9 AM UPDATE:
DOW FUTURES (+91, 26607)
NASDAQ FUTURES (+41, 7656)
SGX NIFTY (+6, 11875)
NIKKEI (+178, 21265)
HANG SENG (+259, 28474)
SHANGHAI (-54, 2996)
The key themes of the day
• The key positive catalyst working in favor of bulls camp are hopes that the upcoming budget will have steps to boost economic growth.
• FIIs were net buyers to the tune of 106.26 crores in Wednesday's trade. This week, so far FIIs have bought worth Rs. 1471.45 crores.
STOCKS TO WATCH:
• BULLISH STOCKS: REC, PFC, VOLTAS, BAJAJ FINSERV, BAJAJ FINANCE, HAVELLS, ADANI ENTERPRISES, ICICI BANK, GUJRAT FLUROCARBON, BANK OF INDIA, CANARA BANK, SBIN.
• BEARISH STOCKS: EICHER MOTORS, PEL.
All about stocks (F&O Trades):
• BAJAJ FINSERV (CMP 8410): Buy at CMP. Targets 8501/8711. Stop 8251.
• REC (CMP 164): Buy between 159-162. Targets 172.50/179. Stop 155.
• HAVELLS (CMP 788): Buy at CMP. Targets 797/321. Stop 761.
All about stocks (Cash Trades):
• BANK OF INDIA (CMP 89): Buy at CMP. Targets 92.50/99. Stop 84.
• PFC (CMP 136): Buy between 129-132 zone. Targets 139/151. Stop 121.
• SEAMEC (CMP 493): Buy at CMP. Targets 521/551. Stop 457.
SHOW ME THE MONEY:
1. Option Trade: BUY BANKNIFTY 4th July CE Strike Price 31500 at CMP 135.15. Profit: Unlimited. Maximum Loss: Rs. 2,703. Stop: Exit Call option if Bank Nifty moves below 30851. (Bank Nifty July Futures CMP 31252.35).
2. Buy NIFTY JULY CE Strike Price 12000 at CMP 138. Profit: Unlimited. Maximum Loss: Rs. 10369. Hold CALL Option till JULY expiry.
Bulls Vs. Bears: Time to Pick a Side!!
A volatile trading session likely. Thanks to June F&O series expiry.
• Preferred trade on Nifty (11847): Buy between 11791-11805 zone. Targets at 11939/12105. Stop 11701.
• Preferred trade on Bank Nifty (31162): Buy at CMP. Targets at 31751. Stop 30561. Stop 30391.
8 AM UPDATE:
• Nifty July Futures ended Wednesday's session at a premium of +58 vs premium of .
• The 04th July expiry Put-Call Open Interest Ratio was at 1.14 for Nifty whereas it was 1.30 for Bank Nifty.
• The 04th July expiry Put-Call Volume Ratio was at 0.93 for the Nifty and 0.92 for Bank Nifty.
• For Nifty, Maximum Call Open Interest (OI) stands at 12000 Strike Price, followed by 11800 Strike Price for 04th July Series. Long buildup was seen at strikes price 11800-12000.
• Maximum Put Open Interest (OI) was seen at strike price 11700 followed by 11800 strike price for 04th July series. Short Buildup was seen at strike prices 11700-11900.
• For Bank Nifty, Maximum Call Open Interest (OI) stands at 31000 Strike Price and Maximum Put Open Interest stands at 30500 Strike Price.
• As per Wednesday’s Provisional Data available on the NSE, FII’s bought shares worth Rs. 106.26 crores in the Indian Equity Market. DIIs on the other hand, sold shares worth Rs. 51.47 crores in the Indian Equity market.
• Long Buildup: ICICIBANK, VEDL, POWERGRID, DLF, TATASTEEL.
• Short Buildup: INFY, ASIANPAINT, SRTRANSFIN, MARUTI.
• Short Covering: YES BANK, ONGC, SUNPHARMA, DHFL.
• Long Unwinding: HCLTECH, TCS, BHARATFIN.
• Stocks banned in F&O segment for today: ADANIPOWER, IDBI.
7 AM GLOBAL UPDATE:
SGX Nifty is sluggish in early action after President Donald Trump vowed to impose additional tariffs on China if a trade deal is not reached.
DOW (-11, 26536)
NASDAQ (+25, 7910)
SGX NIFTY (-7, 11862)
NIKKEI (+62, 21149)
HANG SENG (+131, 28353)
BOVESPA (+596, 100689)
OIL (-0.39, $58.99)
GOLD (-3, $1412)
SUCCESSFUL INVESTING IS ANTICIPATING THE TRENDS OF:
NIFTY’s CRUCIAL LEVELS:
Nifty’s CURRENT MARKET PRICE: 11,848.
Medium Term: 11,487/11351.
Long Term: 10,901.
Medium Term: 12107/12251.
Long Term: 12,501.
Medium Term: 11487-12201.
Long Term: 10901-13001.
Intraday: Buy on dips.
Medium Term: Neutral.
Long Term: Positive.
Our call of the day suggests that outlook for the day at Dalal Street remains constructive, but risks remain.
Technically speaking, volatility likely to be the hallmark until Nifty closes above 11,939 mark. Volatility also likely to be hallmark of today's trade as June F&O series expire today. We prefer to remain in the bulls' camp and buying on dips should be the preferred strategy.
Option data suggests that Maximum Call open interest (OI) of 35.26 lakhs at the 12,000 strike price. This 12000 area will act as a crucial resistance level in near term. Maximum Put open interest of 39.61 lakh contracts was seen at 11,700 strike price. This 11,700 area on Nifty will act as a crucial support level.
Our chart of the day suggests establishing BANK OF INDIA, BAJAJ FINSERV & PFC with interweek perspective.
IMPORTANT THEMES FOR THE DAY:
In today's trade, after a sluggish start, Dalal Street is likely to recoup and attempt to move above the dotted lines.
Oil prices have climbed further in Wednesday's trade by 2.2%, to $59.09 a barrel. We reiterate, climbing Oil prices could be the real black swan that could spoil the party at Dalal Street. Well, geopolitical risks are quite high and most importantly, OPEC is keeping production cuts in place perhaps into 2020.
Also note that U.S.- China trade threats too are staggering optimism.
The other headwind which the street faces is Federal Reserve Chairman Jerome Powell's statement that suggests an interest-rate cut in July is not a done deal.
Delay in progress of rain is also seen as key negative catalyst.
That said, the key positive catalyst working in favor of bulls camp are hopes that the upcoming budget will have steps to boost economic growth.
Also, the odds are still in favor of optimism as building steam is primarily on backdrop of data which suggests that FIIs have been on the buy side. FIIs were net buyers to the tune of 106.26 crores in Wednesday's trade. This week, so far FIIs have bought worth Rs. 1471.45 crores.
We prefer to remain in the bulls' camp and buying on dips should be the preferred strategy.
Outlook for Thursday: Waiting game for Dalal Street ahead of G 20 meeting.