Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 9th March 2018
Nifty 10242 /Sensex 33351 / Bank Nifty 24477
26 Advances / 24 Declines/ 0 Unchanged
Market advances on bargain hunting
Key benchmark indices registered modest gains on bargain hunting after a sell-off in the last six sessions. The barometer index, the S&P BSE Sensex rose 318.48 points or 0.96% at 33,351.57, as per the provisional closing data. The Nifty 50 index advanced 82 points or 0.81% at 10,236.20, as per the provisional closing data. Gains in Asian stocks amid news of potential US tariff exemptions boosted sentiment on the domestic bourses.
Key indices started the session on a strong footing on positive Asian stocks as worries surrounding trade war eased on reports US President Donald Trump's import tariff plan may spare select countries from much of the impact. Indices trimmed gains in morning trade. Later, indices came off the day's low and traded with modest gains till afternoon trade. Key indices rebounded sharply in mid-afternoon trade. Indices closed the session with modest gains, albeit giving up some of their intraday gains in late trade.The Sensex surged 406.88 points, or 1.23%, at the day's high of 33,439.97 in late trade, its highest level since 6 March 2018. The index rose 4.39 points, or 0.01%, at the day's low of 33,037.48 in morning trade. The Nifty jumped 116.15 points, or 1.14%, at the day's high of 10,270.35 in late trade, its highest level since 6 March 2018. The index fell 7.80 points, or 0.08%, at the day's low of 10,146.40 in morning trade.
Among secondary indices, the S&P BSE Mid-Cap index provisionally rose 0.56%. The S&P BSE Small-Cap index provisionally advanced 0.5%. Both these indices underperformed the Sensex. The breadth, indicating the overall health of the market, was negative. On the BSE, 1,507 shares declined and 1,203 shares advanced. A total of 156 shares were unchanged.
The total turnover on BSE amounted to Rs 3987.59 crore, compared with the turnover of Rs 3448.81 crore registered during the previous trading session.
Most realty stocks advanced. Oberoi Realty (up 3.46%), Sobha (up 1.96%), DLF (up 1.7%), Godrej Properties (up 0.62%) and Unitech (up 0.31%) gained. HDIL (down 3.77%) and Prestige Estates Projects (down 0.6%) dropped. Indiabulls Real Estate was unchanged at Rs 197.45.State-run lending major State Bank of India (SBI) was the biggest gainer from the 30-share Sensex pack. The stock surged 4.16% at Rs 256.90, even as it shrugged off the Reserve Bank of India's (RBI) penalty of Rs 40 lakh on the bank for non-compliance with the directions issued by the central bank on detection and impounding of counterfeit notes.
Private sector lender ICICI Bank also advanced 3.75% at Rs 297.45.
Index heavyweight Reliance Industries jumped 2.24% at Rs 911.50.
Index heavyweight and housing finance major HDFC rose 1.97% at Rs 1,796.50 after the company said it would sell 5.1% of the equity of Computer Age Management Services (CAMS) to Great Terrain Investment, Mauritius, an affiliate of Warburg Pincus group, at a total consideration of Rs 169.52 crore. The announcement was made after market hours yesterday, 7 March 2018. The company had approved selling 6.3% stake of CAMS to Great Terrain Investment, Mauritius, in December 2017.
FII’s Activity 8th-March -18
The FIIs and DII data as per Thursday
In equity segment, the gross buying was of Rs 4870.34 crore against gross selling of Rs 5475.13 crore. Thus, FIIs stood as net sellers of Rs 604.79 crore in equities.
In the debt segment, the gross purchase was of Rs 816.25 crore with gross sales of Rs 1015.54 crore. Thus, FIIs stood as net sellers of Rs 199.29 crore in debt.
In the hybrid segment, the gross buying was of Rs 0.67 crore against gross selling of Rs 0.56 crore. Thus, FIIs stood as net buyers of Rs 0.11 crore in hybrid segment.
Now what to expect ??
Support at 10150, Break and sustain below 10150 will take it to 10080---10020 marks in days to come.
Resistance intact at 10300
Above 10300... We will see sharp upside rally in Nifty.
Support at 24000, Break and sustain below 24000 will take it to 23600---23300 mark in days to come.
Resistance at 24700.
Daily Derivative Outlook 09th March 2018
• The Nifty March 2018 futures traded at 10233.05, at a discount of 9.60 points from Nifty's spot closing of 10242.65 in the cash market.
• PTC (11.10%) , MFSL (9.10%),ADANIPORTS (7.60%), IOC(6.00%), , and GRASIM (6.30%) were the top gainers in terms of open interest.
• INFRATEL (-15.30%), RELINFRA (-11.60%), IDBI (-9.50%), TATACHEM (-6.30%) and SBIN (-5.8%) were the top losers in terms of open interest.
• Maximum call buying was seen at Nifty 10600 strike and maximum put writing was seen at Nifty 10000 strikes.
• Maximum positions are at 10500 CE and 10000 PE.
• The Nifty Put Call Ratio (PCR) finally stood at 0.80 for Marchammer candlestick on daily chart. Hurdle at 430…above 430 rally remain continue till 450—470++ mark else could touch its support level of 408.00
Fresh selling can be initiated below 408.00
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation (9th Mar 2018)
Buy Reliance Capital future above 430 with stop loss of 408 for the initial target 450—470 and mark.
Motherson Sumi Systems- Top Pick
On a daily chart Motherson Sumi showing bottom out pattern. Resistance at 319, break and sustain above 319 will see rally till 330---335 in weeks to come.
Support intact at 308.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (9th March 2018)
Buy Motherson Sumi Systems above 319 with stop loss below 308 (on a closing basis) Target 330—335.
More Will Update Soon!!