TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES ) NIFTY FIFTY : - The benchmark Nifty 50 opened on flat basis on Monday down by 2 points at 8670. On Monday the Nifty closed almost flat as inflation spike dashed immediate October rate cut hopes by RBI, As we have seen the Nifty 50 remained sideways in the whole month of August, The range high of Nifty 8750 has become a peak which the bulls despite their best efforts are unable to breach. The Foreign Institutional Investors have buyers in both cash derivatives Segment this helps Nifty to Sustain the level of 8650. Now all eyes on the Federal Reserve Open Meeting Committee to have an idea about different Fed members thinking about health of US Economic recovery and risk Factors for the Global Economy. We are expect that the Nifty50 is in buy mode with strong Support seen at 8650. Now For Any strength the Nifty has to Sustain the level of 8650-8680 for the target of 8720-8780 in near term. The Crucial levels for Nifty is 86808700 is upside and 8600-8550 is down side.
BANK NIFTY : - The Bank Nifty opened in a Positive bias on Monday up by 66 Points or 0.34 percent at 19029. The Banking sector’s Net Performing Assets almost doubled to 8.5 percent in the first quarter of this fiscal, driven by surging bad assets of state run lenders. The spike was largely due to the doubling of NPAs at Public sector banks to 10.4 percent compared to 5.3 percent in June 2015. Although the RBI has taken various steps to overcome the issue of NPA’s. The Board of Country largest lender State Bank of India has approved merger of its Associates along with Bhartiya Mahila bank. As we have seen that the Bank Nifty has traded in the range 18900-19400 in the last week. Now Break above 19440 could lead the Bank Nifty toward the levels of 19500-19800 in near term. The Crucial levels for next week is 19450-19600 is up side and 19250-19050 is down side.
Monday, 22 August 2016
TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES ) NIFTY DAILY
R2
R1
8790 WEEKLY
8706
R2
S1
8664
8622
S2 8538
R1
PP
S1
8737
8648
8559
R1
PP
S1
S2
8837
8633
8429
8021
R1
PP
S1
S2
19517
19390
19263
19009
R1
PP
S1
S2
19225
18609
PP
S1
19095
18082
8915 MONTHLY
PP
R2 9245
S2 8381
BANK NIFTY DAILY
R2 19771
WEEKLY
R2 21073
MONTHLY
19841
R2
R1
22134
20108
MOVING AVERAGE
21 DAYS
NIFTY
17377 S2 16056
50 DAYS
100 DAYS
200 DAYS
8647
8460
8180
7894
BANK NIFTY
18977
18467
17587
16757
PARABOLIC SAR
DAILY
WEEKLY
MONTHLY
NIFTY
8761
8270
7128
BANK NIFTY
18400
18350
14050
PATTERN FORMATION ( NIFTY )
Detail of Chart - On the Above given daily Chart of Nifty has Applied the Bollinger Band Along with Parabolic SAR, both the indicators give the early indication of Bullish or Bearish trend of the market. The uses of Bollinger Band varies from traders to traders Some buy when it break the middle Band on upper Side and some buy after the break out of Upper band from down respectively. On the Above given Chart of Nifty earlier it has touched the Upper Band but was not able to break the level of strong resistance of 8720. Now it seems that trend has reverse into the Consolidation in the Daily Chart has Formed the Bullish candle which is also the signal of market reversal. If the Nifty is able to Break the 8720-8740 level we could see some positive Move Toward the 8800 levels in upcoming week, break below 8600 could touch the level of 8490 in upcoming week. The Crucial levels for Nifty is 8600-8550 down side and 8700-8750 is Upside.
PATTERN FORMATION ( BANK NIFTY )
Detail of Chart - On the Above given Chart of Bank Nifty has Applied the Bollinger Band along with the Parabolic , both the indicators give the early indication of Bullish or Bearish trend of the market. Thus uses of Bollinger Band varies from traders to traders Some buy when it break the middle Band on upper Side and some buy after the break out of Upper band from down. On the above given Chart we could see that the price is near the middle Band if it is able to sustain the middle Band level it could lead the Bank Nifty in bull side in upcoming week. Break below middle Band which is around 19400 could lead the Bank Nifty toward the level of 19800 in Near-Term the crucial level for Bank Nifty is 19150-18850 down side and 19650-19800 is Upside.
