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
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