Morning-Outlook-Feature-Image

Outlook-07-10-2021

NIFTY:

The Nifty opened at 17861.50 with a gap up of 39 points. The index first consolidated for the first half of trading and recorded its intraday high at 17884.60. In the second half, prices broke down from the consolidation and started a downside move. That move continued till the market closed and the index recorded its intraday low at 17613.15. Prices have finally closed at 17464 near its intraday low with a loss of 176.30 points. All the sectoral indices have seen a decline and closed lower. Metal was the worst hit, ending nearly 3% down followed by Pharma and Realty.

The prices moved completely opposite to what happened on Tuesday. We had seen a sharp rally in the second half on Tuesday while we have seen a sharp decline in the second half yesterday.

It was a trend day on the downside. The index traded in a wide range and made an outside bar. An outside bar represents expansion and that should be followed by a process of contraction. Today is the weekly expiry so we may see some choppy movement. Strong resistance is around 17950-18000 zone while short term support is visible around 17650 and then at 17450.

BANK NIFTY:

Bank Nifty opened at 37768.80 without much of a gap. The index first moved up and prices have recorded its intraday high at 38106.85. The index did not sustain there and started drifting downwards. Prices have seen a decline of more than 600 points, recorded its intraday low at 37452 and closed with a loss of more than 250 points. PSU Banks have seen an underperformance and ended lower with a loss of 1.94%. Private Banks have also seen a decline and closed lower by 0.64%. Within the index, HDFC Bank contributed highest while ICICI Bank the lowest.

Bank Nifty traded in a wide range and ended lower. The short term trend is now sideways.

TECHNICAL PICKS

COMPANY  CMP B/S RATIONALE
COROMANDEL 857 BUY The stock has given a breakout from a narrow trading range. The stock can be bought at CMP with a stop at 843 and for the target 880
RELIANCE 2260 SELL The stock has given a breakout from a narrow trading range. The stock can be bought at CMP with a stop at 2285  and for the target 2230

DERIVATIVE PICKS

STOCK OPTION Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
TATACONSUMER 820  CE BUY 29 CMP 24 36 OI increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
BOSCHLTD.21.10 Oct 17350 11.55 26.55 181600 CROMPTON.21.10 Oct 477.9 -1.89 30.66 984500
ONGC.21.10 Oct 167.95 2.6 22.44 68868800 IPCALAB.21.10 Oct 2267.05 -3.56 19.25 684450
MARICO.21.10 Oct 565.35 1.13 13.74 9072000 OBEROIRLTY.21.10 Oct 860 -3.5 16.38 1148700
DALBHARAT.21.10 Oct 2099.5 0.87 12.37 333750 RBLBANK.21.10 Oct 185.1 -4.66 13.64 26068100
DEEPAKNTR.21.10 Oct 2892.05 7.88 12.3 2797500 GODREJCP.21.10 Oct 1018 -2.87 11.78 5428000
                                                                        Short Covering Long Unwinding
Stocks Price Price% OI% OI Stocks Price Price % OI % OI
BRITANNIA.21.10 Oct 3938 0.93 -4.5 1119400 ABBOTINDIA.21.10 Oct 22200 -4.7 -10.87 27250
COROMANDEL.21.10 Oct 863.5 3.99 -2.62 2140000 NATIONALUM.21.10 Oct 96.5 -6.13 -7.74 101898000
UPL.21.10 Oct 729.05 1.57 -2.18 26375700 VOLTAS.21.10 Oct 1227.85 -2.12 -6.16 2614000
BANDHANBNK.21.10 Oct 304.65 1.57 -1.45 24516000 CUB.21.10 Oct 158.95 0 -5.56 8050700
INDUSTOWER.21.10 Oct 310.7 0.18 -0.51 12082000 SIEMENS.21.10 Oct 2195.55 -2.49 -3.37 1771550

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Total Qty Delivery Del % % Change
Sectors Price Change % Quantity
Kotak Mahindra Bank Limi 1955.75 -1.34 2979275 2129884 78.31 Nifty Energy 23898 -0.45 88005
Balkrishna Ind. Ltd 2508.25 -1.14 379718 277889 69.84 Nifty Bank 37521.55 -0.58 88005
Dabur India Ltd. 614.95 -0.2 2026192 2199919 69.7 Nifty Fmcg 40167.45 -0.64 88005
Hdfc Asset Management Co 2894.5 -0.39 489173 525507 69.56 Nifty Media 2213.4 -0.68 88005
Hdfc Life Insurance Comp 725.65 -1.02 1939154 1467747 65.61 Nifty 50 17646 -0.99 88005
Hdfc Bank Ltd. 1614.9 1.22 9300415 3346622 65.25 Nifty Auto 10567.55 -1.16 88005
Bosch Limited 17277.35 11.66 645475 15162 64.44 Nifty it 35075.8 -1.32 88005
Hdfc Ltd. 2750.95 0.35 3585605 1362695 64.1 Nifty Realty 501.75 -1.62 88005
Tata Consumer Products l 820.65 2.4 5215518 2178490 62.24 Nifty Pharma 14461.95 -1.87 88005
Crompton Greaves Consume 477.05 -1.92 1389867 406282 61.24 Nifty Metal 5627.35 -2.98 88005

