HDFC Securities

Published on 9/07/2020 10:19:23 AM

Nifty has started giving trend reversal indication   -  HDFC Securities  

F&O HIGHLIGHTS

REMAIN BULLISH WITH TRAILING SL OF 10680 LEVELS

* The market corrected on Wednesday, snapping a five-day rising streak. Mixed global cues triggered profit booking in domestic shares. IT stocks tumbled while metal shares bucked trend. The Nifty opened higher at 10,818.65 on Wednesday, but soon pared gain in early trade. The index hovered around the flat line for most part of the session. Strong selloff in the last hour of trade dragged the benchmark index briefly below 10,700 mark.

* Profit booking was seen in Nifty Futures’ where Open Interest fell by 3.70% with Nifty falling by 0.65%. Nifty Future discount narrowed to 9.45 points from 33 points.

* On the other hand, in the Bank Nifty Futures where we have seen 7.10% rise in the Open Interest with Bank Nifty rising marginally by 0.01%

* Nifty Open Interest Put Call ratio fell to 1.37 levels from 1.63 levels. Amongst the Nifty Weekly Options(09-July) , Put writing is seen at 10600-10700 levels, Indicating Nifty is likely to find strong support around 10600 levels. On the higher side an immediate resistance is seen around 10800 levels where Calls have been written.

* To Sum It Up, profit booking seen in the Nifty Futures’, with Put writing at 10600-10700 levels Indicates that one should continue to remain optimistic for the markets with the stop loss of 10680 level.

* Therefore our advice is to accumulate long positions with the trailing stop loss of 10680 levels. On the higher side an Immediate resistance is seen around 10780-10820 levels where we have seen call writing.

* In the Bank Nifty our advice is to go long on declines with stop loss of 22400 levels. On the higher side, resistance Is seen in the vicinity of 22700-23000 levels

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HDFC Securities

Published on 9/07/2020 9:59:08 AM

Markets could open flat to mildly higher following largely positive Asian markets   -  HDFC Securities 

Indian markets could open flat to mildly higher today following largely positive Asian markets and positive US markets on Wednesday.

U.S. stocks ended Wednesday higher, with the tech-heavy Nasdaq scoring an all-time record, as investors focused on stocks that can outperform amid an acceleration of coronavirus infections in about 30 American states and longer periods of working from home.

Away from Wall Street, consumer credit dropped 5.3% on an annual basis in May, after plunging 20% in April during the height of the coronavirus, signaling that U.S. households have been less willing to borrow to make purchases than in the past. Global government borrowing has taken on the opposite trajectory, with investment bank Barclays pointing out that public debt is on pace to eclipse World War II levels.

Asian stocks were largely up on Thursday, as hopes of a robust economic recovery offset concerns over flare-ups in the coronavirus pandemic, and as investors looked ahead to earnings season. Pressure on China’s manufacturing sector eased in June following the impact of the coronavirus pandemic, data released on Thursday showed.The producer price index (PPI), reflecting the prices that factories charge wholesalers for their products, fell 3.0 year on year in June vs May’s reading of a 3.7 per cent decline. The consumer price index (CPI), meanwhile, rose 2.5 per cent from a year earlier, up from a 2.4 per cent gain in May.

In Japan, core orders, a highly volatile data series regarded as a leading indicator of capital spending, rose 1.7% in May after a 12.0% slump in April, the fastest drop since 2018. Overseas orders sank 18.5% from May to the lowest level since 2010, a sign the pandemic was hurting global demand. China’s passenger car sales in June fell 6.5% year on year to 1.68 million units, the

China Passenger Car Association (CPCA) said on Wednesday. Net flows into mutual funds that invest in equity dropped more than 95% to 2.41 billion rupees (S32 million) in June from 52.57 billion rupees in May, data published on Wednesday

Net flows into mutual funds that invest in equity dropped more than 95% to 2.41 billion rupees (S32 million) in June from 52.57 billion rupees in May, data published on Wednesday by the Association of Mutual Funds in India (AMFI) showed.

