Wolf of dalal street

Wolf of dalal street how to grow your money

07/03/2019

Happy Nifty and Bank Nifty Weekly Expiry Day..!!

BANK NIFTY
Bank Nifty formed a Doji candle on daily scale as it remained dull after the strong momentum of previous session. It closed near to its opening zones but dips were bought which indicates overall positive bias in this sector. Now it has to continue to hold above 27350 zones to witness an up move towards 27750 then 28000 zones while on the downside support exists at 27350 then 27150 zones
For the expiry day point of view, trend is positive to range bound. Expected trading range : 27350 to 27750-27800
 Option traders can trade with 27600-27700 Bull Call spread
 We can trade with 27500/27600 Call if it manages to hold 27500 zones with the support of 27350
 Option writers can Sell 27100/27200 Put and 27800/27900 Call with strict stop loss
Bank Nifty is up by 2.15% on wow basis and managed to hold above its crucial hurdle of 27350 zones . Weekly VWAP is also near to 27450 zones and index is 175 points higher from the same suggests a positive to range bound bias.
On the weekly contract
Maximum Put OI is at 27000 PE (9.03 Lakhs Shares) and 27400 PE (7.27 Lakhs Shares)
Maximum Call OI is at 28000 CE (6.35 Lakhs Shares) and 27800 CE (6.02 Lakhs Shares)
Bank Nifty weekly contract has seen Call writing at immediate strikes from 27600 to 27900 strikes while Put writing is seen at all the immediate strikes from 27400 to 27600 strikes.
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NIFTY
Nifty index managed to hold above 10985-11000 zones and gradually extend its gains towards 11060 levels. It continued its positive momentum for third consecutive session and formed a Bullish candle on daily scale. Now it has to continue to hold above 10985 zones to extend its move towards 11118 then 11200 zones while on the downside support exists at 10929 then 10888 zones.
For the expiry day point of view, trend is positive to range bound with limited upside while support at 10985-11000 zones. Expected range : 10985-11000 to 11118
 Option traders can be with 11050-11100-11150 Call Ladder Spread or 11050-11100 Bull Call Spread
 We can trade with 11000 or 11050 Call if it manages to hold 10985-11000 zones
 Option writers can sell 10950 Put and 11150 Call with strict double stop loss

Nifty is up by 1.74% on wow basis and managed to hold above its crucial hurdle of 10985- 11000 zones. Weekly VWAP is near to 10985 zones and index is 65 points higher from the same suggests a range bound to positive bias. Put writing is seen at 11000 strike which could support it on decline while Call writing at 11100 and 11200 strike could restrict its upside momentum.

On the weekly contract
Maximum Put OI is at 11000 PE (25.12 Lakhs Shares) and 10900 PE (19.21 Lakhs Shares)
Maximum Call OI is at 11100 CE (17.59 Lakhs Shares) and 11200 CE (10.15 Lakhs Shares)
Nifty weekly contract has seen Call writing is at 11100 and 11200 strike while meaningful Put Writing is seen at 11000 then 11050 strike.
For important disclosures regarding Motilal Oswal Research, visit:http://ftp.motilaloswal.com/emailer/Marketdiary/DISCL/Disclosures.pdf

07/03/2019

● Nifty index managed to hold above 11000 zones and gradually extend its gains towards 11060 zones. It continued its positive momentum for 3rd session and formed a Bullish candle on daily scale as intraday dips were being bought. It managed to give a consolidation breakout with strong momentum on last trading sessions and now a follow up buying suggests that bulls are back on track

● Now it has to continue to hold above 10985 zones to extend its move towards 11118 then 11200 zones while support exists at 10929 then 10888

● Max Put OI is at 11000 then 10800 strike while Max Call OI is at 11500 then 11000 strike. Meaningful Put writing is seen at 11000 while Call writing is seen at 11400 then 11300 strikes. Option band signifies a trading range in between 10888 to 11200

● India VIX fell down by 0.32% at 15.61 levels. Now, VIX has to continue to hold below 16-15 zones to get the smooth ride in the market

● Bank Nifty formed a Doji candle on daily scale as it remained dull after the strong momentum of last session. It closed near to its opening zones but dips was bought which indicates overall positive bias in this sector

