Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 12th March 2018
Nifty 10222 /Sensex 33307 / Bank Nifty 24296
26 Advances / 24 Declines/ 0 Unchanged
Market advances on bargain hunting
Friday turned out to be a disappointing day of trade for Indian equity benchmarks where key gauges ended the session marginally in red. Markets started the session on an optimistic note as traders took some encouragement with report highlighting that the direct tax collections jumped by nearly 20 per cent between April and February this fiscal as the Income-Tax Department races to meet its full year targets. The net direct tax receipts grew by a hefty 19.5 per cent in the first 11 months of the fiscal amounting to Rs 7.44 lakh crore. Net corporate income tax collections increased by 19.7 per cent in the period, while personal income tax receipts grew by 18.6 per cent. Some support also came with Economic Affairs Secretary Subhash Chandra Garg’s statement that the 7.2 per cent expansion in the economy during October-December quarter has put the country in one of the highest growth bracket in the world and recovery will continue to be sharp going ahead. The third quarter growth of 7.2 per cent was highest in five quarters. The previous high was recorded at 7.5 per cent in the July-September quarter of 2016-17.
But, sell off in last leg of trade played spoil sports for domestic markets and dragged the key gauges in red terrain, as anxiety spread among the investors with a private report stating that India Inc has nearly 1.8 lakh crore of cash trapped in their balance sheet as working capital situation worsens on account of increase in inventory levels. The report also found that the cash conversion cycle has deteriorated by 4percent from FY16, to 44 days in FY17. Traders also remained cautious with Indian Steel Authority’s report that US President Donald Trump’s move to hike import tariffs on steel will adversely hit India’s local markets. Traders took note of another private report that Indian retail inflation likely to eased to a four-month low in February on softening prices for vegetable and other perishable foods, but probably stayed above the Reserve Bank of India's target.
Pessimistic start in European counters too dampened sentiments as investors reacted to President Donald Trump's decision to impose global duties on metal imports. President Donald Trump implemented import tariffs of 25 percent on steel and 10 percent on aluminum Thursday. Asian markets ended mostly in green, as geopolitical tensions eased after North Korean leader Kim Jong Un had offered to halt nuclear and missile tests and expressed his desire to meet with US President Donald Trump through South Korean national security adviser Chung Eui-yong.
Back home, telecom related stocks edged lower despite Telecom Minister Manoj Sinha has asked India’s top carriers to focus on improving services instead of fighting among themselves, especially now that the government has cleared measures for immediate relief, which should drive investments. Select power companies edged lower on report that thermal power projects promoted by Adani, Essar, Jaypee and Lanco figure in the list of 34 stressed electricity projects with total capacity of over 40 GW. According to report on Stressed/Non-performing Assets in Electricity, tabled in Parliament by Standing Committee on Energy, the total outstanding debt in these stressed projects is of the tune of Rs 1.74 lakh crore as of June, 2017 based on the RBI data. Few cement companies remained under pressure on report that the government is considering action against cement companies for cartelisation. The Competition Commission of India had earlier imposed a fine on 10 cement companies and a trade body for price fixing in 2016.
FII’s Activity 9th-March -18
The FIIs as per Friday’s data were net buyers in equity segment, while they were net sellers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 6795.45 crore against gross selling of Rs 5634.97 crore. Thus, FIIs stood as net buyers of Rs 1160.48 crore in equities.
In the debt segment, the gross purchase was of Rs 462.10 crore with gross sales of Rs 2264.07 crore. Thus, FIIs stood as net sellers of Rs 1801.97 crore in debt.
In the hybrid segment, the gross buying was of Rs 1.13 crore against no selling. Thus, FIIs stood as net buyers of Rs 1.13 crore in hybrid segment.
Now what to expect ??
Support at 10150, Break and sustain below 10150 will take it to 10070---10020 and then to 9930 marks in days to come.
Resistance intact at 10300---10450 mark
Support at 24000, break and sustain below 24000 will take it to 23600---23300 mark in days to come.
Resistance at 24600.
Daily Derivative Outlook 12th March 2018
• Nifty March 2018 futures closed at 10216.45 on Friday, at a discount of 10.40 points over spot closing of 10226.85, while Nifty April 2018 futures ended at 10245.75, at a premium of 18.90 points over spot closing.
• TORNTPHARM (26.00%) ,ACC(10.10%),IGL(6.70%), MUTHOOTFIN (5.40%), , and ALBK (5.30%) were the top gainers in terms of open interest.
• FEDERALBNK (-17.30%), PVR(-6.20%), CIPLA (-4.80%), CASTROLIND (-4.50%) and PAGEIND(-4.5%) were the top losers in terms of open interest.
• Maximum call writing was seen at Nifty 10400 strike and maximum put buying was seen at Nifty 10500 strikes.
• Maximum positions are at 10300 CE and 10100 PE.
• The Nifty Put Call Ratio (PCR) finally stood at 1.20 for March month contract.
Derivative Idea (12-03-2018)
Century Textile gains around 1.00% of open interest as short build up on Friday’s trade.
. Support at 1125…Below 1125 panic remain continue till 1050—1030 and then to 1000 mark else could touch its resistance level of 1190
Fresh buying can be initiated above 1190
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation (12th Mar 2018)
Sell Century Textile future below 1125 with stop loss of 1190 for the initial target 1050--1030 and then to 1000 mark.
Adani Port - Top Pick
Adani Port looks weak on charts...Support at 370.00 Break and sustain below 370.00 will take it to 340--330 and then to 310 mark.
Hurdle and stop loss above 395.00
Trading Recommendation (12th March 2018)
Sell Adani Ports future below 370 with stop loss above 395 for the initial target of 340--330 and the to 310 mark.
More Will Update Soon!!