The Indian benchmark indices slipped in the last hour of trade on Jul 08 after 5 days of gains. At close the Nifty shed 93.90 points or 0.87 percent at 10705.80. India Volatility Index snapped a five-day losing streak, ending 4% higher at 26.09.

Technically, the Nifty has shown first signs of weakness on Jul 08. A move below 10676 will take the Nifty to 10553. On upmoves, 10764 could provide resistance.

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HDFC Securities

Published on 8/07/2020 5:15:15 PM

Below is the Technical Quote On Today`s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sustainable upmove in the last few sessions, Nifty slipped into profit booking mode on Wednesday and closed the day lower by 93 points. A long bear candle was formed; which signal beginning of profit booking in the market from the new swing high of 10847 levels. This could be considered as a short term reversal in the market.

Positive sequential movement like higher tops and bottoms continued in the Nifty as per daily time frame chart. Today's swing high of 10843 could now be considered as a new higher top of the sequence. Hence, there is a possibility of further weakness in the short term.

The short term trend of Nifty seems to have reversed down from the swing high. One may expect further weakness in the short term. The intermediate trend of Nifty continues to be positive for the Nifty and weakness down to 10550-10500 could now be a buy on dips opportunity.

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HDFC Securities

Published on 8/07/2020 4:41:10 PM

Below is the Technical Quote On Market Performance By Mr. Deepak Jasani, Head Retail Research, HDFC Securities 

The Indian benchmark indices slipped in the last hour of trade on Jul 08 after 5 days of gains. At close the Nifty shed 93.90 points or 0.87 percent at 10705.80. India Volatility Index snapped a five-day losing streak, ending 4% higher at 26.09. Volumes on the NSE were high with Metals, FMCG and PSU Banks stocks rose while Auto, IT , Realty and Media stocks fell.

Asian markets were in mixed territory Wednesday as investors continued to be on edge over the rising rates of COVID-19 cases around the world. European markets were lower Wednesday morning as surging coronavirus cases in parts of the world continue to cast doubt over the prospect of a global economic recovery. Japan’s May trade balance showed a deficit of 556.8 billion yen, down 18.1 percent on year. Exports tumbled 28.9 percent on year to 4.197 trillion yen, while imports sank an annual 27.7 percent to 4.754 trillion yen.

Underscoring the fragility in Europe, industrial production in Germany rebounded by less than economists expected in May, and remains far below levels from before the pandemic. International Monetary Fund (IMF) Chief Economist Gita Gopinath warned on Tuesday that many countries may need to restructure their debt in the aftermath of the pandemic as borrowing surges. More than 40% of people who spent money on movies, event tickets or at bars before the pandemic now plan to spend less on those activities, according to a new survey for CreditCards.com.

Technically, the Nifty has shown first signs of weakness on Jul 08. A move below 10676 will take the Nifty to 10553. On upmoves, 10764 could provide resistance.

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HDFC Securities

Published on 8/07/2020 12:21:50 PM

LONG BUILD UP IS SEEN IN THE NIFTY FUTURES  - HDFC Securities 

F&O HIGHLIGHTS

REMAIN BULLISH WITH TRAILING SL OF 10700 LEVELS

* Nifty continued its winning streak for the fifth day in the row where it gained by 36 points to close at 10764 levels. On Tuesday, the Nifty opened higher at 10,802.85. It soon reversed and hit an intraday low of 10,689.70 in mid-morning trade. The index firmed up once again and briefly crossed 10,800 in mid-afternoon session

* Long build up is seen in Nifty Futures’ where Open Interest rise by 4.58% with Nifty rising by 0.33%. Nifty Future discount increased to 33 points from 8.80 points suggesting traders have started building short positions after 5 days of up move in the Index.

