Outlook

NIFTY:

The NIFTY had a good day today, opening with an upside gap, then maintaining that gap and closing with significant gains at 8597, up 316 points, almost 3.8%. With these gains, the NIFTY has erased yesterday’s losses. Our markets were helped by a worldwide rally yesterday and today morning.

New up move or dead cat bounce?

After a protracted downtrend, when the markets bounce up, there are always two possibilities:

One, it is the start of a new up move and the downtrend is done and over with, and

Two, this is a dead cat bounce, which is a bear market rally, likely to fizzle out soon.

It is never easy to identify the rally while it is going on. Only after the event can we understand if this was the real thing or a dead cat bounce. We expect the NIFTY to remain in a wide range for some days.

Much as we would like the NIFTY to begin its rally again, we would normally expect the market to remain inside a range for many weeks or months as they begin a base building process. This is what the history of bear market has taught us. Of course, this time it can be different . We hope it is different, but we have to go by history.

TECHNICAL PICKS

COMPANY  CMP B/S RATIONALE
     TATACONSUM 294.85 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  288 and for the target of  308.
     ADANIPOTRZ 251.30 SELL The immediate trend of the stock is weak . The stock can be sold  at CMP with a stop loss of  260 and for  the target of  235.

DERIVATIVE PICKS

STOCK OPTION Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
RELIANCE 1120 CE BUY 90 CMP 70 130 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
GODREJPROP.Apr 30 608.65 3.48 162.96 46150 CUMMINSIND.Apr 30 331.45 30.65 -0.6 729000
RAMCOCEM.Apr 30 507.55 1.8 27.45 531200 RBLBANK.Apr 30 134.95 27.76 -10.48 10113000
TATACHEM.Apr 30 224.1 0.63 26.24 848700 UJJIVAN.Apr 30 146.05 25.32 -4.51 1859800
TORNTPHARM.Apr 30 1971.4 0.87 21.46 240500 MFSL.Apr 30 387.05 22.13 -3.48 1313000
JINDALSTEL.Apr 30 83.05 2.85 17.11 7120000 CHOLAFIN.Apr 30 153.2 20.62 -4.87 3670000
                                                                        Short Covering                                                                              Long unwinding
Sector Price Price% OI% OI Sector Price Price% OI% OI
NIFTYIT.Apr 30 12839 3.81 -8.57 1600 BALKRISIND.Apr 30 794.2 -1.67 -6.5 529600
VOLTAS.Apr 30 478.15 2.41 -8.41 1328000 CIPLA.Apr 30 424.9 -1.11 -3.44 8879150
SAIL.Apr 30 23.05 12.17 -7.52 29327600 INFO EDGE (I) LTD.Apr 30 2037.95 -5.74 -1.16 598000
APOLLOHOSP.Apr 30 1135.9 2.83 -5.81 738000 MANAPPURAM.Apr 30 95.15 -0.05 -0.47 8892000
SRTRANSFIN.Apr 30 656.8 7.21 -5.52 2290200

Top Delivery Percentage

Stocks Price %Chg Total Qty Delivery Del % % Change
Sectors Price Change % Quantity
MRF Ltd. 58164.45 6.97 25755 29640 75.8 Nifty FMCG 27319.2 5.76 79158
CUMMINS INDIA LIMITED 326.7 -1.48 1344531 843973 61.87 Nifty Metal 1585.9 5.19 79155
TATA CONSULTANCY SERV LT 1826.1 2.68 3927593 5214886 61.25 Nifty Pharma 7176.5 4.07 79158
GODREJPROP 603.25 2.06 342078 245497 60.59 Nifty 50 8597.75 3.82 79158
HDFC LIFE INSURANCE COMP 441.35 6.99 5414966 4280321 60.23 Nifty IT 12763.65 3.61 79158
TATA CONSUMER PRODUCTS 294.85 4.78 3270034 1706064 58.79 Nifty Realty 175.5 2.27 79158
Infosys Limited 641.5 2.36 15175528 8560352 58.53 Nifty Bank 19144 1.93 79158
Power Grid Corporation o 159.1 2.22 13971678 7293551 57.98 Nifty Media 1039.95 1.77 79155
HCL Technologies Ltd. 436.4 4.15 6381824 3625106 57.31 Nifty Auto 4731.3 1.33 79155
HDFC Ltd. 1633.1 4.77 10444821 4842592 55.85 INDIA VIX 64.41 -10.41 79158

