Research Desk Stock Broking

Transcription

1 Markets likely to open flat; Buy around 9900: Nifty managed to move above the falling trend line and end in green as traders rolled over their positions from August series to September series. Technically, Nifty made a higher high and a higher low in yesterday s session as good buying was seen in heavyweight stocks like RELIANCE and WIPRO, while automobile stocks like BAJAJ-AUTO, EICHERMOT, MARUTI etc gained ahead of the announcement of Auto Sales numbers which will be released by auto companies today. Nifty has immediate support around below which the next good support for the index lies at Whereas on the upside, the Nifty is likely to witness its first supply zone around crossing which the levels could be tested on the upside. Another important set of data apart from the Auto Sales numbers which will be coming out today is the Markit manufacturing PMI data for the month of August. Market View Nifty View for the day: Therefore, for the day we recommend traders to buy Nifty around 9900 levels for the targets of levels, placing a stop 9850 levels. (SPOT LEVELS) Nifty Option: Buy Nifty SEPTEMBER CE around 80 SL: 55 TGT: TF: Intraday Index Support Pivot Resistance Nifty Bank Nifty Intra-day Recommendations (Refer Page 2) Scrip Code Act Entry SL TGT IDEA L JUSTDIAL L JINDALSTEL L LUPIN S BLW Institutional Activity Cash Market Net Value Futures (FIIs) Net Value FII Index DII Stock Source: NSE India Value Rs. in Cr Act= Action SL: Stop Loss TGT: Target L= Long S= Short Global Indices Global Indices (Close) (Pts) Chg (%) SGX Nifty* 9, Dow Jones NASDAQ 6, S&P FTSE 100 7, Nikkei 225* 19, Hang Seng* 28, Source: Bloomberg, leading business newspapers & websites Market Buzz Fiscal deficit reaches 92.4% of full-year target in July at Rs 5.05 lakh cr Adani Group will partner with Sweden s SAAB to build singleengine fighter jets in India Maruti to revamp sales channel, unveils Maruti Suzuki Arena India's Gross Domestic Product (GDP) growth slides to 5.7 percent Source: Bloomberg, leading business newspapers & websites For more Market updates & Stock Research, visit 1

2 4 Intraday Recommendations IDEA L JUSTDIAL L IDEA 14 day RSI is trading above its 9 period averages. Heiken candlesticks suggest positive trend in the counter. Stock has given confirmation for bullish harami pattern with jump in volume. Stock is sustaining above a breakaway gap in daily chart. JUSTDIAL has given breakout from consolidation in daily chart with jump in volume. 14 day RSI is trading at which is above its 9 period average of suggesting positive momentum. Parabolic SAR suggest positive trend in the counter. JINDALSTEL L LUPIN S BLW JINDALSTEL is trading above all of its major exponential moving averages in daily chart. Parabolic SAR and Heiken candlesticks suggest positive trend in the counter. 14 day RSI is trading at which is above its 9 period average of suggesting positive momentum LUPIN is sustaining below its major exponential moving averages.. Heiken candlesticks suggest negative trend in the counter. MACD suggest negative divergence in the counter. Stock signals consolidation breakdown from 3 days of consolidation in hourly chart with jump in volume. For more Market updates & Stock Research, visit 2

