'/> BOL-BACHCHAN: TIPS AND MKT DATA FOR 20 DEC 2016

Tuesday, 20 December 2016

TIPS AND MKT DATA FOR 20 DEC 2016

Market Update:
Sgx Nifty -9 pts
‎Dow +39.65 pts ,Nsdq +20.28 pts , S&P +4.46 pts , Bovespa -1280 pts , Ftse +5 pts , Dax +22 pts  , Cac -10 pts , Nikkei  -7 pts now , Crude @ $52.10 brl (-0.02 ), Brent @ $54.92 brl (-0.29) , Gold @ $1140.40 (-2.30), Silver @ $16.03 (-0.05), Euro @ $1.0402, JPY @ $117.2200, INR @ $67.8750

Today's Corporate Action
20th Dec  Ex Date

None‎

Today's Data Alert

Dec 20: CPI for rural and farm labourers for November, by Labour Bureau.

Dec 20: 14-day variable rate term repo for 210 bln rupees. Bids to be submitted between 1100 and 1130 IST.

Dec 20: Power Minister Piyush Goyal, Ministry of Mines Secretary Balvinder
Kumar, Vedanta Copper Chief Executive Officer Ramnath, Hindalco
Copper Division Chief Executive Officer Laddha to speak at India
 Copper Forum-2016 organised by International Copper Association
 India. 0900 IST-1730 IST, Mumbai

Market Cues

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

US Markets closed higher on Monday on light trading activity in light of the holiday season as well as upcoming economic data. Most sectoral indices closed modestly upwards. The Dow Jones Trucking Index closed up by 1.2 percent recovering the previous session’s losses. Significant gains were also made by the Dow Jones Software Index which closed up by 1.2 percent. Steel stocks came under pressure and the NYSE Arca Steel Index down 2 percent.

The FTSE 100 had a mixed session that saw it recover from early losses to close mildly positive. Stocks such as Hikma Pharmaceuticals, Capita and BT Group were among the largest gainers for the session. Carnival fell by 1.11 percent after it was downgraded to "Hold" from "Buy". Oil companies Royal Dutch Shell and BP Plc rose by 1.15 percent and 0.22 percent on positive developments.

Indian markets continued its fall for the fourth straight session on Monday on low volumes and concerns over higher oil prices and growing antagonism between the US and China. Most sectoral indices closed in the red with the PSU Bank and Metal indices falling by 1.08 and 0.97 percent respectively. The only index to close on positive note was the Energy index which reported a gain of 0.59 percent, as the government announced a rate hike in diesel and petrol prices

Sensex (26375) / Nifty (8104)

Yesterday’s session opened on a soft note citing weak cues from the Asian bourses. Subsequently, we witnessed a bit of consolidation within a narrow range throughout the session. However, a gradual decline during the day led the index to close tad above the 8100 mark.

In last 3 – 4 trading sessions, we have witnessed a bit of selling pressure at higher levels, which is now an encouraging signs. However, the bulls shouldn’t be much afraid of this development as the overall damage has not been big. Now, with reference to our previous articles, we maintain our optimistic stance on the market as long as 8056 remains intact. 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 – 8179 Resistance 2 – 8133

Nifty Bank Outlook - (18257)

Yesterday, the Nifty Bank inex opened on a flat note and traded in a narrow range throughout the session. Eventually, the banking index ended the session with loss of 0.30 percent over its previous close.

Yesterday's prices action too was confined in a narrow range. As mentioned in our earlier reports too, the index is going through a consolidation phase and there are no signs of a trended move. Thus, we continue to advise traders to focus on stock specific moves for short term trading. The intraday supports for the Nifty Bank index are placed around 18140 and 17975 whereas resistances are seen around 18555 and 18740.

Key Levels

Support 1 – 18140 Support 2 – 17975

Resistance 1 – 18555  Resistance 2 – 18740

Comments

 The Nifty futures open interest has decreased by 0.18% BankNifty futures open interest has increased by 4.52% as market closed at 8104.35 levels.

 The Nifty December future closed with a premium of 19.80 against the premium of 7.05 points in last trading session. The January series closed at a premium of 55.20 points.

 The Implied Volatility of at the money options has increased from 12.37% to 12.48%. At the same time, the PCR-OI of Nifty has decreased from 1.04 to 1.01 levels.

 The total OI of the market is Rs. 2,58,839/- cr. and the stock futures OI is Rs. 69,629/- cr.

 Few of the liquid counters where we have seen high cost of carry are JPASSOCIAT, SOUTHBANK, ADANIPOWER, RPOWER and IDFC.

Views

 Yesterday, FIIs were net sellers in cash market segment; they sold equities worth Rs. 536 crores. While in index futures, they were net buyers to the tune of Rs. 327 crores with fall in open interest, suggesting covering of short positions in previous trading session.

 In Index options segment, FIIs bought of Rs. 115 crores with rise in open interest. In call options, 8100 and 8150 strikes added some fresh positions. While, in put options, we hardly witnessed any relevant build-up. However, 8100 strike was comparatively active. While, some unwinding was visible in 8200 put option. Highest OI in current series is placed at 8300 call and 8000 put option.

 Nifty corrected from 8277 levels with fall in open interest, suggesting long unwinding. We hardly witness any short formation during this move. However, decent amount of longs formed during start of December series are still intact. At current juncture, Nifty is lingering around its strong support of 8050-8100 levels and taking into consideration the above data we believe Nifty has limited downside. Thus, any dips should be used as buying opportunity.

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