DATA & TIPS FOR 22 DEC 2016 THURSDAY

Market Update:
Sgx Nifty -15 pts
‎Dow -32.66 pts ,Nsdq -12.51 pts , S&P -5.58 pts , Bovespa +63 pts , Ftse -2 pts , Dax +3 pts  , Cac -16 pts , Nikkei  -82 pts now , Crude @ $52.59 brl (+0.10 ), Brent @ $54.46 brl (-0.89) , Gold @ $1133.10 (-0.10), Silver @ $16.01 (+0.03), Euro @ $1.0426, JPY @ $117.6200, INR @ $67.9138

Today's Corporate Action
22nd Dec  Ex Date

INFINITE
Buy Back of Shares

Economic Times

 

Business Standard

Ø  RBI exempts KYC-compliant a/cs from interrogation 

Ø  Tata Group was in talks with Voda for consolidation

Ø  Oil seen at $100 by end 2018 in lottery ticket options trade

Ø  GST Council to consider model laws today

Ø  Just 1% Indians pay Income Tax: NITI Aayog CEO

Ø  Texmaco, Kalindee Rail get Delhi HC nod for merger

Ø  Banks to again auction Kingfisher Villa today

Ø  Govt waives transaction fee on electronic transfer 

 

Ø  Bank recapitalisation plan on course

Ø  Monetary Policy Committee agreed on no rate cut

Ø  RCom completes tower arm sale to Brookfield Infra for $1.6 bn

Ø  Currency worth Rs 5.92 lakh cr issued since demonetisation

Ø  Govt clears ordinance to let companies pay salary via e-mode, cheque

Ø  Nomura growth indices plunge to lowest level since 1996

Business Line

 

Mint

Ø  RBI monetary policy panel puts focus on inflation as global risks mount

Ø  PE firm Advent buys 41% stake in ASK Group for ₹848 crore

Ø  BSE Brokers Forum ropes in CEOs of PhillipCapital, Zerodha to its board

Ø  Pulse buffer-stock seen missing 20-lakh-tonne target

Ø  IDS disclosure figures to be revised lower to Rs. 55,000 cr

Ø  Gujarat farmers return to isabgol with an eye on export market

 

Ø  Cyrus Mistry wants Ratan Tata restrained from attending board meetings

Ø  By 2020, 50% of Tech Mahindra’s business will come from IT: CEO CP Gurnani

Ø  TDK agrees to buy InvenSense for about $1.3 billion in cash

Ø Demonetisation drives up card swipes but average value falls: SBI report

Ø  EC to ask tax authorities to look into finances of 200 political parties

Financial Express

 

Financial Chronicle

Ø  India's crackdown on cash imperils pivotal national tax reform

Ø  Google employee sues company for conducting 'spying program': report

Ø  Nokia sues Apple for infringing technology patents

Ø  BSNL customers to get 0.75% discount on e-payment of bills

 

Ø  ATM, high-value cash withdrawals to attract handling charge

Ø  Power secy Pujari, Shaktikanta Das in Sebi chief race

Ø  Another independent director Darius Pandole quits TGBL board

Ø  RBI slaps fine on 5 foreign banks for violating FEMA rules

Ø  Govt, bank unions on collision course

Market Cues

Indian markets are expected to open flat tracking the SGX Nifty.

US stock indices closed slightly lower due to profit booking and low volumes. The National Association of Realtors(NAR) released a report showing an unexpected continued increase in existing home sales in the month of November. Existing home sales climbed 0.7 percent to an annual rate of 5.61 million in November against an expectation of existing home sales rate of 5.54. Biotechnology stocks were down significantly, dragging the NYSE Arca Biotechnology Index down by 1.9 percent.

The FTSE 100 had a flat trading session due low volumes. Barclays fell by 0.22 percent, while Royal Bank of Scotland advanced 0.93 percent. This was after news that both banks were fined by the Swiss competition regulator for interest rate rigging. The U.K. budget deficit narrowed in November. Public sector net borrowing excluding intervention dropped by GBP 0.6 billion from prior year to GBP 12.6 billion in November. The expected level was GBP 12.2 billion.

