TIPS AND DATA FOR 21 DEC 2016

Market Update:
Sgx Nifty +4 pts
‎Dow +91.56 pts ,Nsdq +26.50 pts , S&P +8.23 pts , Bovespa +471 pts , Ftse +26 pts , Dax +38 pts  , Cac +27 pts , Nikkei  +79 pts now , Crude @ $53.50 brl (+0.20 ), Brent @ $55.35 brl (+0.43) , Gold @ $1134.00 (+0.40), Silver @ $16.11 (-0.00), Euro @ $1.0394, JPY @ $117.8100, INR @ $68.0413

Today's Corporate Action
21st Dec  Ex Date

BANARISUG
Dividend - Rs. - 7.5000
JVLAGRO
Dividend - Rs. - 0.1000
SHRGLTR
Stock  Split From Rs.5/- to Rs.1/-
TTIENT
Consolidation of Shares
‎

Today's Data Alert

Dec 21: Money supply as of Dec 9, by RBI.

Economic Times

Business Standard

Ø  Ordinance likely for wage payment via e-mode, cheque

Ø  Vedanta slapped with $100 mn settlement in UK court

Ø  Note ban may yield lasting benefits: Crisil

Ø  Tata Steel EGM to decide on Nusli Wadia today

Ø  'Bringing back foreign stash will be real test of will'

Ø  Bajaj Hindusthan to sell power biz to gr firm for Rs 1800 cr

Ø  GCPL fully acquires Kenyan co Charm Industries

Ø  Fitch downgrades RCom to B+, placed its IDRs on Watch Negative

Ø  Govt plans tax exemption threshold for political parties

Ø  Diversify market and currency risk with US funds

Ø  For Rs 500 note, RBI pays Rs 3.09; Rs 3.54 for Rs 2,000 note

Ø  GM to hike prices by up to Rs 30,000 from January

Ø  Reliance Home Finance to raise Rs 3,500 cr through NCDs

Ø  I-T dept detects Rs 3,185 cr black income; seizes Rs 86 cr in Rs 2,000 notes

Ø  Cognizant buys Norwegian unit, boosts operations in oil and gas

Ø  Treasury gains may help banks offset Q3 pressure

Business Line

Mint

Ø  Rupee dives to 68.05 against dollar

Ø  Airtel to acquire Orascom’s stake in MENA undersea cable firm

Ø  AMFI bats for US’ 401(k)-like product in Budget proposals

Ø  IDS-II to fund Pay Commission hikes, PSU bank recap: BofA-ML

Ø  PFC to offer TV sets for 1,600 villages in Arunachal

Ø  ‘Developers of new SEZs need security clearance from Home Ministry’

Ø  Banks unions call for agitation over note ban-related issues

Ø  Cyrus Mistry moves National Company Law Tribunal against Tata Sons

Ø  Arun Jaitley says RBI prepared to deal with currency shortage beyond 30 December

Ø  PSU banks seek higher capital infusion from govt

Ø Delinquencies in medium-heavy commercial vehicles to rise if IIP fall continues

Financial Express

Financial Chronicle

Ø Demonetisation: Bank deposits may be subjected to investigation 

Ø  High Court asks Service Tax Department to revalue Vijay Mallya's plane

Ø  UTI confident of IPO in H2 of '17; to use proceeds for buyouts

Ø  In Trump cabinet, Commerce Secretary will run trade policy

Ø  Axis Bank assures govt of action against errant officials

Ø  Mistry says no chance of truce, vows to 'fight' it out

Ø  Bourses get more time for mechanism to monitor brokers

Ø  Jaitley bats for outsourcing of railways' non-core functions

Ø  LPG subsidy:I-T to inform Oil Min on taxpayers earning over Rs 10L

Market Cues

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

US stock indices Nasdaq and Dow made record closing highs on Tuesday as investors shrugged off geopolitical concerns from Asia. Most sectoral indices closed modestly upwards. Steel stocks revived and covered their losses to as the NYSE Arca Steel Index closed up 2.3 percent. US financials and banks also had a strong session. The NYSE Arca Broker/Dealer Index and the Dow Jones Banks Index closed up by 1.6 percent and 1.5 percent, respectively.

