outlook-2020-03-23

 

NIFTY:

A relief rally in NIFTY continued for the second day and index closed higher today for the first time in this week. Yesterday NIFTY saw a bounce back from the lows at 7832.55. That momentum continued today but with a stronger pace as prices have witnessed a remarkable rally of more than 700 points today only. NIFTY closed at 8745.50 up by 482 points or 5.83%.

The rally today was lead by the major stock in NIFTY 50, RELIANCE, HDFC, HINDUNILVR, TCS and INFY.

As explained yesterday’s “Bear markets do not end suddenly. They end with a lots of base building.” First sign of a base building process will emerge when prices make a higher swing low with a stable volatile enviourment.  In Friday’s trading, we have observed few interesting notes. These are

Today was a bullish candle where open was near the low and close was near the high.

A stable intraday move with bullish bias

Not a big gap

Fall in Implied Volatility of options

Fall in INDIA VIX

All these factors are indicating a stable market is ahead. However it is still very early to form this conclusion. We need to wait for more confirmation on this.

TECHNICAL PICKS

COMPANY  CMP B/S RATIONALE
     BERGERPAINT 450.65 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  430 and for the target of  490.
      HAVELLS 537.80 SELL The immediate trend of the stock is weak . The stock can be sold  at CMP with a stop loss of  560 and for  the target of  500.

 

DERIVATIVE PICKS

STOCK OPTION Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
ZEEL 140 PE BUY 10.35 CMP 4 18-22 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI   Stocks Price Price% OI % OI
TORNTPHARM.Mar 26 1899.9 6.89 13.26 307500 HDFCBANK.Mar 26 877.75 -1.39 13.29 28102500
JUBLFOOD.Mar 26 1286.35 9.37 11.68 3050500 PEL.Mar 26 685.5 -11.71 11.41 2785635
ESCORTS.Mar 26 676.65 18.47 8.08 2899600 INFO EDGE (I) LTD.Mar 1969.35 -0.44 4.21 550000
TATACHEM.Mar 26 230.3 3.07 6.63 1231200 INDUSINDBK.Mar 26 441.45 -0.11 3.54 15978000
INFRATEL.Mar 26 149.4 20.39 6.29 9064000 PAGEIND.Mar 26 18191 -0.23 3.28 154475
                                                                        Short Covering                                                                              Long unwinding
Sector Price Price% OI% OI Sector Price Price% OI% OI
MANAPPURAM.Mar 26 97.25 16.12 -33.27 9096000 UJJIVAN.Mar 26 184.7 -0.24 -18.4 2352800
NIFTYIT.Mar 26 12370 8.8 -31.82 2250 ADANIPORTS.Mar 26 256.95 -0.68 -18.06 30125000
ADANIENT.Mar 26 136.05 7.08 -29.18 16036000 RBLBANK.Mar 26 170.8 -2.04 -10.13 14062500
ADANIPOWER.Mar 26 29.1 7.38 -25.57 40730000 ASHOKLEY.Mar 26 44.15 -7.83 -7.43 46416000
CADILAHC.Mar 26 282.75 17.32 -20.74 2783000 YESBANK.Mar 26 44.45 -12.24 -1.97 85571200

 

Top Delivery Percentage

Stocks Price %Chg Total Qty Delivery Del % % Change
Sectors Price Change % Quantity
CUMMINS INDIA LIMITED 422.15 0.49 1706018 1554039 74.15   Nifty IT 12363.4 9.02 3479263
Page Industries Limited 18060 -0.53 79927 45914 60.47 Nifty Energy 10910.1 8.63 5915344
ITC Ltd. 175.5 8.43 61997991 53088317 59.15 Nifty FMCG 25931.6 8.18 1370585
CHOLAMANDALAM 193.25 5.17 3550622 2521973 56.75 Nifty Metal 1692.85 7.54 3.43E+08
HDFC Ltd. 1753.95 8.43 11377225 6175276 54.87 Nifty 50 8745.45 5.83 66399917
Hindustan Unilever Ltd 2051.7 11.61 4252263 2761909 54.21   Nifty Pharma 6951.9 4.45 82983375
Larsen & Toubro Limited 864.7 2.56 6130498 3830277 52.82   Nifty Media 1128.95 3.87 5.12E+08
Info Edge (India) Limite 1951.6 -1.33 395592 213660 52.12   Nifty Auto 5370.15 3.66 1.08E+08
Infosys Limited 585.2 7.27 21356183 8412882 50.73   Nifty Bank 20317.6 1.17 28251493
Petronet LNG Limited 206.8 4.63 10898622 3071333 50.52   INDIA VIX 67.1 -7.06 82377283

