Karvy Morning Moves - Karvy Online [PDF]

Research Desk – Stock Broking Morning Moves

August 2, 2017 Market View

Market likely to remain volatile, RBI policy in focus: Nifty made a higher high and a higher low in yesterday’s session as a short covering rally in rate sensitive stocks during the last hour of trade propelled the markets higher into the uncharted territory, to mark a fresh lifetime intraday high of 10128.60. The bulls seemed to be in total control as the Nifty also managed to shut shop at its highest level ever. Amidst calls for a rate cut to boost investment and demand, manufacturing production contracted for the first time this year in July. The central bank is widely expected to cut the policy repo rate to give impetus to growth in the wake of favourable consumer inflation. Technically, Nifty has immediate support around 10070-10050 followed by 100009980. Whereas on the upside, Nifty is likely to face stiff resistance around 10160-10180 followed by 10220-10250. Nifty View for the day: Therefore, for the day we recommend traders to buy Nifty on dips around 10100 levels for the targets of 10160 levels, placing a stop loss below 10050 levels. (SPOT LEVELS) Nifty Option: Buy Nifty AUGUST 10200 CE around 80 | SL: 60 | TGT: 110 | TF: Intraday |

Index

Support

Pivot

Resistance

Nifty

10040.15

10103.00

10165.85

Bank Nifty

24922.47

25101.07

25279.67

Intra-day Recommendations (Refer Page – 2) Scrip Code

Act

ADANIENT

L

HINDALCO

Entry

Institutional Activity

SL

TGT

Cash Market

139.5

137.5

142.5

FII

-945.83

Index

-420.64

L

224

221

230

DII

1390.65

Stock

-101.58

ESCORTS

L

694

679

717

TATAMOTORS

S

BLW 445

450

437.5

Net Value

Futures (FIIs)

Net Value

Source: NSE India Value (Rs in Cr)

Source: Bloomberg, leading business newspapers & websites

Global Indices Global Indices SGX Nifty* Dow Jones NASDAQ S&P 500 FTSE 100 Nikkei 225* Hang Seng*

(Close)

Market Buzz (Pts)

Chg (%)

10,142.00

-15.00

-0.15



JSW Steel quarterly profit falls 44%, but beats estimates

21963.92

72.8

0.33



NCLT admits ICICI Bank's insolvency petition against ABG

6362.94

14.81

0.23

2476.35

6.05

0.24

7423.66

51.66

0.7



Power Grid reports 14% YoY rise in Q1 net profit

20035.83

50.04

0.25



Govt to sell 4% in Hind Copper at Rs 64.75/share tomorrow

27,647.24

107.01

0.39


Shipyard 

Tata Steel eyes commercialization of advanced material graphene, a superb conductor


For more Market updates & Stock Research, visit www.karvyonline.com

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Research Desk – Stock Broking 4

Morning Moves

August 2 2017

Intraday Recommendations

Stock

Action

Entry

Stop loss

Target

Stock

Action

Entry

Stop loss

Target

ADANIENT

L

139.5

137.5

142.5

HINDALCO

L

224

221

230

ADANIENT is trading above all of its major moving averages in daily chart. Heiken candlesticks suggest positive trend in the counter. Stock was trading with open low as same in yesterday’s trading session.

HINDALCO was sustaining above all of its major moving averages in daily chart. 14-period RSI is trading above its 9 period averages. Heiken candlesticks suggest positive trend in the stock. Stock opened in gap up and sustained above the gap in daily chart.

Stock

Action

Entry

Stop loss

Target

Stock

Action

Entry

Stop loss

Target

ESCORTS

L

694

679

717

TATAMOTORS

S

BLW 445

450

437.5

ESCORTS is trading above all of its major moving averages in daily chart. Parabolic SAR and Heiken candlesticks suggest positive trend in the counter. Stock has given consolidation breakout in daily chart

TATAMOTORS suggest weakness by sustaining below all of its major moving averages. Heiken candlesticks suggest negative trend in the counter. 14 day RSI is sustaining below 9 period average indicating negative momentum in the counter.


2


Morning Moves

August 2 2017

Index Tracker Particulars

Current

Index Dynamics

Previous

% Chg

Nifty Spot Nifty Near Fut Nifty Near Fut OI Nifty CoC Nifty PCR VOL Nifty PCR OI Bank Nifty Spot Bank Nifty Fut Bank Nifty Near OI Bank Nifty CoC

10114.65 10138.45 2.02 2.86 1.07 1.14 25122.80 25195.35 0.25 3.51

10077.10 10103.00 2.00 3.03 1.01 1.10 25103.65 25135.05 0.25 1.47

0.37 0.35 0.95 -0.16 6.02 3.15 0.08 0.24 -1.37 2.04

Market OI (Rs. cr.)

