Tuesday, June 21, 2016

Market Recap
Yet again the issue of ‘BREXIT’ kept hunting the equity Key Market Data Points
markets including our domestic markets. The markets Prev.
kicked off on a positive note today but the optimism Name High Low Range Close
Close
was short lived as the index NIFTY spot tumbled after
registering an intraday high of 8257.25. Later on, the Sensex 26926 26755 171 26813 26867
index remained under pressure throughout the Nifty Spot 8257 8202 55 8220 8239
session and traded in a narrow range to close with
Nifty Future 8253 8206 47 8225 8252
marginal loss. Eventually, the 8200 mark acted as a
support for the day. On the other hand, the NIFTY VIX 17.71 16.39 1 17.26 17.52
BANK index fell by more than 100 points due to a
corrective move in the private banks and profit
booking in the PSU banks. Today’s fall was mainly led
Sentiment Indicators
by heavyweights like HDFCBANK, AXISBANK, LT and Prev.
Name Close Change
INFY. Surprisingly, the market breadth was positive at Day
the end of the session due to outperformance of the Prm/Disc 5.2 13.4 -8.20
broader markets.
•On the global front, European indices like FTSE PCR (OI) 1.14 1.15 -0.01
(+0.04%), CAC (+0.67%) and DAX (+0.57%) were PCR (Vol) 0.93 0.90 0.03
trading with minor change while the time the report
was made.
•The Asian Indices like NIKKIE (+1.26%), HANGSENG MARKET BREADTH
(+0.77%) and SHANGHAI (-0.34%) displayed mixed NSE Today % Change
trend in today’s session.
•On the sectoral front, apart from NIFTY AUTO Advance 750 -14.19%
(+0.68%) and NIFTY REALTY (+0.41%) counters all the Declines 813 20.09%
other indices closed in negative terrain.
•From the list of losers, NIFTY PSUBANK (-0.77%) A/D Ratio 0.92 -28.54%
stocks underperformed the most and were followed
by NIFTY BANK (-0.56%) and NIFTY PVT BANK (-0.54%)
stocks.
•The broader markets outperformed a bit as the
MID100 (+0.29%) and SML100 (+0.36%) indices ended
with small gains.
•In the currency market, we witnessed weakness in
the INR against other major currencies.
On the stock front, Gammon India was locked at 20%
upper circuit at Rs 17.86 at 14:30 IST on BSE, with the
stock extending previous sessions' 20% gains triggered
by the company reporting turnaround results for the
quarter ended 31 March 2016. On the other hand, Take
Solutions rose 2.94% to Rs 169.65 at 12:35 IST on BSE
after reports suggested that the company is planning to
sell its supply chain management business to focus
more on life sciences sector.
Tuesday, June 21, 2016

OPEN INTEREST Key Takeaways

(`000) Openinterest Nifty  The Nifty Fut. closed at 8225 levels with a
30,000 8400
premium of 5.2 points against premium of
8300
25,000 13.4 points
8200
8100  Nifty open interest decreased 2.48% with a
20,000
8000 fall in price
15,000 7900  Bank Nifty closed at 17623 with a marginal
7800 fall of 0.15% in open interest with a fall in
10,000
7700 price.
7600
5,000  The total turnover in F&O segment is
7500
1,91,658 cr., plunged by 33% from previous
,0 5/20 5/25 5/30 5/2 5/7 5/10 5/15 5/20 7400 session.

NIFTY OPTION OPEN INTEREST

10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
-
CE
PE
 For the current series, the Call PUT concentration is at 8300 strike Call with an open interest of 60.97 lakh
shares. On the other hand, highest PUT base is at 8000 strike with 80.72 Lakh shares.

 In current series, call options addition was seen in 5.18 Lakh shares in open interest with a fall in price; on the
other addition was seen in PE option to the tune of 5.01 Lakh shares in open interest with a fall in price.

 The highest open interest activity was observed in the 8300 -- 8500 strikes CE with an open interest of 1.72
cr. shares, on the flipside highest PE activity was seen in 8000 -8100 strikes to the tune of 1.39 cr. shares in
open interest.

 The 8400 strike CE added 3.36 Lakh shares respectively; while on the put side addition was seen 8000 & 8100
PE strike to the tune of 3.86 & 2.72 Lakh shares respectively.

 Whereas, unwinding was seen in 8300 strikes CE to the tune of 2.03 Lakh shares and on the PE side
unwinding was seen in 7900 strike to the tune of 2.46 Lakh shares.
Tuesday, June 21, 2016

F&O Price Gainers & Losers

Price % % OI Price % % OI
Company Close OI Company Close OI
Change Change Change Change
ARVIND 328 4.81 4,707,900 21.38 AJANTPHARM 1472.05 -3.47 408,800 23.58
CENTURYTEX 654.65 4.56 6,327,100 16.48 AUROPHARMA 724.3 -2.37 15,863,400 2.48
JPASSOCIAT 8.05 4.55 192,968,000 -2.14 IBREALEST 5.35 -3.60 208,593,000 -0.37

