STOCK TIPS & DATA FOR 23 DEC 2016 FRIDAY

Market Update:
Sgx Nifty -12 pts
‎Dow -23.08 pts ,Nsdq -24.01 pts , S&P -4.22 pts , Bovespa -391 pts , Ftse +22 pts , Dax -12 pts  , Cac +0.81 pts , Nikkei  Clsd , Crude @ $52.73 brl (-0.22 ), Brent @ $55.05 brl (+0.59) , Gold @ $1130.30 (-0.40), Silver @ $15.88 (+0.001), Euro @ $1.0438, JPY @ $117.5600, INR @ $67.9900

Today's Corporate Action
23rd Dec  Ex Date

‎
None‎

Today's Data Alert

Dec 23: WMA and forex reserves as of Dec 16, by RBI.

Economic Times

 

Business Standard

Ø  Nusli Wadia removed from Tata Steel board

Ø  Crackdown on cash imperils pivotal tax reform GST

Ø  'India's gas targets would need $10 bn investments'

Ø  Use old notes to pay taxes, penalty under IDS: Govt

Ø  Cisco to set up cyber security centres in India 

Ø  Govt formulating National Policy for Adv Manufacturing

Ø  Volkswagen reaches compensation deal with 80,000 US owners

 

Ø  Note ban shaves Rs 1.2 lakh cr off consumer goods' stocks

Ø  'Demonetisation may have cost banks Rs 3,000 cr per day'

Ø  GST Council to discuss crucial issue of dual control on Friday

Ø  Rel Jio case: No interim relief for Vodafone from Delhi HC

Ø  P-Notes investments fall to 33-month low at 1.8 lakh cr in November

Ø  Gems and jewellery exports to EU worth $3 bn at risk

Ø  Mistry's interim relief plea rejected by Company Law Tribunal

Business Line

 

Mint

Ø  High Court adjourns sine die pleas against demonetisation

Ø  Parking space proof may be mandatory for vehicle registration: Govt

Ø  Zicom’s initiative to be expanded to more cities

Ø  Welspun Enterprises approves Rs. 227-cr buyback offer

Ø  CBDT identifies 67.45 lakh potential non-filers in 2015-16

Ø  HDFC Mutual files papers for MSCI India Domestic ETF

 

Ø  RBI policy committee puts focus on inflation as global risks mount

Ø  Sun Pharma to acquire Novartis’s cancer drug Odomzo for $175 mn

Ø  Cloud is the biggest trend impacting networking industry: Juniper CEO

Ø  Suzlon to sell 49% stake in solar project to Canadian firm AMP Solar

Ø  RCom delivers another big fat deleveraging

Financial Express

 

Financial Chronicle

Ø  Nifty closes below 8000, wait for weekly closing to form a directional view: Experts

Ø  Paytm still facing glitches; users complain of payment issues

Ø  N Srinivasan resigns from United Breweries and McDowell Holding board

Ø  Kingfisher Villa again fails to find takers in re-auction

 

Ø  Wadia invites the wrath of Tata Motors investors

Ø  ED picks up Kolkata-based Lodha

Ø  Acharya panel report ready, Jan-Dec likely to be new FY

Ø  Demonetisation will make real estate market transparent

Ø  I-T Dept cautions taxpayers against sharing user ID, password

Nifty Bank Outlook - (17891)

The Nifty Bank index finally broke out of the recent trading range in yesterday's trading session. The index opened with a gap down opening and remained under pressure throughout the session to end the day with loss of over one percent.

In yesterday's session, the Nifty Bank index sneaked below the '200 SMA' support with a gap down opening. Any significant support breached with a gap is usually a negative sign and thus in near term, the bears could dominate the stocks within this sector. However, the momentum readings are not indicating any significant negative momentum and thus, we are not expecting any sharp or catastrophic down-move. Gradually, the Nifty Bank index could correct upto 17600 in short-term. Although it is not advisable to go short in the index due to limited downside seen, traders should avoid taking aggressive trading bets in either direction. The intraday supports for the Nifty Bank index are placed around 17730 and 17600 whereas resistances are seen around 18093 and 18170.

Key Levels

Support 1 – 17730 Resistance 1 – 18093
Support 2 – 17600 Resistance 2 – 18170

Sensex (25980) / Nifty (7979)

Yesterday’s session clearly caught us on the wrong foot as the gap down opening followed by a sharp correction below the 8000 mark was not at all expected for us. Due to the decline, the Nifty eventually closed with a cut of a percent.

Our recent strategy of going long with a stop loss below 8056 did not work well. But, having said that, we would still avoid going short in the market and would rather look for reversal signs to create longs in the market. The important reason behind this view is the formation of ‘Dragonfly Doji’ formed during the antepenultimate week. Hence, we do not expect any major downside from current levels. Now, Tomorrow’s session would be quite crucial for the market as we would get the weekly closing, which may dictate the near term direction for the market. For the coming session, 8046 level would be seen as an important resistance; whereas, 7964 – 7952 are likely to act as intraday supports.

Key Levels
Support 1 – 7952 Resistance 1 – 8046
Support 2 – 7900 Resistance 2 – 8100

Comments

The Nifty futures open interest has increased by 2.18% BankNifty futures open interest has increased by 4.22% as market closed at 7979.10 levels.

 The Nifty December future closed with a premium of 17.75 against the premium of 19.35 points in last trading session. The January series closed at a premium of 50.90 points.

The Implied Volatility of at the money options has increased from 11.05 % to 12.78%. At the same time, the PCR-OI of Nifty has decreased from 0.98 to 0.92 levels.

The total OI of the market is Rs. 2,83,616/- cr. and the stock futures OI is Rs. 70,166/- cr.

Few of the liquid counters where we have seen high cost of carry are GMRINFRA, TITAN, RCOM, CEATLTD and ASHOKLEY.

Views

Yesterday, we witnessed selling from FIIs desk in both cash market and index future segment. They sold equities to the tune of Rs. 614 crores. While in index futures, they were net seller worth Rs. 787 crores with significant rise in open interest, suggesting short build-up in previous trading session.

In Index options segment, FIIs sold of Rs. 378 crores with some rise in open interest. In call options, 8000 and 8050 strikes added huge fresh positions; followed by some unwinding in 8400 strike. While, in put options, except for some build-up 7900 strike, we hardly witnessed any relevant build-up. However, good amount of unwinding was visible in 8100 and 8200 strike prices. Highest OI in current series remains intact at 8300 call and 8000 put option.

Yesterday, Nifty opened gap down and remained underpressure till end of the day. Market plunged below its strong support of 8050-8100 and FIIs too actively participated in this fall. We witness FIIs selling in Index Futures. However, we would wait for their follow-up selling before forming any shorts at current levels. Traders are suggested to remain light in Index and prefer stock specific approach to trade as of now.