Market Recap After a mild correction in the past couple of sessions the domestic market underwent a consolidation phase during the first half of today s session. The benchmark indices traded in an extremely narrow range since morning as the voting for BREXIT referendum begun on 11.30am IST. However, once the European markets started the index NIFTY picked up the momentum in the later part of the session to claim a smart rally of almost 0 points. As a result, the index closed near the day s high above the 8250 mark. In addition, the BSE index SENSEX reached the milestone of 27000 and closed above the same. The action increased in the companies with considerable exposure to Europe with Tata Motors Ltd and Bharat Forge Ltd recovering some ground after yesterday's losses. With all said and done, the market breadth failed to impress as it ended in the favour of declining counters. On the global front, European indices like FTSE (+1.39%), CAC (+2.07%) and DAX (+2.02%) were trading with heavy gains while the time the report was made. The Asian Indices like NIKKIE (+1.06%), HANGSENG (+0.35%) and SHANGHAI (-0.47%) displayed mixed trend in today s session. On the sectoral front, apart from the NIFTY REALTY (-1.15%) and NIFTY MEDIA (-0.37%) stocks almost all the indices closed in positive terrain. From the list of gainers, NIFTY PSU BANK (+2.02%) stocks outperformed the most and were followed by NIFTY BANK (+1.51%) and NIFTY AUTO (+1.05%) stocks. The broader markets underperformed a bit as the MID100 (+0.11%) and SML100 (-0.26%) indices ended with small loss. In the currency market, we witnessed weakness in the INR against other major currencies. On the stock front, Jain Irrigation Systems surged on reports that a foreign brokerage has upgraded its rating on the stock to overweight from equal-weight on robust earnings growth forecast. On the other hand, Sharon Bio-Medicine surged another 10% triggered by the company's announcement with regard to its business expansion plans. Key Market Data Points Name High Low Range Prev. Sensex 27061 26737 324 27002 26766 Nifty Spot 8286 8188 97 8270 8204 Nifty Future 8307 8190 117 8289 8205 VIX 18.83 16.99 2 18.02 18.19 Name Sentiment Indicators Prev. Day Prm/Disc 18.75 1.35 17.40 PCR () 1.18 1.11 0.07 PCR (Vol) 1.12 0.97 0.15 MARKET BREADTH NSE Today % Advance 621 20.82% Declines 945-10.51% A/D Ratio 0.66 35.01%
OPEN INTEREST (`000) 30,000 Openinterest Nifty 25,000 20,000 15,000 10,000 5,000,0 5/24 5/27 5/1 5/6 5/9 5/14 5/17 5/22 8400 8300 8200 8100 8000 7900 7800 7700 7600 7500 7400 Key Takeaways The Nifty Fut. closed at 8282 levels with a premium of 18.75 points against premium of 1.35 points Nifty open interest increased by 4.47% with a rise in price Bank Nifty closed at 17891 with a rise of 4.25% in open interest with a rise in price. The total turnover in F&O segment is 3,57,634 cr., risen by 37% from previous session. 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 CE PE - NIFTY OPTION OPEN INTEREST For the current series, the Call PUT concentration has shifted to 8400 strike Call with an open interest of 65.54 lakh shares. On the other hand, highest PUT base remains at 8000 strike with 80.52 Lakh shares in open interest. In current series, call options addition was seen to the tune of 4.08 Lakh shares in open interest with a rise in price; on the other PE added 49.64 Lakh shares in open interest with a rise in price. The highest open interest activity was observed in the 8300 -- 8500 strikes CE with an open interest of 1.77 cr. shares, on the flipside highest PE activity was seen in 8000-8100 strikes to the tune of 1.39 cr. shares in open interest. The 8400 -- 8700 strikes CE added 19.93 Lakh shares; while on the PE side meaningful addition was seen 7000,7500,7800,7900,8200 & 8300 PE strikes to the tune of 35.75 Lakh shares. Whereas, unwinding was seen in 8300 strikes CE to the tune of 9.40 Lakh shares and on the PE side unwinding was seen in 8000 strike to the tune of 4.97 Lakh shares.
