© Sumpoorna 2017

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Daily Technical Roundup May 14, 2018

Market Commentary

FII & DII Activity

FII (Cash) in Cr -325.44

DII (Cash) in Cr +1163.35

FII (Index Futures) in Cr +863.59

FII (Index Options) in Cr -623.30

FII (Stock Futures) in Cr +560.26

FII (Stock Options) in Cr -149.85

Benchmark indices BSE Sensex and NSE’s Nifty 50 posted good gains, tracking gains in global equities after softer US inflation was seen reducing pressure on the US Federal Reserve to hike rates at the faster pace.

BSE Sensex closed 289.52 points higher at 35,535.79, while the Nifty 50 rose 89.95 points to close at 10,806.50. Traders are cautious ahead of key inflation data and Karnataka election results due next week. Karnataka elections will be held on 12 May and results will be announced on 15 May. Here are the highlights and developments from the markets:

Asian Paints led the gainers’ list in the Sensex pack by surging 6.17% after the company on Thursday reported a 3.39% increase in consolidated net profit at Rs495.91 crore for the quarter ended March 2018. Other winners included Tata Steel (2.17%), L&T (1.69%), Yes Bank (1.52%), HDFC Ltd (1.50%), Kotak Bank (1.46%), ITC Ltd (1.45%), ICICI Bank (1.34%), SBI (1.19%), Infosys (1.15%), HDFC Bank (1.07%), M&M (1.01%), Axis Bank (1.01%), HUL (0.90%), RIL (0.80%) and Wipro (0.78%).

Among sectoral indices, BSE metal gained the most by rising 1.56%, followed by bankex 1.13%, oil & gas 1.07%, capital goods 1%, FMCG 0.98%, IT 0.63%, PSU 0.58%, auto 0.28% and infrastructure 0.08%. Telecom lost the most at 4.25%. Consumer durables, healthcare, power and realty indices also ended in the negative zone. Broader markets showed a mixed trend, with the BSE mid-cap index rising 0.40% but small-caps losing 0.12%.

Tata Motors today posted 86 percent jump in domestic sales at 53,511 units in April, led by strong sales in commercial and passenger vehicle (PV) segments.

USDINR closed at 67.3250 Brent Crude is at 76.32$.

Fast moving consumer goods (FMCG) major, Dabur India, posted an increase of 19 percent (year-on-year) in its net profit for March quarter to Rs 397.2 crore

BULK DEALS- PC Jeweller: Vaibhav Stock and Derivatives traded 38.4 lakh shares at Rs 213 apiece. Rain Industries: BNP Paribas Arbitrage sold 18.9 lakh shares at the price of Rs 277.4 per share.. Hdfcbank bank raised fixed deposit rates by 10-100 basis points for various tenures.

Canara Bank: Sharp rise in provisions widens the bank’s net loss to Rs 4,859 crore.

Infosys: Ravi Venkatesan steps down as Independent Director 'to pursue a new role'

UCO Bank: The bank has widened its net loss to Rs 2,134 crore

Hdfcbank bank raised fixed deposit rates by 10-100 basis points for various tenures.

Gillette India: Board Appoints Madhusudan Gopalan As MD For A Period Of 5 Years w.e.f. July 1, 2018

Dena Bank: RBI restricts bank from assuming fresh credit exposure & recruitment of staff

Oriental Bank of Commerce: Net loss for Q4 widens to Rs 1,650

In the morning, Shanghai Composite appeared up 0.57%; Nikkei up 0.20%; Hangseng up1.31%; SGX NIFTY up 0.01%.

Put-Call Ratio's

Index Options 0.97

Stock Options 0.54

F&O Total 0.89

© Sumpoorna 2017

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Daily Technical Roundup May 14, 2018

Nifty Outlook

Outlook: Nifty is expected to trade in a range 10740 to 10850; resistance 11000 Support 10690

NSE Overall Advance & Decline

- Advances 707

- Declines 1079

- Unchanged 70

Change in Open Interest (MAY)

- Nifty +10.08Lakhs shares (+4.19%)

- Bank Nifty +1.86 Lakhs shares (+6.09%)

Nifty PE 26.66

India VIX 13.9775(+3.10%)

In the previous session, nifty witnessed a very strong weekly closing.

