2019-12-07-Outlook

NIFTY:

A  gap up of 29 points today did not last long and prices have drifted downwards throughout the day and closed at 11921.50 lower by 96.90 points.

All the sectoral indices have closed lower. MEDIA and PSU BANKS have led the decline today. YESBANK closed lower by 10% while SBI was 5% down. Decline continued for the second day in NIFTY. Prices are now trading at the lower end of the trading range inside 11883 – 12158.

On Monday, if price goes below 11883 then traders can initiate short position. Pattern target for this breakdown will come around 11600. A strong support is visible around 11700. so if traders are taking a short position on the basis on breakdown then they can keep 11700 as a target.

There is also an equal chance for a failure breakdown. In this case, we will first look for a consolidation of 1 or 2 days and then identify a long set up accordingly.

VIEW:

Look to take a short trade if prices go below 11883 with a stop just above 11950.

TECHNICAL PICKS

COMPANY  CMP B/S RATIONALE
     COLPAL 1480.60 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  1460 and for the target of  1520.
     JUBLFOOD 1569.20 SELL The immediate trend of the stock is weak . The stock can be sell with a stop loss of  1585 and for  the target of  1540.

DERIVATIVE PICKS

STOCK OPTION Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
BHEL 46 PE BUY 2 CMP 1.30 3.60 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
EQUITAS.Dec 26 112.9 0.44 30.47 23156000 L&TFH.Dec 26 112.35 -2.98 11.99 23629500
BERGEPAINT.Dec 26 496.4 1.96 4.06 10326800 RBLBANK.Dec 26 336.55 -7.69 10.4 17308800
CENTURYTEX.Dec 26 488.45 2.79 3.54 3636600 BANKBARODA.Dec 26 97.4 -5.02 8.58 75465000
INFRATEL.Dec 26 249.95 3.2 2.96 14104000 CONCOR.Dec 26 565.45 -0.77 7.91 7613373
KOTAKBANK.Dec 26 1673 1.42 2.86 8589600 CUMMINSIND.Dec 26 522.1 -3.59 6.99 1671600
                                                                        Short Covering                                                                            Long unwinding
Sector Price Price% OI% OI Sector Price Price% OI% OI
COLPAL.Dec 26 1481.2 1.66 -10.73 2149700 TATAELXSI.Dec 26 853.7 -1.49 -13.04 1104600
DRREDDY.Dec 26 2897.85 0.61 -4.2 3144750 IDEA.Dec 26 6.95 -4.79 -9.47 4.92E+08
TATASTEEL.Dec 26 404.1 0.91 -3.06 20381810 MINDTREE.Dec 26 743.25 -2.75 -9.22 916200
MOTHERSUMI.Dec 26 133.3 0.95 -2.56 26429700 CHOLAFIN.Dec 26 300.3 -0.83 -8.7 3277500
HDFCBANK.Dec 26 1250.9 0 -2.33 25426000 BANKNIFTY.Dec 26 31418.3 -1.08 -8.62 1486980

Top Delivery Percentage

Stocks Price %Chg Total Qty Delivery Del % % Change
Sectors Price Change % Quantity
Petronet LNG Limited 268.05 -1.61 1552434 2515529 83.8 Nifty Metal 2535.85 -0.32 129872089
MARICO LIMITED 341.1 -1.98 2886217 1013976 67.24 Nifty IT 15289.6 -0.51 889148
TECH MAHINDRA LIMITED 757.5 -0.97 1092422 1660873 67.1 Nifty Energy 15811.75 -0.74 1089614
Dr. Reddys Lab Ltd 2890.8 0.67 988519 290207 66.9 Nifty 50 11921.5 -0.81 27612520
ITC Ltd. 243.35 -1.46 10374270 7268454 64.52 Nifty FMCG 30536.45 -0.84 373758
United Breweries Limited 1219.5 -0.88 355361 300834 64.04 Nifty Pharma 7957.55 -1.17 41169410
Ambuja Cements Ltd 200.9 -0.15 1407240 1557727 62.75 Nifty Bank 31341.55 -1.17 10477265
Hindustan Unilever Ltd 2026.05 -0.56 657658 592860 61.69 Nifty Auto 7806.6 -1.7 41964568
NESTLEIND 14166.3 -0.86 58487 48571 61.22 Nifty Media 1787.4 -3.42 181754957
MAHANAGAR GAS LIMITED 1020.85 0.32 437899 321708 60.81 INDIA VIX 13.64 -4.62 235129529

