Karvy Morning Moves - Karvy Online

Research Desk – Stock Broking Morning Moves

Dec 12, 2017

Market View

Markets likely to open on a flat note, Buy around 10310 levels: Benchmark indices continued to surge on Monday on broad based buying support and tracking Asian peers that climbed on positive US payrolls and Chinese trade data. The buying momentum was also backed by hopes that Prime Minister Narendra Modi and his ruling Bharatiya Janata Party (BJP) would win critical state assembly elections in Gujarat. Nifty opened gap down taking cues from the global markets, continued to surged during the day and lastly shut the shop near the day high at 10322.25 with gains of 56.60 points or 0.55% on closing basis. Nifty settles above its 21 & 50-DEMA which is currently placed near 10243 & 10200 respectively. On the downside Nifty has an immediate support near 10280 below which next support lies near 10200-10240 levels. While on the higher side 10330 will work as an immediate hurdle, above which 10390-10410 will work as next resistance area; on closing and sustaining above 10410 marks, Nifty may target for 10500-10600 levels. Nifty View for the day: Buy Nifty around 10300 -10310 for the targets of 10380 with a stop loss of 10250. (SPOT LEVELS)

Index

Support

Pivot

Resistance

Nifty

10264

10311

10358

Bank Nifty

25261

25391

25521

Nifty Option: Buy Nifty DEC 10350 CE around 100-105 | SL: 75 | TGT: 140 | TF: Intraday |

Intraday Recommendations (Refer Page– 2) Scrip Code

Act

Entry

Institutional Activity

SL

TGT

BHARATFIN

L

1001-1002

987

1024

PEL

L

2880-2882

2843

2930

ICICIBANK

L

310-311

305

320

DRREDDY

S

2198-2199

2230

2156

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

Cash Market

Net Value

Futures (FIIs)

FII

-185.6

Index

109.91

DII

108.94

Stock

54.11

Source: NSE India | Value Rs. in Cr |

Market Buzz

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

(Close)

(Pts)

Chg (%)



10347.00

1.00

0.01

24386.03

56.87

0.23

6875.08

35.00

0.51



2659.99

8.49

0.32



7453.48

59.52

0.80

22954.60

15.87

0.07

28946.18

-19.11

-0.07

Source: Bloomberg and other leading websites

Net Value



  

UCO Bank, Allahabad Bank sell Jai Balaji loans to Edelweiss ARC PUNJAB NATIONAL BANK SETS INR168/SHR FLOOR PRICE FOR QIP. PNB to raise up to Rs 5,000 cr via QIP 2nd RBI list: After failing to resolve 28 stressed companies’ debt crisis, banks seek more time MOODY'S CHANGES JLR'S OUTLOOK TO STABLE, AFFIRMS Ba1 RATINGS Tata Motors to hike car prices by up to Rs 25,000 to offset input costs GAIL to import 5 MT LNG from US in FY'19 Novo Nordisk India and Torrent Pharma expand their insulin manufacturing facility

Source: Bloomberg, leading business newspapers & websites

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

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Dec 12, 2017

Intraday Recommendations Stock

BHARATFIN

Action

Entry

L

1001-1002

Stop loss

987

Target

1024

Stock

PEL

Action

Entry

L

2880-2882

Stop loss

2843

Target

2930

BHARATFIN has given trend line breakout around 999 levels on daily charts and traded well above the same. The up move in the stock has seen notable volume formation. Which reflects strength in the counter

PEL is in strong up move and given price breakout 2820 levels on daily chart. Thereafter, the stock has resumed its up move with significant volume formation. The stock is trading above all its major moving averages, which reflects strength in the counter.

Stock

Stock

ICICIBANK

Action

Entry

L

310-311

Stop loss

305

Target

320

ICICIBANK has bounced well after making swing low of around 298.15 levels on daily charts. The bounce from the said lower levels has seen supportive volume formation. The stock is trading above all its major moving averages, which reflects strength in the counter.

DRREDDY

Action

S

Entry

2198-2199

Stop loss

2230

Target

2156

DRREDDY is trading under pressure from its immediate swing high of 2494 levels on daily charts. The stock has open the last trading session with positive tone but unable to sustain its gain in initial hours of the trade and resume it’s down move. Which suggest selling pressure likely to continue in the counter for near term.


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Dec 12, 2017

Index Tracker Particulars Nifty Spot Nifty Fut

Current

Previous

% Chg

10322.25

10265.65

0.55

10346.40

10291.65

0.53

2.12

2.09

1.44

5.02

4.62

0.40

0.86

0.92

-6.19

1.02

0.98

4.15

25404.85

25321.15

0.33

25422.45

25364.50

0.23

0.20

0.19

1.60

1.49

3.12

-1.64

320,166

314,900

1.67

14.15

13.67

3.51

Nifty Near OI Nifty COC% Nifty PCR Vol Nifty PCR OI Bank Nifty Spot Bank Nifty Fut

Index Dynamics

Bank Nifty Near OI Bank Nifty COC% Market OI (Rs Cr.) India VIX

Nifty Dec Future is trading at a premium of 24.15 points as compared to a premium of 26.00 points in the last trading session. On the options front, Nifty DEC 10100 PE has added of 8.49 lakh shares in Open Interest and 10000 PE has maximum OI of 85.47 lakh shares. Nifty NOV 10300 CE has shedded of 6.82 lakh shares in Open Interest and 10500 CE has maximum OI of 53.26 lakh shares. Bank Nifty Dec future is trading at a premium of 17.60 points as compared to a premium of 43.35 points. On the options front, Bank Nifty 14 DEC 25400 PE has seen addition of 2.00 lakh shares while Bank Nifty 14 DEC 25500 CE has seen addition of 2.26 lakh shares in OI. Bank Nifty View for the Day: Buy Bank Nifty around 25350 levels keeping a stop loss of 25250 for the target of 25500 levels. (SPOT LEVELS) Bank Nifty Option: Buy Bank Nifty 14 Dec 25400 CE around 90 | Stop Loss: 40 | Target: 170 | TF: Intraday

Positional Recommendations TATAGLOBAL DECEMBER Futures: Buy around 295-296 levels for the target of 314 levels with stop loss of 284 (spot levels): The stock has witnessed addition of long positions with good volumes. The stock added 5.41% in open interest with rise in price by 3.42% in the last trade. Technically the stock has come out of bullish consolidation pattern hence a buy call is recommended.

