* Nifty Jan futures volume weighted average price (VWAP) is at 8250 and Banknifty futures is at 18400.
* Call writing was seen at 8400 & 8450 strike, some put buying (unwinding by writers) was seen at 8400 & 8300 strike and put writing was seen at 8200 strike. Highest positions are at 8000 PE and 8500 CE.
MARUTI added around 5.1% of open interest as fresh long positions. It is trading above 50/100/200 EMAs in higher highs higher lows formation on daily charts. It is also trading on verge of congestion zone breakout on intraday charts. We recommend buying MARUTI Jan futures as per levels given below.
BUY MARUTI JAN FU
* The stock has made a double bottom at sub 290 levels with positive price action; we have observed strong volumes holding the short and medium term averages confirming the positive trend.
* Stochastic & RSI are also coinciding with our view, as both the indicators are in bullish mode.
* However in case of maj
Hindalco Industries Limited
HINDALCO is trading near its 52-week highest levels, above its important long and medium-term averages on daily chart (200/100 EMA’s). Its current chart pattern clearly revels it is set for fresh break towards higher levels. Hence, we recommend buying in mentioned range.
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* Federal Bank has surprised the market by reporting strong growth on both profitability as well as loan book fronts in 3QFY17. Despite demonetization its net profit grew by 26.4% yoy & 2.2% qoq to Rs2.1bn during the last quarter.
* The bank witnessed 362bps jump in CASA ratio led by the 24% qoq growth in current deposits a
Aditya Birla Nuvo Limited
ABIRLANUVO was consolidating just above the confluence zone of its 50/100 EMA’s on daily chart. Breakout from this range was witnessed on 18th January and yesterday, it was seen consolidating around that zone. All this indicates bullish bias to continue ahead as well.
HINDPETRO added around 2% of open interest as fresh long positions along with some delivery based buying. It is trading in higher highs—higher lows formation above 50/100/200 EMA on daily charts. it has also created a fresh buying pivot on intraday charts. we recommend buying HINDPETRO Jan futures as per levels given below.
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* Ambuja Cements (ACL) surged over ~3% in yesterday’s trade on the backdrop of anticipated demand recovery in coming months and wide valuations gap against peers.
* Though 4QCY16 result will be subdued, group restructuring and likely enhancement in operating synergies augur well for ACL in the long-term.
Motherson Sumi Systems Limited
MOTHERSUMI is trading above its 50/100/200 EMA’s on daily chart, further it is forming a Pennant pattern, though distorted at the moment. Break out from the same can take it to higher levels. Hence, we recommend buying in the mentioned range.
* The stock has made a strong bottom in the last few weeks at 570 with strong volumes and positive price action in the last few days.
* The key technical indicators and RSI has also reversed turning upwards and as the stock is in poised for a breakout from current levels.
* The stock has closed near its short term
Ashok Leyland Limited
Post trading sideways in narrow range, between its 100/200 EMA’s on daily chart, ASHOKLEY posted fresh breakout on Wednesday and settled near the day’s top on back of better than average volume, indicating buyer’s interest at current levels.
NIFTY—We expect Nifty to be in 8280-8540 range till Jan expiry, and a swing of around 220 points due to the union budget event. Due to the event, (delta) rate of Feb premium, to nifty movement will be intact and since Jan expiry is on 25th, 8400 call and put option might lose/fade premium eventually in next 3-6 days. Vix is likely to be in 13.8-22.8 levels.
* The stock is making lower tops after forming a 52 week high at 960 attempting to break down below the short term averages.
* The key technical indicators and RSI has also reversed turning downwards and as the stock is in poised for a breakdown from current levels.
* The weekly doji and hanging man pattern on the
Bharti Infratel Limited
INFRATEL is facing resistance from its 100 EMA which is placed nearby on daily chart around 358 levels. Moreover, it has retraced 50% of decline 396-325 levels. So, it is also acting as a resistance from where probability of decline is quite high.
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* Skipper is one of the world’s largest integrated transmission tower manufacturing companies, having a nameplate capacity of 200,000 MTPA. It is also one of the first companies in India to manufacture and supply 800kV transmission towers to PGCIL.
* The Company which enjoys 10-15% market share in India’s T&D st
IndusInd Bank Limited
From the weekly chart, it seems that INDUSIND has formed a “W” pattern, now break out from this level (1230), would move the stock to higher levels. Further, from the daily chart too, the stock is providing bullish signals. Hence, we advocate buying in mentioned range.
Observations on daily scale – the draw-outs
• Longer term moving averages currently stand as follows: 50 DMA @ 29.25, 100 DMA @ 28.10 & 200 DMA @ 29.10 A Golden cross wherein the 50 DMA has crossed above the 200 DMA, indicating a sustainable UPTREND in medium term.
• A breakout from a long consolidation of around 19 months
* The stock has consolidated well with higher bottoms in the past few days with crossover of its short and medium term averages.
* The key technical indicators and RSI are trading at the higher band confirming the up move from current levels to test its long term averages on weekly charts.
* On the higher side, th
RCOM added around 8% of open interest as fresh long positions along with some delivery based buying in previous session. We recommend buying RCOM Jan futures as per levels given below.
BUY RCOM JAN FUTS BETWEEN 30.75-31 SL 29.50, TARGET 35.
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17/01/2017 10:46:19 AM
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STOCK IN FOCUS
* India Cements (ICL) gained ~3% in yesterday’s trade on the expectation of healthy earnings in 3Q (on yoy basis) and widened valuations gap against peers.
* We estimate ICL to report sales volume and EBITDA growth of ~19% yoy and ~23% yoy, respectively in 3QFY17E. However, cost hardening owing to increase in fuel costs c
UPL in well placed on multiple chart frames (Daily, Weekly, Monthly). Yesterday, i.e. 16th January, it posted fresh breakout from Triangle pattern (refer chart) on daily chart. It is a continuation chart pattern suggesting bullish will persist when formed in a strong trend.
* The stock reversed taking support of its long-term moving average 200-day SMA, but after witnessing rise of 20% (from Rs81) it moved sideways and later slipped to one week closing low.
* We believe the stock will remain in pressure for the short-term, as fall in Stochastic & RSI from their overbought zone is signaling
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* In the light of demonetisation and its resultant impact on consumer demand, Bajaj Corp has reported decent set of numbers in 3QFY17.
* its net sales fell by 4.8% yoy to Rs1.9bn, while net profit grew by 17.2% yoy to Rs578mn.
* Gross margins improved by 260bps to 65.5% on the back of lower LLP and vegetable oil price