● Nifty index had a volatile Budget day but finally managed to hold its gains for second consecutive session. It witnessed strong momentum in mid hour of the session but remained volatile as it failed to cross crucial key hurdle of 10985 zones. It formed a high wave candle with wider range of 170 points which suggests a tug of war to break the range as dips are being bought and hurdles are intact at higher levels
● It has seen been making higher highs – higher lows from last 3 trading sessions and needs to hold above 10820 zones to extend its move towards 10985 then a fresh leg of rally towards 11080 zones. On the downside support exists at 10777 then 10700 zones. It formed a Bullish candle on the weekly scale with long lower shadow but still got stuck in the broader trading boundary
● Max Put OI is at 10700 then 10400 strike while Max Call OI is at 11000 then 11200 strike. Call writing is seen at 11200 then 11100 strike while Put writing is seen at 10800 then 10900 strike. Option band signifies a wider trading range as being the beginning of series in between 10500 to 11000-11200
● India VIX fell down sharply by 8.18% at 15.72 levels and it has corrected by 11.14% in this week which is giving some comfort to bulls but needs to hold below 16 to get a decisive range breakout above 10985
● Bank Nifty remained under pressure as it failed to hold above 27500 and drifted towards 27000 zones. It formed a Bearish candle on daily while a Long Legged Doji on weekly scale which indicates an absence of follow up buying at higher zones
● It has to cross and hold above 27150 zones to witness an up move towards 27350 then 27500 zones while on the downside support exists at 26850 then 26666 zones
● Longs in Hero Moto, JublFood, Ashokley, Havells, Divislabs, Maruti and Escorts
● Shorts in Vedanta, SBIN, DHFL, Hind zinc, MFSL and Bank India
[2/4, 9:24 AM] Raunaq Singh: From Advisory Desk
Global market & Events:
SGX NIFTY: 10896 (-15). However NIFTY 50 closed at 10893
Dollar: 71.25 vs 71.08
Gold: 1315 per ounce vs 1318 per ounce
Crude: 62.59 vs 60.93
US bond rate: 2.68 percent vs 2.63 percent
India Bond rate: 7.37 percent vs 7.28 percent
VIX: 15.72 vs 17.12
Market expected to be flat and we see pressure on the higher side.
Budget –Budget Positive for consumption related stocks. RBI Policy meet on 7th February. We expect rate cut and neutral stance.
Actionable – Reliance, Infosys, Divislab, HUL.
SBIN Numbers better than expectation. Loan growth at 12%. Decline in slippages. Due to further NCLT led recoveries I’m FY20 credit cost will be lower and margins will increase.
Titan reported numbers much better than market expectation aided by strong Jewellery sales. Guided 20% + growth in 4th quarter.
Divislab- Numbers above expectation. Sales and EBITDA margin well above expectation.