Karvy Morning Moves - Karvy Online

Research Desk – Stock Broking Morning Moves

September 1, 2017 Market View

Markets likely to open flat; Buy around 9900: Nifty managed to move above the falling trend line and end in green as traders rolled over their positions from August series to September series. Technically, Nifty made a higher high and a higher low in yesterday’s session as good buying was seen in heavyweight stocks like RELIANCE and WIPRO, while automobile stocks like BAJAJ-AUTO, EICHERMOT, MARUTI etc gained ahead of the announcement of Auto Sales numbers which will be released by auto companies today. Nifty has immediate support around 9870-9850 below which the next good support for the index lies at 9820-9790. Whereas on the upside, the Nifty is likely to witness its first supply zone around 9960-9980 crossing which the 10020-10040 levels could be tested on the upside. Another important set of data apart from the Auto Sales numbers which will be coming out today is the Markit manufacturing PMI data for the month of August. Nifty View for the day: Therefore, for the day we recommend traders to buy Nifty around 9900 levels for the targets of 99509970 levels, placing a stop loss @ 9850 levels. (SPOT LEVELS) Nifty Option: Buy Nifty SEPTEMBER 10000 CE around 80 | SL: 55 | TGT: 120-130 | TF: Intraday |

Index

Support

Pivot

Resistance

Nifty

9831.83

9899.98

9968.13

Bank Nifty

24146.83

24293.48

24440.13

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

Act

Entry

Institutional Activity

SL

TGT

Cash Market FII

77.58

Index

1185.19

DII

509.71

Stock

-81.00

IDEA

L

90-90.75

88.75

94

JUSTDIAL

L

387-388

381

399

JINDALSTEL

L

136-137

135

140

LUPIN

S

BLW 974

986

956

Net Value

Futures (FIIs)

Net Value

Source: NSE India | Value Rs. in Cr |

Act= Action | SL: Stop Loss | TGT: Target | L= Long | S= Short |

Market Buzz

Global Indices Global Indices

(Close)

(Pts)

Chg (%)

SGX Nifty*

9,929.00

-9.00

-0.09

Dow Jones

21948.10

55.67

0.25

NASDAQ

6,428.66

60.35

0.94

S&P 500

2471.65

14.06

0.57

FTSE 100

7,430.62

65.36

0.88

Nikkei 225*

19,678.57

32.33

0.16

Hang Seng*

28,015.22

44.92

0.16

Source: Bloomberg, leading business newspapers & websites



Fiscal deficit reaches 92.4% of full-year target in July at Rs 5.05 lakh cr



Adani Group will partner with Sweden’s SAAB to build singleengine fighter jets in India



Maruti to revamp sales channel, unveils Maruti Suzuki Arena



India's Gross Domestic Product (GDP) growth slides to 5.7 percent

Source: Bloomberg, leading business newspapers & websites

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

1

Research Desk – Stock Broking 4

Morning Moves

September 1, 2017

Intraday Recommendations

Stock

Action

Entry

Stop loss

Target

Stock

Action

Entry

Stop loss

Target

IDEA

L

90-90.75

88.75

94

JUSTDIAL

L

387-388

381

399

IDEA 14 day RSI is trading above its 9 period averages. Heiken candlesticks suggest positive trend in the counter. Stock has given confirmation for bullish harami pattern with jump in volume. Stock is sustaining above a breakaway gap in daily chart.

JUSTDIAL has given breakout from consolidation in daily chart with jump in volume. 14 day RSI is trading at 61.62 which is above its 9 period average of 51.61 suggesting positive momentum. Parabolic SAR suggest positive trend in the counter.

Stock

Action

Entry

Stop loss

Target

Stock

Action

Entry

Stop loss

Target

JINDALSTEL

L

136-137

135

140

LUPIN

S

BLW 974

986

956

JINDALSTEL is trading above all of its major exponential moving averages in daily chart. Parabolic SAR and Heiken candlesticks suggest positive trend in the counter. 14 day RSI is trading at 50.80 which is above its 9 period average of 48.63 suggesting positive momentum

LUPIN is sustaining below its major exponential moving averages.. Heiken candlesticks suggest negative trend in the counter. MACD suggest negative divergence in the counter. Stock signals consolidation breakdown from 3 days of consolidation in hourly chart with jump in volume.