BANKINDIA DECEMBER Futures: Sell around 182-182.50 levels for the target of 173-174 levels with stop loss of 188 (spot levels): : The stock has witnessed addition of short position in the last trade and has added 9.90 % of open interest with fall in price by 1.77%.

Hybrid Strategy

600.00

580.00

560.00

540.00

520.00

500.00

480.00

460.00

440.00

420.00

BULL CALL SPREAD IN M&MFIN

400.00

20000 15000 10000 5000 0 -5000 -10000

M&MFIN DEC Futures has rallied more than 5% with an addition to OI by 470000 (7.47%) making total open interest as 6758750 indicating significant long addition, while M&MFIN DEC 480 CE witnessed addition of 76250 in OI and making a total OI of 198750 and M&MFIN DEC 500 CE witnessed addition of 102500 making the highest OI concentration of 226250 in option chain in the previous trading session. Technically, the stock has given last three months trading range and closed at the highest point of trade and also clocked fresh life time highs. Hence, we recommend building a "Bull Call Strategy" in the counter Buy 1 lot of M&MFIN DEC 480 CE @ 14.50 and Sell 1 lot of M&MFIN DEC 500 CE @ 7.50 | BEP: 487.00 | Max Profit:16250 | Max Loss:8750 |

Stock Specific Activity Long Accumulation Short Closure Short Accumulation Long Closure

ARVIND

WOCKPHARMA

CADILAHC

REPCOHOME

M&MFIN

PIDILITIND

PCJEWELLER

SRF

COLPAL

TORNTPHARM

NBCC

BANKINDIA

SHREECEM

SREINFRA

ASIANPAINT

MINDTREE

BALKRISIND

APOLLOHOSP

HDIL

AJANTPHARM

Stocks in Ban in F&O Segment FORTIS

HDIL

IRB

JETAIRWAYS


JPASSOCIAT

JSWENERGY

JISLJALEQS

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Dec 12, 2017

Derivative Insights Open Interest 90 80 70 60 50 40 30 20 10 0

Change in Open Interest 10

Put

Call

Put

x 100000

x 100000

Call

5 0

-5 9900

9900 10000 10100 10200 10300 10400 10500

-10

10000 10100 10200 10300 10400 10500

Top Traded Stock Options Call

Symbol

Put Volume (Contracts)

Strike Price

LTP

MARUTI

9400

64.8

4020

ITC

270

3.5

RELIANCE

940

CENTURYTEX

1400

Symbol

Volume (Contracts)

Strike Price

LTP

MARUTI

9000

90.8

2301

3492

RELIANCE

900

13.45

1951

15.3

2926

INFY

980

10.15

1611

28.3

2477

ITC

260

2.1

1469

Top OI change in Stock Options Call

Symbol

Put

Strike Price

LTP

Change in OI

Symbol

Strike Price

LTP

NHPC

32.5

0.25

2376000

ADANIPOWER

ADANIPOWER

32.5

3.6

1740000

SAIL

85

2.05

RCOM

20

0.05

Change in OI

32.5

0.9

1140000

IDEA

90

1.25

476000

1548000

RCOM

10

0.35

434000

1120000

ITC

260

2.1

374400

Stock Option Recommendations Symbol BHARATFIN

Strike Price

Option Type

1020

CE

15

10

22

23.85

Entry

Stop Loss

Target

IV

Change in OI 2000

OI 118000

PEL

2900

CE

80

61

105

33.15

-2100

26400

ICICIBANK

315

CE

5

2

10

24.27

71500

929500

DRREDDY

2200

PE

55

30

85

32.70

7600

50000

*December Series Options


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Dec 12, 2017

Pivot Table

SYMBOL

CMP

S2

S1

PIVOT

R1

R2

SENSEX

33455.79

33212

33334

33435

33557

33658

NIFTYBANK

25404.85

25261

25333

25391

25463

25521

NIFTY

10322.25

10264

10293

10311

10340

10358

532.7

518

525

532

539

545

9133.8

9053

9093

9130

9171

9207

1709.95

1679

1695

1706

1722

1733

ITC

266.25

261

264

266

268

270

RELIANCE

916.15

906

911

919

924

931

SBIN

318.4

313

316

318

320

322

AXISBANK

545.1

537

541

547

551

556

1221.85

1208

1215

1222

1229

1236

INFY

1005.3

989

997

1002

1010

1015

ICICIBANK

311.45

307

309

311

313

315

TATAMOTORS

410.15

405

408

411

414

418

GAIL

481.2

469

475

483

489

497

M&M

1418.25

1378

1398

1413

1433

1448

VEDL

291.35

282

287

291

295

299

TECHM

500.65

489

495

500

506

511

BHARTIARTL MARUTI HDFC

LT

* 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

Purpose

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

COLPAL

EQ

18-Dec-17

19-Dec-17

Interim Dividend


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Dec 12, 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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