Karvy Morning Moves - Karvy Online

Research Desk – Stock Broking Morning Moves

Dec 11, 2017

Market View

Positive momentum likely to continue; Buy near 10250: On Friday, Nifty gapped up upon positive global cues and continued its relief rally to settle above the 13 day and 21 day SMA cluster around 10250-10252 levels. The strong up move in the index clearly suggests that the primary trend of the markets is strong and pointing upwards, with possibilities of steep throwbacks and sharp pullbacks. As far as the technical setup of the index is concerned, Nifty has retraced exactly 61.8% of the index’s entire down move from its recent swing high of 10409.55 to its recent swing low of 10033.35, thereby correcting the seven days of down move by 61.8% in just two days. Therefore, going into today’s session, the sentiment is likely to remain bullish till such time the low of 10195.25, clocked on Friday is not breached. Hence, immediate supports for the Nifty can be seen around 10220-10200 below which the next support zone would be around 10160-10140. Whereas on the upside, immediate resistances for the index can be seen around 10310-10330 crossing which a sharp rally towards 10370-10390 cannot be ruled out. Nifty View for the day: Buy Nifty on dips around 10250 for the targets of 10300-10320 levels, placing a stop loss of 10200 levels. (SPOT LEVELS)

Index

Support

Pivot

Resistance

Nifty

10016

10137

10258

Bank Nifty

24788

25010

25232

Nifty Option: Buy Nifty DEC 10300 CE around 100 | SL: 75 | TGT: 125-135 | TF: Intraday |

Intraday Recommendations (Refer Page– 2) Scrip Code

Act

Institutional Activity

Entry

SL

TGT Cash Market

ITC

L

261

256

267

PCJEWELLER

L

414

406

425

HINDUNILVR

L

1317

1300

1345

RELCAPITAL

S

422

430

410

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

Net Value

Futures (FIIs)

Net Value

FII

-675.16

Index

-774.95

DII

1243

Stock

219.11

Source: NSE India | Value Rs. in Cr |

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Dec 11, 2017

Global Indices Market Buzz Global Indices

(Close)

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

(Pts)

Chg (%)

10,312.50

23.00

0.22

24329.16

117.68

0.49

6840.08

27.24

0.40

2651.50

14.52

0.55

7393.96

73.21

1.00

22,829.97

18.89

0.08

28,772.81

132.96

0.46

     

RIL sets up subsidiary in Uruguay to market petrochemical products ArcelorMittal, SAIL Steel JV to Come Up in Andhra Jaypee home buyers seek clarity on resolution plan from IRP Zydus gets USFDA nod for schizophrenia treatment drug Software service export grew by 10.3 percent in 2016-17 TataTele Maharashtra plans early redemption of Rs 750-crore bonds

Source: Bloomberg, leading business newspapers & websites Source: Bloomberg and other leading websites

Intraday Recommendations Stock

Action

Entry

ITC

L

261

Stop loss

256

Target

267

Stock

PCJEWELLER

Action

Entry

L

414

Stop loss

Target

406

425

ITC has given breakout above 261 with good volume. 14 Day RSI is trading above its 9 period averages in daily chart suggesting positive momentum in the counter and stochastic also showing positive divergence over daily charts.

PCJEWELLER is trading above 21/50/100/200 day exponential

Stock

Stock

HINDUNILVR

Action

Entry

L

1317

Stop loss

1300

Target

1345

moving averages in daily chart. Current technical & momentum setup indicates that positive momentum is likely to continue, and stock is likely to scale further higher in today’s session.

RELCAPITAL


Action

S

Entry

422

Stop loss

Target

430

410

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Dec 11, 2017

HINDUNILVR gave a breakout on the charts during the final hours of the trading session and closed near fresh 52 week high. The stock is in a short term bull trend on the charts. The stock is trading above all of the short term moving average which suggest that the stock is having some inherent strength from a short term perspective.

