Outlook-2019-12-10

NIFTY:

The NIFTY had good news for bulls, and also had good news for beers. Or in other words, we could say that the news is a glass half full for the bulls, and a glass half empty for beers. The good news is that support held after Friday’s decline. The NIFTY found repeated support around 11883, a level where minor support existed. Good news for beers is that the NIFTY failed to cross an earlier threshold of 12000. There was an intraday rally which fizzled out as the NIFTY lost all its intraday gains and closed where it opened.

The Intermediate viewpoint: we feel that correction has started and this correction, has probably more space on the downside. A strong support exists at 11800, which should be the logical target for any decline. The next level of support is 11700, giving us a zone of support between 11700 and 11800. This zone of support is the first logical target for the correction that we feel is now starting. We will ofcourse change our view, as markets progress. Today, this bearish view is cancelled on any rally above 12050. These levels will change as time goes by.

VIEW:

Looking for buying for a move towards 12000.

TECHNICAL PICKS

COMPANY  CMP B/S RATIONALE
     BPCL 499.65 BUY The stock has given the breakout with volume  on the intraday as well as on the daily chart. The stock can be bought at CMP  with a stop loss of  491 and for the target of  514-520.
     CIPLA 447.90 SELL The immediate trend of the stock is weak . The stock can be sell with a stop loss of  455.50 and for  the target of  430.

DERIVATIVE PICKS

STOCK OPTION Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
RELIANCE 1580 CE BUY 32.10 CMP 23 48 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
CENTURYTEX.Dec 26 498.1 1.98 11.45 4053000 UJJIVAN.Dec 26 347.95 -1.64 16.72 8633600
TATAELXSI.Dec 26 861.65 0.93 11.14 1227600 CIPLA.Dec 26 451.9 -1.01 10.19 13955000
DISHTV.Dec 26 13.4 6.77 9.1 115864000 JUSTDIAL.Dec 26 566 -1.01 6.41 2255400
LICHSGFIN.Dec 26 432.4 1.23 5.72 9765800 NMDC.Dec 26 110.1 -0.41 6.35 17688000
L&TFH.Dec 26 114 1.47 5.69 24975000 SBIN.Dec 26 318.45 -0.84 6.06 100293000
                                                                        Short Covering                                                                            Long unwinding
Sector Price Price% OI% OI Sector Price Price% OI% OI
SAIL.Dec 26 39.5 2.86 -4.73 74364000 BANKNIFTY.Dec 26 31392.65 -0.08 -6.56 1389420
TORNTPHARM.Dec 26 1874.6 1.06 -4.2 296500 IDEA.Dec 26 6.5 -6.47 -5.33 466200000
MINDTREE.Dec 26 748.4 0.69 -2.23 895800 CONCOR.Dec 26 560.1 -0.95 -2.07 7455510
ADANIPORTS.Dec 26 373.65 1.84 -2.19 33095000 NCC.Dec 26 52 -0.67 -0.7 48888000
CUMMINSIND.Dec 26 530.8 1.67 -2.18 1635200 KOTAKBANK.Dec 26 1665.9 -0.42 -0.61 8536800

Top Delivery Percentage

Stocks Price %Chg Total Qty Delivery Del % % Change
Sectors Price Change % Quantity
MARICO LIMITED 340.75 -0.1 1462923 2053980 71.17 INDIA VIX 14.6 7.02 83610
HDFC BANK LTD. 1242.95 -0.25 4132675 4626402 67.17 Nifty Auto 7863.3 0.73 83613
CHOLAMANDALAM 306.2 1.91 1860736 816823 66.64 Nifty Metal 2551.7 0.63 83613
Cipla Ltd 447.9 -1.66 3761784 1602559 63.59 Nifty 50 11937.5 0.13 83610
Petronet LNG Limited 272.65 1.72 1934059 960233 61.85 Nifty Pharma 7960.35 0.04 83613
HDFC Ltd. 2311.4 2.06 3361967 2099384 61.03 Nifty Bank 31316.65 -0.08 83613
Power Grid Corporation o 187.95 0.72 3071128 1795941 59.26 Nifty FMCG 30375 -0.53 83613
NESTLEIND 14232.5 0.47 97712 33634 57.51 Nifty Media 1775.8 -0.65 83613
ITC Ltd. 241.45 -0.78 6722758 5938137 57.24 Nifty IT 15157.15 -0.87 83613
Tata Chemicals Ltd. 662.6 -0.19 346725 237766 57.11 Nifty Realty 280.45 -1.04 83613

