Once again the benchmark indices remained stuck in a range during yesterday’s session but the only difference was this time we witnessed buying interest in individual stocks. The index Nifty spot, started the session with an upside gap and remained strong to ultimately close with a gain of 80 odd points. Meanwhile, the Nifty Bank surged around 200 points on closing basis. The market breadth remained positive right from the beginning. On the sectoral front, none of the group indices closed in red which indicates broad based buying. Among the pack of gainers, the NIFTY MEDIA (3.87%) and NIFTY AUTO (+1.86%) counters remained under limelight. From the F&O space, DISHTV (+17.14%), RELINFRA (+9.31%) and ZEEL (+7.42%) outperformed others. Since last three sessions, the index is stuck in a broad range of 11450 – 11600. Thus, we reiterate our view that 11520 – 11420 zone could be a demand zone for the markets. ONLY a move below the same might change the optimistic scenario and we might enter ‘Sell on Rise’ mode. Thus the coming sessions could be highly decisive for the domestic markets. On the upside, a move above 11600 would trigger fresh short covering which can pull the index towards 11650 – 11700 levels. But the larger upside trend would now resume only above 11800 which is way far from here on. Since the outperforming stocks too have started correcting it’s not advisable for any aggressive bets at this point in time.
NIFTY PHARMA : BULLISH
The weekly chart of NIFTY PHARMA index depicts a WOLFE wave pattern which indicates a possible reversal in its constituents. Currently the index is at 8100 and the pattern has a target of 9800. View to be negated below 7700. Stocks like, SUNPHARMA, AUROPHARMA, CADILA, GLENMARK and WOCKPHARMA could be accumulated on dips.
Posted by Mehul Kothari | Published on 11-JUL-2019
NIFTY Daily Chart
Selling persisted on the D – Street for fourth consecutive session yesterday. The benchmark indices remained under pressure throughout the day to close near day’s low. The index Nifty closed below 11500 mark with a cut of over 50 odd points. Meanwhile, the Nifty Bank index remained flat but in red.The market breadth turned extremely negative as the day progressed. On the sectoral front, none of the group indices managed to close in green. Among the pack of losers, the NIFTY REALTY (-1.57%) and NIFTY METAL (-1.09%) were the most beaten down stocks. From the F&O space, RECLTD (+4.1%), NMDC (+3.7%) and PVR (+1.9%) outperformed others.Post yesterday’s fall, NIFTY is now hovering above a series of support. Currently there is a placement of rising trend line near 11450 mark. Secondly, the 61.8% Fibonacci retracement level of the recent rise is around 11490. Last but not the least, 11420 is the level where the upside gap will be filled. Thus we reiterate our view that 11520 – 11420 zone could be a demand zone for the markets. ONLY a move below the same might change the optimistic scenario and we might enter ‘Sell on Rise’ mode. Thus the coming sessions could be highly decisive for the domestic markets. On the upside, a move above 11600 would trigger fresh short covering which can pull the index towards 11650 – 11700 levels. But the larger upside trend would now resume only above 11800 which is way far from here on. Since the outperforming stocks too have started correcting it’s not advisable for any aggressive bets at this point in time.
HINDUNILVR : BEARISH
The stock has confirmed a breakdown from the rising trend line and has a double top formation on daily chart.At this juncture, counter is hovering near its 200 DMA and a close below the same would be a sign of fresh weakness.Due to its defensive nature one can avoid fresh shorts but the longs should at least be exited.Aggressive traders can sell the stock between 1720 – 1740; with a stop of 1820 for the target of 1620 - 1520 in the coming months..
Disclaimer)
Posted by Mehul Kothari | Published on 18-JUL-2019
CPSE ETF:CPSE ETF invests in Nifty CPSE Index. CPSE ETF is an open ended index scheme listed on the Exchange in the form of an Exchange Traded Fund (ETF), which tracks the Nifty CPSE Index and is managed by Reliance Nippon Life Asset Management Limited.It is the 5th Further Fund Offer (FFO) (6th tranche of issuance) by the AMC as per the disinvestment timelines of the GOI. The first NFO was launched in 2014 and five further funds offer were launched since then managing a total of ₹38,500cr.
