outlook-2020-03-11

 

NIFTY:

The index fell more than 5% on Monday, after having fallen more than 7% in intraday trading; for an index to fall by 5% is a remarkable activity; The NIFTY is now trading at 52 week lows. 52 week highs are bullish signals. In the same way, we have to expect that 52 week lows are bearish.

Monday’s decline started early in the morning before markets opened. After the weekend, US index future were almost 4.5% down. This set up a bearish trade in Asia, with the Nikkei, the Hang Seng, as well as the Australian index down 3 to 5%.

Markets have wisdom of their own. Sometimes, markets do the exact opposite of what common sense suggests. This is why markets are so much fun  to trade in. Brent crude was down 25%. It was trading at 34 USD, which would really be a dream for a crude importer like India. Our economy will greatly benefit from this fall in crude prices, but the market  was influenced by world events and fell.  What should have been an early Holi celebration become a bloodbath.

 

TECHNICAL PICKS

COMPANY  CMP B/S RATIONALE
     M&M 463.20 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  450 and for the target of  480.
      HINDALCO 143.45 SELL The immediate trend of the stock is weak . The stock can be sold  at CMP with a stop loss of  147 and for  the target of  136.

 

DERIVATIVE PICKS

STOCK OPTION Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
WIPRO 215 PE BUY 7.50 CMP 5 12-15 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
IDEA.Mar 26 4.05 20.9 23.56 5.73E+08 HDFCLIFE.Mar 26 519.5 -5.5 32.24 2295900
HINDPETRO.Mar 26 208 4.03 15.29 15596700 MINDTREE.Mar 26 875 -10.16 29.46 1490400
NTPC.Mar 26 102.8 0.49 10.69 73195200 BANKNIFTY.Mar 26 26498.6 -4.62 19.31 1454520
INDIGO.Mar 26 1218 3.58 6.49 3554700 BAJAJ-AUTO.Mar 26 2577.3 -5.79 15.35 2218500
BPCL.Mar 26 419.55 5.05 5.3 26159400 NIFTY.Mar 26 10448.75 -4.49 15.32 20082150
                                                                        Short Covering                                                                              Long unwinding
Sector Price Price% OI% OI Sector Price Price% OI% OI
NTPC.Mar 26 102.45 0.15 -13.65 57100800 RAMCOCEM.Mar 26 706 -3.02 -7.31 821600
YESBANK.Mar 26 18.95 96.37 -10.65 2.13E+08 CHOLAFIN.Mar 26 272.5 -3.08 -5.33 6305000
HINDPETRO.Mar 26 211.05 5.55 -10.46 12112800 NCC.Mar 26 30.25 -8.05 -3.51 37620000
INDIGO.Mar 26 1213.25 3.17 -4.18 3198600 BALKRISIND.Mar 26 1067.9 -2.39 -3.25 1595200
INFRATEL.Mar 26 207.45 3.47 -3.69 9182000 UJJIVAN.Mar 26 298.3 -6.49 -3.12 4596800

 

Top Delivery Percentage

Stocks Price %Chg Total Qty Delivery Del % % Change
Sectors Price Change % Quantity
Lupin Limited 651.15 -1.86 1461377 2552510 73.62 INDIA VIX 30.8 20.12 86889
BANDHAN BANK LIMITED 374.3 -7.32 5349844 4193769 69.19 Nifty FMCG 28056.5 -3.04 86892
HDFC Ltd. 2027.9 -3.87 5051322 3731115 68.91 Nifty Pharma 7756.45 -3.27 86892
TATA CONSUMER PRODUCTS 330.1 -4.18 5653412 2999896 67.11 Nifty Auto 6632.15 -3.81 86892
Power Grid Corporation o 180.95 -5.06 39155287 5258130 65.04 Nifty Bank 26462.6 -4.82 86892
HDFC LIFE INSURANCE COMP 517.65 -5.56 4577812 2246740 64.29 Nifty 50 10451.45 -4.9 86889
Petronet LNG Limited 222.35 -5.44 4603848 2957667 64.28 Nifty IT 14854.9 -5.16 86892
ITC Ltd. 177.2 -2.5 21795899 17007149 63.54 Nifty Energy 12480.3 -6.46 86892
NTPC Limited 102.9 -2.14 47383260 8517653 62.94 Nifty Media 1425.6 -6.65 86892
Reliance Industries Ltd 1114.15 -12.34 40317808 9634796 62.47 Nifty Metal 2020.05 -7.5 86892

