Morning Note

Market Mantra
April 12, 2017
Indian Market % Change Trading Strategy
Last Close 1 day YTD Sterlite Technologies (Buy above 137, for Target
Sensex 29,788 (0.7) 13.2 of 144, Stop Loss at 133.5): After consolidating for
Nifty 9,237 0.6 16.2 over 10 weeks, the stock has finally broken out
Nifty Bank 21,736 1.0 28.4 from a consolidation phase. The price outburst has
been accompanied with credible volumes. The
Nifty Midcap 50 4,475 0.8 31.0
stock is also convincingly sustaining above the
Nifty Small Cap 50 3,941 1.7 27.5
short term averages further accentuating out
bullish stance on the stock. We advise to Buy
Developed Markets % Change Sterlite Technologies above Rs 137, Stop Loss at Rs
Last Close 1 day YTD 133.5 and Target of Rs 144.
Dow Jones 20,651 (0.0) 18.5
Nasdaq 5,867 (0.2) 17.2 Derivative Strategy (Time period: Till expiry)
S&P 500 2,354 (0.1) 15.1 Sell Tata Power April Future @ 85-85.5, Stop Loss
Hang Seng 24,088 (0.7) 9.9 87.25 and Target 83.5-83.75.
Nikkei 18,748 0.4 (1.5) Nifty Outlook

Institutional Activity (Rs. Crore) Nifty finds strong support around 9175, which was
Cash F&O YTD the last 4 day low while 9300 would be the
FII (142) - 53,696 resistance on the upside. Bank Nifty also finds
DII 505 - 57,500
strong support around 21500 while 22000 is the
new resistance as the index chases new highs.
FII (Prov) (751) - -
DII (Prov) 827 - -

Advance/Decline stocks No. (NSE)

11-Apr-17 10-Apr-17
Adv 936 998
Dec 554 681
Unch 58 95

Upcoming Events Asian indices opened with losses led by the

Japanese “Nikkei” as Yen broke below the 110
14-Apr WPI Inflation, Balance of Trade for Mar mark as investors rushed to buy protection. Gold
prices also climbed to 1 year highs with US indices
closing flat after seeing huge intraday volatility.
The scramble to buy protection against geopolitical
risk could see further volatility in equities in the
coming weeks as institutional investors book profit
and preserve capital.
 Derivatives
Morning Note

Indices Overview
% Fut % Current OI OI in ATM Max CE Max PE %
Index Spot Future Basis OI Chg PCR OI PCR VOL
Chg v/s Total OI Shares IV Buildup Buildup Rollovers
Nifty 9237 9264 0.6 27 61.6 238 2.2 1.11 1.17 9.9 9500 9000 11.5

BankNifty 21736 21759 0.9 22 50.1 31 3.0 1.32 0.90 13.5 21500 22000 2.4

OI Gainers Derivative Snippets

OI % OI
%  In the last trading session, Bank Nifty index
Underline Price Price Action closed at a record high as call option writers
(lakhs) Chg
Chg
ran for cover. Fresh long positions were
DCBBANK 66 28.5 182 5.9 Long Buildup
created in Bank Nifty Future as open interest
ADANIPORTS 149 21.7 336 (5.0) Short Buildup
surged higher. Bank Nifty 27April 21500 put
DALMIABHA 3 17.6 2167 1.8 Long Buildup options added fresh short position to the tune
OI Losers of ~1 lakh share, indicating of a floor price for
ESCORTS 10 (16.8) 552 0.6 Short Covering the index in 27April2017 F&O series.
INDIANB 12 (7.6) 276 1.4 Short Covering  FIIs were net sellers in cash market segment to
PAGEIND 0 (5.7) 14304 0.9 Short Covering the tune of Rs 751 Cr.
 FII’s index future long/short ratio at 2.8 x vs
2.9x.
Weekly Bank Nifty Active Strikes
FII Long-Short Activity
515% % Chg Long- Long-Short
800 %
415% Index OI Since Short Ratio since
Chg
600 315% Expiry Ratio Expiry
Thousands

215% Fut Long 232 (1) 2

400 2.8 0.6
115% Fut Short 81 (0) 73
200 Opt CE Long 233 2 6
15% 1.1 0.8
Opt CE Short 215 0 28
0 -85%
Opt PE Long 328 4 41
4.0 1.1
Opt PE Short 82 (4) 24