* On the other hand, Short covering as well as fresh built-up is seen in the Bank Nifty Futures where Index have seen 9.74% rise in the Open Interest with Bank Nifty rising by 1.7%

* Nifty Open Interest Put Call ratio rise marginally to 1.63 levels from 1.60 levels, which is heading towards overbought territory of 1.70 to 1.75 level in Nifty. Amongst the Nifty Weekly Options(09-July) , Put writing is seen at 10500-10800 levels, Indicating Nifty is likely to find strong support around 10700 levels. On the higher side an immediate resistance is seen around 11000 levels where Calls have been written

* To Sum It Up, long build up in the Nifty Futures’, Put writing at 10500-10800 levels Indicates that one should continue to remain optimistic for the markets.

* Therefore our advice is to accumulate long positions with the trailing stop loss of 10700 levels. On the higher side an Immediate resistance is seen around 11000-11100 levels where we have seen call writing.

* In the Bank Nifty our advice is to go long on declines with stop loss of 22400 levels. On the higher side, resistance is seen in the vicinity of 23000 levels

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HDFC Securities

Published on 8/07/2020 12:20:58 PM

Markets could open flat to mildly higher following largely positive Asian markets  - HDFC Securities 

* Indian markets could open flat to mildly higher today following largely positive Asian markets.

* U.S. stocks on Tuesday ended sharply lower, with the S&P 500 snapping its 5-day win streak, as investors grew wary of the economic, public-health and policy response to the coronavirus pandemic.

* Equities lost steam after the White House reiterated a call to cap the next round of COVID-19 stimulus at $1 trillion or less, but accelerated their losses in the final hour of trade, after several Federal Reserve officials warned of challenges to the economy as infection rates soar across several states. Nagging unease over the outlook for the global economy in the midst of rising U.S. coronavirus infections helped dampen the buying mood on Wall Street.

* Earlier in the session, investors drew some hope from an employment report that showed a record 6.5. million people either found jobs or were rehired in May, following a prolonged shutdown due to the coronavirus that drove the U.S. into a deep recession.

* Asian stocks were set for a mixed open on Wednesday, as an increase in new coronavirus cases in some parts of the world cast doubts over the economic recovery, leading some investors to cash in on recent gains ahead of earnings season.

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HDFC Securities

Published on 6/07/2020 10:15:41 AM

Long Build Up Is Seen In The Nifty Futures  -  HDFC Securities   

F&O HIGHLIGHTS

REMAIN BULLISH WITH TRAILING SL OF 10500 LEVELS

* Nifty continued its winning streak for the third day in the row where it gained by 56 points to close at 10607 levels

* Long build up is seen in Nifty Futures’ where Open Interest rose by 2% with Nifty rising by 0.5%

* On the other hand, minor short build up is seen in the Bank Nifty Futures where we have seen 1% addition in the Open Interest with Bank Nifty falling by 0.5%

* Nifty Open Interest Put Call ratio fell to 1.50 levels from 1.61 levels. Amongst the Nifty Weekly Options(09-July) , Put writing is seen at 10400-10500 levels, Indicating Nifty is likely to find strong support around 10500 levels. On the higher side an immediate resistance is seen around 10700 levels where Calls have been written

* Long build up is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 504 Cr with their Open Interest going up by 4044 contracts.

* To Sum It Up, long build up in the Nifty Futures’, Put writing at 10400-10500 levels and long build up by the FIIs’ in the Index Futures segment Indicates that one should continue to remain optimistic for the markets.

* Therefore our advice is to accumulate long positions with the trailing stop loss of 10400 levels. On the higher side an Immediate resistance is seen around 10700 levels where we have seen call writing.

