INDEX PULLERS & DRAGGERS

Transcription

1 Market Recap Yet again the crude remained a dampener for world equity indices in today s trading session. The benchmark indices nosedive almost 1.5% on the back of weakness in the global indices. The index NIFTY registered an intraday high of 7576 after the RBI s momentary policy which was status quo. The RBI Governor Raghuram Rajan chose to keep the policy repo rate unchanged on inflation concerns even as it emphasized that it continues to be accommodative. Later on in the second half, selling pressure at higher levels forced the index to tumble nearly 150 points from day s high to close near the 7450 mark. The fall was mainly led by sharp correction in METAL and PHARMA counters. Even the banking counters failed to sustain at higher levels. The market breadth too turned negative as the day progressed. On the global front, European indices like FTSE (-1.43%), CAC (-1.70%) and DAX (-0.98%) were trading with heavy loss while the time the report was made. The Asian Indices like NIKKIE (-0.65%), HANGSENG (- 0.76%) and SHANGHAI (+2.24%) closed with mixed trend. On the sectoral front, all the indices turned in red during the second half of today s session. From the list of losers, NIFTY METAL (-4.82%) stocks were the biggest laggards. Indices like NIFTY COMMODITIES (- 2.94%) and NIFTY ENERGY (-2.79%) too kept the markets under pressure. The broader markets too suffered heavily as the MIDCAP (-1.35%) and SMALLCAP (-1.47%) indices closed in red. In the money market, most of the currency pairs closed in green due to weakness in INR. Key Market Data Points Name High Low Range Sensex Nifty Spot Nifty Future VIX Name Sentiment Indicators Day Prm/Disc PCR () PCR (Vol) On the stock front, from the group of metal counters SAIL (-8.8%) corrected the most which was followed by TATASTEEL (-7.90%). On the other hand, our recommended stock JUSTDIAL (+4.15%) outperformed the markets after series of corrective sessions. Pullers CMP INDEX PULLERS & DRAGGERS Weightage Bajaj Auto Lupin Draggers CMP Weightage Tata Mot (2.59) (2.37) TCS (0.17) Bharti Airtel ICICI Bank (2.86)

2 MARKET BREADTH SECTORAL ANALYSIS NSE Today % Highest Performer % Lowest performer % Advance % Declines % A/D Ratio % CNXFMCG Index CNXMET Index CNXIT Index CNXMED Index CNXCON Index CNXCMD Index Key Takeaways Today advancing counters have dropped significantly while declining stocks have risen. Therefore overall market breadth has become weak. During the second half we witnessed that, all indices were negative lead by Metal -2.88%, PSU Bank -2.87% & Smallcap % sectors were under pressure. **(the above mentioned % change are just for second half i.e. after 1PM) On the F&O stocks front stocks like, KSCL 5%, IDFC 3.46% & Coal Ind. 3.21% outperformed the markets. On the other hand, Tech M -3.15%, Motherson Sumi -2.60% & NHPC -2.11% went through some correction. **(the above mentioned % change are just for second half i.e. after 1PM) Today long build-up observed in UBL, MINDTREE, BAJAJ-AUTO & BHARTIARTL counter. On ACC, SAIL, NTPC & TORNTPHARM observed short build up. OPEN INTEREST (`000) Openinterest Nifty 30,000 25,000 20, Key Takeaways The Nifty Feb. Fut closed at , with a premium of 19.4 against premium of 9.4 points. The open interest dropped by 3% with a fall in price. 15,000 10, The total volumes in futures & options is positioned at Lakh contracts with a turnover of Rs. 2,40,230 cr., with a drop of 17%. 5,000,0 1/6 1/8 1/12 1/14 1/18 1/20 1/22 1/27 1/29 2/ Today VIX closed flat at levels, with a gain of 3%.

3 NIFTY OPTION OPEN INTEREST CE PE On the option front highest call base for the Feb series is at 7600 strike with Lakh shares. On the other hand highest PUT base is at 7400 strikes with Lakh shares. Long Build-Up UBL ,067, MINDTREE , BAJAJ-AUTO ,876, BHARTIARTL ,166, Short Build-Up ACC ,282, SAIL ,287, NTPC ,240, TORNTPHARM , Short Covering CANBK ,670, INFY ,544, SOUTHBANK ,930, IGL ,893, Liquidation ENGINERSIN ,335, AJANTPHARM , GODREJCP , YESBANK ,331, Long Build Up:- Rise in Price & Rise in Short Build Up:- Fall in Price & Rise in Liquidation:- Fall in Price & Fall in Short Covering:- Rise in Price & Fall in