● Now it has to continue to hold above 27350 zones to witness an up move towards 27750 then 28000 while support exists at 27150 then 27000 zones

● Longs in Wipro, PowerGrid, Amar Raja battery, Jublfood and Repcohome

● Shorts in Adani port, Nestle India, Ambuja Cement and Torrent power

07/03/2019

News and Impact

· Expect market to open on a flat note on account of global cues. US market fell for a third session on Wednesday, with the S&P 500 posting its biggest one-day decline in a month, as healthcare and energy shares slumped. Potential trade agreement between the United States and China and poor economic data, including Friday’s employment report have a negative impact in the US market. The small-cap Russell 2000 dropped 2.0 percent, its biggest one-day percentage decline of the year.

· Asian markets are witnessing mixed bag. Nikkei Index declined half percent and Hong Kong Index slipped 0.3%. Both Taiwan and South Korea Index are flat to positive. US Future declined 0.1%.

· Expect intra-day volatility in the market ahead of Bank Nifty and Nifty weekly expiry today. Traders buy on decline after a Nifty gained 200 points (2%) in the two consecutive days.

· Overall market sentiment is positive on account of stable oil price, fall in USDINR and strong domestic economy data. Moreover, street expectation that the recent airstrike will be benefit by ruling party in the Lok Sobha election.

· Watch on small and mid-cap Banks – Yesterday, J&K Bank, Lakhsmi Vilas Bank, Indian Bank gained 5-15% after the media news that India Bull Housing lead for Lakshmi Vilas stake. Expect momentum continue on mid-cap and small cap banks like BoB, IDFC Bank, PNB.

· Expect mid-cap and small cap stocks may further gain on account of attractive valuation and beaten down. Infrastructure (Sadbhav Engineering, KNR Engineering, Ashoka Buildcon), NCC, NBCC, Petront LNG, PNB Housing.

· Brokers Radar – CLSA – Infosys BUY TGT 930, UBS raised OMC TGT – BPCL 415, HPCL TGT 315, IOC TGT 185, Crompton Greaves – JP Morgan TGT 240, Macquire ITC TGT 376.

· Major Actionable – PNB ousing, IDFC First Bank, BoB, Container Corporation, M&M Finance.

· Expect PSU Banking stocks will be positive as RBI OMO (open market operation) worth Rs125bn today – 10-Year G-Sec Yield may decline by RBI OMO operation – positive for SBI, BoB, PNB, Canara Bank

· Watch on Sugar and Fertilizer stocks – Last day of Cabinet meeting will be held today just ahead of election. Expect soft loan for sugar industries and more benefit on fertilizer sectors – RCF, Bajaj Hindustan, EID Parry, Balrampur Chini momentum today.

· Watch on Wipro – Record date of Bonus today (1:3), stock gained 2% yesterday

· Watch on Arvind Mills – De-merger unit Arvind Fashion will be listing tomorrow, de-merger ration 5 share of Arvind will get 1 share of Arvind Fashion.

· Biocon said the US health regulator has issued six observations in Form 483 after pre-approval inspection of its insulin drug substance manufacturing facility in Bengaluru – negative for Biocon

· Apollo Tricot Tubes started production at Karnataka facility with installed capacity of 75000 MTPA – Positive for Apollo Tubes

· Tata Motors signed an accord with wise travels to supply Tigor EVs – Positive for Tata Motors

· LT Foods to invest Rs200mn via preference share in subsidiary Daawat Food to strengthen balance sheet.

· Vedanta announces dividend RS1.85 a share.

· Endurance OFS for non-retail investors fully subscribed, non-retail bids for Endurance at 8.6mn shares vs 5.73mn offered - Positive after a strong response its OFS of non-retail segments.

· Reliance Industries and its unit Reliance Jio Infocomm are in talks with banks for a new $2.25b loan facility, according to people familiar with the matter. The facility will have USD and yen tranches, with tenors of 5-6 years. - Positive for Reliance Industries.

· Watch on oil marketing companies - Oil declined 2% to below $66/bbl after an industry report showed a massive increase in U.S. crude stockpiles, raising oversupply concerns. Fall in oil price and USDINR will be positive for oil marketing companies like HPCL, BPCL and IOC.

