Outlook-2019-12-06

NIFTY:

A gap up of 28 points today did not sustain and the NIFTY closed lower by 24.80 points at 12018.40. Intraday session was very volatile today as prices have moved in both directions.

Among sectors, except IT and FMCG all other indices ended in the red led by the METAL, PHARMA, AUTO  and ENERGY. Today, the Reserve Bank Of India (RBI) left the repo rate unchanged in its December policy review while maintaining the accommodative stance. The GDP growth target for 2019-20 is revised downward from 6.1% to 5%.

The larger picture remains of the NIFTY inside a trading range. Support for the NIFTY comes at 11883 and resistance at 12158. This range is continuing since mid-November. This is a process of consolidation. Trading inside a consolidation is very painful and tedious as there is no clear sense of direction. Positional or swing traders can get a trading opportunity when this range breaks in either direction. So we should wait for a breakout.

TECHNICAL PICKS

COMPANY  CMP B/S RATIONALE
     BRITANNIA 3085 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  3050 and for the target of  3145.
     CADILAHC 257.65 SELL The immediate trend of the stock is weak . The stock can be sell with a stop loss of  260.60 and for  the target of  251.

DERIVATIVE PICKS

STOCK OPTION Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
INFY 720 CE BUY 13.80 CMP 10.50 20 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
TATAELXSI.Dec 26 867.85 6.88 43.07 1357200 IGL.Dec 26 402.25 -2.81 23.69 6663250
EQUITAS.Dec 26 113.2 6.39 28.28 18236000 INDIGO.Dec 26 1327 -6.12 17.44 3325500
JUSTDIAL.Dec 26 577.9 2.17 14.05 2693600 GODREJCP.Dec 26 672 -3.97 12.09 4577600
BALKRISIND.Dec 26 940.15 1.59 13.09 1942400 JINDALSTEL.Dec 26 137.9 -10.54 11.89 35017600
DISHTV.Dec 26 14.6 2.1 12.56 112672000 L&TFH.Dec 26 115.5 -3.39 10.31 22878000
                                                                        Short Covering                                                                            Long unwinding
Sector Price Price% OI% OI Sector Price Price% OI% OI
NIFTYIT.Dec 26 15425 1.07 -18.69 8050 NMDC.Dec 26 109.7 -3.52 -5.12 17250000
ZEEL.Dec 26 299.2 5.72 -3.01 30895800 VOLTAS.Dec 26 696.5 -0.13 -4.73 3099000
TORNTPOWER.Dec 26 277.6 0.27 -2.99 4569000 CESC.Dec 26 738.6 -0.47 -4.06 1247200
MUTHOOTFIN.Dec 26 695.5 3.23 -2.08 4315500 IDEA.Dec 26 7.25 -6.45 -2.15 5.5E+08
DABUR.Dec 26 466.95 1.5 -1.31 12470000 MOTHERSUMI.Dec 26 131.85 -1.35 -1.74 27320700

Top Delivery Percentage

Stocks Price %Chg Total Qty Delivery Del % % Change
Sectors Price Change % Quantity
ITC Ltd. 246.95 1.56 11265541 9077395 75.98 INDIA VIX 14.3 7.39 75489
HCL Technologies Ltd. 560.9 -0.33 2683744 4323734 73.24 Nifty Media 1850.65 2.95 75492
Larsen & Toubro Limited 1302.2 1.33 6644305 7095660 69.36 Nifty IT 15367.5 1.27 75489
Power Grid Corporation o 187.3 -0.58 2570583 3998857 68.95 Nifty FMCG 30795.1 0.29 75492
Ambuja Cements Ltd 201.2 -2.07 2482546 3127231 67.8 Nifty 50 12018.4 -0.21 75489
Hindustan Unilever Ltd 2037.45 -0.52 961085 689813 65.93 Nifty Energy 15930.1 -0.63 75492
TECH MAHINDRA LIMITED 764.9 0.8 2475102 1163058 62.16 Nifty Auto 7941.8 -0.68 75492
TATA CONSULTANCY SERV LT 2121.3 2.06 3902674 2056925 61.69 Nifty Bank 31712.95 -0.83 75489
Dabur India Ltd. 466.1 1.81 2047966 2011224 61.61 Nifty Pharma 8051.85 -0.86 75492
HDFC BANK LTD. 1245.6 -0.48 6386205 3431195 60.22 Nifty Metal 2543.95 -2.31 75492