239,866

230,234

4.18

India VIX

11.907

11.9

0.06

Nifty Augfuture is trading at a premium of 23.80 points as compared to premium of 25.90 points in the last trading session. On the options front, Nifty Aug 10100 PE has witnessed addition of 7.62 lakh shares in Open Interest with maximum OI in Nifty Aug 10000 PE of 49.62 lakh shares. While Nifty Aug 10350 CE has seen addition of 4.48 lakh shares, with OI to the tune of 23.02 lakh shares. Bank Nifty Aug future is trading at a premium of 72.55 points as compared to a premium of 31.40 points. On the options front, Bank Nifty 03 AUG 25100 PE has seen addition of 1.06 lakh shares while Bank Nifty 03 AUG 25700 CE has seen addition of 2.17 lakh shares in OI. Bank Nifty View for the Day: Buy Bank Nifty Aug Fut @ 25100 levels keeping stop loss of 24920 for the target of 25300 levels. (SPOT LEVELS) Bank Nifty Option: Buy Bank Nifty 03 Aug 25200 CE @ 125 | Stop Loss: 90 | Target: 160-180 | TF: Intraday

Positional Recommendations JSWSTEEL AUGUST Futures: Buy @ 224-224.5 levels for the target of 232 levels with stop loss of 218 (spot levels): The stock has witnessed addition of long positions with good volumes. The stock added 0.92% in open interest with rise in price in the last trade.

LUPIN AUGUST Futures: Sell @ 1030-1035 levels for the target of 1000 levels with stop loss of 1055 (spot levels): The stock has witnessed addition of short position in the last trade and has added 6.19% of open interest with fall in price.

Hybrid Strategy 40000

COVERED CALL STRATEGY IN MARUTI

30000

MARUTI AUG Future has total open interest of 17, 59,050 shares while MARUTI AUG 7900 CE witnessed addition of 28,200 shares making a total OI of 72,750 shares in the last trading session. Technically, the stock is looking strong, clocking fresh life time highs each passing day. The positive momentum in the stock is expected to continue in the coming sessions as well. Hence, we recommend building Covered Call strategy in the counter.

20000 10000 8100.0

8050.0

8000.0

7950.0

7900.0

7850.0

7800.0

7750.0

7700.0

-10000

7650.0

0

Buy one lot of MARUTI AUG FUT @ 7800-7802 and Sell one lot of MARUTI AUG 7900 CE @ 112 | Max Profit: 31500 | Max Loss: Unlimited below BEP | BEP: 7690 | Positional Stop Loss: 7580 |

Stock Specific Activity Long Accumulation Short Closure Short Accumulation Long Closure

TECHM

VOLTAS

EICHERMOT

HEROMOTOCO

TVSMOTOR

SRTRANSFIN

PETRONET

SHREECEM

EXIDEIND

IGL

MARICO

TORNTPOWER

GODREJCP

PNB

PCJEWELLER

HEXAWARE

TORNTPHARM

SINTEX

SIEMENS

INDIGO

Securities in Ban period

IBREALEST

JSWENERGY


JPASSOCIAT

3


Morning Moves

August 2 2017 Derivative Insights

Open Interest

Change in Open Interest

Call

10

Put

x 100000

x 100000

60 50 40 30 20 10 0

Call

Put

5 0

9800

9800

-5

9900 10000 10100 10200 10300 10400

9900 10000 10100 10200 10300 10400

Top Traded Stock Options Call Symbol

Put Volume (Contracts)

Strike Price

Price

MARUTI

8000

80.65

5928

TECHM

420

7.1

SBIN

320

ASHOKLEY

120

Symbol

Volume (Contracts)

Strike Price

Price

MARUTI

7500

46.4

1975

3113

SBIN

310

10.9

1692

7.4

3003

YESBANK

1700

14.2

1667

1.45

2969

TECHM

400

10.95

1573

Top OI change in Stock Options Call

Symbol

Put

Strike Price

Price

Change in OI

JPASSOCIAT

42.5

0.1

4148000

SUZLON

22.5

0.25

PNB

170

SBIN

320

Symbol

Strike Price

Price

Change in OI

PNB

155

7.4

1788500

2910000

JPASSOCIAT

25

0.8

1428000

4.8

1918000

BANKINDIA

160

8.7

600000

7.4

1875000

ASHOKLEY

105

1.45

560000

Stock Option Recommendations Strike Price

Option Type

ADANIENT

145

CE

HINDALCO

230

CE

ESCORTS

720

CE

TATAMOTORS

440

PE

Symbol

Entry

Stop Loss

4.5

3.2

6.2

39.89

96,000

440,000

6.50

5

8.5

31.41

178,500

1,526,000

18-20 ABOVE 12.60

10

30

33.57

1,100

154,000

10

15.5

33.46

136,500

450,000


Target

IV

Change in OI

OI

4


Morning Moves

August 2 2017 Pivot Table of Top Traded Nifty Stocks

Symbol SENSEX NIFTY NIFTYBANK MARUTI HDFC YESBANK TECHM SBIN RELIANCE EICHERMOT ITC INFY HDFCBANK IBULHSGFIN ICICIBANK LT TATASTEEL M&M

CMP

S2

S1

PIVOT

R1

R2

32575.17 10114.65 25122.80 7856.1 1779.1 1827.25 402.45 309 1603.6 31504.8 287.85 1005.55 1797.2 1225.2 302.6 1190.05 572.4 1429.25