· Yesterday, Dewan Housing gained over 20% after the news that the Dewan Housing ’s independent audit firm T. P. Ostwal & Associates said the money disbursed for the purpose of slum rehabilitation projects may have found its way to promoter entity—Kyta Advisors Pvt. Ltd., previously known as Wadhawan Realtors Pvt. Ltd. – Traders avoid on Dewan Housing.

· Philip Morris International Inc has for years paid manufacturing costs to its Indian partner to make its Marlboro ci******es, circumventing a nine-year-old government ban on foreign direct investment in the industry - We are positive on ITC

· Media news that the HDFC AMC acquired over 2% stake in Ashoka Buildcon stake from open market on 1st March - Ashoka Buildcon is highly beaten down stocks ... Buy for long term prospects - We are positive on the stock.

· Hudco approves offering circular for ECB through MTN program - Positive for Hudco

· HDFC announced interim dividend Rs3.5 a share - record date 18th March – Lower than street expectation

· NMDC board to March 12 to consider interim dividend - Strong balance sheet and attractive dividend Yield - BUY

· Sugar stocks expected to be further momentum after the news that the Government may consider additional Rs150bn loans to sugar companies - Expect positive for Balrampur Chini, Bajaj Hindustan, Praj Industries (Not our coverage)

· Subex signs 5-year multi-million dollar contract with BTC - Positive

· Media news that the India Bull Housing lead race for Lakshmi Vilas Bank stake - Lakshmi Vilas Banks gained 20% after the news. Stock may momentum ahead of stake sale

· Cipla : Launch of Sensipar Generic Cinacalcet Hydrochloride - Positive for Cipla

· Grasim agrees to buy Soktas India Private LTD worth Rs1.65bn - Grasim has signed a definitive agreement to acquire the entire stake of Soktas India Pvt Ltd (SIPL) from its current promoters for an enterprise value of Rs 165 crore - Positive for Grasim, Hiked in Cement price may positive on Grasim.

· L&T awarded large contract for metro rail projects. Deal value Rs25bn - Rs50bn - L&T said the heavy civil infrastructure business of its construction arm has bagged "large" contracts from Bangalore Metro Rail

· Corporation - Strong order book will be positive for L&T

· Bharat Forge Class 8 orders declined by 58% y/y marking a fourth straight month of declines in orders - Lower than expected US sales. Stock declined 2% yesterday .. we are long term positive on the stock

· NBCC won orders worth Rs8.04bn in February - Positive for NBCC

· JSW Steel raises Neosteel bars prices by over 4% - JSW Steel raises Neosteel bars prices by more than 4% from Tuesday after five consecutive cuts - BTVI - Positive for JSW Steel

· Indian Hume Pipe wins orders worth Rs2.55bn - Positive for Indian Hume Pipe

· Baxter, Cadila show interest in Pfizer's India plant - ToI

· Board Meetings – HDFC Life Insurance and Power Grid

· EGM – Welspun India

05/03/2019

News and Impact

Expect market to open on soft note on account of global cues. US market declined over half percent yesterday (however, US market gained on Friday) on account of poor economy data. Asian markets open on a mixed bag. Hong Kong and China Index (Yesterday gained 2.5%) are flat to positive. Nikkei Index declined 0.4%.

There was major concern in the market that the US Government announced tax restructuring of India product (GSP) worth $66/bn. India-US trade concern may impact in the market. However, it is a small amount for US which import from India. India will get 60days time with US for new trade negotiation. – Traders wait on watch on Tech and Pharma stocks.

There was major concern in the market that the Geo-political tension between India and Pakistan. Moreover, higher oil price, Trade war news of US-India may negative impact in the market. Traders buy on dips in the market. Buy strong fundamental stocks like L&T, HDFC Bank, SBI, UltraTech, Maruti

Reduced trade war tension between US-China will be positive for the market. Media report that the U.S. and China are close to a trade deal that may end American tariffs - China has made it clear in a series of recent talks with the US that removing the tariffs on $200bn of Beijing goods from the day one was necessary to finalize any deal.

Reliance Industries’ arm to acquire logistic company Grab A Gurb – The company will acquire Grab A Gurb for a cash consideration not exceeding Rs106cr – Positive for Reliance.

Stock in focus – Metal stocks (reduced trade tension will be positive for metal) – JSW Steel, Jindal Steel, Cement stocks (UltraTech, ACC), Auto stocks (Maruti, TVS Motor).

