Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 13th March 2018
Nifty 10421/Sensex 33917/ Bank Nifty 24664
26 Advances / 24 Declines/ 0 Unchanged
Indian equity benchmarks traded on a jubilant note throughout the day and ended with gain of around two percent. The bulls took full control on Dalal Street with Nifty gaining around 200 points, while Sensex gaining more than 600 points. The market breadth was slightly in favour of advances with one stock advancing against each declining one. Indian equity benchmarks made a gap-up opening and traded jubilantly in early deals. The sentiments were upbeat as Union commerce and industry minister Suresh Prabhu exuded confidence that India will become a $5 trillion economy in the next seven years, adding that India will be a bigger economy than China at some point of time. He also said that manufacturing sector would contribute $1 trillion, services sector $3 trillion and the rest would come from agriculture for the country to become a $5 trillion economy in the next seven years. Some support also came with IMF stating that the Indian economy now seems to be on its way to recovering from disruptions caused by demonetization and roll-out of goods and services tax. At the same time, the IMF underscored the significance of reforms in other key sectors like education, health and improving the efficiency of the banking and financial systems. Investors also took some encouragement with FICCI enlightening that manufacturers in the country have a positive outlook for the sector in the January-March quarter on the back of higher production. The proportion of respondents reporting higher output growth during the Q4 2017-18 has increased significantly to 55% from 47% in Q3 while the percentage of respondents reporting low production has come down to 11% in the fourth quarter from 15% in the preceding quarter.
On the global front, Asian markets closed in green as US job data revive risk appetite. Chinese Commerce Minister Zhong Shan said that any trade war with the United States will only bring disaster to the world economy, as Beijing stepped up its criticism on proposed metals tariffs by Washington amid fears it could shatter global growth. The European markets were trading in green following the jump in US markets. European Central Bank (ECB) board member Benoit Coeure said that short term interest rates are to remain at very low levels in the euro zone.
FII’s Activity 12th-March -18
The FIIs as per Monday’s data were net buyers in equity segment, while they were net sellers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 4598.74 crore against gross selling of Rs 3990.76 crore. Thus, FIIs stood as net buyers of Rs 607.98 crore in equities.
In the debt segment, the gross purchase was of Rs 770.24 crore with gross sales of Rs 3163.55 crore. Thus, FIIs stood as net sellers of Rs 2393.31 crore in debt.
In the hybrid segment, the gross buying was of Rs 0.92 crore against no selling. Thus, FIIs stood as net buyers of Rs 0.92 crore in hybrid segment..
Now what to expect ??
Support at 10450, Break and sustain above 10450 will take it to 10600---10650 and then to 10800++ marks in days to come else could touch its support level of 10300 again
Fresh selling can be initiated below 10300
Support at 24800, break and sustain above 24800 will take it to 25500—25800++ mark in days to come.
Resistance at 24200.
Daily Derivative Outlook 13th March 2018
• The Nifty March 2018 futures traded at 10218.60, at a discount of 8.25 points from Nifty's spot closing of 10226.85 in the cash market.
• ANDHRABANK (20.00%), TORNTPHARM (196.10%), NIITTECH (13.30%), COLPAL (9.40%), and ALBK (5.30%) were the top gainers in terms of open interest.
• IDBI (-13.90%), Arvind (-5.30%), RECLTD (-2.90%), GODFRYPHLIP (-5.50%) and HDFCBANK (-4.5%) were the top losers in terms of open interest.
• Maximum call writing was seen at Nifty 10600 strike and maximum put buying was seen at Nifty 10300 strikes.
• Maximum positions are at 10600 CE and 10300 PE.
• The Nifty Put Call Ratio (PCR) finally stood at 1.78 for March month contract.
Derivative Idea (13-03-2018)
BEML gains around 0.62% of open interest as long build up on Monday’s trade.
Forming Harami Cross on daily chart. Support at 1080 and Resistance at 1150 Above 1150 rally remain continue till 1250—1280++ and then to 1330++ mark else could touch its support level of 1080.
Fresh selling can be initiated below 1080
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation (13th Mar 2018)
Buy BEML future above 1150 with stop loss of 1080 for the initial target 1250—1280 and then to 1330 mark.
Bajaj Finance - Top Pick
Bajaj Finance looks positive on charts...Hurdle at 1685 Break and sustain above 1685 will take it to 1750—1780 and then to 1800 mark.
Support and stop loss below 1650
Trading Recommendation (13th March 2018)
Buy Bajaj Finance future above 1685 with stop loss below 1650 for the initial target of 1750—1780 and the to 1800 mark.
More will update soon !!