RELCAPITAL on the charts is making lower high and lower low on the weekly charts. The buying on the charts is also not significant on the charts taking into consideration the previous trend the stock further witness some downfall on the charts. Stock trading below most of moving averages on daily chart

Index Tracker Particulars Nifty Spot Nifty Fut Nifty Near OI Nifty COC% Nifty PCR Vol Nifty PCR OI Bank Nifty Spot Bank Nifty Fut Bank Nifty Near OI Bank Nifty COC% Market OI (Rs Cr.) India VIX

Index Dynamics

Current

Previous

% Chg

10265.65

10166.70

0.97

10291.65

10202.95

0.87

2.09

2.03

2.58

4.62

6.20

-1.58

0.92

0.83

10.40

0.98

0.91

8.25

25321.15

25057.25

1.05

25364.50

25172.00

0.76

0.19

0.22

-12.10

3.12

7.96

-4.84

314,900

307,920

2.27

13.67

14.27

-4.20

Nifty Dec Future is trading at a premium of 26.00 points as compared to a premium of 36.25 points in the last trading session. On the options front, Nifty Dec 10200 PE has witnessed addition of 12.05 lakh shares in Open Interest with maximum OI in Nifty Dec 10000 PE of 86.82 lakh shares. While Nifty Dec 10400 CE has seen shedding of 8.65 lakh shares, while maximum OI on higher side stands at Nifty Dec 10500 CE to the tune of 56.25 lakh shares. Bank Nifty Dec future is trading at a premium of 43.35 points as compared to a premium of 114.75 points. On the options front, Bank Nifty 14 Dec 25300 PE has seen addition of 2.21 lakh shares while Bank Nifty 14 Dec 25400 CE has seen addition of 1.42 lakh shares in OI. Bank Nifty View for the Day: Buy Bank Nifty around 25300 levels keeping a stop loss of 25200 for the target of 25450 levels. (SPOT LEVELS) Bank Nifty Option: Buy Bank Nifty 14 Dec 25400 CE around 100 | Stop Loss: 60 | Target: 190 | TF: Intraday

Positional Recommendations

SUNTV DECEMBER Futures: Buy @ 900-902 levels for the target of 930 levels with stop loss of 885 (spot levels): The stock has witnessed addition of long positions with good volumes. The stock added 9.05% in open interest with rise in price in the last trade.

L&TFH DECEMBER Futures: Sell @ 173.5-174.5 levels for the target of 167 levels with stop loss of 178 (spot levels): :The stock has witnessed addition of short position in the last trade and has added 0.31 % of open interest with fall in price.


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Dec 11, 2017 Hybrid Strategy BULL CALL SPREAD IN DLF

40000 30000 20000 10000

-20000 -30000

310

290

270

250

230

210

190

-10000

170

0

DLF DEC Future has total open interest of 4,61,40,000 while DLF DEC 240 CE has witnessed shedding of 55,000 in OI and making a total OI of 26,00,000. DLF DEC 250 CE witnessed addition of 1,45,000 in OI and making total OI of 34,05,000 in the previous trading session. Technically, the stock is making cycles of higher highs and higher lows from lows of 158.20 on the daily charts and is also trading above its short term moving averages. Even the momentum indicators are indicating that 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 DLF DEC 240 CE @ 8.85 AND SELL ONE LOT OF DLF DEC 250 CE @ 5| MAX PROFIT:30750| MAXLOSS:19250|BEP:243.85| Stock Specific Activity

Long Accumulation

PIDILITIND

Short Closure

JPASSOCIAT

NBCC

SUNTV

HAVELLS

GODREJIND

NESTLEIND

MFSL

VGUARD

MINDTREE

UNIONBANK

IGL

ZEEL

INFRATEL

JETAIRWAYS

HDIL

IDEA

IRB

TORNTPHARM

Short Accumulation Long Closure

BALKRISIND

Stocks in Ban in F&O Segment HDIL

IRB

JETAIRWAYS

JISLJALEQS

JPASSOCIAT

JSWENERGY

Derivative Insights Change in Open Interest

Open Interest

CALL

15

PUT

x 100000

x 100000

100 90 80 70 60 50 40 30 20 10 0

CALL

PUT

10 5 0 -5

9900 10000 10100 10200 10300 10400 10500

-10

9900 10000 10100 10200 10300 10400 10500

Top Traded Stock Options Call Symbol

Put Volume (Contracts)