4 F&O Price Gainers & Losers UBL ,067, OFSS , JUSTDIAL ,985, SOUTHBANK ,930, SAIL ,287, VEDL ,380, TATASTEEL ,346, JINDALSTEL ,588, FII Derivatives Statistics BUY SELL at the end of the day. of contracts Amt (in Cr.). of Contracts Amt (in Cr.). of Contracts Amt (in Cr.) INDEX FUTURES INDEX OPTIONS STOCK FUTURES STOCK OPTIONS Volume and Turnover News Updates Product. of contracts Turnover (in Cr.) Sensex tanks 286 points on global cues; Nifty50 tests 7,450. Index Futures 3,79,833 19, Stock Futures 6,20,552 28, Index Options 32,13, , Stock Options 3,30,819 15, F&O Total 45,44, , The RBI left the repo rate - its key policy rate - unchanged at 6.75 per cent in its first bimonthly money policy review. BP slumps into $6.5bn loss on oil collapse. Aurobindo Pharma drops 5% despite clarification on USFDA action. Lupin gains after launching Generic Glumetza HCI ER Tablets in US. European equities bruised by BP and weak oil prices.

5 Stocks In Action Stock View CMP TGT Rationale TATAELXSI Bullish Tata Elxsi has broken out into fresh all-time highs in today s session. The counter has already outperformed the broader markets & benchmark NIFTY Midcap indices. Rise in Volumes have been witnessed & momentum is strong for the stock. On weekly charts as well the stock has broken out after forming a good base for itself. Therefore, we recommend going long in the stock on dips towards On the upside the stock has potential to test levels. On the downside, the stop loss should be placed below 2024 level. CONCLUSION Today the benchmark indices witnessed profit booking and closed below short term moving averages. Going forward Nifty has immediate support in the range of (pivot low). If Nifty manages to hold on this level on a closing basis and record pullback, then in that case Nifty can form an inverted head and shoulder pattern. Readers should note that inverted head and shoulder pattern is a bullish pattern appears at the bottom. In case of failure to do so, Nifty can plunge further up to and below that it might retest swing low of 7240 levels. On the upside resistance is placed at / 7600 levels. Meanwhile Bank Nifty index has broken swing low of and closed below it, suggesting weakness in the banking stocks. The support for the Bank Nifty is placed at , on the contrary resistance can be seen at 15350/ levels. The FII s have sold again in the cash & future market. In the cash market they sold 114 Cr. and DII s sold 323 cr. On the F&O front FII s sold to the tune of 51 cr. in the index futures with a fall in open interest, suggesting liquidation. And they sold 718cr. in the index option, 393 cr. in the stock futures, with a marginal rise in open interest. On the derivative front, activity was seen in 7500 CE to 7800 CE, while on the PUT front activity was seen in 7200 PE PE. The 7900 & 7700 strikes Call and 7200 PE added 5.17, 4.63 & 4.16 Lakh shares. On the flipside unwinding was seen in 7400 CE & 7400 PE, indicating that the 7400 is a crucial level to watch out for. The above discussed data points suggest that the market is in caution mode, since Nifty is trading near its key support zone. Hence, we suggest booking profit on our recommended long call on Nifty Feb Fut. (initiated at 7300 level), if it sustains below 7380 mark for one hour. Forthcoming Results ACCEL BOMBWIR FRUTION JMFINANCIL MOTILALOFS PREMEXPLQ SMRUTHI THOMASCOOK ACCELYA BRADYM GAL KAPILCO NATIONSTD PRIMEURB SOLCT TIMESGTY ADIFINCHM CCL GDL KEC NEULANDLAB QUINTEGRA SPARC TRIDENT ALCHEM CHASBRT GMM KLRF NOBLEXP RAUNAQEPC SSK TRIGYN ALKA COARO GREAVESCOT LAOPALA ORIENTCEM REDINGTON SUPER TTKHEALTH APOORVA CTE HCLTD LAXMIMACH PCS REGTRUS SURATEX VAKPOWINF APTECHT DALMIABHA HEXAWARE MAITHANALL PFIZER RELIGARE SWARAJAUTO WHBRADY AREALTY DESHRAK HIKAL MANGLMCEM PHCAP SALSTEEL TAINWALCHM ZWELCAST AUROCOK DISHTV HINDCOPPER MANORG PNBGILTS SERVOTEC TCFCFINQ BAJAJFINSV ELANGO ISFT MANUGRAPH PPAP SHAHALLOYS TDPOWERSYS BAJAJHIND ELDERPHARM JBCHEPHARM MEGH PRATIK SHIVMED TEXINFRA BAJFINANCE EVERLON JINDWORLD MODISNME PREMCO SILINV THEBYKE

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