STOCK MARKET TIPS FOR 27 DEC 2016 TUESDAY

Once again our BUY call of NIFTY 7900 call went successful. I advised live on our blog : indiarightnowdotcom.blogspot.in


NIFTY CASH : CLOSED 7909. Yesterday it broke 7940 and fell sharply. But honestly it was not expected, rather charts were bullish, but due to global scenarios it broke my level of 7940 and so it had to fall. For today, 7888 is strongest support, and if it's broken and sustained in first half an hour than more panic can be seen till 7858 only and it may bounce back from there.


7972 is the first resistance for today, and if it's crossed and sustained over that than expect one way rally up to 7992 today only or by tomorrow. But for today the range will be 7958 and 7972 if it will be highly volatile than too.


So over all strategy for today is to but first and sell, do not short sell.


TATAPOWER : CLOSED 73.35


In weak markets also, it closed strong and didn't fell much. I told you for yesterday that it will be in pressure and you must have seen that whole day today. It went up but kept coming back. For today also the chart indicates same thing.


72 has formed very good strong support around there. But other side 74.75 to 75.35 range is working as strong resistance also. So I see from my charts that it will keep roaming in this range only may be whole day today or for whole this also, let's see. But one thing is sure that buy this stock at every fall. I advised to buy this stock at just 55 and also at 68 for the target of 84, than it really went 84 and again trading at 74. My overall targets are 78, 85, 96 and 108 finally.


BHEL : CLOSED 117.30


I told you to buy this stock and also told you the exact perfect strategy how and where to buy. Just read my advice and tips for 26 DEC yesterday. In weak market also it didn't broke my support level of 116 and stood still and strong and went above 119 also once but markets were sliding so it remained in control.


For today too, I recommend it to buy but by bit (not all in once aggressively). Above 119.45 ( with volume and should sustain) it will jump to 122.50 followed by 129-130 one way. Thai is good value stock.

Market Update:
SGX Nifty +17 pts
‎US Mkt Clsd , Bovespa +683 pts , Ftse Clsd , Dax Clsd  , Cac Clsd , Nikkei  +1 pts now , Crude @ $53.24 brl (+0.22 ), Brent @ $55.16 brl (+0.11) , Gold @ $1135.30 (+1.70), Silver @ $15.85 (+0.08), Euro @ $1.0452, JPY @ $117.2000, INR @ $67.7363

Today's Corporate Action
27th Dec  Ex Date

GULPOLY
Stock  Split From Rs.5/- to Rs.1/-
‎
NEWS : 