Strike Price

LTP

MARUTI

9100

139.10

7631

TATAMOTORS

420

9.10

TATASTEEL

720

ITC

260

Symbol

Volume (Contracts)

Strike Price

LTP

MARUTI

8900

92.35

3841

4548

TATASTEEL

680

8.80

2371

9.20

3726

TATAMOTORS

400

6.65

1965

6.60

3463

RELIANCE

920

20.50

1667


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Dec 11, 2017 Top OI change in Stock Options

Call

Put

Symbol

Strike Price

LTP

JPASSOCIAT

20

0.65

12.50

SUZLON SAIL

RCOM

Change in OI

Symbol

Strike Price

LTP

Change in OI

7038000

JPASSOCIAT

17.50

0.90

25874000

0.60

2030000

RCOM

10

0.40

5866000

15

0.40

1740000

GMRINFRA

17.50

0.55

3510000

85

2.20

1728000

SAIL

77.50

1.45

5235000

Stock Option Recommendations Strike Price

Option Type

Entry

Stop Loss

ITC

260

CE

6.2

4.5

8.5

18.80

-1,207,200

2,954,400

PCJEWELLER

420

CE

15.5

11

21

44.36

4500

288,000

HINDUNILVR

1320

CE

23

15

35

18.07

25,800

80,400

RELCAPITAL

420

PE

14.5

10

19

42.59

5,250

189,000

Symbol

Target

IV

Change in OI

OI

*December Series Options


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Dec 11, 2017 Pivot Table

SYMBOL

CMP

S2

S1

PIVOT

R1

R2

SENSEX

33,250.30

32,938.58

33094

33190

33346

33,441.54

NIFTYBANK

25,321.15

25,055.92

25189

25278

25411

25,500.32

NIFTY

10,265.65

10,168.32

10217

10244

10293

10,319.52

9042.25

8800.1

8921.2

9020.1

9141.2

9240.1

525.15

508.0

516.6

523.7

532.3

539.5

1682.95

1648.9

1665.9

1677.0

1694.0

1705.1

697.8

670.2

684.0

698.9

712.7

727.6

921

907.8

914.4

925.7

932.3

943.6

313.1

307.9

310.5

314.7

317.3

321.4

TATAMOTORS

411.15

402.6

406.9

410.3

414.6

418.1

HDFCBANK

1840.4

1796.8

1818.6

1835.8

1857.6

1874.8

GAIL

482.5

468.3

475.4

487.7

494.8

507.0

VEDL

291.2

282.1

286.7

291.6

296.1

301.0

ITC

262.2

249.8

256.0

259.6

265.8

269.4

ICICIBANK

310.75

305.0

307.9

309.9

312.8

314.8

AXISBANK

542.5

533.3

537.9

541.2

545.8

549.1

INFY

1001.85

989.3

995.6

1001.3

1007.6

1013.3

LT

1220.35

1212.4

1216.4

1221.7

1225.7

1231.0

MARUTI BHARTIARTL HDFC TATASTEEL RELIANCE SBIN

* Pivot Levels for the stocks mentioned above are top traded stocks of Nifty 50 of previous day. For other stocks, click here

Corporate Actions

Company

Series

Ex-Date

Record Date

RENUKA

EQ

12-Dec-17

-

Annual General Meeting

ATULAUTO

EQ

13-Dec-17

14-Dec-17

Interim Dividend- Rs 2.75/- Per Share

IDFCBANK

EQ

14-Dec-17

15-Dec-17

Interest Payment

HDFCLIFE

EQ

15-Dec-17

18-Dec-17

Interim Dividend


Purpose

5


Dec 11, 2017

Page 1: FII= Foreign institutional investor, DII= Domestic institutional investor.| Page 2: Fut=Futures; COC=Cost of Carry; PCR = Put Call Ratio; Vol = Volume; OI = Open Interest; VIX = Volatility Index | Page 3: 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. Legends: BPP: Book part profits; BFP: Book full profits; AP: Average profits; EMA: Exponential moving average; SA: Simple average; RVS: Revised stop loss level.

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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