NSE EQUITY DAILY LEVELS COMPANY NAME
R2
R1
PP
S1
S2
ACC
EQ
1720
1707
1694
1681
1668
ALBK AMBUJACEM ASIAN PAINT AXISBANK BAJAJ-AUTO BANKBARODA BANKINDIA BHEL BHARTIARTL CIPLA COALINDIA DLF DRREDDY GAIL GRASIM HCLTECH HDFC HDFCBANK HEROMOTOCO HINDALCO HINDUNILVR ICICIBANK ITC INDUSIND BANK INFY JINDALSTEL KOTAKBANK LT M&M MRF MARUTI ONGC ORIENTBANK RCOM RELCAPITAL RELIANCE RELINFRA RPOWER SBIN SSLT( VEDL) SUNPHARMA TATAMOTORS TATAPOWER TATASTEEL UNIONBANK
EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ
79 280 1139 602 2961 165 116 143 358 565 343 171 3048 371 4734 800 1385 1256 3400 161 923 257 253 1210 1047 91 791 1508 1475 37074 4952 244 120 52 478 1029 607 54 264 184 799 518 79 400 138
79 277 1127 595 2945 163 114 142 354 561 339 169 3028 367 4685 791 1375 1252 3379 159 916 256 252 1199 1034 89 785 1500 1464 36561 4926 242 119 51 472 1021 599 53 261 181 791 513 78 395 136
78 275 1114 591 2933 159 113 141 350 557 335 168 3016 365 4647 785 1367 1247 3359 158 909 253 250 1193 1026 87 780 1490 1458 36286 4908 241 118 50 468 1014 595 52 257 177 785 511 77 389 135
77 272 1102 584 2917 157 111 140 346 553 331 166 2996 361 4598 776 1357 1243 3338 156 902 252 249 1182 1013 85 774 1482 1447 35773 4882 239 116 49 462 1006 587 51 254 174 777 506 76 384 133
77 270 1089 580 2905 155 110 139 342 549 327 165 2984 359 4560 770 1349 1238 3318 155 895 249 247 1176 1005 83 769 1472 1441 35498 4864 238 115 48 458 999 583 50 250 170 771 504 75 378 132
TOP 15 ACHIEVERS SR.NO
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
PREV CLOSE
SCRIPT NAME
CMP
HINDALCO
146
158
BANKBARODA
149
161
CIPLA
515
556
SBIN
243
258
ADANI PORTS
258
273
ULTRATECH CEM
3722
3926
TATA STEEL
374
392
AMBUJA CEMENT
264
276
NTPC
160
166
TATA POWER
75
78
YES BANK
1290
1335
ONGC
233
241
ICICI BANK
245
253
BHEL
138
142
AURO PHARMA
747
765
// % CHANGE
+8.61 % +8.05 % +7.92 % +6.25 % +5.73 % +5.50 % +4.64 % +4.52 % +3.86 % +3.79 % +3.51 % +3.42 % +3.23 % +2.53 % +2.35 %
SR.NO
TOP 15 LOOSERS SCRIPT NAME
PREV CLOSE
CMP
% CHANGE
1
BHARTI INFRA
366
342
-6.49 %
2
TCS
2738
2603
-4.93 %
3
WIPRO LIMITED
543
520
-4.35 %
4
TECH MAHINDRA 493
473
-4.08 %
5
HCL TECH
814
781
-3.97 %
6
INFOSYS
1062
1021
-3.88 %
7
GAIL LIMITED
374
363
-2.75 %
8
HUL
935
910
-2.60 %
9
EICHER MOTORS
22321
21777
-2.44 %
10
BOSCH LIMITED
24548
23980
-2.31 %
11
ASIAN PAINTS
1137
1113
-2.11 %
12
SUN PHARMA
800
783
-2.09 %
13
RELIANCE
1035
1014
-2.02 %
14
TATA MOTORS
516
510
-1.32 %
15
ITC LIMITED
254
250
-1.24 %
NEXT WEEK STARS( AS PER TECHNICAL ANALYSIS ) NSE CASH
:
BUY SUNPHARMA NSE CASH ABOVE 795 TGT 835 SL 779.