Ø  FPIs may face up to 40% tax on Indian investments

Ø  Govt wants a share in your property windfall

Ø  China to levy environment tax to fight pollution

Ø  Foreign borrowings in Nov stood at $488.49 mn

Ø  Nabard sanctions Rs 35k cr loan under Irrigation Fund

Ø  Repayment incentive: RBI gives relief to farmers

Ø  Service tax mop from Mumbai zone jumps 25.5%

Ø  Short-term capital gains tax rate may rise in Budget

Ø  Ordinance planned to impose penalty for holding junked notes

Ø  Private labels to become a $5-bn business for e-tailers in 2017

Ø  NTPC signs 160 MW PPA with Nepal Electricity Authority

Ø  Private equity exits cross $10 billion in 2016: Bain & Co

Ø  Essar Oil posts record 2,162 crore net profit in FY2015-16

Ø  BSE to introduce 6-yr govt bond interest rate futures from Dec 30

Ø  PM to take stock of economy at NITI Aayog on Tuesday

Ø  India needs globally compatible tax rates: Jaitley 

Ø  SEBI forwards complaints against QNet to Karnataka govt

Ø  Srei Infra arm plans to raise Rs. 500 cr via NCDs

Ø   L&T Construction wins orders worth Rs. 3,039 cr

Ø  NTPC total installed capacity rises to 48,028 MW

Ø  RIL-ONGC dispute: Justice Singhvi appointed arbitrator

Ø  ICICI Bank registers the first case under the bankruptcy code

Ø  GMR Enterprises raises Rs220 crore from VTB Capital

Ø  Snapchat buys Israeli augmented reality start-up Cimagine

Ø  Abertis buys two Macquarie toll road assets for Rs1,000 cr

Ø  NBFCs seek more time to classify defaults as NPAs

Ø  Not in talks with PayPal on stake sale: FreeCharge

Ø  Paytm launches 100-member merchant helpdesk

Ø  Behind Ratan Tata-Cyrus Mistry clash, a distinct set of governance rules

Ø  OMCs eye over 50% of retail sales in cashless mode by March

Ø  Modi eyes real estate assets in drive against graft

Ø  Sebi puts in place disclosure norms for REITs

Ø  Demonetisation to help allot more funds to welfare scheme: Govt

Ø  Nifty slumps to 7-mth low, Sensex tanks 234 pts

Market Cues

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

The US and European markets were closed on Monday.

NSE Nifty on Monday slumped to a 7 month low of 7,908 and the Sensex below 26,000, on the fears of excessive taxation by the government and the ongoing cash crunch. On Saturday, Prime Minister Narendra Modi had said that market participants should contribute to nation-building in a fair, efficient and transparent way and promised more sound and prudent policies and reform measures, which was seen in some quarters as a prelude to higher taxation by way of long-term capital gains tax on investment in shares.

Sensex opened at 25,992 against previous close of 26,041, hit an intraday high of 26,009 and a low of 25,754. On similar lines, the broader Nifty50 of the National Stock Exchange (NSE) closed at 7,908, down 78 points – its lowest closing since May 25, 2016.
 

Sensex (25807) / Nifty (7908)

A breather on Friday was followed by yet another gap down opening to start the proceedings for the concluding week of the calendar year. The price movement was certainly not so encouraging as the Nifty slipped below the important swing low of 7916.40 to post a new seven-month low.

Honestly speaking, we were not expecting this corrective move to extend below 8000; but, it has happened and thus, we need to now reassess the price development for next couple of days. Although, considering multiple technical evidences, we do not expect any major downside form current level, we would like to stay on the sidelines and wait for a clear trend reversal on charts. We continue with our opinion that one should stay away from creating fresh short positions as the market seems extremely oversold. For the coming session, yesterday’s high of 7970 would act as an immediate hurdle, whereas a sustainable move below yesterday’s low 7893.80 may lead to further weakness towards 7876 – 7850 levels.

Key Levels

Support 1 – 7876 Support 2 – 7850

Resistance 1 – 7970  Resistance 2 – 8000

Comments

 The Nifty futures open interest has increased by 16.55% BankNifty futures open interest has increased by 8.76% as market closed at 7908.25 levels.

 The Nifty December future closed with a premium of 3.05 against the premium of 9.25 points in last trading session. The January series closed at a premium of 34.35 points.

 The Implied Volatility of at the money options has increased from 11.94 % to 14.84%. At the same time, the PCR-OI of Nifty has decreased from 0.92 to 0.83 levels.

 The total OI of the market is Rs. 2,83,096/- cr. and the stock futures OI is Rs. 73,119/- cr.

 Few of the liquid counters where we have seen high cost of carry are GMRINFRA, JINDALSTEL, RPOWER, ADANIPOWER and MINDTREE.

Views

 FIIs continued their selling streak in cash segment; they sold equities worth Rs. 1095 crores. While in index futures, they were marginal buyers with significant rise in open interest, indicating formation of huge positions on both long and short side in previous trading session.

 In index option segment, FIIs bought worth Rs. 956 crores with negligible change in open interest. In call options, significant build-up was visible in 7900-8000 strikes and we believe these are longs formed by retailers in the hope of market recovering from current levels. While in put options, we hardly saw any relevant OI addition. However, good amount of unwinding was seen in 8000 put option. Highest OI in current series has been shifted from 8300 to 8000 call and of put option from 8000 to 7900 strike price.

 Since past three trading session, we are witnessing significant open interest addition in Index Futures, which are blend of both long and short positions. While in cash segment FIIs continue their selling. Hence, considering the above data, we would like to wait for some clear indication on direction front. Traders are suggested to remain light in Index and prefer stock specific approach to trade as of now