UPCOMING ECONOMIC DATA

   Domestic                                                                                                                                                  International
INR: RBI Interest Rate Decision on 8th October, 2021

INR: Deposit and Loan Growth Rate on 8th October, 2021

•USD: Initial Jobless Claims on 7th October, 2021

•USD: Nonfarm Payrolls (Sep) on 8th October, 2021

NEWS UPDATES

•European energy prices extended their blistering rally as the region-wide supply crunch showed no sign of easing, prompting the European Union to pledge swift action to protect the economy. Dutch and U.K. gas futures have jumped 60% in just two days, hitting fresh records along with surging power as EU lawmakers debated the crisis. EU energy chief Kadri Simson said the bloc plans to revise gas-market rules by year-end to prevent soaring energy costs from stifling the economic recovery.

•Zee Entertainment Enterprises has on Wednesday moved the appellate tribunal — National Company Law Appellate Tribunal (NCLAT) — against the NCLT order, which asked for a reply to Invesco’s application by October 7. The company is seeking more time to file its reply in the matter and is also seeking a stay on the proceedings at the tribunal till the matter is decided at the appellate tribunal.

•The government on Tuesday notified its decision to permit 100% foreign direct investment (FDI) under automatic route in the telecom services sector.  The Centre had earlier announced 100% FDI in the telecom sector through the automatic route as part of its comprehensive package for the telecom sector.

•Global rating firm Moody’s has affirmed the long-term local and foreign current deposit ratings of Axis Bank, HDFC Bank, ICICI and State Bank of India at Baa3, following sovereign rating action. At the same time, their rating outlooks have been changed to stable from negative. This rating action is driven by Moody’s recent affirmation of the Indian government’s Baa3 issuer rating and change in outlook to stable from negative.

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

BOARD MEETINGS

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
GOKEX General 07-Oct-21 ICSL Quarterly Results 08-Oct-21
INDITALIA General 07-Oct-21 KANELIND Quarterly Results 08-Oct-21
INFRATRUST General 07-Oct-21 MISHTANN Interim Dividend;Quarterly Results 08-Oct-21
INTELSOFT Quarterly Results 07-Oct-21 NATURAL Quarterly Results 08-Oct-21
LLOYDSME General 07-Oct-21 PARSHVA General 08-Oct-21
MEDICO Bonus issue;Increase in Auth. Capital 07-Oct-21 PRISMX General;Stock  Split 08-Oct-21
SYLPH Quarterly Results 07-Oct-21 SIPTL Quarterly Results 08-Oct-21
TCMLMTD Rights Issue 07-Oct-21 SUNRETAIL Half Yearly Results 08-Oct-21
BESTAGRO General 08-Oct-21 TCS Interim Dividend;Quarterly Results 08-Oct-21
CGVAK General 08-Oct-21 UDAYJEW General 08-Oct-21
EARUM Stock  Split 08-Oct-21 INDOUS Bonus issue;Interim Dividend;Pref. Issue 09-Oct-21
ECORECO Quarterly Results 08-Oct-21 POLYCHMP Preferential Issue of shares 09-Oct-21

CORPORATE ACTION

Company Name Ex-Date Purpose Company Name Ex-Date Purpose
AFFLE 07-Oct-21 Stock  Split From Rs.10/- to Rs.2/- MANINFRA 13-Oct-21 Interim Dividend – Rs. – 1.2600
INDSOYA 07-Oct-21 Stock  Split From Rs.10/- to Rs.5/- ADVITIYA 13-Oct-21 Bonus issue 44100
UNISON 07-Oct-21 Bonus issue 4:1 BNRSEC 13-Oct-21 E.G.M.
DCMSRMIND 08-Oct-21 Stock  Split From Rs.10/- to Rs.2/- DHANVARSHA 13-Oct-21 Stock  Split From Rs.10/- to Rs.2/-
ASIANTILES 11-Oct-21 Final Dividend – Rs. – 0.5000 INFRATRUST 13-Oct-21 Income Distribution (InvIT)
GENSOL 11-Oct-21 Bonus issue 1:3 JTLINFRA 13-Oct-21 Stock  Split From Rs.10/- to Rs.2/-

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