NIFTY:
When will bear market end?
Markets fell more than 4000 points from their lifetime highs. If we take today’s lows, then the NIFTY has dropped 4600 points from its lifetime high to today’s lows, and almost 35% of its total value gone in just a month.
A very fair question comes to our mind: when will this carnage end?
With a lot of regrets, we have to say: we do not know when this decline will come to an end. Support levels for the NIFTY have no meaning at all.
in an atmosphere of fear and panic, support levels are hardly going to be respected. Bear markets do not end suddenly. They end with a lot of base-building. It gives us enough time to start getting a sense that a market low is coming. As of now, we have new lows everyday, and there is no base-building. Options volatility is falling regularly. Today is the third day when we observe a fall in option volatility and does not mean that the volatility is falling minute by minute. It does mean that overall we are getting a slowing of implied volatility. The only sign we have that markets are likely to go into a period of stability sooner.
TECHNICAL PICKS
| COMPANY | CMP | B/S | RATIONALE |
| SBICARD | 692.05 | 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 672 and for the target of 725-760. |
| JUSTDIAL | 316.55 | SELL | The immediate trend of the stock is weak . The stock can be sold at CMP with a stop loss of 346 and for the target of 280. |
DERIVATIVE PICKS
| STOCK OPTION | Strike Price | Buy/Sell | CMP | Initiation | Stop Loss | Target | Remarks |
| ITC | 160 CE | BUY | 9.50 | CMP | 4 | 22 | OI Increase |
| Long Buildup | Short Buildup | |||||||||
| Stocks | Price | Price% | OI % | OI | Stocks | Price | Price% | OI % | OI | |
| KOTAKBANK.Mar 26 | 1196.65 | 1.92 | 8.74 | 6782800 | TATAPOWER.Mar 26 | 34.05 | -3.27 | 22.24 | 60192000 | |
| BHARTIARTL.Mar 26 | 442.95 | 4.26 | 7.69 | 50049189 | TATASTEEL.Mar 26 | 267.15 | -4.2 | 20.67 | 19471500 | |
| INFY.Mar 26 | 550 | 2.77 | 6.76 | 31418400 | M&M.Mar 26 | 316.85 | -8.62 | 18.98 | 13027000 | |
| ITC.Mar 26 | 159.85 | 6.64 | 6.64 | 1.07E+08 | FEDERALBNK.Mar 26 | 51.8 | -3.9 | 18.51 | 42182000 | |
| BAJAJ-AUTO.Mar 26 | 2185.95 | 0.87 | 6.38 | 1838750 | BHARATFORG.Mar 26 | 306.05 | -12.13 | 17.98 | 7131800 | |
| Short Covering | Long unwinding | |||||||||
| Sector | Price | Price% | OI% | OI | Sector | Price | Price% | OI% | OI | |
| EXIDEIND.Mar 26 | 140 | 5.38 | -19.02 | 4680600 | NIITTECH.Mar 26 | 982.3 | -11.21 | -13.86 | 517500 | |
| JSWSTEEL.Mar 26 | 165 | 0.76 | -11 | 32342600 | CUMMINSIND.Mar 26 | 420.45 | -5.08 | -12.98 | 1001700 | |
| PNB.Mar 26 | 36.95 | 1.79 | -9.4 | 67819300 | SUNPHARMA.Mar 26 | 362.45 | -0.06 | -11.69 | 50656250 | |
| TVSMOTOR.Mar 26 | 364.65 | 1.03 | -4.34 | 3924450 | VOLTAS.Mar 26 | 543.05 | -4.8 | -10.68 | 1748000 | |
| LUPIN.Mar 26 | 637.5 | 3.73 | -3.77 | 4860100 | GRASIM.Mar 26 | 490.05 | -6.81 | -10.12 | 21765750 | |
Top Delivery Percentage
| Stocks | Price | %Chg | Total Qty | Delivery | Del % | % Change | ||||
| Sectors | Price | Change % | Quantity | |||||||
| Godrej Cons Products Ltd | 523.75 | 2.89 | 4342336 | 1904363 | 68.76 | INDIA VIX | 72.2 | 12.88 | 86235 | |
| TATA CONSULTANCY SERV LT | 1658 | -2.26 | 5713269 | 4974137 | 63.41 | Nifty Pharma | 6655.5 | -0.75 | 86235 | |
| Infosys Limited | 554.95 | -4.84 | 16060126 | 11600859 | 60.61 | Nifty FMCG | 23970.75 | -0.89 | 86235 | |
| NTPC Limited | 88.1 | -2.97 | 21246111 | 20956877 | 60.48 | Nifty Bank | 20083.5 | -2.41 | 86235 | |
| TECH MAHINDRA LIMITED | 595.45 | -1.32 | 3333751 | 3924913 | 60.39 | Nifty 50 | 8263.45 | -2.42 | 86235 | |
| HDFC Ltd. | 1755.8 | -4.67 | 6682574 | 6416705 | 60.12 | Nifty IT | 11340 | -3.51 | 86235 | |
| HDFC BANK LTD. | 975.1 | -2.44 | 21338641 | 9357160 | 58.51 | Nifty Energy | 10042.95 | -4.05 | 86235 | |
| Kotak Mahindra Bank Limi | 1322.7 | -4.41 | 4821135 | 3796805 | 57.7 | Nifty Media | 1086.9 | -4.74 | 86235 | |
| Power Grid Corporation o | 162 | 2.56 | 19946876 | 12871551 | 57.68 | Nifty Metal | 1574.2 | -5.41 | 86235 | |
| BRITANNIA IND LTD. | 2686 | -0.85 | 567266 | 451900 | 57.13 | Nifty Auto | 5180.5 | -6.09 | 86235 | |
Upcoming Economic Data
| Domestic International | |
| •INR: FX Reserves, USD on 20th March ,2020 | •USA: Existing Home Sales (Feb) on 20th March,2020
•USA: New Home Sales (Feb) on 24th March,2020 |
News Updates
| •India’s rupee weakened past 75 to a dollar to a new low as outflows from the nation’s stocks and bonds accelerated amid a global rout in risk assets. The rupee retreated 1 percent to 75.0112 to go past the key psychological 75 level for the first time. Traders cited state-run banks selling dollars in a bid to ease the currency’s drop.
