outlook-2020-01-28

NIFTY:

Since the last week of October 2019, the NIFTY has been moving with strong support in the 11900 area which it repeatedly tests. We have a pattern of a flat support level at 11900 and higher highs. The pattern can be considered to be a rising, inverted triangle, or, simply an inverted ascending triangle pattern.

Since these patterns are rare, a prediction on the outcome of this pattern is difficult to make. But with whatever available research, a breakout above the last high, which means above 12427, gives a strong bullish signal. A breakdown below support of 11929 does not have any chart pattern significance. But of course, a breakdown  of this support does suggest weakness ahead. The chart pattern and the support level gives us a very large trading range between 11929 and 12427 – almost 500 points.

VIEW:

Sell on a breakdown below 12088 with a stop just above 12130.

TECHNICAL PICKS

COMPANY  CMP B/S RATIONALE
     HEROMOTOCO 2455 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  2420 and for the target of  2510.
      MARICO 338.60 SELL The immediate trend of the stock is weak . The stock can be sold  at CMP with a stop loss of  344 and for  the target of  330.

DERIVATIVE PICKS

STOCK OPTION Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
HINDUNILVR 2060 CE BUY 11.45 CMP 5 25 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
PAGEIND.Jan 30 26370 1.63 14.01 148325 ONGC.Jan 30 116.65 3.71 -1.14 36670400
ULTRACEMCO.Jan 30 4651.15 2.46 12.34 2689800 BANKNIFTY.Jan 30 30879.05 1.71 -1.44 1327880
CUMMINSIND.Jan 30 599.25 5.14 11.09 1775700
BATAINDIA.Jan 30 1854.1 2.65 9.59 2319900
CHOLAFIN.Jan 30 326.35 0.79 8.73 3985000
                                                                        Short Covering
Sector Price Price% OI% OI Sector Price Price% OI% OI
ADANIENT.Jan 30 230.75 0.39 -35.88 11536000 VOLTAS.Jan 30 711.4 -1.93 -36.13 2705000
IBULHSGFIN.Jan 30 323.5 0.09 -31.04 12349200 YESBANK.Jan 30 42.4 -0.93 -34.14 1.19E+08
TORNTPOWER.Jan 30 325.9 0.98 -30.74 2298000 MANAPPURAM.Jan 30 185.1 -1.59 -34.04 11244000
CUMMINSIND.Jan 30 602.95 0.95 -24.6 1224900 IDFCFIRSTB.Jan 30 43.8 -0.68 -32.78 94596000
RBLBANK.Jan 30 336 1.6 -22.89 10659000 BIOCON.Jan 30 290.85 -0.92 -26.39 6909200

Top Delivery Percentage

Stocks Price %Chg Total Qty Delivery Del % % Change
Sectors Price Change % Quantity
HDFC BANK LTD. 1244.55 0 9444276 3935384 66.52 INDIA VIX 17.18 10.38 83625
Petronet LNG Limited 276.8 0 2644351 1214547 66.36 Nifty Pharma 8416.35 1.47 83625
Pidilite Industries Ltd 1457.6 0 767088 306772 61.11 Nifty Auto 8258.15 -0.2 83628
Hindustan Unilever Ltd 2073.7 0 429312 545886 59.66 Nifty Media 1882.45 -0.39 83625
Shree Cements Ltd. 23134.65 0 35307 18541 59.39 Nifty IT 16393.55 -0.48 83625
HDFC Ltd. 2450.75 0 2543177 1276489 58.6 Nifty Realty 326.8 -0.56 83628
TECH MAHINDRA LIMITED 787.3 0 1175606 1348773 57.05 Nifty FMCG 31149.7 -1.03 83625
Kotak Mahindra Bank Limi 1642.95 0 1874429 2356586 55.41 Nifty 50 12119 -1.06 83625
MUTHOOTFIN 751.95 0 810056 567809 55.21 Nifty Bank 30837.4 -1.29 83625
ITC Ltd. 238.15 0 6837613 3748753 55.11 Nifty Metal 2709.75 -3.09 83628

Upcoming Economic Data

   Domestic                                                                                                                                                  International
•INR: Federal Fiscal Deficit (Dec) on 31st Janaury,2020

•INR: Infrastructure Output (YoY) (Dec) on 31st January,2020

•USA: Crude Oil Inventories on 29th January,2020

•USA: Fed Interest Rate Decision on 30th January,2020

News Updates

•Dr Reddy’s Laboratories ended January 27 with gains of almost 6 percent, hitting a new 52-week high of Rs 3,201.95 even after reporting a loss of Rs 569.7 crore in the December quarter. The loss of profit was due to impairment of non-current assets including generic Nuvaring drug. At operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) increased sharply by 24.1 percent to Rs 1,073.7 crore and margin rose by 200bps to 24.5 percent YoY in Q3.