* In the Bank Nifty our advice is to go long with stop loss of 21700 levels. On the higher side, resistance is seen in the vicinity of 22500-22700 levels

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HDFC Securities

Published on 3/07/2020 11:00:48 AM

Long Build Up Is Seen In The Nifty Futures  -  HDFC Securities 

F&O HIGHLIGHTS

REMAIN BULLISH WITH TRAILING SL OF 10400 LEVELS 

* Nifty continued its winning streak for the second day in the row where it gained by 121 points to close at 10552 levels

* Long build up is seen in Nifty Futures’ where Open Interest rose by 0.5% with Nifty rising by 1.2%

* On the other hand, muted activity is seen in the Bank Nifty Futures where we have seen 0.4% addition in the Open Interest with Bank Nifty falling by 0.1%

* Nifty Open Interest Put Call ratio rose sharply to 1.62 levels from 1.43 levels. Amongst the Nifty Weekly Options(09-July) , Put writing is seen at 10400-10500 levels, Indicating Nifty is likely to find strong support around 10400 levels. On the higher side resistance is seen around 10600- 10700 levels where Calls have been written

* Short covering is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 706 Cr with their Open Interest going down by 498 contracts.

* To Sum It Up, long build up in the Bank Nifty Futures’, rise in the Nifty open Interest Put call ratio on the back of Put writing at 10400-10500 levels and short covering by the FIIs’ in the Index Futures segment Indicates that one should continue to remain optimistic for the markets.

* Therefore our advice is to accumulate long positions with the trailing stop loss of 10400 levels. On the higher side an Immediate resistance is seen in the vicinity of 10600-10700 levels where we have seen call writing.

* In the Bank Nifty our advice is to remain bullish with the trailing stop loss of 21700 levels. On the upside, resistance is seen in the vicinity of 22400-22500 levels

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HDFC Securities

Published on 3/07/2020 10:59:44 AM

Markets could open flat to mildly higher following positive Asian markets ... -  HDFC Securities 

Indian markets could open flat to mildly higher today following positive Asian markets and muted US markets on Thursday. U.S. stock indexes ended a choppy session Thursday with meager gains to close out a holiday-shortened week, as a record rise in new coronavirus cases in states like Florida helped to erode some of the optimism surrounding a stronger-thanexpected monthly employment report for June. Markets also lost some momentum after a report indicated that a final-stage trial of a Moderna MRNA, -4.90% coronavirus vaccine candidate was delayed.

U.S. financial markets will be closed on Friday to observe the July Fourth holiday which falls on Saturday this year. WTI U.S. crude for August delivery settled at $40.65 a barrel on the NYME, up 2.1%, in part thanks to dwindling inventories. In precious metals, August gold futures rose $10.10, or 0.6%, to finish at $1,790 an ounce.

Labor Department data showed that the U.S. added back 4.8 million jobs in June compared with expectations for a rise of 3.7 million and the unemployment rate fell for the second straight month to 11.1%. The U.S. lost more than 22 million jobs during the height of the public-health crisis and only restored 7.5 million of them in the past two months.

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HDFC Securities

Published on 2/07/2020 4:42:51 PM

Below is the Technical Quote On Today`s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Nifty witnessed sustainable follow-through upmove on Thursday, after the firm upside bounce of Wednesday and closed the day higher by 121 points. A reasonable long candle was formed on Thursday with minor upper shadow. Technically, this pattern signals positive trend with minor profit booking at the highs.

Nifty moved above the recent swing high of 10553 (24th June) and made a new swing high of 10597 and closed just below it. This is positive indication, as the market has not slipped into sharp profit booking, after moving into a new swing high territory.

A sustainable move above 10553 could mean a negation of previous negative candlestick pattern of bearish engulfing (of 24th June). Technically, such negation of bearish patterns could signal a possibility of sharp upside movement in the short term (above 10553).

The positive chart pattern like higher tops and bottoms continued and presently Nifty is in the process of forming a new higher top of the sequence. But, still there is no indication of any reversal at the highs.

The short term trend of Nifty continues to be positive. The next upside resistance to be watched around 10650-10700, which could be achieved in the next few sessions. Key lower support is placed at 10450.

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