Watch on Tech Mahindra – Share buy-back will be commence today at Rs950 a share

Quick Heal – Company’s board meeting will be held today on share buy-back

Watch on InfoEdge – It’s subsidiary arm Zomato stake sale - Online food ordering and restaurant discovery platform Zomato to sell stake to in UAE worth $200-250mn – Media report – Positive FOR Infoedge.

Brokers Radar – HSBC BUY SBI LIFE, TGT 770, BAJAJ AUTO – cut by CS from Rs2950 to Rs2700

Tata Is Said to Explore Options for Struggling Jaguar Land Rover - Tata Group, India’s biggest conglomerate, is exploring strategic options for its Jaguar Land Rover Automotive Plc unit including a potential stake sale in the struggling luxury carmaker, people familiar with the matter said. Tata is considering alternatives ranging from a minority stake sale to finding a venture partner that would jointly develop vehicles and lower costs. Positive for Tata Motors, partial stake sale may reduce debt.

RBI imposes penalty on IDBI Bank (Rs10mn), Dena Bank (Rs20mn), Union Bank 9Rs30mn), SBI (Rs10mn)- RBI has imposed a monetary penalty for contravention of its regulatory directions on time-bound implementation and strengthening of SWIFT-related operational controls.- It is a small amount, not any impact on the stock.

Indian Hume Pipe receives orders worth Rs1.87bn - Orders have been received from Vidarbha Irrigation Development Corporation, Nagpur - Positive

IGL gets approval to develop network in 3 areas - Positive for IGL

L&T Infotech and Baring Private Equity Asia are the leading bidders for a major stake in Mindtree as the Indian tech services and consulting firm’s largest shareholder seeks to sell his holding, according to people familiar with the matter. Larsen & Toubro and Baring are both offering Rs950 to 1,000 a share and a decision may come as soon as next week - Mindtree closed on Friday at Rs935 a share. It will be positive for L&T Infotech.

Tata Steel raises Rs43.15bn via allotment of debenture - Positive for Tata Steel

Rating agency affirms Bharti Airtel 'BBB-' outlook negative - Company is coming out a right issue worth Rs250bn at Rs220 a share - We are positive on Bharti Airtel - BUY

Auto monthly sales volumes during the month of February were in mixed bag. Maruti (Reported 148582 unit, expectation 148750 unit) and Ashok Leyland (Reported 18245 unit, expectation 18450 unit) reported inline with expected Feb. monthly sales volumes. Bajaj Auto (Reported 393089 unit, expectation 408000 unit), Eicher Motor (Reported 62630 unit, expectation 73800 unit) and Tata Motor (Reported 57221unit, expectation 60500 unit) announced lower than expected monthly sales. Escorts(Reported 7240 unit, expectation 6950 unit) and TVS Motor (Reported 299353 unit, expectation 297600 unit) announced better than expected Feb sales volume

Wockhardt gets US FDA approval for prostate cancer drug - Positive for Wockhardt

Nikkei Feb Manufacturing PMI at 14-month high at 54.3 vs 53.9 previous month - Positive for the markets sentiment after 14-month of Manufacturing PMI, Expects industry growth on track.

ABB reported lower than expected Q4 results. Stock is rich valuation and we have a sell rating on the stock. Company reported Q4 net profit Rs1.98bn (up 17% YoY) - Expectation Rs2.29bn, Company reported EBITDA at 2.15bn (down 25.4% YoY) expectation Rs3.65bn, EBITDA margin 11% vs 8.5% (YoY) - expectation 11%

NCC received five new orders worth Rs40.88bn - Positive for NCC, Strong order book, reported good Q3 results

Shriram Transport Finance panel meet in March on fund raising - We are positive on Shriram Transport Finance - BUY

SBI Life block deal - BNP Paribars Cardif sells 8% stake in SBI Life and Carlyle group acquires 9% stake in SBI Life - SBI life gained 5% to close at Rs68 after touching a intra-day low of 516

Moody's says India to grow 7.3% in 2019 and 2020 - Indian economy is expected to grow at 7.3 per cent in calendar year 2019 and 2020, and the government spending announced ahead of elections this year which will support near-term growth, Moody's said on Friday - Positive for economy and expect to increase FIIs investment on account of highest growth among the emerging countries.