The FTSE 100 had a positive session that saw it close at a two month high. Carnival was one of the biggest gainers after rising by about 3 percent after it reported a good quarter. Lloyds bank shares rose 2% on news that it had bought MBNA Ltd., a credit card firm. Barclays and Royal Bank of Scotland also gained 0.47 percent and 1.43 percent respectively.

Indian markets continued its fall for the fifth straight session on Tuesday as FII selling resumed. Rising geopolitical tensions in Asia as well as concerns over demonetisation were reasons for the volatility and negative sentiment during the session. The PSU bank index was the biggest loser for the session and closed down 2.53 percent. Among the gainers, the IT index reported a steady gain of 0.97 percent and the FMCG index recovered its losses to close up 0.47 percent.

Sensex (26308) / Nifty (8082)

It was yet another day of consolidation with a slightly negative bias for our markets. The Nifty started on a flat note and then saw some selling pressure at the midst of the day to sneak below the 8100 mark. However, a modest recovery during the penultimate hour trimmed some of their losses.

The market has been experiencing decent selling pressure at higher levels since last few days. Due to yesterday’s corrective move the Nifty almost rested the recent swing low of 8056.85. However, the hope is still alive for bulls as the Nifty managed to gain some lost ground in the latter half. Since the important level (8056.85) is still unbroken, we would maintain our optimistic stance on the market and interpret this as a buying opportunity. On the flipside, 8133 – 8179 would be seen as immediate hurdles. Since, there is no major action seen in key indices, traders are advised to continue with their stock centric approach.

Key Levels

Support 1 – 8056 Support 2 – 8000

Resistance 1 – 8133  Resistance 2 – 8179

Nifty Bank Outlook - (18069)

Post opening on a flat note, the Nifty Bank index corrected yesterday and ended the session with a loss of 1.03 percent. Amongst the individual stocks, the PSU Bank corrected sharply as the Nifty PSU Bank index corrected by 2.53 percent yesterday.

The Nifty Bank index has closed tad above its crucial support of '200 SMA' on daily charts, which is considered as a long term support. The index has not closed below the mentioned average since 25th May, 2016. It would hence be prudent to watch the move in next few days as only a closing below the average would favor the bears in near term. Thus, we continue with our last few day's of advice to stay light on the index and focus more 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 0.85% BankNifty futures open interest has increased by 14.30% as market closed at 8082.40 levels.

 The Nifty December future closed with a premium of 17.50 against the premium of 19.80 points in last trading session. The January series closed at a premium of 50.70 points.

 The Implied Volatility of at the money options has decreased from 12.48% to 10.67%. At the same time, the PCR-OI of Nifty has decreased from 1.01 to 0.97 levels.

 The total OI of the market is Rs. 2,66,158/- cr. and the stock futures OI is Rs. 69,667/- cr.

 Few of the liquid counters where we have seen high cost of carry are GMRINFRA, ASHOKLEY, RECLTD, SOUTHBANK and IDFC.

Views

 Yesterday, FIIs were net sellers in cash market segment to the tune of Rs. 686 crores. While in index futures, they were net buyers to worth Rs. 188 crores with marginal rise in open interest, suggesting formation of some long positions in previous trading session.

 In Index options segment, FIIs bought of Rs. 276 crores with marginal fall in open interest. In call options, 8100 and 8200 strikes added decent amount of fresh positions; followed by unwinding in 8500 strike. While, in put options, except 7900 strike, we hardly witnessed any relevant build-up. However, reduction of positions was seen in 8000 and 8200 strikes. Highest OI in current series is placed at 8300 call and 8000 put option.

 From last couple of sessions, we are witnessing some long build in Index Futures from FIIs desk. However quantam 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.