Religare Weekly : Equity

Transcription

1 (24th v 2017) INDEX RESISTANCE 2 RESISTANCE 1 CMP SUPPORT 1 SUPPORT 2 NIFTY NIFTYBANK NIFTYIT NIFTY OUTLOOK Nifty again regain its momentum in the passing week and comfortably placed above mark, thanks to firm news from global market along with supportive local front. For the coming week, we expect volatility to remain high ahead of macro economic data viz GDP along with scheduled derivatives expiry of vember month contract. Technically, Nifty has been rising gradually and we believe this uptrend to continue ahead as well. However, traders shouldn t go overboard as we re near the record highs and suggest focus on stock specific trading approach. SECTORS TO WATCH SECTOR BANKNIFTY IT FMCG PHARMA OUTLOOK BULLISH BULLISH SIDEWAYS TO BULLISH SIDEWAYS TO BEARISH

2 NIFTY BANKNIFTY OUTLOOK BankNifty moved in line with the benchmark index and posted decent gains in the passing week. Technically, it s well placed on short as well as long term charts and we expect the outperformance to continue ahead also. Traders can consider stocks like HDFCBANK, KTKBANK, SOUTHBANK and KOTAKBANK from the private banking space. NIFTY IT OUTLOOK Nifty IT index is witnessing consolidation phase for past almost one and a half year and formed a strong base around the long term moving averages. Technically, it is trading just near the upper band of this consolidation zone on weekly chart and likely to witness a breakout from the same in near term. We believe this phase is an opportunity to accumulate better placed stocks like TCS, TECHM, MINDTREE and TATAELXSI.

3 NIFTY FMCG OUTLOOK Nifty FMCG Index settled marginally higher after traded sideways in the passing week. Currently, it has been hovering in a narrow range near its all the major moving averages (200/100/50) day EMA on daily chart. Considering its overall chart formation, we expect a strong rebound in near future. One can consider stocks like DABUR, EMAMI, GODREJCP, COLPAL, and HINDUNILVR. NIFTY PHARMA OUTLOOK Though Nifty Pharma Index managed to settled on green last week but failed to cross its major hurdle of 50/100 day EMA on daily chart. Considering its past performance and current chart pattern, we believe it will consolidate further in near future and upside seems capped from the current level. Having said that, we still believe exceptions are always there. So, suggest traders to be selective in this space.

4 DERIVATIVES OUTLOOK Nifty futures volume weighted average price (VWAP) is at and BankNifty futures is at Call writing was seen at Nifty strike and Put writing was seen at Nifty strikes. Maximum positions are at CE and PE. Nifty is expected to be in the range of Media stocks gained the most during the week & Cement stocks lost the most during the week. FIIs were net seller of around Rs 177 Cr in cash segment whereas DIIs were net buyer of around Rs 3965 Cr in cash segment during the week (Thursday to-thursday). VIX is likely to hover around 11.5%-15.5% range for the next week. Strategy - KOTAKBANK added around 3.70% in open interest as long buildup was seen in it with some delivery based buying in previous session. Current chart pattern too indicate fresh surge in price. We suggest buying KOTAKBANK vember Options as per levels mentioned below. Strategy - Buy KOTAKBANK NOV 1020CE BETWEEN 16-17, SL-7, TGT-37. LONG BUILDUP (Weekly change) SYMBOL PRICE % CHANGE IN PRICE OPEN INTEREST % CHANGE IN OI APOLLOHOSP DISHTV NCC SHORT BUILDUP (Weekly change) SYMBOL PRICE % CHANGE IN PRICE OPEN INTEREST % CHANGE IN OI PVR SHREECEM L&TFH

5 Oct-16 v-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Religare Weekly : Equity WPI Inflation (%) BSE Sectoral Indices This Week Pre. Week % Change METAL 14, , HC 14, , FMCG 10, , CD 21, , TECK 6, , AUTO 25, , OIL&GAS 16, , PSU 9, , BANKEX 29, , CG 18, , IT 10, , POWER 2, , REALTY 2, , Weekly News According to the minutes of the US central bank's last policy meeting, it appeared that many Fed Reserve policymakers expect that interest rates will have to be raised in the upcoming Fed Policy meet in December. Biocon announced that the company has KRABEVA, a biosimilar product, in India for the treatment of patients with metastatic colorectal cancer and other types of lung, kidney, cervical, ovarian and brain cancers, in India. Glenmark Pharma announced that it has been granted final approval by US FDA for HAILEYTM Fe 1/20. The medicine is a generic version of Loestrin tablets used to prevent pregnancy. Strides Shasun announced that its wholly owned subsidiary received approval from USFDA for Acetazolamide tablets, used to prevent and reduce symptoms of altitude sickness. Satin Creditcare announced that National Housing Bank has granted certificate of registration to commence business of a Housing Finance to its 100% subsidiary Satin Housing Finance. Mangalam Drugs' Q2FY18 net profit grew by 31.4% YoY to Rs 6.7cr. Revenue during the quarter increased 8.8% YoY to Rs 83.1cr. EBITDA surged 39.8% YoY to Rs 14.8cr. Insecticides India's Q2FY18 net profit increased 28.7% YoY to Rs 36.1cr. Revenue was up 0.7% YoY at Rs 416.5cr. EBITDA rose 17.7% YoY at Rs 55.6cr. Eris Lifesciences announced that it has signed a definitive agreement to buy India branded generics business of Strides Shasun for an aggregate cash consideration of Rs 500cr.

6 Team Members Hitesh Agrawal Ajay Pasari, CFA Ajit Mishra Archana Gude Manoj M Vayalar Mehernosh Khurshed Panthaki Siji A Philip Suhanee Shome hitesh.agrawal@religare.com ajay.pasari@religare.com ajit.mishra@religare.com archana.gude@religare.com manoj.vayalar@religare.com mehernosh.panthaki@religare.com siji.philip@religare.com suhanee.shome@religare.com

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