Yes Bank says Ravneet Gill joined as MD and CEO today - Positive for Yes Bank after joined a new MD and CEO, Stock declined sharply from the high, reported good Q3 results - BUY

L&T Finance sells Rs2.75bn May 2020 bonds at interest rate of 8.75% - Positive for L&T Finance as Bond Interest 8.75%

National Aluminum approved dividend at Rs4.5 a share - Dividend yield over 8%, current valuation is attractive - BUY

Government approves a Rs100b program to encourage faster adoption of electric and hybrid vehicles - Positive for M&M

SML Izuzu Feb sales at 1282, up 33% YoY - Reported good monthly sales volumes

IOC to Get LNG From U.S. Cameron Plant From July-Aug.: Indian Oil Corp. expects two LNG cargoes from Cameron project in 2019. IOC to get contracted 0.7 million tons/year Cameron LNG from 2020, official says - Positive for IOC, IOC will import from US as lower cost

Dividends – ACC and EGM – Future Retail

05/03/2019

● Nifty index opened positive and consolidated for most part of the session and managed to hold above 10850 zones. It formed a Bullish candle on daily and weekly scale which suggests that dips are being bought into at lower levels

● Now it has to continue to hold above 10777 zones to extend its move towards 10929 then 10985 zones while support exists at 10777 then 10720 levels

● Max Put OI is at 10600 then 10700 strike while Max Call OI is at 11000 then 11500 strike. Call writing is seen at 11000 then 11400 strike while Put writing is seen at 10900 then 10800 strike. Option band signifies a broader trading range in between 10650 to 11100 zones and requires a range breakout to start the next leg of rally

● India VIX fell down sharply by 9.86% at 16.47 levels. However VIX has to cool down below 16-15 zones to get the smooth ride in the market

● Bank Nifty opened positive to extend it gains towards 27100 zones and managed to close above its crucial level of 27000 mark. It formed a Bullish Candle on daily scale while small bodied candle on weekly scale

● Now it has to hold above 26850 to witness an up move towards 27350 then 27500 zones while support exists at 26850 then 26666 zones

● Longs in Arvind, Orient Bank, Canara Bank, Apollo Hosp and Ujjivan Fin

● Shorts in Bharti Airtel, Bajaj Auto, Marico, Motherson Sumi and Idea

01/03/2019

From Advisory Desk

01-March:

Global market & Events:

DOW: -69 (There wasn’t no specific conclusion between Trump and Kim)

SGX NIFTY: 10872 (-2). However NIFTY 50 closed at 10792

Dollar: 70.75 vs 71.24

Gold: $ 1314 per ounce

Crude: $ 66.54 per barrel

10 year US bond rate: 2.71 percent
10 year Indian Bond rate: 7.40 percent

VIX: 18.28

FII: +3210
DII: -5240`

Market View – Remain Positive on the market.

Actionable – We continue with our Buy Voltas and Havells for one to two month (Add lower levels). Also buy UPL, Axis bank, Infosys, JindalSteel. Buy for Investment Ramco Cements at corrections.

Economy growth slowed down to 6.6% during last quarter which is Inline with market expectation. Slow down mainly because of government and house hold expenditures. There is de-acceleration in agricultural growth. Silver lining is that Pvt sector investment grew by 10%. Slowed down in the growth along with lower inflation, may leads to reducing interest rate by 50 bps in next policy meeting in April. Positive for Interest rate sensitive sectors.
Bank credit growth to industry, which had slowed sharply over the last few years, continued to rebound and hit a three-year high in January @5.5%.

Cement – Expecting capacity utilisation to improve going forward. Buy for Investment Ramco Cements.

Derivatives View - VIX Closed at 18.27 level. At the start of the new series Put writing is seen at 10300 then 10600 strike while Call writing is seen at 11000 then 10900 strike. Option band signifies a broader trading range between 10600 to 11000 zone.