NSE CASH
:
BUY PNB NSE CASH ABOVE 129 TGT 137 SL 125.
NSE CASH
:
BUY SBI NSE CASH ABOVE 258 TGT 281 SL 249
NSE - WEEKLY NEWS LETTERS � TOP NEWS OF THE WEEK Government expects tax revenues to increase after GST roll-out - The government expects its tax buoyancy to increase after the goods and services tax is rolled out, a sharp contrast to many experts warning of disruptions in tax machinery and slower revenue growth in the initial years of this tax reform. In the medium term expenditure framework released last week the government expects higher economic growth, GST and other policy measures to help lift gross tax revenues to 10.9% of gross domestic product in FY18 and 11.1% of GDP in FY1 of GDP in FY19. The Centre's tax-to-GDP ratio was 10.7% in FY15, almost same as projected 10.8% for the current fiscal. With plan and nonplan distinction being done away with from next financial year, the government expects to bring more attention to capital spending. It wants to set aside more funds for capital spending and expects to show a higher allocation from next fiscal. Overall global investment in fintech companies totaled $ 99.4 billion, shows report Global investments in fintech companies across both venture-backed and non-venturebacked companies totaled $ 9.4 billion in the second quarter of this year, says a report. However, investment directed to VC-backed fintech startups fell 49 per cent, the report said. According to the Pulse of Fintech, the quarterly global report on fintech VC trends published jointly by KPMG International and CB Insights, despite this decline, VC investment in investment in fintech is on pace to exceed 2015 results. "Despite VCbacked funding to fintech decreasing in Q2, overall fintech funding remains on track to surpass 2015 levels," says Ian Pollari, Global Co-Leader of Fintech, KPMG International Funding and deal activity to VC-backed fintech companies in the first six months of 2016 are on pace to hit $14.8 billion across more than 820 deals by the end of 2016 at the current run rate. Inflation to remain up this fiscal: Kotak Institutional Equities - inflation is expected to continue its rally through the rest of this fiscal, and while WPI is likely to average 3.9 per cent, CPI will average close to 5 per cent in 2016-17, says a report. According to a report by Kotak Institutional Equities, with favourable monsoons, there is likely to be a correction in food prices though headline inflation will continue to trend up through the rest of the current fiscal. July WPI inflation surprised on the upside with 3.55 per cent after 1.62 per in June. "This was the fourth consecutive positive reading after almost 1.5 years of contraction and we expect this trend to continue over the next few months," Kotak Institutional Equities said in a research note adding, "we expect WPI inflation to
average 3.9 per cent in this fiscal against (-)2.5 per cent in 2015-16 fiscal". Indirect tax collection up 30 per cent in June quarter against last Financial Year The tax department is hopeful of meeting the revenue collection target for FY 2016-17, a top official said. Indirect tax collection rose by about 30.8 per cent during April-June to Rs. 1,99,970 crore, from Rs 1,52,740 crore collected in the year-ago period. The collection up to June indicate that 25.7 per cent of the annual budget target of indirect taxes has been achieved in the first three months of the fiscal. We have done very well so far. Collection in the June quarter from central excise, customs and service tax put together are 30 per cent more from the year-ago period," Central Board of Excise and Customs chairman Najib Shah said on the sidelines of an event here. Asked if the Board will be able to meet the target of revenue collection for FY2016-17, he said, "It is very early to say how the year will be. Still, we are hopeful of achieving the target given to us by the government for the entire fiscal. Nasscom upbeat on software exports, will not revise 10-12% growth projection - The Indian software exports industry body National Association of Software and Services Companies on Wednesday said in spite of the current economic environment, it sees no need to revisit its growth forecast of 10-12% in software exports. "There's a lot of turbulence in global economy. We did mention some short term impact of Brexit on the industry, but there is no need to revisit it," said R Chandrashekhar, president Nasscom. He did, however, that Nasscom was keeping a close watch on factors such as Britain's exit from the EU and its ripple effect on demand for technology services. Nasscom had said in June that UK's decision to exit the European Union through a referendum will have an immediate impact in the short term due to the uncertainty in the environment. WPI inflation hits 23-month high of 3.55 per cent in July - Wholesale inflation accelerated more than expected in July to touch a near two-year high as food prices rose steeply. The Wholesale Price Index rose 3.55% from a year ago, compared with a 1.62% rise in June, government data showed, against an expected 2.5% wholesale inflation. The high numbers are in line with consumer inflation, which also shot up to a two-year high of 6.07%. The government revised growth in wholesale price inflation for May to 1.24%, from 0.79% earlier. "Global commodity prices have come off their lows and unfavourable base effects have been contributing to the upside in inflation," said Upasna Bhardwaj, senior economist at Kotak Mahindra Bank. The Reserve Bank of India which kept rates unchanged in its August 9 monetary policy review — now gives more weight to Consumer Price Index.