 

Upcoming Economic Data

   Domestic                                                                                                                                                  International
•INR:  Industrial Production (YoY) (Jan)  on 12th March ,2020

•INR:  CPI (YoY) (Feb) on 12th March,2020

•USA: Core CPI (MoM) (Feb) on 11th  March,2020

•USA: Crude Oil Inventories on 11th March, 2020

 

News Updates

•The moratorium on Yes Bank Ltd. could be lifted as early as Saturday, according to Reserve Bank of India-appointed administrator Prashant Kumar. “All of us are working towards lifting of moratorium much before the last date that is April 3, and it could be as early as this Saturday,” Kumar told BloombergQuint in an interview.

•Crash in crude oil price and Coronavirus (Covid-19) fears triggered another round of across-the-board selling in the equity market on Monday. Benchmark indices Sensex and Nifty slid over 6 per cent during the intra-day session before trimming some of their losses later. The indices witnessed their biggest one-day fall ever in absolute terms.

•Shares of Vodafone Idea were up 30 per cent at Rs 4.30 on the BSE on Monday, in intra-day trade on back of heavy volumes.Shares gained after the Department of Telecommunications (DoT) indicated that the company was “positive” about India and that it wanted to make a ‘’new and good beginning’’ in the country.

•Tata Consultancy Services (TCS) became the most valued company in terms of market capitalisation on March 9 after a steep fall in crude prices pushed Reliance Industries to the number 2 slot as Indian markets remained firmly in a bear embrace.

 

Source: Economic Times,  Moneycontrol  ,Business Today, Business Standard, Bloomberg Quint

 

BOARD MEETINGS

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
20MICRONS Interim Dividend 11-Mar-20 IEX Interim Dividend 11-Mar-20
AKSCHEM Interim Dividend 11-Mar-20 IOLCP Interim Dividend 11-Mar-20
ARIES Interim Dividend 11-Mar-20 JINDWORLD Interim Dividend 11-Mar-20
ATUL Interim Dividend 11-Mar-20 KABRAEXTRU Interim Dividend 11-Mar-20
AVL General 11-Mar-20 MENNPIS Interim Dividend;General 11-Mar-20
BANCOINDIA Interim Dividend;General 11-Mar-20 MOLDTEK Interim Dividend 11-Mar-20
CONTROLPR Interim Dividend 11-Mar-20 MOLDTKPAC Interim Dividend 11-Mar-20
EICHERMOT Interim Dividend 11-Mar-20 NCLIND Interim Dividend 11-Mar-20
ERIS Interim Dividend 11-Mar-20 NESCO Interim Dividend 11-Mar-20
FIEMIND Interim Dividend 11-Mar-20 ONGC Interim Dividend 11-Mar-20
FUTURAPOLY Quarterly Results 11-Mar-20 ORICON Interim Dividend 11-Mar-20
GEOJITFSL Interim Dividend;General 11-Mar-20 PERSISTENT Interim Dividend 11-Mar-20

 

Corporate Action

Company Name Ex-Date Purpose Company Name Ex-Date Purpose
ADORFO 11-Mar-20 Interim Dividend – Rs. – 1.80 RELAXO 11-Mar-20 Interim Dividend – Rs. – 1.25
ENDURANCE 11-Mar-20 Interim Dividend – Rs. – 5.50 SHANTIGEAR 11-Mar-20 Interim Dividend – Rs. – 2.00
INDIAGLYCO 11-Mar-20 Interim Dividend – Rs. – 6.00 TIINDIA 11-Mar-20 Interim Dividend – Rs. – 3.50
JKCEMENT 11-Mar-20 Interim Dividend – Rs. – 7.50 UFO 11-Mar-20 Interim Dividend – Rs. – 15.00
NH 11-Mar-20 Interim Dividend – Rs. – 1.00 VALIANTORG 11-Mar-20 Interim Dividend – Rs. – 6.00
NIITTECH 11-Mar-20 Buy Back of Shares  MANINFRA 12-Mar-20 Interim Dividend – Rs. – 0.55
RAMCOCEM 11-Mar-20 Interim Dividend – Rs. – 2.50 AXTEL 12-Mar-20 Interim Dividend – Rs. – 2.50
RAMCOIND 11-Mar-20 Interim Dividend – Rs. – 0.50 BNKCAP 12-Mar-20 Interim Dividend – Rs. – 2.50

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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