28 Dec: Market Updates

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🔹Market Update :

Sgx Nifty  +18 pts
Dow +28.09 pts ,Nsdq +3.09 pts , S&P +2.12 pts‎, Bovespa +364 pts ,Ftse +28 pts , Dax -2 pts , Cac +4 pts , Nikkei +10 pts now , Crude @ $59.57 brl (-0.07), Brent @ $66.44 brl (+0.00) , Gold @ 1291.20 (-0.20), Silver @ $16.745 (-0.01), Euro @ $1.1899, JPY @ $113.2100, INR @ $64.1100


🔹US GENERIC GOVT. 10-YEAR YIELD : 2.42%


Today's Corporate Action 28th Dec Ex Date :

SHALPAINTS
Right Issue of Equity Shares

Today's Board Meeting :

Dec 28 Excel Castronics Ltd, earnings for quarter ended September.

Dec 28 Steelco Gujarat Ltd, earnings for quarter ended September.
[8:29 AM, 12/28/2017] +91 93747 58687: *Riddhi Siddhi Share Brokers*

*ADVICE THAT’S WORKING on 28th DECEMBER 2017*

Good Morning & Welcome to Thursday’s trading action at Dalal Street where stocks are likely to be volatile ahead of December F&O series expiry.

Before we start first things first!

*GLOBAL UPDATE:* DOW (+28, 24774) NASDAQ (+3, 6939) SGX NIFTY (+23, 10517) HANG SENG (+100, 29697)


Interestingly, SGX Nifty is flashing green this Thursday morning!

Amid this positive backdrop, all cheerful eyes will be now on the big milestone of Nifty 10553 mark (Nifty’s ALL-TIME-HIGH).

Well, if Nifty closes above the 10553 mark then 2017 will be a big banner year for Dalal Street.

The key positive catalysts this morning are supportive global cues.

But the big question for the day is: Will extra borrowing lead to panic in our stock markets?

After yesterday’s market close, the Reserve Bank of India released the revised borrowing calendar. The government will borrow Rs 50,000 crore extra by selling sovereign bonds between January and March. Honestly speaking, our stock may turn volatile in morning session as a higher borrowing by New Delhi threatens to dent investor confidence. The bulls camp will definitely not like a wider fiscal gap.

Makes sense to watch markets reaction with one big eye as the street will now stare at rate hike; possibly early next year.

The gurus of bear camps/the merchants of doom will again be at top of their voice saying the sky is set to fall.

But, we suspect, the bears camp will be again wrong.

We repeat, if you are looking to invest in our stock markets right now, then there may be more profit to be made in being a BULL than being a BEAR.

Agreed there may be some disruption on backdrop higher crude oil prices and amid news flows that Government to borrow Rs. 50,000 Crore More in FY18, but we think, any declines will be corrective in nature.

The 3 catalysts driving momentum at Dalal Street are:

1. End-of-year Santa rally amid DII Inflows.
2. Window dressing likely to be the theme as we suspect NAV-based buying till 31st December 2017.
3. Short covering could be the theme as traders roll over positions in the futures & options (F&O) segment ahead of December 2017 derivatives contract which expires on Thursday, December 28, 2017.


Long story short: we are convinced that we will end the year with a bang.

Meanwhile, Markets will now start to look forward to the next two big catalysts:

1. Third-quarter earnings of India Inc.
2. The Union Budget.

Our chart of the day says the two stocks looking attractive on Buy side with interweek perspective:

1. Aurobindo Pharma.
2. Dr. Reddys Lab.

What Technical Tells Us on Nifty:  In Wednesday’s trade, the benchmark Nifty after trading in green for most part of the session fell sharply in the final hour of trade, registering modest losses in Wednesday’s trade; down 0.39%.

The positive takeaway was that the Nifty managed to close near the psychological 10,500 mark.

Technically, Nifty’s spectacular rebound now sparks flurry of price-target hikes with immediate targets at 10551 mark and then aggressive targets located at 10750 mark. The sequence of higher high/low is intact on daily charts; hence any corrective declines provide buying opportunities. Downside for the day is likely to be limited at 10445 and then major supports seen at 10369.

Now, the two key levels to watch in near term are:

Nifty Hurdles at 10601.
Nifty’s support at 10445.

Preferred trade on Nifty: Nifty (10490): Buy between 10445-10461 zone, targeting 10551 zone and then at 10601-10750 zone. Stop 10421. Rationale: Higher High/low.

Preferred trade on Bank Nifty: Bank Nifty (25496): Sell BANK NIFTY between 25500-25601 zone, targeting 25001 zone and then aggressive targets located at 24451-24501 zone with stop at 26101. Holding Period: 3 Days.

BULLISH STOCKS: AUROBINDO PHARMA, EQUITAS, MUTHOOTH FINANCE, CENTURY TEXTILE.

BEARISH STOCKS: ANDHRA BANK, BAJAJ FINANACE, BANK OF BARODA, BOI, BHARAT FINANCE, COAL INDIA, HDFC BANK, LIC HOUSING FINANCE, ORIENTAL BANK OF COMMERCE, RBL BANK, SBI, ULTRATECH.

THE MOST IMPORTANT MARKET NEWS:

1. Foreign institutional investors (FIIs) bought shares worth Rs 172.32 crore, while domestic institutional investors sold shares worth Rs 206.68 crore in the Indian equity market on Wednesday, as per provisional data available on the NSE.

2. Auto stocks could get volatile ahead of Auto sales numbers which will start to trickle in from January 1st 2018.

3. The street will keep a close eye on the infrastructure output data for the month of November will be released on Friday, December 29, 2017. Infrastructure output in India increased 4.7% year-on-year in October, following a downwardly revised 4.7% rise in the previous month.

STOCKS BANNED IN F&O SEGMENT FOR TODAY:  BALRAMPUR CHINI, DHFL, DLF, GMR INFRA, HDIL, IFCI, JET AIRWAYS, JAIN IRRIGATION, JP ASSOCIATES, RELCAP, WOCK PHARMA.
New In Ban: GMR INFRA, JAIN IRRIGATION, JET AIRWAYS, RELCAP.
Out of Ban: FORTIS, RCOM.

SHOW ME THE MONEY: SELL SBI on any early strength (CMP 314): Overbought technical conditions still prevail for SBI on daily charts. Interweek Strategy: Sell between 316-319 zone, targeting 309 and then more aggressive targets located at 297.50-299 zone. Stop above 322.45.

Daily Chart of Nifty:


Final Conclusion: It likely that Dalal Street will try and end December series with a bang or atleast above the 10501 mark. Having said that much will depend on how the early morning session spans out.

The must watch support levels on Nifty are at 10445.