Government may pay Rs 34,600 crore as arrears in August salary: India Ratings and Research - Government may disburse Rs. 34,600 crore to its employees in August salary as arrears because of implementation of the 7th pay panel recommendations, India Ratings and Research said. The government had last month announced that it will pay its employees arrears arising out of implementation of the 7th Pay Commission award at one go in August salary. "The combined outgo for the Centre on account of arrears for January to July and payments for August will total Rs Rs 34,600 crore," Ind-Ra said in a statement. The outgo due to the hike in salary and pension is unlikely to cause significant systemic liquidity disruption, it said. The government has already notified the 2.57-time hike in basic salary for 1 crore government employees and pensioners as per the 7th Pay Commission recommendations. The pay hike has been made effective January 1, 2016.
� TOP ECONOMY NEWS Seeking to facilitate electronic fund transfers, the Finance Ministry has asked other ministries and departments to immediately open e-FPB accounts with the RBI for receipt or payments exceeding Rs. 1 billion. According to the Association of Mutual Funds in India data, investors poured in a net of Rs. 1.03 trillion in MF schemes last month. The wholesale price index based inflation rose to a near two-year high of 3.55% in July up from 1.62% in June on the back of more expensive food items. In order to promote less cash economy, the government has said it will bear the transaction cost for all payments made to it through debit or credit cards and net banking. Merger and acquisition deals worth USD 4 billion were announced in July, thanks to a significant surge in domestic and inbound deal activity, taking the year-to-date deal tally to USD 19.87 billion. Drug price regulator NPPA fixed ceiling for 123 medicines last month while 118 cases of overcharging by pharmaceutical companies were detected during the period. Less than a fortnight after imposing anti-dumping duty on hot-rolled flat steel products was imposed, the Finance Ministry has extend a similar levy on another grade of steel — cold-rolled flat products.
The wholesale price index based inflation rose to a near two-year high of 3.55% in July up from 1.62% in June on the back of more expensive food items. In order to promote less cash economy, the government has said it will bear the transaction cost for all payments made to it through debit or credit cards and net banking.
� TOP CORPORATE NEWS Lupin Limited said its subsidiary Gavis Pharmaceuticals has received final approval from the US health regulator to market potassium chloride extended release capsules, used for treating potassium deficiency in the bloodstream, in the American market. Indiabulls Housing Finance has raised Rs. 8 billion by issuing non convertible debentures on a private placement basis. Dewan Housing Finance Corporation said it will raise up to Rs. 100 billion through issuance of secured non-convertible debentures in one or more tranches. Strides Shasun Limited said that it will hive off its commodity focused active pharmaceuticals ingredients manufacturing unit as a separate business that would emerge as a supplier to global Pharma firms. Nestle India launched new variants in its Maggi Noodles portfolio and re-launched cup noodles. Reliance Communications announced the introduction of "Next-Gen app-to-app calling in the country and worldwide". The offer launched by the company has been billed as 'Calling Ka Naya Tareeka ' and in this introductory offer it is offering 300 minutes of appto-app calling for Rs. 39. To increase capital base, Bank of India has raised Rs. 5.40 billion through monetisation of its non-core assets so far in 2016-17 and is planning to raise a similar amount in the rest of the year. Unitech Limited was Wednesday directed by the Supreme Court to deposit Rs150mn principal amount by September-end to pay back investors who had bought flats in its Gurgaon project but not got possession on time.