3 Index Tracker Index Dynamics Particulars Current Previous % Chg Nifty Spot Nifty Near Fut Nifty Near Fut OI Nifty CoC Nifty PCR VOL Nifty PCR OI Bank Nifty Spot Bank Nifty Fut Bank Nifty Near OI Bank Nifty CoC Market OI (Rs. cr.) 186, , India VIX NIFTY SEP future is trading at a premium of points as compared to a premium of points in the last trading session. On the options front, NIFTY SEP 9700 PE has seen addition of lakh shares in OI while NIFTY SEP CE has seen addition of 8.49 lakh shares in OI. However, the maximum OI is seen in NIFTY SEP strike 9700 PE of lakh shares and CE of lakh shares. BANKNIFTY SEP future is trading at a premium of points as compared to a premium of points. On the options front, BANKNIFTY SEP PE has seen addition of 1.63 lakh shares in OI while BANKNIFTY SEP CE has seen addition of 1.81 lakh shares in OI. However, the maximum OI is seen in BANKNIFTY SEP strike PE and CE of more than 2.80 lakh shares Bank Nifty View for the Day: Buy Bank levels keeping stop loss of for the target of levels. (SPOT LEVELS) Bank Nifty Option: Buy Bank Nifty 7SEP CE around 120 Stop Loss: 80 Target: TF: Intraday Positional Recommendations ESCORTS SEP Futures: levels for the target of 670 levels with stop loss of 625 (spot levels): The stock has witnessed addition of long positions with good volumes. The stock added 85.36% in open interest with rise in price in the last trade. AXISBANK SEP Futures: levels for the target of 480 levels with stop loss of 515 (spot levels): The stock has witnessed addition of short positions in the last trade and has added 48.78% of open interest with fall in price. Hybrid Strategy BULL CALL SPREAD IN VEDL VEDL September Future has total open interest of 4,23,71,000 shares while VEDL SEP 310 CE witnessed addition of 4,79,500 shares making a total OI of 10,01,000 shares and VEDL SEP 320 CE witnessed addition of 4,37,500 shares making a total OI of 7,59,500 shares in the previous trading session. Technically, the stock is in uptrend and making in the formation higher highs and higher lows and is also trading above its major moving averages on daily charts and even the momentum indicators also indicate the stock may move further high in the coming sessions. Hence, we recommend building Bull call spread strategy in the counter Buy one lot of VEDL SEP and Sell one lot of VEDL SEP Max Profit: Max Loss: BEP: 314 Stock Specific Activity Long Accumulation NATIONALUM EQUITAS SRTRANSFIN MANAPPURAM - Short Closure RDEL MRPL SREINFRA CHENNPETRO JUSTDIAL Long Closure FORTIS DCBBANK INFRATEL CUMMINSIND BOSCHLTD Short Accumulation INDIANB UPL OIL CHOLAFIN - Securities in Ban period JSWENERGY For more Market updates & Stock Research, visit 3

4 x x Derivative Insights Open Interest Change in Open Interest Top Traded Stock Options Symbol Strike Price Price Volume (Contracts) RELIANCE INFY MARUTI SBIN Symbol Strike Price Price Volume (Contracts) RELIANCE INFY LUPIN SBIN Top OI change in Stock Options Symbol Strike Price Price Change in OI SUZLON JPASSOCIAT GMRINFRA ADANIPOWER Symbol Strike Price Price Change in OI GMRINFRA SUZLON JPASSOCIAT ICICIBANK Stock Option Recommendations Symbol Strike Price Option Type Entry Stop Loss Target IV Change in OI OI IDEA 92.5 CE JUSTDIAL 400 CE JINDALSTEL 140 CE LUPIN 960 PE ABV For more Market updates & Stock Research, visit 4

5 4 Pivot Table of Top Traded Nifty Stocks Symbol CMP S2 S1 PIVOT R1 R2 SENSEX NIFTY NIFTYBANK NTPC RELIANCE 1, HDFC 1, INFY HINDALCO IOC VEDL YESBANK 1, MARUTI 7, ICICIBANK TATASTEEL SBIN HDFCBANK 1, ITC BPCL * Pivot Levels for the stocks mentioned above are top 15 traded stocks of Nifty 50 of previous day. For other stocks, Visit: Corporate Actions Company Series Ex-Date Record Date Purpose RATNAMANI EQ 04-Sep-17 - AGM/Dividend - Rs 5.50/- Per Share MUKTAARTS EQ 04-Sep-17 - Annual General Meeting SINTEX EQ 04-Sep-17 - AGM/Dividend - Rs 0.25/- Per Share ADVENZYMES EQ 04-Sep-17 - AGM/Dividend - Rs 0.40/- Per Share CASTROLIND EQ 05-Sep Sep-17 Dividend - Rs 4.50/- Per Share Results GRAVITA For more Market updates & Stock Research, visit 5

