2020-01-24-Outlook

NIFTY:

We are aware that the economy  is going through a difficult phase. We can be sure that the government is also aware of this. The Union budget, which is a statement of the government purpose , is probably the best location to give direction to the economy. Whatever the budget says, we are confident that the message will be to boost economic growth. The stock market eventually respond favorably to any and all measure that lead to growth and prosperity.

This does not mean that we expect the budget to suddenly start a big move in the market on the upside. Frankly, we have no idea how the market will react to news which we know nothing about.

We do expect a new intermediate term move on the upside, which could eventually take the NIFTY towards 12600 or even higher.

With this context and assumption, we sugggest tradres should buy the NIFTY above 12200 with a stop below 12050. This is a positional trade. The best way to implement this trade, is touse options.

TECHNICAL PICKS

COMPANY  CMP B/S RATIONALE
     BATAINDIA 1800.60 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  1785 and for the target of  1835.
     MCDOWELL-N 582.35 SELL The immediate trend of the stock is weak . The stock can be sold  at CMP with a stop loss of  590 and for  the target of  571.

DERIVATIVE PICKS

STOCK OPTION Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
LT 1340 CE BUY 14.55 CMP 7.50 30 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
NIFTYIT.Jan 30 16403 0.71 16.28 7500 POWERGRID.Jan 30 198.05 -0.53 79.63 45460000
NIITTECH.Jan 30 1900.25 2.68 8.57 959625 NMDC.Jan 30 128.75 -2.13 26.79 28002000
NTPC.Jan 30 113.8 1.43 8.12 74947200 CESC.Jan 30 742.4 -1.09 8.8 1464000
MUTHOOTFIN.Jan 30 763.5 0.34 8 4555500 COALINDIA.Jan 30 191.25 -0.16 3.7 23822100
IDEA.Jan 30 5.95 5.31 7.19 4.63E+08 UBL.Jan 30 1262.05 -0.78 1.91 1271900
                                                                        Short Covering                                                                            Long unwinding
Sector Price Price% OI% OI Sector Price Price% OI% OI
BANKNIFTY.Jan 30 31090.1 0.93 -13.72 1360280 RBLBANK.Jan 30 339.3 -0.32 -17.09 17019000
LT.Jan 30 1336.15 3.04 -11.19 17343750 UPL.Jan 30 543.9 -3.73 -13.23 12032100
BIOCON.Jan 30 293.95 0.55 -11.07 9344900 PVR.Jan 30 1899.2 -1 -10.87 1246000
ADANIPOWER.Jan 30 63.5 1.28 -9.92 67450000 MFSL.Jan 30 520 -0.14 -4.77 9248200
YESBANK.Jan 30 40.8 6.81 -9.68 2.07E+08 MINDTREE.Jan 30 903.4 -0.43 -4.13 1392000

Top Delivery Percentage

Stocks Price %Chg Total Qty Delivery Del % % Change
Sectors Price Change % Quantity
HDFC Ltd. 2428.4 0.49 1812646 2580610 76.9 Nifty Realty 327.65 2.12 1330499927
HDFC BANK LTD. 1244.85 0.32 5754460 6562205 71.45 Nifty Bank 31004.05 0.99 14017584
ITC Ltd. 237.9 -0.06 6120434 4934815 64.47 Nifty Auto 8241.75 0.89 52743619
CHOLAMANDALAM 323.5 1.89 4802353 1261850 62.54 Nifty IT 16474.4 0.86 1532882
Petronet LNG Limited 277 2.27 3160181 418219 61.69 Nifty 50 12180.35 0.61 35664274
M&MFIN 364.6 3.89 3115741 1293185 60.57 Nifty Pharma 8300.2 0.53 52335425
MARICO LIMITED 333.3 -0.4 1760568 549262 60.02 Nifty Metal 2769.25 0.45 156713815
Bajaj Auto Limited 3065.2 -0.36 256329 153323 56.93 Nifty FMCG 31226.9 0.24 422573
Tata Power Co. Ltd. 60.15 1.69 8476777 5036245 56.77 Nifty Media 1871.85 -1.95 230143484
Hindustan Unilever Ltd 2056.9 0.25 708017 544995 55.43 INDIA VIX 15.86 -3.06 267980594

