE 100

7199.50

165.49

2,35

Nikkei 225

21612.74

-32.68

-0.15

Hang Seng

29806.54

287.85

0.98

Source: Bloomberg and other leading websites |

Market Buzz

 

·         Cochin Shipyard is setting up a 42-acre international ship repair facility at Cochin Port.

·         IndiGo opts out of race to buy Air India.

·         Indian Oil Corp acquires Shell's 17% Oman oilfield.

·         Tata Motors launches three CVs in Malaysia.

·         Peninsula Land to invest Rs 200 cr in affordable housing project in Pune.

Source: Bloomberg, leading business newspapers & websites

 

 

Intraday Recommendations

Stock

Action

Entry

Stop loss

Target

CANBK

L

284-285

279

292.50

NSE NIFTY.JPEG

CANBK in today’s session surged around 9.14% breaching all the major resistance. In the previous trading session the stock tested its support placed around 261 levels and didn’t breach the said levels, the stock opened on a gap up note on the charts and after consolidating for the entire first half, the stock gave a break out on the charts during the final hour of the trade and is expected to continue its journey.

Stock

Action

Entry

Stop loss

Target

INFY

L

1143

1125

1170

NSE NIFTY.JPEG

INFY surged around 2% in the current trading session. The stock was facing resistance placed around 1140 levels, which the stock finally breached with above average volumes during the day and sustained well above it. The stock from an intraday perspective has turned bullish after crossing the resistance placed around 1143 levels.

Stock

Action

Entry

Stop loss

Target

HEROMOTOCO

L

3790

3712

3900

NSE NIFTY.JPEG

HEROMOTOCO the stock is making higher high and higher low on the charts which suggest structural bull trend from an intraday perspective. The trend on the charts has been accompanied by above average volumes on the charts. The stock after breaching the resistance placed around 3688 levels has further confirmed its uptrend on the charts.

 

 

 

Stock

Action

Entry

Stop loss

Target

CIPLA

S

BLW558

570

540

NSE NIFTY.JPEG

CIPLA after opening on higher levels has been continuously witnessing selling pressure on the charts during the day. The fall in the stock has been accompanied by above average volumes which suggest that the fall has some strength in it confirming the bearish view on the stock as well. The stock has closed well below its crucial support levels placed around 566 levels.

Index Tracker

Index Dynamics

Particulars

Current

Previous

% Chg

Nifty Spot

10325.15

10128.40

1.94

Nifty Fut

10352.20

10146.60

2.03

Nifty Near  OI

2.14

2.20

-2.95

Nifty COC%

4.55

2.98

1.57

Nifty PCR Vol

1.08

0.98

10.11

Nifty PCR OI

1.13

1.04

8.89

Bank Nifty Spot

24759.00

24129.50

2.61

Bank Nifty Fut

24808.90

24148.60

2.73

Bank Nifty Near OI

0.16

0.19

-12.30

Bank Nifty COC%

3.50

1.31

2.19

Market OI (RsCr.)

279405

269988

3.49

India VIX

14.79

16.34

-9.49

Nifty APR Future is trading at a premium of 27.05 points as compared to a premium of 18.25 points in the last trading session. On the options front, NIFTY APR 10200 PE has witnessed addition of 14.65 lakh shares in OI while NIFTY APR 10700 CE added 8.30 lakh shares in OI in the last trading session. The maximum OI is seen in NIFTY APR 10000 PE to the tune of 48.58 lakh shares while NIFTY APR 11000 CE has highest OI of 37.78 lakh shares in OI.

 

Bank Nifty APR Future is trading at a premium of 49.90 points as compared to a premium of 19.10 points. On the options front, BANKNIFTY 12 APR 24000 PE has highest open interest of 11.28 lakh shares in OI while BANKNIFTY 12 APR 25000 CE is having highest open interest of 5.13 lakh shares in OI.

 

Bank Nifty View for the Day:  Buy Bank Nifty @ 24700 levels keeping stop loss of 24550 for the target of 24880-24900 levels. (SPOT LEVELS)

 

Bank Nifty Option: Buy Bank Nifty 12 Apr 2018 24700 CE around 220 | Stop Loss: 180 | Target: 275-280 | TF: Intraday

Positional Recommendations

BAJFINANCE APR FUT: Buy @ 1914-1915 levels for the target of 1984-1985 levels with stop loss of 1865 (spot levels): The stock has witnessed addition of long position with good volumes. The stock has added more than 2% in open interest with rise in price in the last trade. Technically, the stock is making higher highs from last couple of trading sessions and closed well above its major moving averages   on daily chart with positive price structure.