6 4 Page 1: FII= Foreign institutional investor, DII= Domestic institutional investor. Page 3: Fut=Futures; COC=Cost of Carry; PCR = Ratio; Vol = Volume; OI = Open Interest; VIX = Volatility Index Page 5: Pivot Point: Intra-day trading tool that applies stop loss based on NSE prices. Pivot Point: This is a trigger point for intra-day buy/sell based on the price range of the previous day, based on NSE prices. R1 (Resistance 1): First resistance over pivot point; R2 (Resistance 2): Second resistance over R1. S1 (Support 1): First support below pivot point; S2 (Support 2): Second support below S1. As per the tool, the trader should take a BUY position just above the pivot point; the stop loss should be kept at the pivot point and the first target would be R1. If R1 is crossed, then R2 becomes the next target with the stop loss at R1. Similarly, if the price falls below the pivot point, the trader should SELL, keeping the pivot point as the stop loss and the first target as S1. If S1 is crossed, then S2 becomes the next target with the stop loss at S1.EMA: Exponential moving average; SA: Simple average. KARVY RESEARCH DESK STOCK BROKING JK Jain Head Research Toll-Free: QUERIES & FEEDBACK ID: service@karvy.com Karvy Stock Broking Limited Plot No.31, 6th Floor, Karvy Millennium Towers, Financial District, Nanakramguda, Hyderabad, , India Tel: ; Fax: For More updates & Stock Research, visit Analyst Certification The following analyst(s), JK Jain, who is (are) primarily responsible for this report and whose name(s) is/ are mentioned therein, certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report. Disclaimer Karvy Stock Broking Limited [KSBL] is a SEBI (Registration No INH ).registered Stock Broker, Depository Participant, Portfolio Manager and also distributes financial products. The subsidiaries and group companies including associates of KSBL provide services as Registrars and Share Transfer Agents, Commodity Broker, Currency and forex broker, merchant banker and underwriter, Investment Advisory services, insurance repository services, financial consultancy and advisory services, realty services, data management, data analytics, market research, solar power, film distribution and production profiling and related services. Therefore associates of KSBL are likely to have business relations with most of the companies whose securities are traded on the exchange platform. The information and views presented in this report are prepared by Karvy Stock Broking Limited and are subject to change without any notice. This report is based on information obtained from public sources, the respective corporate under coverage and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of KSBL. While we would endeavour to update the information herein on a reasonable basis, KSBL is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent KSBL from doing so. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. KSBL will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither KSBL nor any associate companies of KSBL accepts any liability arising from the use of information and views mentioned in this report. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Past performance is not necessarily a guide to future performance. Forward-looking statements are not predictions and may be subject to change without notice. Actual results may differ materially from those set forth in projections. Associates of KSBL might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months. Associates of KSBL might have received compensation from the subject company mentioned in the report during the period preceding twelve months from the date of this report for investment banking or merchant banking or brokerage services from the subject company in the past twelve months or for services rendered as Registrar and Share Transfer Agent, Commodity Broker, Currency and forex broker, merchant banker and underwriter, Investment Advisory services, insurance repository services, consultancy and advisory services, realty services, data processing, profiling and related services or in any other capacity. KSBL encourages independence in research report preparation and strives to minimize conflict in preparation of research report. Compensation of KSBL s Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. KSBL generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. KSBL or its associates collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report. KSBL or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report and have no financial interest in the subject company mentioned in this report. Accordingly, neither KSBL nor Research Analysts have any material conflict of interest at the time of publication of this report. It is confirmed that KSBL and Research Analysts primarily responsible for this report and whose name(s) is/ are mentioned therein of this report have not received any compensation from the subject company mentioned in the report in the preceding twelve months. It is confirmed that JK Jain, Research Analyst did not serve as an officer, director or employee of the companies mentioned in the report. KSBL may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Neither the Research Analysts nor KSBL have been engaged in market making activity for the companies mentioned in the report. We submit that no material disciplinary action has been taken on KSBL by any Regulatory Authority impacting Equity Research Analyst activities. For more Market updates & Stock Research, visit 6