CPSE ETF Background:The Nifty CPSE Index is constructed in order to facilitate the Government of India’s (GOI) initiative to disinvest some of its stake in selected Central Public Sector Enterprises (CPSEs) through the ETF route. The index consists of 11 CPSEs with base date of 01- Jan- 2009. Government of India (GOI) used innovative route to divest its holding in CPSEs via ETF.Salient Features of the CPSE ETF :
The portfolio of CPSE ETF is diversified across 11 bluechip Maharatna, Navaratna & Miniratna Central Public Sector Enterprise (CPSE) stocks majority of which are sector leaders / near monopolies
FFO 5 is issued at a discount for all categories of investors*
Reasonable valuations with index PE of 8.74x as compared to Nifty PE at 28.33x. The price to book of CPSE index is at 1.51x vs 3.62x for Nifty Index. (as on 15-July-19)
The index has an attractive dividend yield at 5.13% as compared to 1.29% for Nifty
Other benefits such as real time trading, low expense ratio, etc. are the benefits of ETF
*Discount is on the FFO 5 Reference Market Price. FFO 5 Reference Market Price is determined based on the average of full day volume weighted average price on the NSE during the Non Anchor Investor FFO 5 Period (inclusive of Non Anchor Investor FFO 5 Period open as well as close date) for each of the index constituents of the Nifty CPSE Index. Post closure of the FFO 5, the Scheme will purchase the underlying Index constituents from GOI. Discount will be on shares to be offered by the GOI. In the event an index constituent is purchased fully or partially from open market to meet the Maximum Amount to be raised during FFO 5, no discount will be offered on such purchase index constituent from open market.
Investment View:
A discount of 3% offered by the Government of India on the FFO reference market price of the underlying CPSE index shares provides an opportunity of making immediate gains for the investors.Key variables that make the issue attractive for the investors 1) as mentioned above, 3% discount to the prevailing ETF price. 2) High dividend yield of the index constituents. 3) Attractive valuations as P/E of the index is at 8.74x. Depressed valuations of the CPSE index companies at present and discount offered by GOI provides a good opportunity for investors to invest in the issue. Investors with high risk appetite may consider investing in the ETF. Investors must also take in to account the sector concentration risk, regulatory risk as the companies the ETF invests in are government owned and market related risk before making an investment decision.
Disclaimer:This document is prepared by the Research Division of IndiaNivesh Securities Ltd (The Company) on the publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been taken based upon this information. IndiaNivesh Securities Ltd does not warranty either expressly of impliedly, the accuracy, completeness or reliability of any information provided herein. Neither IndiaNivesh Securities Ltd nor any of its employees / Directors / authorized representatives shall be liable for any direct, indirect, special consequential, punitive or exemplary damages including lost profits arising in any way from the information contained in this material, and hereby disclaims any liability with regard to the same. This report is disseminated for the information of authorized recipients only and is not to be relied upon or taken is substitution for the exercise of due diligence and judgment by any recipient. This report does not provide individually tailored investment advice; investor should seek independent financial advice with respect to the merits and risks involved in any of the matters concerning investment in the Schemes / products mentioned in the report. “MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS READ ALL SCHEME RELATED DOCUMENTS CAREFULLY BEFORE INVESTING. PAST PERFORMANCE MAY OR MAY NOT BE SUSTAINED IN FUTURE.” Returns are for Growth Option. Calculations of return assume that all payouts during the period have been reinvested in the Scheme at the then prevailing NAV. Return of less than one year are absolute returns and returns of one year and more are compounded annualized returns.