Now Nifty has crossed 61.8% retracement level of the fall and built a support at 10590-600.

The immediate support would be at 10740 and 10690. Since major trend looks bullish any dip up to 10640-600 would be a buying opportunity.

A deeper correction may just drag the index towards 100 SMA or around 10460-10500.

50 SMA is at 10378 and 200 SMA is at 10270.

The upside target above 10850 would be 10950 -11000.

Oscillators are moving in overbought zone but bullish.

Conclusively, Nifty is trading with a positive bias and any closing below 10590 would trigger a short term correction, else it would be a buying opportunity at dips. Stay cautious of volatility.

Nifty Chart (Daily):10807

High 10812

Low 10724

- R1 10840

- R2 10950

- R3 11000

Support Levels

- S1 10740

- S2 10690

- S3 10640/10590

NIFTY - BANK Outlook

Outlook: Nifty Bank is expected to trade initially in the range 26150-26500, Support 26000 Resistances 26750-27000.

Bank Nifty Overall Advance & Decline

- Advances 10

- Declines 2

- Unchanged 0

Bank Nifty Open Interest

+1.86 Lakhs shares (+6.09%)

Nifty Bank has a breakout above 25888 in the previous week and the index may attain a higher range for the trade.

Strong supports are 26000-25888.

Major trend remain unaltered as long as 25500 is not breached.

50 SMA is at 24900. 200 SMA is at 25100.

It may turn highly volatile due to Karnataka election results.

© Sumpoorna 2017

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Daily Technical Roundup May 14, 2018

Bank Nifty Chart (Daily):26432

High 26437

Low 26100

Resistance Levels

- R1 26500

- R2 26750

- R3 27000

Support Levels

- S1 26150

- S2 26000

- S3 25888

Stock Watch

Trends 1 2 3 4 5

Fresh Longs PTC SAIL ASHOKLEY IOC IBULHSGFIN

Fresh Shorts IDEA SOUTHBK SUNPHARMA SUZLON ADANIPOW

Short Coverings JSPL VEDL FEDBK UNIONBK HINDALCO

Long Unwinding TATAMOT DISHTV OBC DLF HCC

Stock Picks

Upl

Recommendation BUY

Current Price 734

Current Price (Date) 14TH May 18

Transaction Price Range

725-730

Target 760-770

Stop Loss 717

200DMA 769

Segment CASH

52-week High (Rs.) 902

52-week Low (Rs.) 675.10

Market Cap (Rs. Cr) 37410.63

UPL has an inverse h&S pattern breakout , one may buy at any decline or 725-730 sl 717 target 760-770.

© Sumpoorna 2017

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Daily Technical Roundup May 14, 2018

GAIL

Recommendation Buy

Current Price 342.60

Current Price (Date) 14th May’ 2018

Transaction Price Range

331-332

Target 358

Stop Loss 319

200DMA 331

Segment CASH

52-week High (Rs.) 388.50

52-week Low (Rs.) 260.25

Market Cap (Rs. Cr) 77248.45

Gail has a falling wegde breakout and bullish reversal signal n weekly chart. It is facing resistance at 100 SMA 347. One should enter at sharp deline around 331-332 with a sl of 319. The oattern suggests target 360-370.

Source: Sumpoorna Research, NSE, BSE, SEBI,

and other publically available documents.

Document prepared by:

Nitesh Aggarwala & Sunil Koul

For further information, please

contact: Sumpoorna Global Markets &

Economics Research

Phone: +91 120 4505200

email:

globalresearch@sumpoorna.com

url: www.sumpoornaonline.com

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Daily Technical Roundup May 14, 2018