2


Morning Moves

September 1, 2017

Index Tracker Particulars

Current

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

Index Dynamics

Previous

9917.90 9937.20 1.59 2.54 1.02 1.06 24318.4 24353.7 0.16 1.89

Market OI (Rs. cr.)

% Chg

9884.40 9912.45 0.97 3.57 1.01 1.02 24308.7 24352.8 0.11 2.29

0.34 0.25 63.61 -1.03 0.98 3.58 0.04 0.00 48.96 -0.40

186,249

336,397

-44.63

11.95

12.89

-7.29

India VIX

NIFTY SEP future is trading at a premium of 19.30 points as compared to a premium of 28.05 points in the last trading session. On the options front, NIFTY SEP 9700 PE has seen addition of 12.92 lakh shares in OI while NIFTY SEP 10000 CE has seen addition of 8.49 lakh shares in OI. However, the maximum OI is seen in NIFTY SEP strike 9700 PE of 38.41 lakh shares and 10000 CE of 28.56 lakh shares. BANKNIFTY SEP future is trading at a premium of 35.30 points as compared to a premium of 44.15 points. On the options front, BANKNIFTY SEP 24000 PE has seen addition of 1.63 lakh shares in OI while BANKNIFTY SEP 24500 CE has seen addition of 1.81 lakh shares in OI. However, the maximum OI is seen in BANKNIFTY SEP strike 24000 PE and 24500 CE of more than 2.80 lakh shares Bank Nifty View for the Day: Buy Bank Nifty @ 24300 levels keeping stop loss of 24200 for the target of 24400-24450 levels. (SPOT LEVELS) Bank Nifty Option: Buy Bank Nifty 7SEP 24400 CE around 120 | Stop Loss: 80 | Target: 180-190 | TF: Intraday

Positional Recommendations ESCORTS SEP Futures: Buy @ 640-642 levels for the target of 670 levels with stop loss of 625 (spot levels): The stock has witnessed addition of long positions with good volumes. The stock added 85.36% in open interest with rise in price in the last trade.

AXISBANK SEP Futures: Sell @ 503-505 levels for the target of 480 levels with stop loss of 515 (spot levels): The stock has witnessed addition of short positions in the last trade and has added 48.78% of open interest with fall in price.

Hybrid Strategy

30000 20000 10000

-20000

350

340

330

320

310

300

290

280

-10000

270

0

BULL CALL SPREAD IN VEDL VEDL September Future has total open interest of 4,23,71,000 shares while VEDL SEP 310 CE witnessed addition of 4,79,500 shares making a total OI of 10,01,000 shares and VEDL SEP 320 CE witnessed addition of 4,37,500 shares making a total OI of 7,59,500 shares in the previous trading session. Technically, the stock is in uptrend and making in the formation higher highs and higher lows and is also trading above its major moving averages on daily charts and even the momentum indicators also indicate the stock may move further high in the coming sessions. Hence, we recommend building Bull call spread strategy in the counter Buy one lot of VEDL SEP 310 CE @ 10.65 and Sell one lot of VEDL SEP 320 CE @ 6.65 | Max Profit: 21000 | Max Loss: 14000 | BEP: 314 |

Stock Specific Activity Long Accumulation

NATIONALUM

EQUITAS

SRTRANSFIN

MANAPPURAM

-

Short Closure

RDEL

MRPL

SREINFRA

CHENNPETRO

JUSTDIAL

Long Closure

FORTIS

DCBBANK

INFRATEL

CUMMINSIND

BOSCHLTD

Short Accumulation

INDIANB

UPL

OIL

CHOLAFIN

-

Securities in Ban period

JSWENERGY


3


Morning Moves

September 1, 2017 Derivative Insights

Open Interest

Change in Open Interest 15 Call

Call

Put

x 100000

x 100000

40 30 20

Put

10

10

5 0

0 9600

9700

9800

9600

9900 10000 10100 10200

9700

9800

9900 10000 10100 10200

Top Traded Stock Options Call

Put

Strike Price

Price

Volume (Contracts)

RELIANCE

1600

36.40

2963

INFY

940

18.25

MARUTI

7700

SBIN

280

Symbol

Strike Price

Price

Volume (Contracts)