Upcoming Economic Data

   Domestic                                                                                                                                                  International
•INR:  Nikkei Markit Manufacturing PMI (Mar) on 2nd April ,2020

•INR:  FX Reserves, USD on 3rd April, 2020

•USA: ISM Manufacturing PMI (Mar) on 1st April, 2020

•USA: Crude Oil Inventories on 1st April, 2020

News Updates

•Fast moving consumer goods (FMCG) companies said it will take another 7-10 days for supplies to resume with production running at critical low at 15-20% and manufacturing at third-party locations taking a worse hit due to unavailability of labour. The companies said the labour shortage is creating hassles in movement of goods from warehouses to stores, even though the movement of trucks has improved.

•India’s fiscal deficit for the April 2019 to February 2020 period touched 135.2 percent of the revised target of 3.8 percent of GDP, government data showed. The gap between the government’s revenue and expenditure, during the same period, in 2018-19 was 134 percent of the previous year’s revised budget estimate. The government’s revenues, especially tax collections and divestment receipts, have been sluggish in the current fiscal.

•The government on Tuesday extended the deadline for bidding to buy its entire 52.98 per cent stake in the country’s second-biggest oil refiner, Bharat Petroleum Corp Ltd (BPCL), by over a month to June 13. The government had earlier this month invited expression of interest, or bids showing interest in buying its stake, by May 2.

•Oil and Natural Gas Corp , Indian Oil Corp (IOC) and other public sector oil companies have contributed over Rs 1,000 crore to the Prime Minister CARES Fund to help in the fight.

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

BOARD MEETINGS

Company Name5 Purpose Ex-Date Company Name Purpose Ex-Date
HINDUNILVR Scheme of Arrangement 1-Apr-20 HDFCBANK Audited Results;Final Dividend 18-Apr-20
INDAGIV General 2-Apr-20 PERSISTENT Audited Results;Final Dividend 25-Apr-20
DHANVARSHA General 3-Apr-20 TRIPR General 25-Apr-20
APLAB General 8-Apr-20 DHINDIA General 2-May-20
FRANKLININD General;Scheme of Arrangement 15-Apr-20 PRSMJOHNSN Audited Results 12-May-20
KANSAFB General;Reduction of Capital 15-Apr-20 DRREDDY Audited Results;Final Dividend 13-May-20
QUANTBUILD General 15-Apr-20 KENNAMET Quarterly Results 13-May-20
RTEXPO General 17-Apr-20 RANEENGINE Audited Results 18-May-20

Corporate Action

Company Name Ex-Date Purpose Company Name Ex-Date Purpose
AMBUJACEM 3-Apr-20 Final Dividend – Rs. – 1.50 KSB 23-Apr-20 Dividend – Rs. – 8.00
IRCON 3-Apr-20 Stock  Split From Rs.10/- to Rs.2/- TAHL 23-Apr-20 Bonus issue 1:4
SADHNANIQ 3-Apr-20 Stock  Split From Rs.5/- to Rs.1/- MADHAVIPL 27-Apr-20 Stock  Split From Rs.10/- to Rs.1/-
CORALFINAC 16-Apr-20 Buy Back of Shares ABB 5-May-20 Dividend – Rs. – 4.80
CASTROLIND 22-Apr-20 Final Dividend – Rs. – 3.00 NESTLEIND 14-May-20 Final Dividend – Rs. – 61.00
VESUVIUS 22-Apr-20 Final Dividend – Rs. – 8.7400 DICIND 10-Jun-20 Final Dividend – Rs. – 4.50

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


For Daily Share Market Updates, Daily debt market review, Market Research Analysis reports, Weekly Techno-Funda Report, Fundamental Analysis Report, Monthly Recommended stock Picks, Equity Trading Tips, Upcoming IPO/NFO/Bonds/Ncd’s updates & other related information Subscribe our research plan