MOSt Market Outlook

11th September 2017

Nifty Chart

Nifty Outlook

Index

CMP

R1

R2

S1

S2

Nifty Cash

9934

9980

10020

9880

9850

BankNifty

24370

24500 24750 24150 24000

'Nifty index opened positive but failed to surpass 9965 and

fell down towards 9913 levels. However it recovered from

lows and finally closed above its pivot key levels of 9928

with marginal gains of 5 points. It formed a small candle and

got stuck in the broader trading range of 9850 to 9980 zones

from last eight trading sessions. Now it has to continue to

hold above 9928 zones to witness an up move towards 9980

then fresh move towards 10020-10050 zones while on the

downside supports are seen at 9880 then 9850 levels.

Currency (USDINR) Outlook

USDINR

63.94

S1

63.90

S2

63.75

R1

64.15

R2

64.30

Market Drivers

US markets closed marginally lower on Friday.

The domestic market remained In a range. Auto

stocks could see gains as cess increase is not to

the highest level as was earlier feared. North

Korea will remain in focus. UN meet and its

decisions will be keenly watched. Indian markets

are set to open higher. Globally metal companies

saw declines which could have some

implications here as well. Sectors like private

banks, financials and auto could remain in focus.

Infrastructure plays like Larsen, NBCC could

continue to see interest. Pharma space which saw

declines on back of draft guidelines could also

see recovery.

Trading Idea - Cash & Future

Scrip

ASHOKLEY

Reco

Buy

CMP

115

SL

111

Target

125

The pair is likely to trade in a range between intraday

support at 63.90 and immediate resistance at 64.15 with a

neutral bias.

Sectoral Outlook

Sector

NBFC

AUTO

Outlook

POSITIVE

POSITIVE

Highest Call OI

Instrument

Nifty 28 - Sep

Bank Nifty 28 - Sep

Bank Nifty 14 - Sep

Strike

10000

24500

25000

OI

4735125

971680

605280

Chg in OI

20775

28040

215240

Corporate Action:

Dividends -

UJAAS; CINELINE; PANACHE; JBCHEPHARM

KRL; HMVL; KAMADGIRI; PATELSAI; CORALAB; AMRTCORP

TNPL; ENGINERSIN; BGWTATO; CLARIS; POWERGRID; OCL

Trading Idea - Derivatives

STRATEGY UPDATE : AXIS BANK RATIO BULL CALL SPREAD

Instrument

B/S

Lot

Reco

CMP

AXIS BANK CE 510

AXIS BANK CE 520

AXIS BANK CE 530

Buy

Sell

Sell

1

1

1

10.75

6.75

3.95

4.55

2.40

1.30

Highest Put OI

Instrument

Nifty 28 - Sep

Bank Nifty 28 - Sep

Bank Nifty 14 - Sep

Strike

9700

24000

23500

OI

5299650

1086280

457560

Chg in OI

258975

238400

210160

Security in Ban period:

DHFL; IBREALEST; JSWENERGY; JUSTDIAL

Today Event

NA

Stop Loss : 3000; Target : 6000

MOSt Market Outlook

11th September 2017

Trading Calls

Ashok Leyland

Buy

CMP :

Target :

INR 115

INR 125

Derivatives Idea

AXIS BANK

RATIO BULL CALL SPREAD

Buy 1 Lot 510 CE

Sell 1 Lot 520 CE

Sell 1 Lot 530 CE

Ashok Leyland formed a Cup and Handle pattern on weekly

chart and traded above its resistance at 105.

3

On the daily charts we see that the price has moved out of a

small flag pattern which is again a bullish sign. It is poised to

seek significant gains. We are looking for a potential rally to

125 from current levels thus consider buying this stock at cur-

rent levels with a stop below 111.

3

3

3

3

3

3

It has been respecting to its multiple support of 500 zones from

last nine sessions

It has the behaviour to move in a range bound manner

Maximum Put OI at 500 strike could support it to hold above 500

zones

Maximum Call OI at 520 strike could restrict its upside momen-

tum

Thus low cost Ratio Bull Call Spread is recommending

FII & DII Activity (INR in Cr)

FII F&O

7th Sep

-564

245

6th Sep

-1353

52

Institution

INDEX FUTURES

INDEX OPTIONS

STOCK FUTURES

Net B/S

119.27

482.88

-61.47

OI

Long Built Up

Put Buying and Selling

Short Built Up

Cat.

FII

DII

8th Sep

-256.42

487.97

MOSt Market Outlook

11th September 2017

Long Built-up

Short Built-up

Long Unwinding

Short Covering

Nifty Option OI

1- Day change in Nifty OI

MOSt Market Outlook

11th September 2017

Research Notes

Morning Meet Notes

Dr Reddy's Labs - (CMP2159, TP2400, Recom NEUTRAL)

o

German regulator issues observations at Duvvada facility - 6 major observations

o

CAPA stated that the facility will receive EU_GMP certification by November 2018

o

No supplies to EU from this facility so no revenue impact

o

Srikakulam clearance necessary for Copaxone approval

o

Suboxone - do not expect launch in next 12 months

o

We value it at TP of INR2400 (20x FY19E EPS)

MOSt Market Outlook

11th September 2017

MOSt Market Outlook

11th September 2017

Currency Ideas

USDINR

GBPINR

3

USDINR traded choppily last week as it rallied initially towards a 3-week high

at 64.40 only to give up most of the gains and close lower by about 0.40% for

the period at 63.94.

Looking ahead, the pair is likely to consolidate in the current broad range

between 64.50-63.75.

Trading near the extreme ends of this range i.e. buying near support or selling

near resistance is advised till a clear breakout is seen.

The medium-term bias however remains bearish below strong resistance at

65-65.10 area.

3

GBPINR rallied sharply last week to close at a 1.5 month high at 84.38 with a

gain of about 1.5%.

The pair is now very close to important resistance at 84.70.

However, the current bullish momentum is quite strong indicating that this

resistance is likely to be breached to the upside.

Moreover short-term bias would remain positive as long as the pair holds

support at 83.70-83.50 zone.

Hence buying on dip near the same or on break of resistance is advised target-

ing August 2017 high at 85.20 level.

3

3

3

3

3

3

3

MOSt Market Outlook

Chandan Taparia

Research Analyst (Derivatives & Technical Analyst)

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