RELIANCE

1580

25.70

1002

1597

INFY

900

17.10

997

175.45

925

LUPIN

1100

112.80

451

6.75

904

SBIN

270

3.50

421

Symbol

Top OI change in Stock Options Call

Symbol

Put

Strike Price

Price

SUZLON

17.50

0.50

6660000

GMRINFRA

JPASSOCIAT

22.50

3.20

3060000

GMRINFRA

17.50

0.85

35

1.65

ADANIPOWER

Change in OI

Symbol

Strike Price

Price

Change in OI

20

2.90

3960000

SUZLON

17.50

1.55

2460000

1665000

JPASSOCIAT

22.50

1.40

1088000

1360000

ICICIBANK

300

7.90

786500

Stock Option Recommendations

Strike Price

Option Type

IDEA

92.5

CE

JUSTDIAL

400

CE

JINDALSTEL

140

LUPIN

960

Symbol

Stop Loss

Target

2-2.75

1.50

4.50

34.01

133000

98000

17-18

14

25

53.11

196800

192000

CE

5

3.50

7.50

42.79

540000

175500

PE

ABV 22

16

32

33.23

16800

800

Entry


IV

Change in OI

OI

4


Morning Moves

September 1, 2017 Pivot Table of Top Traded Nifty Stocks

Symbol SENSEX NIFTY NIFTYBANK NTPC RELIANCE HDFC INFY HINDALCO IOC VEDL YESBANK MARUTI ICICIBANK TATASTEEL SBIN HDFCBANK ITC BPCL

CMP

S2

S1

PIVOT

R1

R2

31730.49 9917.90 24318.40

31474.51 9831.83 24146.83 161.78 1565.20 1733.00 902.88 233.17 440.33 297.50 1728.15 7462.50 294.75 626.95 271.85 1747.45 279.18 509.23

31602.50 9874.87 24232.62 165.27 1579.85 1754.95 908.92 235.58 447.52 303.20 1740.60 7581.40 296.40 632.50 274.80 1761.95 280.72 519.12

31679.84 9899.98 24293.48

31807.83 9943.02 24379.27 170.72 1603.30 1789.90 924.97 239.93 462.42 312.30 1769.95 7769.80 300.30 643.30 280.10 1785.40 283.47 536.67

31885.17 9968.13 24440.13 172.68 1612.10 1802.90 934.98 241.87 470.13 315.70 1786.85 7839.30 302.55 648.55 282.45 1794.35 284.68 544.33

168.75 1,594.50 1,776.90 914.95 238.00 454.70 308.90 1,753.05 7,700.30 298.05 638.05 277.75 1,776.45 282.25 529.00

167.23 1588.65 1767.95 918.93 237.52 455.23 306.60 1757.50 7650.90 298.65 637.75 277.15 1770.90 281.93 526.78

* 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

RATNAMANI

EQ

04-Sep-17

-

AGM/Dividend - Rs 5.50/- Per Share

MUKTAARTS

EQ

04-Sep-17

-

Annual General Meeting

SINTEX

EQ

04-Sep-17

-


ADVENZYMES

EQ

04-Sep-17

-


CASTROLIND

EQ

05-Sep-17

06-Sep-17

Dividend - Rs 4.50/- Per Share

Results

GRAVITA


5


Morning Moves

September 1, 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. 

  

Associates of KSBL might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months. Associates of KSBL might have received compensation from the subject company mentioned in the report during the period preceding twelve months from the date of this report for investment banking or merchant banking or brokerage services from the subject company in the past twelve months or for services rendered as Registrar and Share Transfer Agent, Commodity Broker, Currency and forex broker, merchant banker and underwriter, Investment Advisory services, insurance repository services, consultancy and advisory services, realty services, data processing, profiling and related services or in any other capacity. KSBL encourages independence in research report preparation and strives to minimize conflict in preparation of research report. Compensation of KSBL’s Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. KSBL generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. KSBL or its associates collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report. KSBL or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report and have no financial interest in the subject company mentioned in this report. Accordingly, neither KSBL nor Research Analysts have any material conflict of interest at the time of publication of this report. It is confirmed that KSBL and Research Analysts primarily responsible for this report and whose name(s) is/ are mentioned therein of this report have not received any compensation from the subject company mentioned in the report in the preceding twelve months. It is confirmed that JK Jain, Research Analyst did not serve as an officer, director or employee of the companies mentioned in the report. KSBL may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Neither the Research Analysts nor KSBL have been engaged in market making activity for the companies mentioned in the report.



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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