hbj capital daily newsletter 6th april 2011

8/7/2019 HBJ Capital Daily Newsletter 6th April 2011

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06-04-2011

Copyright 2011, HBJ Capital Services Pvt. Ltd. [email protected]

Daily Market Insight

Outlook for the day

Scrip Name LTP Change % Change

NIFTY5,910.05 1.6 0.03

SENSEX 19,686.82 -14.91 -0.08

CNXIT 7,313.80 45.95 0.63

CNXMIDCAP 2,610.55 36.8 1.43

BANKNIFTY 11,798.90 -5.4 -0.05

Fundamental View-

The previous trading session in the Indian equity

markets proved to marked by a step of

consolidation at elevated index levels after a strong

run up in the last few trading sessions.

The market breadth was tepid with individual

sectors as well as scrips trading marginally above or

below their previous close, on account of profit

booking. Also the important development in the

previous session was the aggressive buying in themid cap banking & financial stocks as well as small

cap counters.

The global economic diasporas proved to be

eventful with the hike of rates by the Chinese

central bank in order to tame the inflationary

concerns & avoid overheating of the economy as

well as formation of any major bubble. A same kind

of action is also expected from the European central

bank in the upcoming policy rate review.

The Portugals sovereign debt downgrade by thecredit rating agency Moodys has again alarmed the

gravity of the financial ill health of the European

continent.

However, the international crude oil prices are

trading firm near the two & a half year highs above

the $108/barrel mark. This would have an inflicting

effect over the demand driven economy with the

likes of India as well as on the bourses.

Technical View-

The technical picture on the charts suggests that themarket participants are currently looking the 6000

mark as the immediate ceiling both in psychological

& technical terms.

The Short term moving average (20-EMA) is trading

near the 5655 mark on the charts. The Long term

moving averages (200-EMA) is trading near the 5845

mark near the Medium term moving average (50-

EMA) at the 5613 mark, which would act as a strong

point of demand for the markets in the coming

trading sessions.

The ADX indicator is trading at the 51 mark which

indicates towards an strong trending bullish market

condition, a continuation of which could lead to

excessive gains on the charts in the immediate time

frame. The +DI line which indicates towards the

presence of buyers in the benchmarks has once

again topped out on the charts, indicating towards

cooling off of the aggressive buying stance by the

long side market participants. We expect Nifty to

trade in the range of 6005-5885 in the coming

trading session.


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06-04-2011

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(World market on 06-04-2011, 6 am IST)

Option Strategy-

NIFTY OPTION OPEN INTEREST CHART NIFTY OPTION OPEN INTEREST CHANGE CHART

Copyright 2011 HBJ Capital Services Pvt. Ltd.

The option data suggests that the market participants are currently visualizing the 6000/5900 mark on the

charts as the intermediate term upside in the trading sessions to come. We expect Nifty to trade in the range

of 5990-5890 in the trading sessions to come. The highest concentration at the 6000 strike price in case of call

option along with a strong increase in the OI concentration further strengthens the argument. However in the

case of put option, the concentration at the 5800/5700 strike price along with a significant OI buildup

amplifies the possibility towards a dip near the 5700 mark in the intermediate time frame. We expect Nifty to

trade in the range of 6000- 5890 levels in the immediate time frame.

Current Diff % Change

Dow Jones 12,393.90 -6.13 -0.05%

Nasdaq 2,791.19 +2.00 +0.07%

S&P 500 1,332.63 -0.24 -0.02%

FTSE 6,007.06 -9.92 -0.16%

DAX 7,175.31 -0.02 0.00%

CAC 4,041.74 -1.18 -0.03%

Hang Seng24,166.74

+16.16 +0.07%

Strait Times 3,146.29 -0.46 -0.01%

Nikkei 9,594.99 -20.56 -0.21%

For Nifty calls, 5900 strike price (SP) from the

April series was the most active call with an

addition of 1.77 mn or 58.56%.

Among Nifty puts, 5900 SP from the April month

expiry was the most active put with an addition of

0.17mn or 6.47%.

The maximum Call OI outstanding was at 5900 SP

(4.80) and that for Puts at 5900 SP (2.81).

The respective Support and Resistance levels are:

Resistance 5,940.51 -- Pivot Point 5,898.18 --

Support 5,867.71.

The Nifty Put Call Ratio (PCR) OI wise stood at

1.38 for April-month contracts.