Source of Index and other content: Product Presentation & www.nseindia.com
)
Share Market Today - 12th July 2019
NIFTY Daily Chart
Once again the benchmark indices remained stuck in a range during yesterday’s session but the only difference was this time we witnessed buying interest in individual stocks. The index Nifty spot, started the session with an upside gap and remained strong to ultimately close with a gain of 80 odd points. Meanwhile, the Nifty Bank surged around 200 points on closing basis.
The market breadth remained positive right from the beginning. On the sectoral front, none of the group indices closed in red which indicates broad based buying. Among the pack of gainers, the NIFTY MEDIA (3.87%) and NIFTY AUTO (+1.86%) counters remained under limelight. From the F&O space, DISHTV (+17.14%), RELINFRA (+9.31%) and ZEEL (+7.42%) outperformed others.
Since last three sessions, the index is stuck in a broad range of 11450 – 11600. Thus, we reiterate our view that 11520 – 11420 zone could be a demand zone for the markets. ONLY a move below the same might change the optimistic scenario and we might enter ‘Sell on Rise’ mode.
Thus the coming sessions could be highly decisive for the domestic markets. On the upside, a move above 11600 would trigger fresh short covering which can pull the index towards 11650 – 11700 levels. But the larger upside trend would now resume only above 11800 which is way far from here on. Since the outperforming stocks too have started correcting it’s not advisable for any aggressive bets at this point in time.
NIFTY PHARMA : BULLISH
The weekly chart of NIFTY PHARMA index depicts a WOLFE wave pattern which indicates a possible reversal in its constituents.
Currently the index is at 8100 and the pattern has a target of 9800.
View to be negated below 7700.
Stocks like, SUNPHARMA, AUROPHARMA, CADILA, GLENMARK and WOCKPHARMA could be accumulated on dips.
Disclaimer
Previous Story
Share Market Today - 11th July 2019
NIFTY Daily Chart Selling persisted on the D – Street for fourth consecutive session yesterday. The benchmark indices remained under pressure throughout the day to close near day’s low. The index Nifty closed below 11500 mark with a cut of over 50 odd points. Meanwhile, the Nifty Bank index remained flat but in red.The market breadth turned extremely negative as the day progressed. On the sectoral front, none of the group indices managed to close in green. Among the pack of losers, the NIFTY REALTY (-1.57%) and NIFTY METAL (-1.09%) were the most beaten down stocks. From the F&O space, RECLTD (+4.1%), NMDC (+3.7%) and PVR (+1.9%) outperformed others.Post yesterday’s fall, NIFTY is now hovering above a series of support. Currently there is a placement of rising trend line near 11450 mark. Secondly, the 61.8% Fibonacci retracement level of the recent rise is around 11490. Last but not the least, 11420 is the level where the upside gap will be filled. Thus we reiterate our view that 11520 – 11420 zone could be a demand zone for the markets. ONLY a move below the same might change the optimistic scenario and we might enter ‘Sell on Rise’ mode. Thus the coming sessions could be highly decisive for the domestic markets. On the upside, a move above 11600 would trigger fresh short covering which can pull the index towards 11650 – 11700 levels. But the larger upside trend would now resume only above 11800 which is way far from here on. Since the outperforming stocks too have started correcting it’s not advisable for any aggressive bets at this point in time. HINDUNILVR : BEARISH The stock has confirmed a breakdown from the rising trend line and has a double top formation on daily chart.At this juncture, counter is hovering near its 200 DMA and a close below the same would be a sign of fresh weakness.Due to its defensive nature one can avoid fresh shorts but the longs should at least be exited.Aggressive traders can sell the stock between 1720 – 1740; with a stop of 1820 for the target of 1620 - 1520 in the coming months.. Disclaimer)
Next Story
CPSE ETF FFO 5 – Issue Date, Price, Size, Allocation Status and Listing