Upcoming Economic Data

   Domestic                                                                                                                                                  International
•INR: FX Reserves, USD on 24th January 2020 •USA: New Home Sales (Dec) on 27th January,2020

News Updates

•ONGC has received bids for 50 out of the 64 small and marginal oil and gas fields it has offered in a first of its kind bid round for raising production by involving private companies. Duganta Oil and Gas Pvt Ltd made four bids, while Orissa Stevedores Ltd, Priserve Infrastructure Pvt Ltd and Udayan Oil Solutions Pvt Ltd made three bids each. ONGC wants partners who can raise output beyond a pre-agreed baseline and will share revenues from such incremental production with them.

•Shares of YES Bank surged over 7% on Thursday trade after State Bank of India Chairman Rajnish Kumar said that the private lender ‘will not be allowed to fail’. Kumar reportedly said that he’s certain “some solutions will emerge” to resolve YES Bank’s crisis, which has been on a prolonged quest to raise new capital.

•DLF backed by Singapore’s sovereign fund GIC, is planning to invest Rs 5,000 crore to develop a 6.8 million sq ft information technology park in Chennai, making the south India city its second largest market after Gurugram. The project, DLF Downtown Taramani spread over 27 acre is a joint venture with Tamilnadu Industrial Development Corporation.

•Bharti Airtel has written to the telecom department, asking it to await the Supreme Court’s directions on the modification plea before taking any action on the payment of statutory dues.

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

BOARD MEETINGS

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
ALBK Preferential Issue of shares 24-Jan-20 IONEXCHANG Quarterly Results 24-Jan-20
APOLLO General 24-Jan-20 IPOWER Quarterly Results 24-Jan-20
AROGRANITE Audited Results 24-Jan-20 JSWSTEEL Results;Dividend on Pref. 24-Jan-20
ATUL Quarterly Results 24-Jan-20 KIRLFER Quarterly Results;Interim Dividend 24-Jan-20
BANKBARODA Quarterly Results 24-Jan-20 LEENEE Quarterly Results 24-Jan-20
EMKAY Quarterly Results 24-Jan-20 PARMSILK Quarterly Results 24-Jan-20
ESCORTSFIN Quarterly Results;General 24-Jan-20 PEOPLIN Quarterly Results 24-Jan-20
FAZE3AUTO Quarterly Results 24-Jan-20 PRESOFI Quarterly Results;General 24-Jan-20
HAZOOR Quarterly Results 24-Jan-20 PRESTIGE Quarterly Results 24-Jan-20
HINDSECR Voluntary Delisting of Shares 24-Jan-20 PRSMJOHNSN General 24-Jan-20
HRMNYCP Quarterly Results 24-Jan-20 SONATSOFTW Quarterly Results 24-Jan-20
INDIANB Quarterly Results 24-Jan-20 SOUTHBANK General 24-Jan-20
INDOUS General 24-Jan-20 UDAICEMENT Quarterly Results 24-Jan-20
INTERDIGI General 24-Jan-20 ULTRACEMCO Quarterly Results 24-Jan-20

Corporate Action

Company Name Ex-Date Purpose Company Name Ex-Date Purpose
HCLTECH 24-Jan-20 Interim Dividend – Rs. – 2.00 MOTILALOFS 31-Jan-20 Interim Dividend – Rs. – 4.00
WIPRO 24-Jan-20 Interim Dividend – Rs. – 1.00 SHARDACROP 31-Jan-20 Interim Dividend – Rs. – 2.00
INDIGRID 27-Jan-20 Income Distribution (InvIT) SIEMENS 03-Feb-20 Dividend – Rs. – 7.0000
MITSU 28-Jan-20 Bonus issue 2:1 VINATIORGA 05-Feb-20 Stock  Split From Rs.2/- to Rs.1/-
KENVI 29-Jan-20 Bonus issue 11:10 ARROWTEX 06-Feb-20 Amalgamation
GRANULES 30-Jan-20 Interim Dividend – Rs. – 0.25 FERMENTA 06-Feb-20 Bonus issue 2:1

 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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