outlook

NIFTY:

The NIFTY fell on Wednesday, with weak American markets overnight setting up the scenario for a decline. By falling almost 4%, the NIFTY has given up all the gains it accrued on Tuesday. This is not such a terrible thing. We feel that we are now inside a trading range, which means that markets will move up and down inside the range. We saw an up move earlier and now we are seeing the down move.

The NIFTY now seems to be in a trading range and the zone for this range have been a little redefined. We feel that resistance comes at 8700 instead of 8900 mentioned earlier. Support continues to come at 7500. a minor support comes at 8200, which is the point at which the decline stopped on Wednesday .

BANKS FALL

Bank’s bore the brunt of Wednesday’s decline, together with IT stocks. Given the conditions in America, IT stocks had become a point of selling. Many indian banks are of the best quality, but perhaps, nervousness in the market does not look at quality. However most best quality banks are also fairly expensive. They have become more reasonable after the decline, but still remain relatively higher priced.

TECHNICAL PICKS

COMPANY  CMP B/S RATIONALE
     ACC 963.45 BUY Intermediate trend is sideways while short term trend is up here. The price has seen a sharp decline and then find support around 920 levels. Should look for a buying opportunity at CMP with a stop loss of 945 and for the TGT of 997.
     SRF 2654.95 SELL The immediate trend of the stock is weak . The stock can be sold  at CMP with a stop loss of  2702 and for  the target of  2480.

DERIVATIVE PICKS

STOCK OPTION Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
TCS 1700 PE BUY 116.15 CMP 95 150-170 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
BALKRISIND.Apr 30 797.85 0.46 15.71 612800 JINDALSTEL.Apr 30 70.8 -14.54 81.1 12650000
YESBANK.Apr 30 21.15 1.2 8.03 55079200 BOSCHLTD.Apr 30 9274.7 -1.67 23.15 108320
BIOCON.Apr 30 278.9 2.56 6.8 7010400 NIFTYIT.Apr 30 12072 -5.97 18.75 1900
AMBUJACEM.Apr 30 155.5 1.17 6.79 18115000 CUMMINSIND.Apr 30 310 -5.63 18.47 779400
AMARAJABAT.Apr 30 479.5 0.31 4.76 950400 RBLBANK.Apr 30 131.45 -2.3 14.62 10582500
                                                                        Short Covering                                                                              Long unwinding
Sector Price Price% OI% OI Sector Price Price% OI% OI
CENTURYTEX.Apr 30 298.45 0.34 -5.04 1910400 MRF.Apr 30 55015.2 -4.59 -23.28 12060
UJJIVAN.Apr 30 148.85 0.71 -3.86 1523200 SRTRANSFIN.Apr 30 613.3 -6.62 -17.79 1882800
TATACHEM.Apr 30 224.95 0.4 -3.54 810000 BRITANNIA.Apr 30 2558.4 -4.85 -16.64 1015600
IBULHSGFIN.Apr 30 99.65 2.73 -1.18 8218800 ESCORTS.Apr 30 594.55 -10.09 -13.84 1794100
FEDERALBNK.Apr 30 41.35 0.36 -0.35 34055000 GLENMARK.Apr 30 204.45 -0.63 -6.68 2424800

Top Delivery Percentage

Stocks Price %Chg Total Qty Delivery Del % % Change
Sectors Price Change % Quantity
Info Edge (India) Limite 2013.95 -1.04 335312 693922 83.35 Nifty Auto 4657.55 -1.56 67708123
Larsen & Toubro Limited 774.35 -4.22 4104461 5662636 70.38 Nifty Metal 1553.55 -2.04 203598554
Petronet LNG Limited 200 0.15 2516783 3284698 68.81 Nifty Pharma 7026.7 -2.09 44779688
HCL Technologies Ltd. 413.55 -5.24 8136746 4308600 67.51 Nifty Energy 10771.9 -3.17 2911008
GODREJPROP 596.4 -1.14 412778 228196 66.71 Nifty FMCG 26358.8 -3.52 875295
Siemens Ltd 1085.2 -2.53 283429 560303 65.5 Nifty Media 1001.25 -3.72 311317146
NTPC Limited 81 -3.8 14355481 18425175 65.12 Nifty 50 8253.8 -4 37850030
Power Grid Corporation o 154.6 -2.83 7977443 8826845 63.18 Nifty Bank 18208.35 -4.89 17066752
Godrej Cons Products Ltd 548.75 5.36 2976902 1425214 62.81 Nifty IT 12045.85 -5.62 2129749
TATA CONSUMER PRODUCTS 280 -5.04 5532600 2039399 62.37 INDIA VIX 60.05 -6.77 51212496

