Market out look 9TH Oct 2017
Nifty Above 9950
Up side open towards 10040-10143
Below 9850 - new low again visit.
Market out Look : On Friday market finally break out with decent volume due to positive global que and GST Meeting resulted over all buying and short covering seen in the market and able to closed above 9950 and tested 61.8% retracement of previous rally which is placed at 9900 (10178 to 9685.) Now time to concentrate any dip on intraday to buy side and sooner or later market may test near to new high whereas a very cautious approach and if not crossover and sustained above 10200 with decent volume and open interest, down side again re visit 9685 cannot be ruled out. Metal, FMCG, Pharma, and PSU Bank index looks good and more up side in coming days.
Technical Out Look
Nifty : After made a double bottom formation at 9685 almost 200 points rally were saw due to fresh buying and short covering and positive global ques. Over all trend is bullish till not break recent low and any dip to buying opportunity, however, major thrust in market once it will weekly closed above 10200. Over all trading range 9700 to 10200 on weekly chart any break out in either side will gain more than 500 points likely. On the other hand, highest call established at 10000 and highest put 9800 in Oct series so short term trend watch out this range closely.
Nifty future : In this weekly, we may consider support 9950-9900 range holding this level up side towards 10060-10086-10129 and 10155 likely . Lower level it will take support 9796-9770-9727-9701.
Bank Nifty Future : Banking Nifty are continue holding their recent support level and managed to maintained above 24000. Short term is good and some more up side, however, compare to Nifty, Banking nifty weakness due to private sector bank are not participating properly which having a highest weight age like HDFC Bank, ICICI Bank and Axis Bank, However, against these bank Kotak Bank and Indus Banks are positive side. Till these three banks will not participate we do not think any major up side in Bank Nifty in near term. On a weekly chart we may consider decent support range 23500-23800 range and number of times it was bounce back seen and managed to hold these level, up side towards 25000-25200 can not be ruled out. On the flip side once break down these level on weekly basis we may seen big correction and it will take support nearly 20000 mark as per weekly chart.
On the daily chart, consider resistance 24300 and crossover it will show more power and positive bias. Weekly range expected 23800 to 24300 which is no trading zone.
Metal Index : Metal Index continue shining and were are very bullish from the long time. Last Friday smart move and almost added 100 points. Over all trend is strong bull with consider support 3400-3500 range and resistance 3750 watch out. On the flip side 3 super start , Tata Steel, HIndalco and VEDL are nearly trading multiyear resistance zone which is must watch out and successfully crossover another 10 to 20% up move also possible.
Pharam Index : Pharma Index are continue shining and we have taken a contra call at the level of 8300 + and advised to buy front line stocks like Dr. Readdy Lab, Lupin Lab, Divis Lab, Aurbindo Pharma Sun Pharma and almost 1300 points gained in short term. Over all short term trend is bullish and any dip to buy side and any short sell will be danger which was live example of Divis Lab which is almost double from the recent low. Holding 9000, level, it will move towards 9800-10000 mark. Take a contra call for wealth creator purposes.
PSU Bank Index : PSU Index are continue in dow ward side once firstly it was broken 3500 mark and finally 3200 and almost made a low 3000 +. Over all trend is bearish but short term in over sold zone so some recovery can not be ruled out which is short lived and good opportunity to exit long and fresh short created. For short term buying opportunity due to short covering best pick is SBI, Bank of Baroda, PNB, Canara Bank and Indian Bank. Other mid size PSU bank avoid .
Long Side : On weekly to week basis major momentum and substantial open interest added in following stocks which indicate any dip to bny side and more steam left and coming days. These are Gail (Multiyear Break out and ultimate target 1000 mark compare to peers MGL), Bata – Ready for big move above 750, Tata Steel, Nalco, South Bank, Jubilant Food.
Short Side : Continue weakness and short added last which is STAR, Dish Tv, IRBV, Idea, HCC, Bharti Tele, Heromotor and Reliance Commuication.
OI SPURT : : . Tisco – heavy long built up 26 lacs shares, Gail, long side added 24 lacs, Biocon long added 3.16 lacs, ICICI Bank short side added 37 lacs, Axis Bank short side added 12.61 lacs, Sun Pharma long side 9 lacs, Vedant longside 10.99 lac, Bata 1 lacs long side, SBI short covering 29 lac, Reliance short covering 7.32 lacs, DHFL long unwinding 6.03 lacs, Reliance Capital 10.83 short side, CESC 4.85 long side and many more.,
Sector Avoid : Telecommunication after entry of GEO fierce completion and cash losses of existing companies which is already reflected in last quarter result. Avoid buy side Bharti Tele, Idea, Tata communation and Exit Reliance Communication.
Wealth Creator Call for long term (Time Horizon 5 year to 10 years and above. )
- Aditya Birla Capital : Trading at 180 up to 150 accumulate these stocks on phased manner . One of best company having 11 companies in difference work under its arms of Birla promoter Kumar Mangalam Birla. Cmpare to peers like, Bajaj Finance, Bajaj Finservice, Motilal Oswal, Edelwise, Geojit, ILFL, very cheap and these are trading 1 or 2 paid up whereas these are available Rs. 10 paid up looks dirt cheap.
- How to create Prot Folio and our expectation. Investor can invest according to their financial goals but we advised to invest minimum 10000 shares which is roughly around 18 lacs or even you can convert your FD into these companies.. We are expected in coming years it will move towards 2000-3000 mark and thereafter it will be split which may be Rs 1 or 2 paid up. If we take consideration in Rs 1 so after split you will have 1 lacs shares and again it will test 1000 to 1500 mark which concert your portfolio from Rs. 18 lacs to 100 crores which is beyond any investors.
- On the hand these are having 11 companies sonner or later it will be demerge and unlock their value so in coming years return beyond imagination of any investors. Just follow, Buy and Forget it.
- CESC Ltd : This company going to Demerge very short and spreading in 4 arms. Current Trading at 1045. After demerger 4 entity likely value more than Rs. 2000 which is almost doubled of your investment in short term which may be 12 to 24 months.
- HT Media : Buy and forget at current level trading 95. One of best company is Print Media sector.
More details call
3M Team Research
9630466296-9203901698