CPSE ETF:CPSE ETF invests in Nifty CPSE Index. CPSE ETF is an open ended index scheme listed on the Exchange in the form of an Exchange Traded Fund (ETF), which tracks the Nifty CPSE Index and is managed by Reliance Nippon Life Asset Management Limited.It is the 5th Further Fund Offer (FFO) (6th tranche of issuance) by the AMC as per the disinvestment timelines of the GOI. The first NFO was launched in 2014 and five further funds offer were launched since then managing a total of ₹38,500cr. CPSE ETF Background:The Nifty CPSE Index is constructed in order to facilitate the Government of India’s (GOI) initiative to disinvest some of its stake in selected Central Public Sector Enterprises (CPSEs) through the ETF route. The index consists of 11 CPSEs with base date of 01- Jan- 2009. Government of India (GOI) used innovative route to divest its holding in CPSEs via ETF.Salient Features of the CPSE ETF : The portfolio of CPSE ETF is diversified across 11 bluechip Maharatna, Navaratna & Miniratna Central Public Sector Enterprise (CPSE) stocks majority of which are sector leaders / near monopolies FFO 5 is issued at a discount for all categories of investors* Reasonable valuations with index PE of 8.74x as compared to Nifty PE at 28.33x. The price to book of CPSE index is at 1.51x vs 3.62x for Nifty Index. (as on 15-July-19) The index has an attractive dividend yield at 5.13% as compared to 1.29% for Nifty Other benefits such as real time trading, low expense ratio, etc. are the benefits of ETF *Discount is on the FFO 5 Reference Market Price. FFO 5 Reference Market Price is determined based on the average of full day volume weighted average price on the NSE during the Non Anchor Investor FFO 5 Period (inclusive of Non Anchor Investor FFO 5 Period open as well as close date) for each of the index constituents of the Nifty CPSE Index. Post closure of the FFO 5, the Scheme will purchase the underlying Index constituents from GOI. Discount will be on shares to be offered by the GOI. In the event an index constituent is purchased fully or partially from open market to meet the Maximum Amount to be raised during FFO 5, no discount will be offered on such purchase index constituent from open market. Investment View: A discount of 3% offered by the Government of India on the FFO reference market price of the underlying CPSE index shares provides an opportunity of making immediate gains for the investors.Key variables that make the issue attractive for the investors 1) as mentioned above, 3% discount to the prevailing ETF price. 2) High dividend yield of the index constituents. 3) Attractive valuations as P/E of the index is at 8.74x. Depressed valuations of the CPSE index companies at present and discount offered by GOI provides a good opportunity for investors to invest in the issue. Investors with high risk appetite may consider investing in the ETF. Investors must also take in to account the sector concentration risk, regulatory risk as the companies the ETF invests in are government owned and market related risk before making an investment decision. Disclaimer:This document is prepared by the Research Division of IndiaNivesh Securities Ltd (The Company) on the publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been taken based upon this information. IndiaNivesh Securities Ltd does not warranty either expressly of impliedly, the accuracy, completeness or reliability of any information provided herein. Neither IndiaNivesh Securities Ltd nor any of its employees / Directors / authorized representatives shall be liable for any direct, indirect, special consequential, punitive or exemplary damages including lost profits arising in any way from the information contained in this material, and hereby disclaims any liability with regard to the same. This report is disseminated for the information of authorized recipients only and is not to be relied upon or taken is substitution for the exercise of due diligence and judgment by any recipient. This report does not provide individually tailored investment advice; investor should seek independent financial advice with respect to the merits and risks involved in any of the matters concerning investment in the Schemes / products mentioned in the report. “MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS READ ALL SCHEME RELATED DOCUMENTS CAREFULLY BEFORE INVESTING. PAST PERFORMANCE MAY OR MAY NOT BE SUSTAINED IN FUTURE.” Returns are for Growth Option. Calculations of return assume that all payouts during the period have been reinvested in the Scheme at the then prevailing NAV. Return of less than one year are absolute returns and returns of one year and more are compounded annualized returns. Source of Index and other content: Product Presentation & www.nseindia.com )