Upcoming Economic Data

   Domestic                                                                                                                                                  International
•INR:  Nikkei Markit Manufacturing PMI (Mar) on 2nd April ,2020

•INR:  FX Reserves, USD on 3rd April, 2020

•USA: Initial Jobless Claims on 2nd April, 2020

•USA: Nonfarm Payrolls (Mar) on 3rd April, 2020

News Updates

•Hindustan Unilever Ltd (HUL) on Wednesday completed merger with GlaxoSmithKline Consumer Healthcare (GSKCH). The merger of GSK CH India with HUL will be on a basis of an exchange ratio of 4.39 HUL shares for each GSK CH India share, implying a total equity value of Rs 31,700 crore for 100 per cent of GSK CH India. “In addition, the board of HUL also approved acquiring the popular health drink brand Horlicks for India from GSK for a consideration of Euro 375.6 million (Rs 3,045 crore).

•The government’s goods and services tax collections fell below the Rs 1-lakh-crore mark after four months. GST collections for February, collected in March, was Rs 97,597 crore against Rs 105,366 crore in January, according to a statement by the Ministry of Finance. That’s a decline of 7.37 percent over January and 8.42 percent over the year-ago period.

•Sales of tractor maker Escorts Ltd. fell 54.3 percent year-on-year to 5,228 units in March. That coompares with the 11,905 tractors that the company sold a year ago. Domestic tractor sales stood at 5,228 in March 2020 against 11,431 a year ago, while exports fell to 216 from 474 last year.

•Tata Steel has cut down production across all its major operations in Inda and Europe amid the COVID -19 outbreak. In India, this includes its integrated steel plants at Jamshedpur and Kalinganagar and the Tata Steel Bhushan unit in Angul.

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

BOARD MEETINGS

Company Name5 Purpose Ex-Date Company Name Purpose Ex-Date
INDAGIV General 2-Apr-20 HDFCBANK Final Dividend;Audited Results 18-Apr-20
RELIANCE General 2-Apr-20 PERSISTENT Final Dividend;Audited Results 25-Apr-20
DHANVARSHA General 3-Apr-20 TRIPR General 25-Apr-20
APLAB General 8-Apr-20 UGROCAP Audited Results 30-Apr-20
FRANKLININD General;Scheme of Arrangement 15-Apr-20 DHINDIA General 2-May-20
KANSAFB Reduction of Capital;General 15-Apr-20 PRSMJOHNSN Audited Results 12-May-20
QUANTBUILD General 15-Apr-20 DRREDDY Final Dividend;Audited Results 13-May-20
RTEXPO General 17-Apr-20 KENNAMET Quarterly Results 13-May-20

Corporate Action

Company Name Ex-Date Purpose Company Name Ex-Date Purpose
AMBUJACEM 3-Apr-20 Final Dividend – Rs. – 1.50 TAHL 23-Apr-20 Bonus issue 1:4
IRCON 3-Apr-20 Stock  Split From Rs.10/- to Rs.2/- MADHAVIPL 27-Apr-20 Stock  Split From Rs.10/- to Rs.1/-
SADHNANIQ 3-Apr-20 Stock  Split From Rs.5/- to Rs.1/- ABB 5-May-20 Dividend – Rs. – 4.80
CORALFINAC 16-Apr-20 Buy Back of Shares NESTLEIND 14-May-20 Final Dividend – Rs. – 61.00
VESUVIUS 22-Apr-20 Final Dividend – Rs. – 8.74 DICIND 10-Jun-20 Final Dividend – Rs. – 4.50
KSB 23-Apr-20 Dividend – Rs. – 8.00

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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