BHEL has secured an order to set up solar photovoltaic plants estimated to cost Rs. 1.69 billion. Lubrizol Advanced Material India, announced the termination of all processor agreements for its CPVC pipes and fittings with Astral Poly Technik Limited. Natco Pharma has received an Establishment Inspection Report for its Kothur facility in Telangana from the US health regulator after successful completion of an inspection. Cadila Healthcare has received Establishment Inspection Report for its Changodar manufacturing plant located near Ahmedabad from the US health regulator after successful completion of inspection. The launch of State Bank of India's much-awaited payments bank has been delayed further, because its private partner wants to first launch its mobile telecom business Reliance Jio, wait for it to stabilise before launching the payments bank. Spark Minda group flagship firm, Minda Corporation Limited has formed a joint venture with China's Shandong Beiqi Hai Hua Automobile Parts Co. Tata Realty & Infrastructure is in advanced talks with a Macquarie Group and State Bank of India to buy two road assets, more than doubling its investment in three years. Tata Power Solar today said it has commissioned a 100 MW solar project for NTPC in Anantapur, Andhra Pradesh, the biggest solar project commissioned using domestically manufactured solar cells and modules. JSW Steel will acquire 74% stake in JSW Praxair Oxygen Pvt Limited For Rs. 2.40 billion in cash. Idea Cellular is rapidly expanding its 4G LTE services ahead of Reliance Jio's launch. The company now offers high-speed next generation mobile broadband services in 390 towns spread over 32 districts in Maharashtra and Goa. JK Lakshmi Cement has received environment clearance for expansion of its limestone mine output in Rajasthan, entailing an investment of Rs. 1.20 billion.
Piramal Enterprises Limited announced that its wholly owned subsidiary in the US has entered into an agreement to acquire 100% stake in Ash Stevens Inc., a US based Contract Development and Manufacturing Organization, in an all cash deal for a consideration of USD 42.95 million plus an earn-out consideration capped at USD 10 million. This potential transaction is expected to be completed by the end of August. Power Grid Corporation of India Limited is looking to participate in intra-state projects, a deviation from its traditional role as the central power transmission utility that has been prompted by the reforms in state-run power distribution companies. Some foreign players have expressed interest in partnering with Hindustan Petroleum and GAIL to build a petrochemicals complex in Andhra Pradesh. Roche has sued Zydus Cadila and India's central drug regulator at the Delhi High Court over the approval and launch of breast cancer drug Vivitra. Roche is planning to block the product from the market. Dilip Buildcon has bagged Rs. 20.16 billion road project in Uttar Pradesh. Wipro Limited has bought minority stake in Israeli cyber security company, Intsights Cyber Intelligence for $1.5 million. Trent Limited has assigned a capital outlay of Rs. 1.50 billion to expand to West Asia and launch its own mass market apparel stores, apart from adding about 50 stores across formats such as Westside and Star Bazaar. The Government has slapped an additional penalty of USD 380 million on Reliance Industries and its partners for producing less than targeted natural gas from eastern offshore KG-D6 fields. Singtel said it will buy 7.39% stake in Bharti Telecom Ltd, the holding company of Bharti Airtel, for USD 659.5 million.
