Morning-Outlook-Feature-Image

Outlook-18-10-2021

NIFTY:

The Nifty opened at 18272.85 with a gap up of more than 100 points. Prices have first consolidated and the rallied on the upside. That rally fizzled out quickly. The index saw a sharp decline of more than 70 points and recorded its intraday low at 18248.70. Prices again bounced up and rallied more than 100 points. The index recorded its intraday high at 18350.75 and finally closed at 18338.55. All the sectoral indices have closed with a gain except Auto that ended with a loss of 0.59%. The Bank, Financial, Metal and IT outperformed and ended with a gain of more than 1%.

We took a trade on the long side around 18100 trailed our stop at breakeven at 18100 and target of 18250. The index opened with a gap up above 18250 and settled around 18280. We exited out long position with a gain of 180 points. Back to Back gain of almost 1% brought the index above 18300. Prices have continued recorded lifetime new highs. Prices have traded volatile with a bullish bias as the gap remained intact and Nifty eventually closed at the day high. We have already rallied 900 points in two weeks and can see a further upside till 18500 levels.

BANK NIFTY:

Bank Nifty opened at 38684.65 with a gap up of 100 points. The index recorded its intraday low at 38673 few ticks below the opening level and then started moving narrow and sideways. Prices broke on the upside, saw a sharp surge and recorded its intraday high at 39375.05. The index closed with a gain of more than 700 points. PSU and Private Banks both indices have performed almost the same, seen an upside move and closed higher by 1.74% and 1.70% respectively. Within the index, HDFC Bank contributed highest while Bandhan Bank the lowest.

It was a trend day on the upside. The index has seen a wide range and ended almost at the top.

TECHNICAL PICKS

COMPANY  CMP B/S RATIONALE
KOTAK BANK 2017.9 BUY The stock has given a breakout from a narrow trading range. The stock can be bought at CMP with a stop at 1990 and for the target 2060
POLYCAB 2563 BUY The stock has given a breakout from a narrow trading range. The stock can be bought at CMP with a stop at 2530 and for the target 2620

DERIVATIVE PICKS

STOCK OPTION Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
REC 170 CE BUY 5.4 CMP 4 8 OI increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
JKCEMENT.21.10 Oct 3472.15 3.14 39.13 95200 DALBHARAT.21.10 Oct 2071.25 -0.28 16.61 502000
IRCTC.21.10 Oct 5483.85 10.74 32.8 2830425 HCLTECH.21.10 Oct 1249.5 -0.81 11.59 22446900
RECLTD.21.10 Oct 165.45 2.96 24.24 34386000 CONCOR.21.10 Oct 680.35 -1.34 10.71 8901285
PFC.21.10 Oct 149.65 4.36 21.98 37299200 LALPATHLAB.21.10 Oct 3654.3 -2.2 10.14 825500
HAL.21.10 Oct 1449.85 3.52 19.56 2334625 RBLBANK.21.10 Oct 191.95 -1.16 9.32 26485700
                                                                        Short Covering Long Unwinding
Stocks Price Price% OI% OI Stocks Price Price % OI % OI
WIPRO.21.10 Oct 711.35 5.34 -17.87 33212800 INDHOTEL.21.10 Oct 230.05 -0.5 -14.41 12550200
VOLTAS.21.10 Oct 1323.4 0.89 -8.41 1965000 TATAMOTORS.21.10 Oct 497.9 -1.79 -8.3 80418450
MPHASIS.21.10 Oct 3278.45 4.32 -7.76 1842750 BHEL.21.10 Oct 74.5 -2.74 -8.1 108496500
COFORGE.21.10 Oct 5603.45 4.55 -7.45 636400 INDIAMART.21.10 Oct 9450 -0.83 -7.42 264750
BEL.21.10 Oct 211.25 0.79 -6.73 22537800 JUBLFOOD.21.10 Oct 4427.75 -2.4 -6.92 1858250