Upcoming Economic Data

   Domestic                                                                                                                                                  International
•INR:  CPI (YoY)  (Nov)  on 12th December 2019

•INR:  Industrial Production (YoY)  (Oct)  on 12th December 2019

•USA: Core CPI  (MoM)  ( Nov)  on 11th  December 2019

•USA: Crude Oil Inventories   on 11th December 2019

NEWS UPDATES

•Fraud-hit CG Power and Industrial Solutions has sought shareholders’ nod to borrow up to Rs 5,000 crore to meet working capital and other business needs as it looks to spring back from the worst crisis in its history. The company is also seeking external advice on mode and sources of fundraising. Hence, approval of the members (or shareholders) is sought for availing borrowings up to an amount of Rs 5,000 crore for meeting the immediate funding requirements of the company.

•Yes Bank Ltd. is likely to reject an offer that made up more than half of its planned $2 billion capital raising, and is talking to institutional investors about making up the shortfall, according to a person familiar with the matter. The bank would prefer to have institutions rather than individual investors involved in its fund raising, said the person.

•State Bank of India on Monday announced the reduction in its marginal cost of fund based lending rate by 10 basis points across all one-year products. This is the eighth consecutive cut in MCLR by the lender this fiscal. The new one-year MCLR has been cut to 7.90 percent from 8 percent.

•Shapoorji Pallonji group firm Sterling and Wilson Solar Ltd (SWSL) on Monday said the company has begun construction of a 200 MW solar project in Australia. The turnkey solar EPC (engineering procurement and construction) project — Wellington Solar Farm — is being developed by Light source BP, an independent global leader in the funding.

Source ; Moneycontrol, Business Today, Livemint, Economics times

BOARD MEETINGS

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
ASHIKACR Quarterly Results 10-Dec-19 MAAJTL General 11-Dec-19
INFRATEL Interim Dividend 10-Dec-19 MANVIJAY General 11-Dec-19
LATIMMETAL Amalgamation;General 10-Dec-19 MOLDTEK General 11-Dec-19
SALEM Quarterly Results 10-Dec-19 PANTH General 11-Dec-19
TFL General;Quarterly Results 10-Dec-19 QGO General 11-Dec-19
VGCL Quarterly Results 10-Dec-19 RSWM Right Issue of Equity Shares;General 11-Dec-19
VIAANINDUS General 10-Dec-19 SHYAM Quarterly Results 11-Dec-19
ALFREDHE Quarterly Results 11-Dec-19 TCMLMTD General 11-Dec-19
ALMONDZ Amalgamation;Quarterly Results 11-Dec-19 ADHARSHILA Quarterly Results 12-Dec-19
ENBETRD Quarterly Results 11-Dec-19 ADIEXRE Quarterly Results 12-Dec-19
FINKURVE Quarterly Results 11-Dec-19 ARMANFIN General;Quarterly Results 12-Dec-19
KOTHARIFIN Voluntary Delisting of Shares 11-Dec-19 BHAGYFN Quarterly Results 12-Dec-19
ASHIKACR Quarterly Results 10-Dec-19 MAAJTL General 11-Dec-19

Corporate Action

Company Name Ex-Date Purpose Company Name Ex-Date Purpose
EVANS 10-Dec-19 Interim Dividend – Rs. – 1.00 BOROSIL 18-Dec-19 Dividend – Rs. – 0.65
NESTLEIND 10-Dec-19 Interim Dividend – Rs. – 55.00 IBVENTURES 18-Dec-19 Buy Back of Shares
PIRPHYTO 11-Dec-19 Amalgamation BALMLAWRIE 26-Dec-19 Bonus issue 1:2
TRIDENT 13-Dec-19 Stock  Split From Rs.10/- to Rs.1/-

 DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


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