Nifty Weekly Happenings News – 1-Apr-18

NIFTY 50

Weekly Nifty happenings news – Checking the Nifty weekly close versus Nifty PE at current scenario. The

Nifty Close – 10113.7

Nifty PE      – 24.77

So , average PE has to be around 19-20. Mathematically, Nifty being around 8200 shall meet the requirements of Nifty PE settling in an equilibrium. Well, whether it can reach that level or not, only time can tell. Intermediate bouts of shortcovering were witnessed on the first two days of the week as indicated in the previous issue. The Nifty managed to move above its 200-day SMA but failed to sustain above it on Wednesday, 28 March 2018.

The FIIs remained net buyers in the cash as well as derivatives segment. Moreover, the DIIs also remained net buyers during the week but the breadth of the market remained weak amidst low volumes. Crude oil prices, which had moved higher due to the trade and tariff war by the US, cooled down a bit on the back of higher US inventory data.

Technical Analysis – Nifty 50

Technical Analysis  -Nifty 50

Nifty 50 is currently hovering on the monthly demand zone. It is more over a strong zone with Fibonacci level 38.2% near on the monthly demand zone. It can act as a support. Nifty already has a good support 10000, which took off from that level. Looking into Open Interest Option Chain data of Nifty 50 , maximum OI can be see on Call OTM 10500 , and Put OTM 10000. These are the specific range that can be seen with respect to Nifty

Nifty Option Chain data

Such high level of Open Interest on marked levels shows Option writers involved in those levels. So one can say , nifty has tendency to be within this range for this week. And technical chart also shows us the same.

 

Miscellaneous happenings

Rural Electrification Corporation, a high dividend yield stock, intends to raise Rs.60000 crore via FCCBs (foreign currency convertible bonds), ECBs (external commercial borrowings), Masala Bonds and Capital Gains Exemption Bonds to fund its expansion plans.

JSW Steel is exploring all routes to acquire debt-ridden Essar Steel. It will be a big positive for the company if it
succeeds to do so.

Bandhan Bank was listed at a hefty premium to its issue price. Although the stock is good, it may react a little. Exit
now and enter later.

Lupin has launched its Carbidopa tablet in USA for the treatment of Parkinson’s disease. A big positive for the company.

M.M. Forgings seems to defy the market fall. The rising volumes witnessed at this counter suggest a buy.

Punj Lloyd has obtained a Rs.505 crore highway contract in Odisha. The bulging order book may help the company
to come out of the woods soon. Buy at the current beaten down share price.

Videocon Industries has exited its insurance business. The funds will be used to meet its working capital
requirements while additional assets will be disposed to repay debts. The stock may recover slowly.

Tata Motors has hiked its vehicle prices to offset the rise in the input cost. A positive for the company.

Bharat Heavy Electricals, an integrated power plant equipment manufacturer, has obtained an EPC order for a 75 MW solar photovoltaic plant. A positive for the company.

Kalpataru Power Transmission, a leading EPC company, has secured new orders worth Rs.901 crore. Its total
outstanding orders stand at ~Rs.9350 crore. It may be a good time to accumulate.

Crude oil prices are on the rise. It may be prudent to buy Selan Exploration Technology since it sells its products to the Government of India at international prices.

Mylan and Biocon have received approvals for their Semglee Biosimilar Insulin Glargine. This can push up its share price. Buy.

Glaxosmithkline Consumer Healthcare plans to sell its Indian unit stake for ~$3 bn to fund the Novartis JV
buyout. Buy this stock for 20% returns.

Engineering major, Larsen & Toubro, has obtained orders worth Rs.4353 crore for its power, transmission and
distribution business. A good buy.

The government has infused Rs.4132 crore capital in Indian Overseas Bank in order to make it financially stronger. A good buy at the current beaten down share price.

Germany based luxury car maker BMW has commenced production of X3 in India. Force Motors will be a big
beneficiary. Buy.

Very few stocks could withstand the fall in the current markets. Britannia Industries plans to launch a few
products. Accumulate in small lots.

Sharda Cropchem has witnessed a big surge in volumes. Its current working is expected to improve considerably.
Accumulate.

In spite of reporting good numbers, Ganesh Housing Corporation has fallen sharply due to the weak market
sentiment. A good stock to accumulate in times of turmoil.

CESC has received the NCLT nod for its demerger. Watch out for STEL Holdings as it owns shares of Spencer’s
Retail, which is expected to list in a few weeks. Buy for a quick 50% rise.

Britannia Industries is trading near its 52-week high of Rs.5000 whereas Bombay Burmah Trading Corp
(BBTC), its holding company, is 35% below its 52-week high of Rs.1820. A safe bet in these volatile times.

Graphite Electrode prices have soared to $14000/tonne. HEG and Graphite India can be bought as they are likely to report robust results in the coming quarter.

National Aluminium Company (NALCO) is reportedly doing well and is expected to report bumper results in Q4. The stock is available at a 30% discount to its 52-week high and can be bought for good appreciation in the shortterm.

 

 

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