Indian markets opened mildly positive but selling by FII’s resulted in the market falling for the sixth straight session. Investor sentiment was negative due to concerns regarding demonetisation and the impact it would have on the economy. FMCG was the biggest loser for the session and closed down 1.14 percent. The IT index lost its gains from the last session to close down 0.92 percent. Metal and Energy indices closed up by 0.53 and 0.63 percent respectively.

Sensex (26242) / Nifty (8061)

The boredom continues in our market for the fifth consecutive session as the participation from strong hands seems missing towards the fag end of the calendar year. Having said that the concluding hour was not so encouraging for our market. The Nifty corrected sharply and moved out of the narrow intraday range to retest the swing low of 8056.85.

Now, since the Nifty slipped tad below this important support in the concluding minutes, we would wait for further clarity on this price action in the opening trades today. If the index manages to stay for first half an hour below 8056, we would expect some weakness towards the 8000 mark. However in the other scenario, if the Nifty manages to stay above 8085, we would continue with our recent optimistic stance on the market. For the coming session, resistance levels are seen at 8112 – 8133 levels. It is to be noted that the market at present is undergoing a consolidation phase and hence, we do not want to get carried away by this tailend weakness. Directionally speaking, we still do not expect any major downside from current level in the near term.

Key Levels

Support 1 – 8000 Support 2 – 7970

Resistance 1 – 8112  Resistance 2 – 8133

Nifty Bank Outlook - (18085)

The Nifty Bank index continued to trade in a narrow range and ended yesterday's session almost on a flat note.

As we had also mentioned yesterday, the index is currently hovering around its crucial long term support of 18040, which is the '200SMA' on daily chart. The bulls are vehemently trying to defend the support zone since last two trading sessions. Only if the Nifty Bank index manages to close below the mentioned average, then the bears would be in the advantageous spot. Until then, the index could continue with its range-bound move. Hence, we continue to advise traders to stay light on the index and continue to trade on stock specific moves. The intraday support for the Nifty Bank index is placed in range of 18000-17951 whereas resistance is seen in range of 18200-18251.

Key Levels

Support 1 – 18000 Support 2 – 17951

Resistance 1 – 18200  Resistance 2 – 18251

Comments

 The Nifty futures open interest has increased by 1.98% BankNifty futures open interest has decreased by 4.21% as market closed at 8061.30 levels.

 The Nifty December future closed with a premium of 19.35 against the premium of 17.50 points in last trading session. The January series closed at a premium of 53.90 points.

 The Implied Volatility of at the money options has increased from 10.67% to 11.05%. At the same time, the PCR-OI of Nifty has increased from 0.97 to 0.98 levels.

 The total OI of the market is Rs. 2,71,340/- cr. and the stock futures OI is Rs. 70,468/- cr.

 Few of the liquid counters where we have seen high cost of carry are TITAN, ORIENTBANK, SOUTHBANK, SINTEX and GMRINFRA.

Views

 FIIs continue selling in cash market segment to the tune of Rs. 1178 crores. While in index futures, they were marginal buyers with fall in open interest, suggesting unwinding of both long and short positions in previous trading session.

 In Index options segment, FIIs sold of Rs. 181 crores with rise in open interest. In call options, 8100 strike added some fresh positions; followed by unwinding in 8300 strike. While, in put options, except for some build-up 7800 strike, we hardly witnessed any relevant activity. Highest OI in current series remains intact at 8300 call and 8000 put option.

 From last couple of sessions, we are hardly witnessing any relevant build-up in Index Futures from FIIs desk. However, we saw some longs but the quantum is quite low. Also, the longs formed during start of December series are still intact. But, the major concern at current juncture is FII’s selling figure in Stock Future segment. Currently, Nifty is hovering around its strong support of 8050-8100 levels and thus we advise traders to remain light on positions and focus more on stock specific moves.