The top five scrips with highest PCR on OI were

Tata Motors DVR 2.00, Dr Reddy 1.38, Axis Bank

1.04 Indusind Bank 1 and IOC 1.

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

5300 5500 5700 5900 6100 6300

CALL OI

PUT OI

-400000

-200000

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

CALL OI CHNG

PUT OI CHNG


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06-04-2011

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Derivative Info Company NameClose(In Rs) 50 EMA

ACC 1123.35 1118.45

Ambuja Cement 151.90 149.60

Axis Bank 1424.75 1429.65

BHEL 2210.60 2186.03

BPCL 595.30 597.23

BajajAuto 1438.15 1450.68

Bharti Airtel 360.25 359.65

Cairn India 365.10 366.67

Cipla 321.20 317.83

DLF 268.80 271.23

Dr Reddy's 1639.35 1632.55

GAIL India 461.80 458.67

Grasim Industries 2559.50 2576.10

HCL Tech. 486.80 485.73

HDFC 698.35 703.15

HDFC Bank 2395.75 2399.12

Hero Honda 1643.25 1626.35

Hind.Unil 275.35 278.22

Hindalco 215.45 215.75

ICICI Bank 1111.25 1116.55

IDFC 163.05 163.72

ITC 184.20 184.63

Infosys Tech 3283.25 3283.18

JP Associate 97.90 98.30

Jindal Steel 713.75 712.72

Kotak Bank 456.10 459.47

Larsen & Toubro 1667.50 1682.03

Mah.&Mah. 733.45 740.48

Increase In Open Interest

Symbol Prev. OI Curr. OI %Chg. OI Curr. Price

%Chg.

Price

IDEA 1990 3079 54.72% 70.7 4.05%

IOB 835 1105 32.34% 150.65 2.45%

ONMOBILE 534 682 27.72% 303.35 11.06%

LITL 4662 5928 27.16% 40.4 0.12%

TITAN 2901 3487 20.20% 3982.7 2.42%

Increase In Open Interest & Decrease In Price


%Chg.

Price

SUZLON 27377 32590 19.04% 49.05 -2.00%

CONCOR 36 40 11.11% 1231.25 -2.04%

LUPIN 2330 2529 8.54% 414.65 -0.96%

JISLJALEQS 4486 4783 6.62% 185.55 -0.43%

CANBK 3925 4177 6.42% 644.1 -0.16%

Increase In Open Interest & Increase In Price


%Chg.

Price

IDEA 1990 3079 54.72% 70.7 4.05%

IOB 835 1105 32.34% 150.65 2.45%

ONMOBILE 534 682 27.72% 303.35 11.06%

LITL 4662 5928 27.16% 40.4 0.12%

TITAN 2901 3487 20.20% 3982.7 2.42%


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06-04-2011

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DII

FII

Date Buy Sale Net Value

FII05-Apr-2011 2204.31 1481.02 723.29

DII05-Apr-2011 765.69 1294.67 -528.98

Company NameClose(In Rs) 50 EMA

Maruti Suzuki 1310.85 1303.85

NTPC 188.05 189.02

ONGC 296.50 297.43

PNB 1197.95 1195.52

Power Grid 105.20 105.67

Ranbaxy Labs. 466.15 457.02

Rel. Capital 625.80 623.50

Rel. Commn 112.25 110.08

Rel. Inds 1047.65 1049.65

Rel. Infra 685.45 690.48

Rel.Power 133.75 133.92

SAIL 175.50 172.83

SBI 2796.25 2774.28

Sesa Goa 314.75 301.02

Siemens 890.35 891.02

Ster.Ind 178.35 174.92

Sun Pharma 449.35 449.78

TCS 1239.85 1222.08

Tata Motors 1280.35 1262.92

Tata Power 1314.55 1329.92

Tata Steel 635.20 632.50

Wipro 481.00 481.00

Decrease In Open Interest


%Chg.

Price

HINDZINC 1854 1364 -26.43% 141.1 0.00%

CROMPGREA 1115 947 -15.07% 288.45 2.63%

BGRENERGY 3349 2917 -12.90% 537.3 -0.39%

PATELENG 3285 2892 -11.96% 191.35 10.00%

BOMDYEING 1268 1139 -10.17% 412.15 1.17%

Decrease In Open Interest & Increase In Price


%Chg.

Price

CROMPGREAV 1115 947 -15.07% 288.45 2.63%

PATELENG 3285 2892 -11.96% 191.35 10.00%

BOMDYEING 1268 1139 -10.17% 412.15 1.17%

SYNDIBANK 1673 1513 -9.56% 131.6 5.32%

STRTECH 695 640 -7.91% 63.45 0.08%

Decrease In Open Interest & Decrease In Price

Symbol Prev. OI Curr. OI %Chg. OI Curr. Price %Chg. Price

BGRENERG 3349 2917 -12.90% 537.3 -0.39%

M&M 4293 3896 -9.25% 736.6 -1.15%

PNB 6197 5830 -5.92% 1202.9 -0.03%

ABAN 7651 7301 -4.57% 676.5 -0.63%ITC 8423 8137 -3.40% 185 -0.67%

hbj capital daily newsletter 6th april 2011

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