Nifty Active Strikes

OI PE (lakhs) OI CE (lakhs) % Price Change % OI Change
% Price % OI Chg
Strikes Price OI % OI Chg
Chg Since Exp
9100CE 189 25.4 19 (3.1) 9.3
Historical Volatility of Active Stocks p
9200CE 114 31.1 33 (7.2) 18.7
9500CE 7 52.8 46 (6.6) 59.3
120 9200PE 53 (31.8) 49 26.3 230.6
100 9100PE 30 (33.4) 53 6.9 198.4
80
60 Since Expiry
40
20 HV Underline OI %OIChg %PriceChg %Rollover
0
NIFTY 238 (9.0) 0.8 11.5
BANKNIFTY 31 16.2 1.0 2.4
JUSTDIAL 36 43.6 (2.6) 2.4
PCJEWELLER 12 39.5 2.1 1.9
TORNTPHARM 2 35.7 0.4 1.5
NIFTY 292 29.4 0.0 19.9
 Pivots and Deals
Morning Note
CMP 50- 200- Support/Resistance levels*
Company (Rs) Support* Resistance* DMA DMA
ACC Close Support Resistance
1490 1467 1503 1437 1496
ADANIPORTS 334 324 350 315 275 Nifty 50 9237 9162 9213
Ambuja Cem 249 244 252 234 239
S&P Bse Sensex 29788 29475 29754
Asian Paints 1073 1060 1081 1029 1038
Aurobindo Pharma 655 653 659 676 737 Nifty Bank 21736 21427 21583
Axis Bank 515 510 518 499 514
Bajaj Auto 2822 2806 2837 2827 2778
BOB 175 171 177 170 161 Bulk deals
BHEL 176 174 179 160 141 Avg
Qty
BPCL 710 703 716 671 628 Date Scrip name Institution B/S price
(‘000)
Bharti Airtel 350 343 356 353 335 (Rs)
Bharti Infratel 356 351 361 315 347 Morgan
11-Apr JM Financial S 10000 99
Stanley Asia
Bosch 22748 22642 22852 22425 22279
Cipla 580 573 589 590 566
Coal India 289 287 291 308 315
Dr Reddy 2628 2617 2646 2826 3076
Eicher Motors 25880 25557 26090 24445 22826
GAIL 385 383 387 423 412
Grasim Ind 1088 1080 1098 1024 941
HCL Tech 834 827 839 845 804
HDFC Bank 1440 1434 1443 1382 1270
Hero Moto 3202 3185 3222 3243 3251
Hindalco Ind 196 194 198 191 164
HUL 924 919 927 882 873
HDFC 1477 1463 1489 1424 1345
ICICI Bank 284 279 286 279 265
Idea 89 88 89 101 89
IndusInd Bank 1425 1416 1436 1348 1204
INFY 967 958 974 996 1023
ITC 282 275 286 272 252
Kotak Bank 881 872 890 824 779
L&T 1705 1681 1719 1528 1471
Lupin Ltd 1429 1419 1437 1460 1513
M&M 1282 1272 1288 1292 1326
Maruti 6248 6217 6292 6055 5375
NTPC 167 164 169 166 160
ONGC 188 187 189 193 179
Power Grid 199 195 202 198 184
RIL 1372 1361 1392 1208 1077
SBI 295 290 297 276 255
Sun Pharma 670 667 674 676 717
TCS 2419 2403 2440 2419 2404
Tata Motors - DVR 288 286 292 294 317
Tata Motors 472 469 477 480 499
Tata Power 85 81 90 84 78
Tata Steel 488 484 494 482 413
Tech Mah 445 441 448 478 472
Ultra Cemco 4033 4012 4067 3864 3699
Wipro 510 503 514 488 493
Yes Bank 1615 1599 1627 1477 1289
Zee Entertain 540 534 550 519 495
 News
Morning Note

Corporate Snippets: Economy Snippets:

 Rural Electrification Corp (REC) is looking at  A free trade agreement (FTA) between India
diversifying from power sector lending to and the UK will increase bilateral trade by
financing equipment manufacturing, energy 26% per annum. (ET)
efficiency schemes, power plants renovation  In a move aimed at lowering consumption of
and coal blocks development. (ET) tobacco products, the health ministry has
 Fresh after a joint venture (JV) with Canadian sought to tax all such products, including
pension fund manager CPPIB, Phoenix Mills is bidis, at 28% as well as impose higher cess
looking to double its mall portfolio with under the new GST regime. (ET)
investments of Rs35-40bn. (ET)  The Ministry of Commerce has recommended
 BHEL has bagged an order from Indian anti-dumping duty on steel products
Railways for installing 2MW rooftop solar imported from Japan, China, Korea, Brazil,
photovoltaic systems at Diesel Locomotive Indonesia, Russia and Ukraine for five years,
Modernisation Works (DMW) in Patiala. (BL) insulating the domestic steel industry from
 The Supreme Court of India set aside an order predatory priced imports. (BL)
by the Appellate Tribunal For Electricity
allowing compensatory tariff to Tata Power
Ltd and Adani Power Ltd. (BL)
 Berger Paints India Ltd has entered into a
MoU with Chugoku Marine Paints of Japan for
“cooperation and collaboration” in the field of
marine-related industrial paints in the
country. (BL)
 Mahindra Holidays & Resorts India Ltd
(MHRIL) has acquired an additional 3.22%
stake in Holiday Club Resorts Oy (HCR) for
EUR2.16mn (over Rs145mn).
 NTPC's joint venture BIFPCL has tied up funds
to the tune of USD1.6bn to set up 1,320mw
Maitree Super Thermal Power Project
in Bangladesh. (BS)
 Morning Note
Event Calendar

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

April 01
Freight traffic
of major ports
in Apr-Mar
April 02 April 03 April 04 April 05 April 06 April 07 April 08
Power Nikkei RBI's Monetary
generation Manufacturing Policy
for March, PMI for March
by Central Nikkei services
Electricity and composite
Authority PMI for March
April 09 April 10 April 11 April 12 April 13 April 14 April 15
Goa Carbon CPI Combined Infosys Limited
Limited inflation for
March

Index of
Industrial
Production for
February

Budget session
of Parliament
to end
April 16 April 17 April 18 April 19 April 20 April 21 April 22
WPI inflation for HDFC Bank
March Limited

Gruh Finance
April 23 April 24 April 25 April 26 April 27 April 28 April 29
International Axis Bank, Tata Biocon, Coromandel
Paper APPM, Sponge Iron, Mahindra CIE International,
Persistent GIC Housing Automotive IDFC
Systems, M&M Fin
Fin., IDFC Bank
April 30
3i Infotech
Limited

Economic Data
Results
 Disclaimer
Recommendation Parameters for Fundamental/Technical Reports:
Buy – Absolute return of over +10%
Accumulate – Absolute return between 0% to +10%
Reduce – Absolute return between 0% to -10%
Sell – Absolute return below -10%

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