9.30 AM UPDATE:
(Nifty: +10, 11164): Cautious stance continues.
Indian indices opened on positive note on the back of mixed global cues.
Asian shares steadied on news that US President Donald Trump is planning to delay tariffs on auto imports, providing much needed relief to markets hit by a flare-up in trade tensions and on weak U.S. and and Chinese economic data.
Lupin’s lower than expected March 2019 quarter (Q4) performance further impacted the already weak sentiment, with the stock shedding 3.55 per cent
Amongst stocks on positive side are: TATAMOTORS (+4.13%, 176) UPL (+1.08%, 980) YES BANK (+1.08%, 144).
On the negative side are: IBULHSGFIN (-2.13%, 691.80) IOC (-1.78%, 143.15) BPCL (-1.54%, 354).
Meanwhile, the Indian rupee opened higher at 70.27 per dollar versus previous close 70.34.
9 AM UPDATE:
Nifty likely to open in green. But as the day progresses volatility will rule the roost.
DOW FUTURES (-54, 25626)
NASDAQ FUTURES (-27, 7486)
SGX NIFTY (+24, 11186)
NIKKEI (-133, 21056)
HANG SENG (+5, 28274)
SHANGHAI (+2, 2941)
The key themes of the day:
• Selling intensifying from FIIs camp. The Foreign Institutional Investors have sold shares worth Rs. 1142 crore in the Indian equity markets in Wednesday’s trade. In the month of May, as of now, the FIIs have pulled out Rs 7,427 crore.
• Exports growth slides to 4-month low in April; trade deficit at 5-month high
STOCKS TO WATCH:
• BULLISH STOCKS: SRF, TITAN, SBI, DCB BANK, DEEPAK NITIRTE.
• BEARISH STOCKS: APOLLO TYRES, AMARA RAJA BATTERY, ACC, MARUTI, YES BANK.
All about stocks (F&O Trades):
• HINDUSTAN UNILEVER (CMP 1672): Sell between 1681-1691 zone. Targets 1651/1626. Stop 1723.
• SRF (CMP 6469): Sell between 6489-6501 zone. Targets 6317/6001. Stop 6657.
• HEROMOTO (CMP 2501): Sell between 2521-2531 zone. Targets 2260/2150. Stop 2581.
All about stocks (Cash Trades):
• Buy DEEPAKNTR (CMP 286): Buy between 256-265 zone. Targets 293/305. Stop 239.
• Buy DCB BANK (CMP 217): Buy between 209-211 zone. Targets 225/231. Stop 201.
• Buy MAHAMAYA STEEL (CMP 161): Buy between 151-155 zone. Targets 191/215. Stop 139.
SHOW ME THE MONEY:
• Option Trade: SELL HINDUSTAN UNILEVER 30th MAY CE Strike Price 1720 at CMP 21.65. Maximum Profit: Rs. 6495/-. Loss: Unlimited. Stop: Exit Call option if HINDUSTAN UNILEVER moves above 1716. (HUL May Futures CMP 1675).
Bulls Vs. Bears: Time to Pick a Side!!
A slight rebound expected for the day. Long positions advised only on any sharp corrective declines.
• Preferred trade on Nifty (11222): Buy between 11061-11075 zone. Targets 11301/11401. Stop 10921.
• Preferred trade on Bank Nifty (28569): Sell between 28701-28801 zone. Targets 28151/27411. Stop 29259.
8 AM UPDATE:
• Nifty May Futures ended Wednesday’s session at a premium of +08 vs +46.
• The 16th May expiry Put- Call Open Interest Ratio was at 0.55 for Nifty whereas it was 0.42 for Bank Nifty.
• The 16th May expiry Put-Call Volume Ratio was at 0.86 for the Nifty and 0.94 for Bank Nifty.
• For Nifty, Maximum Call Open Interest (OI) stands at 11300 Strike Price, followed by 11400 Strike Price for 16th May Series. Unwinding of long positions was seen at strikes price 11500-11800.
• Maximum Put Open Interest (OI) was seen at strike price 11000 followed by 11100 strike price for 16th May series. Short covering was seen at strike prices 11200-11300.
• For Bank Nifty, Maximum Call Open Interest (OI) stands at 29000 Strike Price and Maximum Put Open Interest stands at 28500 Strike Price.
• As per Wednesday’s Provisional Data available on the NSE, FII’s sold shares worth Rs. 1142.44 crores in the Indian Equity Market. DIIs on the other hand, bought shares worth Rs. 671.77 crores in the Indian Equity market.
• Long Buildup: SRF, KOTAK BANK, INDIGO, PIDILITE, UPL.
• Short Buildup: YES BANK, DLF, COAL INDIA, DHFL, TATA STEEL.
• Short Covering: JUBLFOOD, ICICIPRU, KAJARIA, UJJIVAN.
• Long Unwinding: ZEEL, TATAGLOBAL, ORIENTBANK, HDFC.
• Stocks banned in F&O segment for today: NIL.
7 AM GLOBAL UPDATE:
Judging by yesterday’s trading action and this morning’s indication from SGX Nifty, it’s quite apparent that Dalal Street is still stuck in the mud.
DOW (+116, 25648)
NASDAQ (+88, 7822)
SGX NIFTY (+8, 110170)
NIKKEI (-145, 21045)
HANG SENG (-151, 28117)
BOVESPA (-469, 91623)
OIL (+0.22, $62.24)
GOLD (-1, $1297)
SUCCESSFUL INVESTING IS ANTICIPATING THE TRENDS OF:
NIFTY’s CRUCIAL LEVELS:
Nifty’s CURRENT MARKET PRICE: 11,157.
Medium Term: 10,921.
Long Term: 10,251.
Medium Term: 11587.
Long Term: 12,001.
Medium Term: 10,701-11,551.
Long Term: 10,250-12,001.
Medium Term: Neutral.
Long Term: Positive.
Our call of the day suggests that Nifty is likely to remain volatile — moving up or down sharply with back and forth movements, red switching to green, green switching to red. Momentum stocks too are likely to struggle for direction after stumbling on Wednesday.
Quelling spats between Trump-Xi and uncertainty ahead of election outcome is likely to dampen the spirit of bargain hunters as well.
Our chart of the day suggests establishing short positions in stocks like MARUTI, HINDUSTAN UNILEVER and CANFINA HOMES with inter-week perspective.
IMPORTANT THEMES FOR THE DAY:
The big question: Can the benchmark Nifty pull itself out of pessimism?
To put it straight, if Nifty holds above psychological 11,000 mark, there’s still hope that equities can gravitate back to the top of their trading range.
Digging deeper, we are not out of the mud yet, and we suspect the exit poll outcome could forecast more storm clouds ahead. We are sure, bulls will be bending and praying with both their hands that there is a favorable outcome on 23rd May — that could force perma-bears to end all the pessimism surrounding Dalal Street.
Also hope meantime that U.S-China call for truce and bring the wheels of the worldwide economic growth engine to prosperity — from the muck. Yes, the bulls’ can emerge in this bear market only on any positive news coming courtesy of trade news.
Long story short: Expect stormy clouds until there is clarity on the outcome of general election and resolution in Trump-Xi trade battle.
Outlook for Thursday: TOO PAINFUL TO IMAGINE.
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