All eyes set on forthcoming Budget FUTURES & OPTIONS STOCK SCAN
Q3 results revealed limited impact of the uncertainties created by demonetisation.
Rollout of GST should help Indian equities deliver positive returns in 2017.
Near term direction of markets will be guided by announcements from the forthcoming Union Budget and global cues from US Fed and BOJ.
It is interesting to observe that markets in the United States have largely ignored the implications of growing tensions between the U.S. and Mexico and are trading at new highs.
For the week ahead, chartists predict trading range of 27250-28650 and 8425-8850 for the benchmark indices.
Support for the indices evident at 27550 & 27250 and 8525 & 8425.
Mindteck provides product engineering and information technology (IT) services in the United Stated, Europe, India, and internationally. The company offers smart grid communication services, OEM solutions, data center and inpremises energy management services, and IT application solutions; embedded design services, embedded verification and validation services. Buy on declines for target price of `175
Poddar Pigments manufactures color and additive master batches for dope dyeing for manmade fibers, various plastic applications, and engineering plastics and compounds.
The firm’s principal product/service is Specialty Master batches. Its geographical segments are Within India and Outside India. Its product are used in various applications, which include textile, home furnishing, automotive, upholstery, luggage and lamination fabrics. Buy for target price of `450.
Shiva Texyarn is a textile company. The company’s products/services include Cotton Yarn and Grey Fabric. The company is engaged in the business of manufacturing and marketing of cotton yarn and other textiles products, such as coated and laminated fabrics, home textiles and back bags. It also has over 80 Windmills with an installed capacity of 28.795 megawatts. The company has proposed to demerge the Textile undertaking comprising of Spinning Unit I situate at Velvarkottai, Dindigul District along with the related windmills into a separate Company. Buy for demerger gains with medium term view. Mirroring the action in cash market, stock and sector specific moves were seen in the derivative segment.
Option activity clearly defines the Nifty range of 8000-8300.
Directional change can be expected if Nifty breaks these levels with volume action. Expect further volatility from current levels.
Punters suggest sell on rallies approach for present to traders.
Renewed buying interest was seen in the technology stocks on the back of weak rupee and positive cues from US market. Buy on weakness TCS, Tech Mahindra and Wipro.
Metal stocks witnessed mini sell off. Industry sources indicate next round of price hikes in the next few weeks. Buy in the current weakness Vedanta, Tata Steel and Hindalco.
Demonetisation impact was seen in FMCG and Realty counters. Stay away for present till a clear picture emerges in Q3 results.
Reports suggest disruption in regular banking activity due to re-monetisation work in banks. Sources indicate weak results in Q3 from banks.
Fresh shorts can be initiated on bulges with stop loss for short term.
Oil & gas space continued to attract firm buying on the back of firm trends in global crude oil prices.
Stocks looking good are Adani Enterprises, Bharat Forge, BEML, Nagarjuna Construction Company Limited, Power Grid, Reliance Industries Limited, Tata Motors, TVS Motors, Tata Steel and TCS.