01/03/2019

Research Notes
Financials: Sector Update (Top Picks – ICICI Bank, Axis Bank, HDFC Bank & Federal Bank)
· Retail and services – key engines for growth - The share of retail in total systemic credit improved to 26% v/s 20% four years ago.
· Lending to NBFCs declines; NBFC exposure reduces
· Valuation and View - The outlook for corporate banks is improving, given the moderation in slippages, the reduction in total stressed loans and the
improving profitability. Revival in credit growth, along with improved pricing power, will help drive faster NII growth. Among corporate lenders, we
prefer AXSB and ICICIBC – we expect their earnings to accelerate significantly from FY20. Within our coverage universe, we maintain our preference for
ICICI Bank, Axis Bank, HDFC Bank and Federal Bank.

01/03/2019

News and Impact

· Expect market to open on a positive note on account of strong opening in the Asian market. Reduced geo-political tension between India – Pakistan may cool down market volatility. USDINR yesterday slipped 49 paisa to close below 71 after the news that the Indian Air Force pilot Abhinandan Varthaman, captured by Pakistan on Wednesday, will be released today. Asian markets like Hong Kong, Nikkei Index gained half percent each. SGX Nifty is up by 12 points.

· U.S. stocks fell quarter percent yesterday, for a third consecutive day for the first time this year as lingering concerns over trade and geopolitical risks offset a report showing the economy cooled by less than expected last quarter. Equity received brief bumps higher after White House economic adviser Larry Kudlow and Treasury Secretary Steven Mnuchin gave optimistic outlooks on the status of trade negotiations with China. Stocks dropped earlier in Europe and Asia as disappointing manufacturing data out of China and an abrupt end to the U.S.-North Korea summit added to a litany of concerns facing investors.

· One of the major important factor to be watch for today that the last day1st March of deadline on China goods which may impose duty by US. However, market expectation that the US may increase date of duty on deadline of China good duty.

· Traders watch for today major sectors - Auto, Telecom and Banking & NBFC

· Watch on PSU stocks ahead of dividend yield – NALCO board meeting will be held today ahead of dividend announcement. Nalco has over 90bn (Rs12 cash per share) cash per share.

· Watch on Auto stocks – Auto monthly sales data will be announced today like Maruti, Eicher, Escorts, TVS Motor, Ashok Leyland. We are positive on Maruti, Escorts, Ashok Leyland.

· Stock to be major trigger for today (BUY) – Bharti Airtel, ICICI Bank, Infosys, Shriram Transport Finance.

· Brokers Radar – JP Morgan BUY SAIL TGT 76, ONGC BUY Macquarie TGT 210, CLSA – BUY Bharti TGT 410 and UBS TGT 415, Chennai Petro BUY UBS TGT 400.

· Watch on Vodafone – Media news that the Cabinet approved Vodafone-Idea right issue worth Rs250bn – Positive for Vodafone.

· Watch on Jet Airways - Jet Airways' founder Naresh Goyal has agreed to step down as chairman of the airline's board, a source with direct knowledge of the matter told Reuters on Thursday, as the cash-strapped Indian carrier inches closer to securing a rescue deal – Expect positive for Jet on ahead of restructuring of new board.

· Bharti Airtel outcome board meeting - Company to raise up to Rs320bn, company approved right issue up to Rs250bn at Rs220 a share (CMP Rs318) in the ratio of 19 shares for 67 held - nearly 8% (benefit if apply for right on assume current market price Rs320 (Cost Rs297.9 after adjustment of right share) – One can take for opportunity to buy on the stocks for benefit of 8% return – assume yesterday closing price.

· Watch on Tata Motor DVR /Tata Motor – SBI Mutual Funds bought 0.73% stake of Tata Motor DVR.

· Watch on Arvind Mills – Arvind Mills de-merger unit Anup Engineering will be listing today. Demerger ratio was 1 share of Anup Engineering for 27 share held by Arvind Mills.

· PNB to sell 13% of its stake in PNB Housing Finance - CNBC - expect positive for PNB as exit on non-core business. PNB Housing is also strong fundamental, company reported impressive quarterly results - Buy

· India’s gross domestic product (GDP) for the third quarter of FY19 grew at 6.6% compared to 7.1% in the previous quarter, the government data showed on Thursday.

· Dewan Housing - Rating agency CRISIL cut commercial Paper rating to A1 from A1+ negative for Dewan Housing - Avoid

· Lupin receives US FDA approval for Azacitidine for injection - Positive for Lupin, highly beaten down stock - BUY

· LIC Housing plans to sell up to Rs40bn in 2-part bond - Positive

· REC approved interim dividend of Rs11 a share - Ex-date of dividend on March 11 Dividend yield 8% (above 5% will be adjust Future on quantum basis ) - buying opportunity .