Upcoming Economic Data

   Domestic                                                                                                                                                  International
•INR:  FX Reserves, USD on 6th December 2019 •USA: Unemployment Rate on 6th  December 2019

•USA: Nonfarm Payrolls  (Nov)  on 6th December 2019

 

NEWS UPDATES

•Contrary to the expectations of a 25 basis point cut, the Reserve Bank of India’s Monetary Policy Committee (MPC) sprung a surprise on Thursday by keeping the key policy rates unchanged at 5.15 per cent but reduced its GDP forecast for the financial year 2020 to 5 per cent from 6.1 per cent earlier. The MPC also accepted that economic growth has weakened further and output gap remains “negative”.

•Shares of Force Motors gained 4 percent intraday on December 5 after the company reported healthy growth in November sales. The Pune-based company sold 2,112 units in November 2019, higher by 41.8 percent YoY. In November 2018, it had sold 1,489 units. Domestic sales for the month stood at 1,936 units and exports at 176 units, which were significantly higher compared to 1,477 units sold in the same month last year and 12 units exported, respectively.

•Shares of State Bank of India (SBI) traded lackluster on BSE on December 5, a day after the company said it will divest an 8.25 percent in the proposed initial public offering (IPO) of UTI Asset Management Company (AMC).

•HDFC Asset Management Company share price declined 4.7 percent intraday on December 5 after the company said it will use a greenshoe option for sale of additional 0.86 percent stake via offer for sale (OFS).

BOARD MEETINGS

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
ABANSENT Interim Dividend 06-Dec-19 CHEMTECH General 07-Dec-19
CENTRUM Quarterly Results 06-Dec-19 HBSTOCK Quarterly Results 07-Dec-19
COSBOARD General 06-Dec-19 INDOCITY Quarterly Results 07-Dec-19
EKAMLEA Quarterly Results 06-Dec-19 LINCOPH Amalgamation;General 07-Dec-19
IRB General 06-Dec-19 NAVBLDR General 07-Dec-19
PSB General 06-Dec-19 SHAILJA General 07-Dec-19
ROLTA Quarterly Results 06-Dec-19 SHUKRAPHAR General 07-Dec-19
SSPNFIN Bonus issue 06-Dec-19 UNITECH Quarterly Results 07-Dec-19
UNITDCR Quarterly Results 06-Dec-19 JAGRAN Buy Back of Shares 09-Dec-19
AGIIL General 07-Dec-19 KJMCCORP Quarterly Results 09-Dec-19
ALBK General 07-Dec-19 KJMCFIN Quarterly Results 09-Dec-19
ARSHIYA General;Preferential Issue of shares 07-Dec-19 ORACLECR Quarterly Results 09-Dec-19
ABANSENT Interim Dividend 06-Dec-19 CHEMTECH General 07-Dec-19

Corporate Action

Company Name Ex-Date Purpose Company Name Ex-Date Purpose
EVANS 10-Dec-19 Interim Dividend – Rs. – 1.0000 TRIDENT 13-Dec-19 Stock  Split From Rs.10/- to Rs.1/-
NESTLEIND 10-Dec-19 Interim Dividend – Rs. – 55.0000 BOROSIL 18-Dec-19 Dividend – Rs. – 0.6500
PIRPHYTO 11-Dec-19 Amalgamation BALMLAWRIE 26-Dec-19 Bonus issue 1:2

 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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