•Bank of Baroda saw its loan book grow by less than 1 percent YoY in the quarter ended Dec. 2019, well below the 7-8 percent growth in banking sector credit. This sub-par performance in lending, according to the bank’s new CEO Sanjiv Chadha, was largely because of the ongoing merger between Bank of Baroda, Dena Bank and Vijaya Bank.

•Siemens Ltd.’s plan to acquire Delhi-based C&S Electric Ltd. will bolster its presence in the low-voltage switchgear business, especially in the building segment where it has limited presence, brokerages said. The German engineering conglomerate will buy 99.22 percent stake in C&S Electric in an all-cash deal for an enterprise value of Rs 2,100 crore.

•Bidders for cash-strapped Air India will need to absorb Rs 23,286.50 crore of its debt, as government plans to sell its entire stake in the national carrier for the second time after a failed attempt in 2018. At Rs 23,286.50 crore, the debt amounts to be more than a third of the total debt of Rs 58,282.90 crore of Air India and its subsidiary Air India Express.

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

BOARD MEETINGS

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
CUMMINSIND Interim Dividend;Quarterly Results 28-Jan-20 ANDPAPER Quarterly Results 28-Jan-20
M&MFIN Quarterly Results 28-Jan-20 APMFINVEST Quarterly Results 28-Jan-20
MANAPPURAM Interim Dividend;Quarterly Results 28-Jan-20 ASUTENT Quarterly Results 28-Jan-20
MARUTI Quarterly Results 28-Jan-20 BEEYU Quarterly Results 28-Jan-20
CENTURYTEX Quarterly Results 28-Jan-20 BENARAS Quarterly Results 28-Jan-20
HONDAPOWER General;Quarterly Results 28-Jan-20 BOMBPOT Audited Results;Quarterly Results 28-Jan-20
CENTRALBK Quarterly Results 28-Jan-20 CHEMOPH Quarterly Results 28-Jan-20
JKLAKSHMI General;Quarterly Results 28-Jan-20 KKCL Interim Dividend;Quarterly Results 28-Jan-20
TATACOFFEE Quarterly Results 28-Jan-20 MASTEK Quarterly Results 28-Jan-20
INFIBEAM Quarterly Results 28-Jan-20 ORIENTELEC Interim Dividend;Quarterly Results 28-Jan-20
CGPOWER Quarterly Results 28-Jan-20 SAGCEM Quarterly Results 28-Jan-20
ACRYSIL Quarterly Results 28-Jan-20 SHREDIGCEM Quarterly Results 28-Jan-20
ALICON Quarterly Results 28-Jan-20 SPANDANA Quarterly Results 28-Jan-20
ANANDPROJ Quarterly Results 28-Jan-20 SUBROS Quarterly Results 28-Jan-20

Corporate Action

Company Name Ex-Date Purpose Company Name Ex-Date Purpose
MITSU 28-Jan-20 Bonus issue 2:1 KIRLPNU 03-Feb-20 Interim Dividend – Rs. – 1.00
IIFLWAM 29-Jan-20 Interim Dividend – Rs. – 10.00 NAM-INDIA 03-Feb-20 Interim Dividend – Rs. – 3.00
KENVI 29-Jan-20 Bonus issue 11:10 RBL 03-Feb-20 Interim Dividend – Rs. – 6.00
GMM 30-Jan-20 Interim Dividend – Rs. – 1.00 SIEMENS 03-Feb-20 Dividend – Rs. – 7.00
GRANULES 30-Jan-20 Interim Dividend – Rs. – 0.25 ACGL 04-Feb-20 Interim Dividend – Rs. – 5.00
MOTILALOFS 31-Jan-20 Interim Dividend – Rs. – 4.00 VINATIORGA 05-Feb-20 Stock  Split From Rs.2/- to Rs.1/-
SHARDACROP 31-Jan-20 Interim Dividend – Rs. – 2.00 ARROWTEX 06-Feb-20 Amalgamation
DBCORP 03-Feb-20 Interim Dividend – Rs. – 3.50 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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