MARKET OUT LOOK DATED 4TH SEPT 2017

MARKET OUT LOOK DATED 4^TH SEPT 2017

Market out look  :   Nifty finally  break out in trading range for the last 20 days and finally closed above  9950 which indicate strong  up side in coming days and any intra day weakness to long side.   Short sell is not a good idea at this juncture.  Buying at the money call is also good bet of this series.  On the other, Sunday morning  Cabinet of Modi govt. going to re-shuffle and any good news in financial sector as rumor in the market , if this happened big up side open likely. On Friday Aditya Capital Ltd was listed which is our best picks for long term investors.

Nifty   :   After strong opening whole the day remain positive and closed with positive bias  with a smart gained.   Now we may consider major up side in coming days and a  lot of good news likely  coming in the market.   On the technical front, Nifty support 9930-9900 watch out and resistance in near term 10000 mark once stay above, up side open towards 10150 1200 mark.  Trend is strong bullish and remain side anydecline.

Nifty  Future  :  On daily chart clearly break out visible and made a top 10017 and almost closed near to 10000 mark which indicate strong bullish movement in coming days. On up side first target is 10073 which 23.6 retracement of last week rally, thereafter heading towards 10108   10163 and 10198 possible. On the down side till not break and closed below 9800 there is no problem in the market and remain invested.

Bank Nifty Future :  We have seen long trading range for the last number of sessions which is 238000 to 24500 and continuing  moving this range, but on Friday trading it was able to cross  but closed below 24500, however, decent open interest added which is around 4 lacs shares indicate major up side ahead in coming days and liely test 24700 to 25000 mark easily.  Major break through once it cross and closed above 25100 above with added decent open interest.  However, trend is bullish and any dip to concentrate long side front line stocks.

Metal Index  :   As we are continue writing in this column and made a new life time high and closed above 3500 mark.   Time being consider support range 3300-3330 till not break decent buying opportunity.   Mainly concentrate, JSW Steel, Tata Steel, VEDL and Hindalco.

Pharma Index  :  After sharp down, decent recovery seen from the level of 8300 to 8400 mark and almost 600 points gained and same was  also visible in number of stocks like Aurbindo Pharma,  Divis Lab, Lupin, Cipla, Wockhard Pharma and major giant Dr. Ready Lab.    On Friday major up side seen in Dr Readdy Lab with decent volume which was more 50 lacs along with short covering indicate ready to 200 to 300 points move in coming days.   Short is not a good idea.

Open Interest Analysis :

Long side :  Number of stocks which is prominent OIL, IBREAL, Pidlite, HDIL, GCC, Reliance Capital, Ashok Lelyand, IDFC.

Short covering : Dr Readdy Maruti, Cadila

Short Side  : Grasim (Likely every one will be trapped)

In terms of Shares :

Reliance Capital – long side 7.88 lacs, Grasim  - short side 8.67 lacs,  Ashok Lelyand – long side 48 lacs, Asian paints long side 2.82 lacs, DLF long side 2.82, and many more.

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