BHARTIARTL APR FUT: Sell @ 394-395 levels for the target of 379-378 levels with stop loss of 405 (spot levels): The stock has witnessed addition of short position in the last trade and has added more than 2.5% in open interest with fall in price. Technically, the stock has closed on a negative note in the last trading session and placed below its major moving averages on daily charts.

Hybrid Strategy

PROTECTIVE PUT IN L&TFH

L&TFH has given last month trading range break out with huge volumes and on a broader chart pattern, the stock has given last three months down ward sloping trend line break out or coil pattern break out. The stock has ended the previous session at day highs with gains of more than 6.50% and has given range expansion confirmation for near term. Technically, the stock has moved above its resisting 50 days moving averages with support derivative data. Hence the Protective Put strategy for near term.

 

BUY ONE LOT OF L&TFH APR FUT @ 171 AND BUY ONE LOT OF L&TFH APR 165 PE @ 2.50 | MAX PROFIT: UNLIMITED ABOVE BEP | MAX LOSS: 38250 | BEP: 173.50 |

Stock Specific Activity

Long Accumulation

RCOM

PAGEIND

TITAN

SRTRANSFIN

SYNDIBANK

Short Closure

HINDZINC

REPCOHOME

IGL

ICICIBANK

SAIL

Short Accumulation

PCJEWELLER

BALRAMCHIN

CIPLA

BOSCHLTD

BHARTIARTL

Long Closure

PVR

MARICO

-

-

-

 

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)

TATAMOTORS

380

5.45

6075

TATASTEEL

600

11.75

4606

ICICIBANK

280

8.25

4116

SBIN

260

8

4109

Symbol

Strike Price

LTP

Volume (Contracts)

TATAMOTORS

360

8.55

4038

ICICIBANK

270

5.55

3741

SBIN

250

4.25

2855

TATASTEEL

560

9.75

2109

 

Top OI change in Stock Options

 

Call

Put

 

Symbol

Strike Price

LTP

Change in OI

RCOM

30

0.6

1232000

GMRINFRA

20

0.6

1215000

TATAMOTORS

380

5.45

1207500

ASHOKLEY

150

3.6

945000

Symbol

Strike Price

LTP

Change in OI

RCOM

20

0.75

1932000

ICICIBANK

270

5.55

1831500

RCOM

25

3.05

1148000

SBIN

250

4.25

1053000

 

Stock Option Recommendations

 

Symbol

Strike Price

Option Type

Entry

Stop Loss

Target

IV

Change in OI

OI

CANBK

290

CE

12

7.00

20

49.10

52800

126400

INFY

1160

CE

30

15

52

30.57

12600

423000

HEROMOTOCO

3800

CE

65

40

98

16.85

7200

22400

CIPLA

560

PE

14

8

22

28.46

147000

192000

 

 

 

Pivot Table

 

SYMBOL

CMP

S2

S1

PIVOT

R1

R2

SENSEX

33596.80

33131

33364

33501

33734

33870

NIFTY

10325.15

10190

10258

10295

10362

10399

NIFTYBANK

24759.80

24211

24485

24655

24930

25099

TATAMOTORS

362.20

352

357

365

370

377

TATASTEEL

580.45

564

572

578

586

592

ICICIBANK

278.65

263

271

275

283

288

HDFC

1824.45

1804

1814

1822

1832

1840

SBIN

259.30

245

252

257

264

269

HINDALCO

214.15

203

209

212

217

221

VEDL

289.90

276

283

287

294

299

INFY

1147.55

1120

1134

1143

1156

1165

TITAN

920.05

894

907

916

928

937

YESBANK

313.05

304

309

312

317

320

RELIANCE

908.20

901

904

907

911

914

BHARTIARTL

393.90

386

390

395

399

405

AXISBANK

503.10

492

497

501

507

510

TCS

2957.95

2904

2931

2947

2974

2991

BAJFINANCE

1915.60

1845

1880

1901

1936

1957

* 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

SCHAEFFLER

EQ

09-Apr-18

-

 Annual General Meeting/ Dividend - Rs 17 Per Share

FOSECOIND

EQ

12-Apr-18

-

 Dividend - Rs 12/- Per Share

KSBPUMPS

EQ

12-Apr-18

-

 Annual General Meeting/ Dividend - Rs 6 Per Share

CASTROLIND

EQ

25-Apr-18

-

 Annual General Meeting/Dividend - Rs 2.50 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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