· Vedanta CEO comments on plans for South Africa Zinc operation, company say total planned Gamsberg investment $1.4bn - Avoid on Vedanta. However, base metal price on LME gained in the last few sessions. Copper price is 6-month high - We are positive on Hindalco, JSW Steel and Jindal Steel

· Shriram Transport is planning to raise funds - Positive for Shriram Transport Finance, current valuation is attractive - BUY

· Lupin Labs introduces generic Ranolazine ER tablets in US - Positive for Lupin Labs

· Adani Ports Buying Logistics Assets Is Negative For Credit: Adani Ports and Special Economic Zone’s planned acquisition of logistics assets from a related party is negative for its credit profile, S&P said - Avoid Adani group stocks - poor balance sheet is a concern.

· Brokers Radar - JP Morgan upgraded SAIL with TGT 78

· ARSS Infra wins EPC contract worth Rs4.29bn in Mizoram - Positive

· Tata Steel to issue Rs43.15bn bonds at 9.8359% - Positive for Tata Steel

· ONGC to pay over Rs 220 cr in arrears to Mumbai Port Trust on pipelines way leave fees - Rising oil price will be positive for upstream oil companies, ONGC has strong balance sheet and attractive dividend yield

· Canada JP Logistic sign 7-year tech deal with Ramco Systems - Positive for Ramco Systems.

· Orissa Minerals Development Company said it will pay Rs 400 crore as a penalty to Odisha Government due to violation of environmental clearance and other norms. The market capitalisation of the company stands at Rs 493 crore as on Feb. 28 – negative

· Motherson Sumi arm signed agreement with the U.K.-based Bombardier Transportation to acquire the latter’s assets in connection with production and installation of electrical components and systems for applications in the rail industry. The transaction is valued at 10.9 million pounds – Positive for Motherson Sumi.

· Share BUY – back – Coal India and Ajanta Pharma share buy –back today

· Block Deal - Reliance Infra STCI Finance sold 18.24 lakh shares (0.71 percent) at Rs 123.8 each.

· Abu Dhabi Investment Authority, Kotak to set up India Fund with $500mn commitment - -- Abu Dhabi Investment Authority set up a distressed assets fund in India, anchoring it with a $500 million commitment - Positive for Kotak Bank

· Future Retail unit to develop operate 7-eleven stores in India - Positive for Kotak Bank

· Watch on Sugar stocks - Government is said to plan asking banks to give Rs230bn subsidizing interest on sugar loan - It will be positive for Sugar stocks

· Board Meetings – ABB and Nalco

·
Best Regards,

28/02/2019

● Nifty index had a highly volatile session as it traded in a wider range of around 190 points during the day. It headed towards 10940 zones in the early session but fell down sharply towards 10750 zones and finally closed with the loss of around 30 points. It formed a Bearish candle on daily scale as it has got stuck in a trading range and follow up action is missing on both the sides as dips are being bought while bounce is being sold in the market

● Now it has to continue to hold above 10750 zones to extend its move towards 10888 then 10929 zones while support exists at 10720 then 10650 levels

● Max Put OI is at 10400 then 10700 strike while Max Call OI is at 11000 then 10900 strike. Call writing is seen at 11000 then 10950 strike while Put unwinding is seen at immediate strike price. Option band signifies a trading range between 10720 to 10929 zones

● India VIX moved up sharply by 10.45% at 18.90 levels. Sudden spike in VIX has given a pause in the positive momentum and VIX has to cool down below 16-15 to get the smooth ride in the market

● Bank Nifty remained highly volatile throughout the session as it traded in a wider range of 26700 to 27200 zones. it formed a Bearish Engulfing Candle on daily scale as selling pressure is being witnessed at higher levels. It got stuck in between 26666 to 27200 zones since last 11 trading sessions

● Now it requires a decisive range breakout from the current trading band to commence the next leg of momentum. On immediate basis it has to hold above 26850 to witness an up move towards 27000 then 27150 zones while major support exists at 26666

● Longs in TCS, Ultratech Cement, NTPC and M&M Finance

● Shorts in HUL, Infratel, Titan and BPCL

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