32386.71 10040.15 24922.47 7638.7 1733.3 1795.95 391.62 303.73 1574.7 29718.93 283.58 988.32 1755.9 1155.07 299.27 1160.12 565.43 1391.88

32480.94 10077.40 25022.63 7747.4 1756.2 1811.6 397.03 306.37 1589.15 30611.87 285.72 996.93 1776.55 1190.13 300.93 1175.08 568.92 1410.57

32556.48 10103.00 25101.07 7833.7 1777.6 1824.8 405.47 310.58 1605.95 31105.93 287.13 1006.97 1792.85 1211.07 303.07 1186.67 572.08 1421.98

32650.71 10140.25 25201.23 7942.4 1800.5 1840.45 410.88 313.22 1620.4 31998.87 289.27 1015.58 1813.5 1246.13 304.73 1201.63 575.57 1440.67

32726.25 10165.85 25279.67 8028.7 1821.9 1853.65 419.32 317.43 1637.2 32492.93 290.68 1025.62 1829.8 1267.07 306.87 1213.22 578.73 1452.08

* Pivot Levels for the stocks mentioned above are top 15 traded stocks of Nifty 50 of previous day. For other stocks, Visit: http://www.karvyonline.com/research/?mainatab=technical&subtab=daily

Corporate Actions Company

Series

Ex-Date

Record Date

Purpose

AVANTIFEED

EQ

03-Aug-17

-

Dividend - Rs 9/- Per Share

KAJARIACER

EQ

03-Aug-17

-

AGM/Dividend - Rs 3/- Per Share

KALPATPOWR

EQ

03-Aug-17

-

AGM/Dividend - Rs 2/- Per Share

BALKRISIND

EQ

04-Aug-17

07-Aug-17

Interim Dividend - Rs 2.50 Per Share

VOLTAS

EQ

04-Aug-17

-

AGM/Dividend - Rs 3.50/- Per Share

Results BATAINDIA

IGARASHI

VOLTAS

CAPF

PNB

RELINFRA

LUPIN

EMAMILTD

TCI

WOCKPHARMA

GODREJPROP

TBZ


5


Morning Moves

August 2 2017

Page 1: FII= Foreign institutional investor, DII= Domestic institutional investor.| Page 3: Fut=Futures; COC=Cost of Carry; PCR = Put Call Ratio; Vol = Volume; OI = Open Interest; VIX = Volatility Index | Page 5: Pivot Point: Intra-day trading tool that applies stop loss based on NSE prices.| Pivot Point: This is a trigger point for intra-day buy/sell based on the price range of the previous day, based on NSE prices.| R1 (Resistance 1): First resistance over pivot point; R2 (Resistance 2): Second resistance over R1.| S1 (Support 1): First support below pivot point; S2 (Support 2): Second support below S1.| As per the tool, the trader should take a BUY position just above the pivot point; the stop loss should be kept at the pivot point and the first target would be R1. If R1 is crossed, then R2 becomes the next target with the stop loss at R1. Similarly, if the price falls below the pivot point, the trader should SELL, keeping the pivot point as the stop loss and the first target as S1. If S1 is crossed, then S2 becomes the next target with the stop loss at S1.EMA: Exponential moving average; SA: Simple average.

KARVY RESEARCH DESK – STOCK BROKING JK Jain

Head Research

QUERIES & FEEDBACK Toll-Free: 1800 419 8283

Email ID: [email protected]

Karvy Stock Broking Limited Plot No.31, 6th Floor, Karvy Millennium Towers, Financial District, Nanakramguda, Hyderabad, 500 032, India Tel: 91-40-2331 2454; Fax: 91-40-2331 1968 For More updates & Stock Research, visit www.karvyonline.com Analyst Certification The following analyst(s), JK Jain, who is (are) primarily responsible for this report and whose name(s) is/ are mentioned therein, certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report. Disclaimer Karvy Stock Broking Limited [KSBL] is a SEBI (Registration No INH200003265).registered Stock Broker, Depository Participant, Portfolio Manager and also distributes financial products. The subsidiaries and group companies including associates of KSBL provide services as Registrars and Share Transfer Agents, Commodity Broker, Currency and forex broker, merchant banker and underwriter, Investment Advisory services, insurance repository services, financial consultancy and advisory services, realty services, data management, data analytics, market research, solar power, film distribution and production profiling and related services. Therefore associates of KSBL are likely to have business relations with most of the companies whose securities are traded on the exchange platform. The information and views presented in this report are prepared by Karvy Stock Broking Limited and are subject to change without any notice. This report is based on information obtained from public sources, the respective corporate under coverage and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of KSBL. While we would endeavour to update the information herein on a reasonable basis, KSBL is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent KSBL from doing so. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. KSBL will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither KSBL nor any associate companies of KSBL accepts any liability arising from the use of information and views mentioned in this report. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Past performance is not necessarily a guide to future performance. Forward-looking statements are not predictions and may be subject to change without notice. Actual results may differ materially from those set forth in projections. 

  

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

We submit that no material disciplinary action has been taken on KSBL by any Regulatory Authority impacting Equity Research Analyst activities.



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