Upcoming Economic Data

   Domestic                                                                                                                                                  International
•INR:  CPI (YoY)  (Nov)  on 12th December 2019

•INR:  Industrial Production (YoY)  (Oct)  on 12th December 2019

•USA: Core CPI  (MoM)  ( Nov)  on 11th  December 2019

•USA: Crude Oil Inventories   on 11th December 2019

NEWS UPDATES

•SEBI has ordered state-owned insurer Life Corporation of India, State Bank of India (SBI) and Bank of Baroda (BoB) to cut their stake in UTI Mutual Fund to below 10 per cent from the current 18.25 per cent by December 31, 2020. SEBI also said if these entities would fail to comply with the directives, their shareholding and voting rights in UTI AMC and UTI Trustee Companies over 9.99 per cent and corporate benefits would stand frozen till they did so.

•Jairam Sridharan, Group Executive and Chief Financial Officer and Key Managerial Personnel of Axis Bank, has stepped down from his post on Friday. He informed that he would like to pursue other career opportunities and as such has resigned from his services, Axis Bank said in a filing on Bombay Stock Exchange.

•Radhakishan Damani is all set for the next round of stake dilution in D-Mart operator Avenue Supermarts, has reportedly shortlisted Bank of America Corp and Kotak Mahindra Capital Co as bankers. A 5.2% stake in Avenue Supermarts would be valued at around ₹5,870 crore, based on the closing price in Mumbai on Friday.

•The National Company Law Tribunal (NCLT) has admitted Bank of India’s insolvency plea against realty developer RNA Corp. The public sector lender had granted a loan of Rs 75 crore to RNA Corp in October 2013 and the builder defaulted on repayment of this loan in December 2014, since then the account has been classified as a non-performing asset.

Source ; Moneycontrol, Business Today, Livemint, Economics times

BOARD MEETINGS

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
ECS Preferential Issue of shares 09-Dec-19 LATIMMETAL Amalgamation;General 10-Dec-19
JAGRAN Buy Back of Shares 09-Dec-19 SALEM Quarterly Results 10-Dec-19
KJMCCORP Quarterly Results 09-Dec-19 TFL General;Quarterly Results 10-Dec-19
KJMCFIN Quarterly Results 09-Dec-19 VGCL Quarterly Results 10-Dec-19
MIC General 09-Dec-19 VIAANINDUS General 10-Dec-19
ORACLECR Quarterly Results 09-Dec-19 ALFREDHE Quarterly Results 11-Dec-19
QUESS Scheme of Arrangement 09-Dec-19 ALMONDZ Amalgamation;Quarterly Results 11-Dec-19
SOFTRAKV General 09-Dec-19 ENBETRD Quarterly Results 11-Dec-19
TTIENT Quarterly Results 09-Dec-19 FINKURVE Quarterly Results 11-Dec-19
WALLFORT Quarterly Results 09-Dec-19 KOTHARIFIN Voluntary Delisting of Shares 11-Dec-19
ASHIKACR Quarterly Results 10-Dec-19 MAAJTL General 11-Dec-19
INFRATEL Interim Dividend 10-Dec-19 MANVIJAY General 11-Dec-19
ECS Preferential Issue of shares 09-Dec-19 LATIMMETAL Amalgamation;General 10-Dec-19

Corporate Action

Company Name Ex-Date Purpose Company Name Ex-Date Purpose
EVANS 10-Dec-19 Interim Dividend – Rs. – 1.00 BOROSIL 18-Dec-19 Dividend – Rs. – 0.65
NESTLEIND 10-Dec-19 Interim Dividend – Rs. – 55.00 IBVENTURES 18-Dec-19 Buy Back of Shares
PIRPHYTO 11-Dec-19 Amalgamation BALMLAWRIE 26-Dec-19 Bonus issue 1:2
TRIDENT 13-Dec-19 Stock  Split From Rs.10/- to Rs.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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