F&O Price Gainers & Losers Long Build-Up ALBK 63.3 6.03 13,338,000 8.93 RCOM 49.85 4.18 143,782,000 8.48 STAR 1070.15 0.31 1,270,100 8.33 JSWENERGY 81 1.69 15,758,000 7.21 HEXAWARE 233.1 4.79 5,450,000-12.74 IOB 27.1 0.56 6,566,000-9.81 L 358.9 0.52 809,000-6.06 BAJAJ-AUTO 2662.45 1.12 1,382,500-5.49 Short Covering ALBK 63.3 6.03 13,338,000 8.93 JISLJALEQS 70.65 4.98 37,241,000-2.46 HEXAWARE 233.1 4.79 5,450,000-12.74 RCOM 49.85 4.18 143,782,000 8.48 Short Build-Up INFRATEL 323.2-4.87 8,652,300 18.51 BATAINDIA 525.70-1.17 1,999,300 7.05 PTC 73-2.00 10,552,000 5.94 INDIACEM 103-0.05 32,345,000 4.95 Liquidation JETAIRWAYS 558.9-1.01 5,897,500-7.76 ARVIND 322.5-0.74 5,364,600-6.97 GODREJCP 110.5-0.90 52,360,000-6.76 VEDL 126.6-0.20 42,480,000-5.74 INFRATEL 323.20-4.87 8,652,300 18.51 UNITECH 5.85-3.31 164,131,000-3.51 HDIL 5.35-3.60 208,593,000-0.37 UPL 544-2.33 9,770,400 0.94 Key Takeaways The overall TELECOM pack is giving a signals of sharp recovery. From them RCOM can be the best bet for going long. The PSU BANKS like BANKBARODA and ALBK etc. has some more fume left and thus they can be traded with positive bias. As mentioned earlier, we are expecting a corrective move in the REALTY stocks like IBREAL, HDIL etc. AUROPHARMA will confirm a major breakdown if it breached the 710. Thus, at this stage it s a chance buy. Long Build Up:- Rise in Price & Rise in Liquidation:- Fall in Price & Fall in Short Build Up:- Fall in Price & Rise in Short Covering:- Rise in Price & Fall in
News Updates Sensex rises 200 points, Nifty50 above 8,250 ahead of EU referendum outcome. Historic Brexit referendum on knife-edge as millions vote. InMobi faces $950,000 fine for deceptively tracking millions of consumers. NTPC s credit strength reflects dominant position: Moody s. Sterling hits 2016 high, stocks climb as UK votes on Brexit. KEC International surges on bagging orders worth Rs 1,036 crore. Stock View CMP TGT Rationale HINDPETRO Bullish 955 1050 Stocks In Action The stock has relatively outperformed the broader market and the secular trend remains positive. Price has been sustaining well above its cluster of medium and long term moving averages, indicting strength in the counter. The delivery volume is also showing strong traction on a weekly and monthly chart. For medium term the stock is poised to test the 1100 mark. In today s session the counter confirmed a bullish FLAG pattern on the weekly chart. Thus, we advise traders to go long in the stock in the range of 955 945 for the upside target of 1050. On the downside, the stop loss should be placed below 908. Technical Outlook As anticipated earlier, Nifty found support from 8180 level and recorded smart pullback with the help of which index closed above key resistance of 8260 levels. In continuation with that, above 8300 Nifty can fill the negative gap witnessed on 21st August 2015 placed in the range of 8322 8360 levels. On the contrary, now vital support has shifted to 8200 8210 range. A breach of 8200 level would be an alarming point for the longs. A breach of 8180 level would lead to further weakness in the market which might drag Nifty below 8060 levels. Going forward, India VIX is the only concern, as it s sustaining above 18 levels for the consecutive second day. At the same time market breath moreover remain weak. Similar to benchmark index NIFTY, Nifty Bank index recorded breakout from downward sloping channel formation and closed near swing high. Going ahead, 17950 18050 is going to act as a strong resistance. Even Bank Nifty has negative Gap placed in the range of 18118 -- 1820 levels. Meanwhile 17750 remains strong support for the Nifty Bank index.
FII s activity: Cash Market: Today FII s bought worth Rs. 82 cr. in the equity markets; at the same time DII s bought 204 cr. Consequently, in the June Series up till now, FII s have bought 4586 Cr. in the cash segment, while DII s sold 1769 Cr. F&O Segment: After ten day s selling activity, today FII s bought worth Rs. 1129 cr. in the F&O segment. On the Index Future front they bought 320 cr. (net long added). On the index option front, they bought 645 cr. (liquidation of CE short position along with addition in PE long combined with addition of fresh Short positions). Also, they bought worth Rs. 362 Cr. in the stock futures (added some long position along with liquidation of short positions). Conclusion: In line with our view, Nifty recorded breakout from 8260 mark. The FII s derivative statistical data suggest long addition in index futures combined with liquidation of short positions, hedge with net addition in PE long. Also, as expected the upper end for the current series has now shifted to 8400 from earlier 8300 levels. If Nifty manages to close above 8360 mark on a weekly closing basis, then we may see 200 250 points rally. In case of a failure to do so, Nifty can confine within the range of 8200 8300 range for next couple of sessions. Only a decisive move below 8200--8180 would create further cynicism in the market. Therefore, we suggest readers to book profit on long positions if Nifty crosses 8300 mark but fails to sustain above 8360 mark.
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