•ITC Ltd. said it will offer higher dividend payouts for the ongoing financial year compared to the previous three fiscals. India’s largest cigarette manufacturer, in a statement on its website, said its dividend payout policy from financial year ending March 2020 over the next few fiscal years is expected to be 80-85 percent of its net profit—higher than the nearly 69 percent average over last three years. •The Reserve Bank of India has extended a Rs 60,000-crore credit line to Yes Bank Ltd. for meeting obligations to depositors, sources said today. This is in line with the assurance given by RBI Governor Shaktikanta Das on Monday that the regulator is ready to offer liquidity to Yes Bank after lifting of moratorium. •IndiGo CEO Ronojoy Dutta announced on Thursday that the airline was instituting pay cuts for senior employees and he would himself take the highest cut of 25 per cent amid the novel coronavirus pandemic that has hit the aviation industry hard. Source: Economic Times, Moneycontrol ,Business Today, Business Standard, Bloomberg Quint |
BOARD MEETINGS
| Company Name | Purpose | Ex-Date | Company Name | Purpose | Ex-Date |
| ADITRI | General | 20-Mar-20 | PRIMAPLA | Interim Dividend | 20-Mar-20 |
| ENVAIREL | General | 20-Mar-20 | ASIANTNE | General | 21-Mar-20 |
| ESCORTS | Preferential Issue;Reduction of Capital | 20-Mar-20 | INANI | General | 21-Mar-20 |
| JINAAM | General | 20-Mar-20 | INDINFO | General | 21-Mar-20 |
| JYOTIN | General | 20-Mar-20 | MADHUVEER | General | 21-Mar-20 |
| KIRANSY-B | General | 20-Mar-20 | MOTILALOFS | Buy Back of Shares | 21-Mar-20 |
| L&TFH | Interim Dividend | 20-Mar-20 | PROVESTSER | General | 21-Mar-20 |
| MANVIJAY | General | 20-Mar-20 | REGENCY | Issue Of Warrants;Preferential Issue | 21-Mar-20 |
Corporate Action
| Company Name | Ex-Date | Purpose | Company Name | Ex-Date | Purpose |
| ACE | 20-Mar-20 | Interim Dividend – Rs. – 0.50 | THERMAX | 20-Mar-20 | Interim Dividend – Rs. – 7.00 |
| AKSCHEM | 20-Mar-20 | Interim Dividend – Rs. – 3.50 | VISAKAIND | 20-Mar-20 | Interim Dividend – Rs. – 5.00 |
| ALBK | 20-Mar-20 | Amalgamation | ADANIENT | 23-Mar-20 | Interim Dividend – Rs. – 1.00 |
| ANDHRABANK | 20-Mar-20 | Amalgamation | ALICON | 23-Mar-20 | Interim Dividend – Rs. – 1.25 |
| CONTROLPR | 20-Mar-20 | Interim Dividend – Rs. – 4.50 | ALLCARGO | 23-Mar-20 | Interim Dividend – Rs. – 3.00 |
| CORPBANK | 20-Mar-20 | Amalgamation | AMRITCORP | 23-Mar-20 | Interim Dividend – Rs. – 2.50 |
| DATASOFT | 20-Mar-20 | Reduction of Capital | BENGALASM | 23-Mar-20 | Interim Dividend – Rs. – 15.00 |
| GARFIBRES | 20-Mar-20 | Interim Dividend – Rs. – 7.00 | BPCL | 23-Mar-20 | Interim Dividend – Rs. – 16.50 |
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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