 

Upcoming Economic Data

   Domestic                                                                                                                                                  International
•INR:  Bank Loan Growth on 27th March ,2020

•INR:  FX Reserves, USD  on 27th March, 2020

•USA: New Home Sales (Feb) on 24th  March,2020

•USA: Crude Oil Inventories  on 25th  March,2020

 

News Updates

•As the number of people getting infected by the novel coronavirus rises in India, the government has issued guidelines for testing by private labs in the country, set price caps for such tests, and roped in national laboratories. All private laboratories that have National Accreditation Board for Testing and Calibration Laboratories accreditation for real-time polymerase chain reaction assay for RNA virus will only be allowed to conduct Covid-19 tests.

•Ashok Leyland Ltd. will acquire a smaller stake in a non-bank lending unit, after concerns raised by investors about the transaction sent the commercial vehicle maker’s shares plunging. The company’s board of directors, at a meeting held on March 21, said they would acquire 6.99 percent stake in Hinduja Leyland Finance Ltd., from 19 percent previously after considering feedback from minority shareholders.

•Two of India’s largest consumer goods makers have decided to either reduce prices or not pass on higher raw material costs on some personal hygiene products amid the worldwide Covid-19 outbreak. Hindustan Unilever Ltd. has cut prices of Lifebuoy sanitisers, hand wash and Domex Floor Cleaner by 15 percent

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

 

BOARD MEETINGS

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
AGARIND General 23-Mar-20 PHOTOQUP General 23-Mar-20
ASHOKA General 23-Mar-20 RRMETAL General 23-Mar-20
GCMCOMM General 23-Mar-20 SCAPDVR General 23-Mar-20
INDAGIV General 23-Mar-20 STAMPEDE General 23-Mar-20
ITI Preferential Issue of shares 23-Mar-20 TTFL General 23-Mar-20
KFL General 23-Mar-20 AMBITION General 24-Mar-20
KHOOBSURAT General 23-Mar-20 AUTOINT General 24-Mar-20
MPFSL General 23-Mar-20 JAYIND General 24-Mar-20

 

Corporate Action

Company Name Ex-Date Purpose Company Name Ex-Date Purpose
ADANIENT 23-Mar-20 Interim Dividend – Rs. – 1.00 CYIENT 23-Mar-20 Interim Dividend – Rs. – 9.00
ALICON 23-Mar-20 Interim Dividend – Rs. – 1.25 FCL 23-Mar-20 Interim Dividend – Rs. – 0.05
ALLCARGO 23-Mar-20 Interim Dividend – Rs. – 3.00 GALAXYSURF 23-Mar-20 Interim Dividend – Rs. – 8.00
AMRITCORP 23-Mar-20 Interim Dividend – Rs. – 2.50 GALAXYSURF 23-Mar-20 Special Dividend – Rs. – 6.00
BENGALASM 23-Mar-20 Interim Dividend – Rs. – 15.00 GRAPHITE 23-Mar-20 Interim Dividend – Rs. – 2.00
BPCL 23-Mar-20 Interim Dividend – Rs. – 16.50 HAL 23-Mar-20 Interim Dividend – Rs. – 33.25
BRIGADE 23-Mar-20 Interim Dividend – Rs. – 1.00 IBVENTURES 23-Mar-20 Interim Dividend – Rs. – 2.25
CADILAHC 23-Mar-20 Interim Dividend – Rs. – 3.50 IOC 23-Mar-20 Interim Dividend – Rs. – 4.25

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