� TOP BANKING AND FINANCIAL NEWS OF THE WEEK State Bank of India chairman Arundhati Bhattacharya expects the lender's loan growth to be faster than earlier forecasted. Speaking to reporters on the sidelines of the FICCI
organized banking conference Bhattacharya said she expects State Bank of India credit growth to be revised upwards from the 12% projected at the start of the fiscal year. "There are some new projects coming in and we could see credit growth of upwards of 12%," Bhattacharya said. Private sector lender Axis Bank Limited, on Wednesday announced the launch of its Contactless Secure+ Debit Card for regular savings account customers, to provide access to a larger customer base with contactless technology. The card, launched on the Visa payWave platform, will enable Axis Bank's customers to conveniently 'Just Wave to Pay' at NFC-enabled point of sale terminals and also use the card as a normal debit card at any POS terminal. At present, approximately 40% of the NFC-enabled point of sale have been deployed by Axis Bank, it said in a statement. Apart from State Bank of India and its associates, the rest of the public sector banks along with foreign banks, are losing out on their share of primary bank relationships for corporates, a report has said. "Foreign and nationalised banks have lost share of primary banking relationships to new private banks," a joint report by industry body FICCI, Indian Banks' Association and BCG said. Kerala based private sector lender, Federal Bank has tied up with MMTC for distribution of Indian Gold Coins, the first-Ever national gold offering by the government, which was launched by Prime Minister Narendra Modi In November 2015. "Through this tie-up with MMTC, the bank becomes the first among the private sector banks to offer this product to its customers. Available presently in denominations of 5, 10 and 20 grams, the coins are distributed through select branches of the bank across the country," said Jose K. Mathew, head, retail business, Federal Bank. State-run lenders may offer concessional finance to private companies bidding for key projects abroad as part of a strategy to step up strategic investment overseas. The government is considering a mechanism to ensure the viability of such lending, said officials aware of the matter. "A committee will be formed with the finance ministry which will look into the issue," one of them said. "Infrastructure projects in those countries where India has both strategic and economic interest will be given preference." Panel members will include the deputy national security adviser and officials from other ministries including external affairs and commerce.
LEGAL DISCLAIMER This Document has been prepared by Ways2Capital (A Division of High Brow Market Research Investment Advisor Pvt Ltd). The information, analysis and estimates contained herein are based on Ways2Capital Equity/Commodities Research assessment and have been obtained from sources believed to be reliable. This document is meant for the use of the intended recipient only. This document, at best, represents Ways2Capital Equity/Commodities Research opinion and is meant for general information only. Ways2Capital Equity/Commodities Research, its directors, officers or employees shall not in any way to be responsible for the contents stated herein. Ways2Capital Equity/Commodities Research expressly disclaims any and all liabilities that may arise from information, errors or omissions in this connection. This document is not to be considered as an offer to sell or a solicitation to buy any securities or commodities. All information, levels & recommendations provided above are given on the basis of technical & fundamental research done by the panel of expert of Ways2Capital but we do not accept any liability for errors of opinion. People surfing through the website have right to opt the product services of their own choices. Any investment in commodity market bears risk, company will not be liable for any loss done on these recommendations. These levels do not necessarily indicate future price moment. Company holds the right to alter the information without any further notice. Any browsing through website means acceptance of disclaimer. DISCLOSURE High Brow Market Research Investment Advisor Pvt. Ltd. or its associates does
not do business with companies covered in research report nor is associated in any manner with any issuer of products/ securities, this ensures that there is no actual or potential conflicts of interest. To ensure compliance with the regulatory body, we have resolved that the company and all its representatives will not make any trades in the market. Clients are advised to consider information provided in the report as opinion only & make investment decision of their own. Clients are also advised to read & understand terms & conditions of services published on website. No litigations have been filed against the company since the incorporation of the company. Disclosure Appendix: The reports are prepared by analysts who are employed by High Brow Market Research Investment Advisor Pvt. Ltd. All the views expressed in this report herein accurately reflects personal views about the subject company or companies & their securities and no part of compensation was, is or will be directly or indirectly related to the specific recommendations or views contained in this research report. Disclosure in terms of Conflict of Interest: (a) High Brow Market Research Pvt. Ltd. or his associate or his relative has no financial interest in the subject company and the nature of such financial interest; (b) High Brow Market Research Pvt. Ltd. or its associates or relatives, have no actual/beneficial ownership of one percent or more in the securities of the subject company, (c) High Brow Market Research Pvt. Ltd. or its associate has no other material conflict of interest at the time of publication of the research report or at the time of public appearance; Disclosure in terms of Compensation: High Brow Market Research Investment Advisor Pvt. Ltd. policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst's area of coverage. Analyst compensation: Analysts are salary based permanent employees of High Brow Market Research Pvt. Ltd.
Disclosure in terms of Public Appearance: (a) High Brow Market Research Pvt. Ltd. or its associates have not received any
compensation from the subject company in the past twelve months; (b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report. (c) High Brow Market Research Pvt. Ltd. or its associates has never served as an officer, director or employee of the subject company; (d) High Brow Market Research Pvt. Ltd. has never been engaged in market making activity for the subject company.