KPIT 192.15 4.43 1,852,000 11.84 TATAPOWER 73.65 -2.19 30,595,000 2.37

Long Build-Up Short Build-Up

Price % % OI Price % % OI
Company Close OI Company Close OI
Change Change Change Change
ARVIND 328 4.81 4,707,900 21.38 AJANTPHARM 1472.05 -3.47 408,800 23.58

CENTURYTEX 654.65 4.56 6,327,100 16.48 RCOM 48.70 -0.61 125,922,000 11.84

KPIT 192.15 4.43 1,852,000 11.84 JETAIRWAYS 579 -1.43 5,623,900 10.99

ICIL 962 2.33 443,800 8.46 UPL 564 -1.36 9,714,200 7.43

Short Covering Liquidation

Price % % OI Price % % OI
Company Close OI Company Close OI
Change Change Change Change
LICHSGFIN 485.25 0.66 7,508,600 -6.44 ALBK 59.95 -0.17 12,140,000 -6.83

HINDZINC 177.3 0.17 3,907,200 -5.13 ORIENTBANK 100.75 -1.80 15,789,000 -5.68
VOLTAS 323.8 0.45 4,923,600 -4.95 TATASTEEL 110.5 -0.90 52,360,000 -6.76

ASHOKLEY 102.4 2.14 78,575,000 -4.11 SYNDIBANK 71.95 -1.17 13,685,000 -5.12

Key Takeaways
 Today it was a different session for the PSU BANKS. After a consecutive green days today the PSU BANK
corrected on the back of profit booking as they are overbought.

 INFRATEL is turning from the support on the weekly chart thud there is a possibility of short covering in it.

 M&M is poised to test the higher level of 1400 and above in the coming sessions.

 AUROPHARMA will confirm a major breakdown if it breached the 700 mark thus traders should remain
cautious.
Long Build Up:- Rise in Price & Rise in OI Short Build Up:- Fall in Price & Rise in OI
Liquidation:- Fall in Price & Fall in OI Short Covering:- Rise in Price & Fall in OI
Tuesday, June 21, 2016

News Updates
 Sensex ends 54 points down; power, bank stocks trip.

 YES Banks plans to raise $ 1bn from international markets.

 7 merchant bankers evince interest in managing OIL stake sale.

 Asian Paints to revise plans for proposed Vizag plant.

 India Inc raises Rs. 1,900 cr via NCDs in April-May.

 FDI in pharma: No game changer, 'health security' worries still on the horizon.
Stocks In Action
Stock View CMP TGT Rationale
• After a sharp correction of many years, the stock has
been consolidating in a broad range of 77 – 88 since many
months.
• During this process, more than five times the stock made
an attempt to clear the 89 – Day EMA placed at 85 level
on a closing basis but failed to do so. Now, at this point in
FINANTECH Bullish 87.8 100 time the price action is taking a shape of inverse H&S.
• This indicates that the day the counter clears this range
then there is a possibility of sharper move on the upside.
• Thus, we advise traders to go long in the stock whenever
it clears the 88 mark. On the upside, the stock might
retest the 100 mark very fast and the stop loss should be
placed below 83..

Technical Outlook
Today Nifty failed to sustain above 8250 level and traded in a 30 points range in the later part of the
day. Nevertheless Nifty sustains above downward sloping channel as well as near term moving average.
At the end market breadth has turned slightly negative. At the moment, 8250 is likely to act as an
immediate resistance for the NIFTY, above which index can retest swing high of 8295 and further it can
head towards negative gap witnessed on 21st august 2015, placed in the range of 8322 – 8360 levels.
On the contrary, strong support is placed in the range of 8180 – 8150 levels. The short term & medium
term momentum indicators are trading in a positive territory and pointing upward.

Meanwhile, Nifty Bank index continues to underperform the benchmark index NIFTY and closed below
near term moving average. Similar to Nifty, key resistance trend line of falling channel is placed around
17820 for Nifty Bank index. On the contrary support is positioned at 17590 – 17350 zone.
FII’s activity:
Cash Market: Today FII’s turned out to be a buyer. They bought 485 cr. in the equity markets; at the same time
DII’s sold 336 cr. Consequently, in the June Series up till now, FII’s have bought 4545 Cr. in the cash segment, while
DII’s sold 2334 Cr.

F&O Segment: FII’s sold worth Rs. 1193 cr. in the F&O segment. On the Index Future front they sold 570 cr.
(liquidation of long positions along with fresh addition in short position). On the index option front, they sold 911
cr. (we witnessed subdued activity on the CE front, whereas on the PE unwinding was seen in long position
combined with fresh addition in PE Short positions). At the same time they bought 294 Cr. in the stock futures
(addition of fresh long along with liquidation of existing short positions).

Conclusion:
Nifty consolidated today, after registering breakout from two weeks corrective move. With this breakout short
term trend has turned to sideways to positive mode. However FII’s derivative statistical data is showcasing mix
signals. At the same time, derivative data advocates strong support in the range of 8000 – 8100 and conversely
we can see shift in upper end of the range to 8400 from current 8300 levels. Therefore we uphold our positive
bias and suggest keeping stock centric approach.
Tuesday, June 21, 2016

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