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Total Qty Delivery Del % % Change
Sectors Price Change % Quantity
Sbi Life Insurance Compa 1185.55 -0.52 2080766 972220 75.85 Nifty Bank 39340.9 1.83 25117873
Hindustan Unilever Ltd 2649.55 0.11 2158809 1252680 75.46 Nifty Metal 6019.2 1.77 163383914
Hdfc Life Insurance Comp 693.8 -1.01 4077281 2301990 74.43 Nifty it 35744.8 1.3 4816743
Icici Lombard General In 1520.25 -0.01 423838 614075 72.48 Nifty Realty 539.25 1.28 1818355845
Tata Consultancy Serv Lt 3611.45 -1.2 6442299 2564283 72.32 Nifty Media 2350.85 1.07 418835643
Dalmia Bharat Limited 2062.85 -0.48 376959 164821 67.85 Nifty 50 18338.55 0.97 53710444
Hdfc Ltd. 2808.75 1.56 2737670 1024393 67.68 Nifty Energy 24766.35 0.66 2246657
Ambuja Cements Ltd 408.75 1.18 5426954 2478297 65.56 Nifty Fmcg 41377.2 0.55 928528
Hdfc Asset Management Co 2950.15 1.72 654193 128650 64.96 Nifty Pharma 14728.65 0.34 66762191
Shree Cements Ltd. 27956.45 0.51 46335 33219 62.62 Nifty Auto 11800.3 -0.59 82673800

UPCOMING ECONOMIC DATA

   Domestic                                                                                                                                                  International
INR: M3 Money Supply on 20th October, 2021.

INR: Bank Loan & Deposit Growth on 22th October, 2021

•USD: Industrial Production (YoY)(MoM) (Sept) on 18th October, 2021.

•USD: Building Permits (Sep) on 19th October, 2021.

NEWS UPDATES

•The record run in India’s equity market is finding strong support from retail mutual fund investors, who are pumping more than a billion dollars a month into stock plans.  Inflows into mutual funds from regular contributions through systematic investment plans, or SIPs, hit an all-time high of 103.5 billion rupees ($1.4 billion) in September, according to data from the Association of Mutual Funds.

•Nomura Holdings Ltd. expects India’s capital markets to be resilient in the event of foreign investors suddenly getting cold feet, as local financial institutions and the retail investors flocking to invest will continue to lend their support

•HDFC Bank has reported standalone profit at Rs 8,834.31 crore for September 2021 quarter, 17.6% higher compared to Rs 7,513.11 crore in the corresponding period last fiscal. The profit in June 2021 quarter was at Rs 7,729.64 crore. Net interest income increased to Rs 17,684.4 crore during the quarter, compared to Rs 15,776.39 crore in September 2020 quarter and Rs 17,008.96 crore in previous quarter. The growth was supported by healthy loan growth.

Source: Economic Times,  Indian Express  ,Business Today, Livemint, Business Standard, Bloomberg Quint

BOARD MEETINGS

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
ALOKTEXT Quarterly Results 18-Oct-21 KREONFIN Increase in Authorised Capital;Quarterly Results;Rights Issue 18-Oct-21
BLOIN Preferential Issue of shares 18-Oct-21 LIBORD Quarterly Results 18-Oct-21
CONCORD Quarterly Results 18-Oct-21 LLOYDSTEEL Quarterly Results 18-Oct-21
CRAFTSMAN Quarterly Results 18-Oct-21 LTI Interim Dividend;Quarterly Results 18-Oct-21
EQUITASBNK General 18-Oct-21 NAVIGANT Half Yearly Results 18-Oct-21
EVERLON General 18-Oct-21 ROUTE Quarterly Results 18-Oct-21
GBGLOBAL Quarterly Results 18-Oct-21 SUNEDISON Quarterly Results 18-Oct-21
HATHWAYB Quarterly Results 18-Oct-21 SVPGLOB Quarterly Results 18-Oct-21
HATSUN General;Quarterly Results 18-Oct-21 TANFACIND Quarterly Results 18-Oct-21
INDOCITY Quarterly Results 18-Oct-21 TATACOFFEE Quarterly Results 18-Oct-21
ITHL Quarterly Results 18-Oct-21 UDL Audited Results 18-Oct-21
KHAITANLTD General 18-Oct-21 ULTRACEMCO Quarterly Results 18-Oct-21

CORPORATE ACTION

Company Name Ex-Date Purpose Company Name Ex-Date Purpose
OMAXE 18-Oct-21 E.G.M. MAHIP 21-Oct-21 E.G.M.
AIIL 20-Oct-21 Stock  Split From Rs.10/- to Rs.1/- MINDTREE 21-Oct-21 Interim Dividend – Rs. – 10
RCF 20-Oct-21 Final Dividend – Rs. – 1.78 MISHTANN 21-Oct-21 Interim Dividend – Rs. – 0.0020
ACCELYA 21-Oct-21 Final Dividend – Rs. – 17 RKFORGE 21-Oct-21 Interim Dividend – Rs. – 0.5
BEPL 21-Oct-21 Interim Dividend – Rs. – 1 STARHFL 21-Oct-21 E.G.M.
HCLTECH 21-Oct-21 Interim Dividend – Rs. – 10 TEXRAIL 21-Oct-21 Right Issue of Equity Shares

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