By Lokesh Sethia, SEBI Registered Research Analyst,

Nifty 50 traded in a positive territory this week and closed with the gain of 1.19%. Markets during the week create history and break previous life time high.  Moreover, IPOs are wildly getting oversubscribed; new ones are also buzzing and ready with the same energy. Nifty rollovers too were at a high of 3 months average.

The steel sector was in limelight wherein companies have indicated that they have already raised prices by Rs.500 per ton and a price increase of Rs.1,000 per ton is underway. But the steel prices have already increased by 20% in the international market, and in high beta stocks, prices have already rose by 50%.

In this week the FIIs have been bought of Over 4798.18 Cr in Equity Segment whereas the DIIs have been sold of Rs.3218.01 Cr. in cash segment.

Last week performing sector was Nifty Metal up by 4.14%, Nifty Pvt Bank up by 2.91%, Nifty Pharma up by 1.52%, whereas Nifty Media down by 7.26%.

THE WEEK AHEAD:

Nifty 50

Since last three weeks Nifty is forming higher high higher low type of pattern which suggests traders are bullish in this market. Market breadth has been relatively positive as compared to the previous week. For the coming week the Resistance for Nifty is around 12250 whereas support will be near 11950-12000 level. Nifty mid and small caps are also clearly making a upside pattern along with majority sectorial indices which are also moving upward.

 Nifty Option Analysis

Maximum Call open interest (OI) of 21.75 lakh contracts was seen at the 12100 strike price followed by 12200-strike price which 16.13 Lakhs. Highest call writing was seen at strike price of 12100, at which 12 lakh contracts traded.

Call option suggest 11900will be next hurdle.

Maximum Put open interest of 20.54-lakh contract was seen at the 12000-Strike price followed by 12100 levels with 12.09 lakh open contracts. Highest put writing was seen at a strike price of 11800 at which total 2.81 lakh contracts traded.

Put option suggest 12250 will act as a support.

Broader trading range for the week: 11900–12250

Immediate probable trading range for the week: 12000 – 12150.

NIFTY BANK

Since last eight weeks Bank Nifty closed in green and formed higher high higher low pattern which is bullish in nature. On weekly chart Bank Nifty formed belt hold pattern also suggest bullish in trader’s mind. For bank Nifty logically next support level will be 31000 level and resistance level will be 33000 level in coming week.

Bank Nifty Option Analysis

Maximum Call open interest (OI) of 4.3 lakh contracts was seen at the 32500-strike price followed by 32000-strike price which 4.33 Lakhs. Highest call writing was seen at strike price of 32300 at which total 2.07 lakh contracts traded.

Call option suggest 33000 will be next hurdle.

Maximum Put open interest of 5.24-lakh contract was seen at the 31500- Strike price followed by 31000 levels with 4.61 lakh open contracts. Highest put writing was seen at a strike price of 31500 at which total 2.30 lakh contracts traded.

Put option suggest 31000 will act as a support.

CORPORATE EVENTS

• HDFC Bank formed a 6-member committee to find a successor MD, Aditya Puri.
• CG Power cancelled royalty pact worth `411.2cr with Avantha Holdings.
• Kohinoor Foods said that it has defaulted in obligations worth `296.6cr on the borrowings which was provided by Oriental Bank of Commerce. The date of default was on Aug. 17.
• The Securities and Exchange Board of India exempted the government from making open offer to the shareholders of Canara Bank following the proposed equity infusion that would hike its stake in the lender by 7.9%.
• Indiabulls Housing Finance stated that Government Affidavit filed provided a true & clear picture about allegations.
• Ashoka Buildcon received a letter of award from UPEIDA for development of EPC Project in Uttar Pradesh, whose accepted bid value stands at 1,079.52cr.
• Aurobindo Pharma's USA unit entered in pact with Profectus BioSciences to buy certain business assets for $11.29 million.
• BPCL said that labour and clerical workmen of marketing and refineries are observing one day's strike from morning of Nov. 28 till the morning of Nov. 29. Unions had called for this strike as a mark of protest against privatisation of the company.
• The Competition Commission of India approved Total Group’s arm purchase of 37.4% stake in Adani Gas.
• ICICI Securities: SEBI passed settlement order in case of alleged violation of stockbroker norms.
• IL&FS Engineering Services: Arbitration Tribunal gives an award for `492cr for a claim filed against NHAI by Bangalore Elevated Tollway Private Ltd.
• IL&FS Transportation Network's Board approved incorporation of a new arm that will act as sponsor of a proposed Infra Investment Trust to be setup and registered as per SEBI regulations. Board has also given in-principle approval to transfer the company’s shareholding in nine SPVs to the Trust.
• SSJVN's Amarjit Bindra resigned from the post of Director (Finance) with effect from Nov. 27. The company’s Chairman and Managing Director Nand Lal Sharma will be entrusted to additional charge of Director (Finance) post.
• Lemon Tree Hotels launched 101-room hotel in Vijayawada.
• Hinduja Global Solutions entered into a definitive agreement to sell its India domestic Customer Relationship Management business to Altruist India for `40cr.
• ONGC issued $300 million notes under MTN Program.
• AGC Networks stated that promoters hold 64.28% stake in the company, out of which 33.65% stake is encumbered.
• Reliance Communications' Creditors Meeting to be held on Nov. 29.
• CARE Ratings has withdrawn its ratings from Fortis Healthcare’s long term and short-term bank facilities.
• Khadim India redeemed commercial paper of an aggregate amount of Rs30cr.
• The Ministry of Corporate Affairs (MCA), on September 28, found no irregularities in loans extended by Indiabulls Housing Finance to five companies, as alleged by a Public Interest Litigation (PIL).
• Bank of Baroda said it has raised `1,650cr by issuing Basel-III compliant bonds.
• Bharti Airtel has appealed to the Supreme Court to allow the telco and the government to agree on quantum of adjusted gross revenue (AGR)-based dues that need to be paid and the timeline for payments.
• FMCG major Procter & Gamble (P&G) India said it has set up a `200cr environmental sustainability fund to collaborate with external partners, offering environment friendly business solutions.
• ABB India said that the Bengaluru Bench of the National Company Law Tribunal (NCLT) has approved the demerger of its power grids business to ABB Power Products and Systems India Ltd (APPSIL).
• In the news after the resignation of its promoter Subhash Chandra, Zee Entertainment Enterprises may find itself mired in another tangle as regulator SEBI and the Ministry of Corporate Affairs are set to look into the reasons behind the recent resignations of independent directors.
• Tata Communications said it has entered into an agreement with Kacific Broadband Satellites Group (Kacific) for providing global internet and cyber security services.
• NTPC said it has committed assistance of `100cr for the development of a government medical college in Chhattisgarh.
• The Modi government and the central bank are together working at relieving the stress of the financial and the real estate sector.
• Finance Minister Nirmala Sitharaman sought Parliament nod for additional spending of 21,246.16cr, including over `8,820cr for the newly formed union territories of Jammu and Kashmir and Ladakh, in the first batch of supplementary demands.
• Labour Minister Santosh Kumar Gangwar introduced the Labour Code on Industrial Relations, 2019 bill in the Lok Sabha.
• Private equity investments witnessed a robust yearly growth in October with 72 PE deals garnering around $3.7bn, even as merger and acquisition activity saw a downtrend, a report said.
• The Andhra Pradesh government is hoping to secure a 60 million USD loan from the World Bank to take up the Rejuvenating Watersheds for Agriculture Resilience through Innovative Development (REWARD) project in five parched districts of the state over the next six years

GLOBAL  COMMODITY

Gold: The Chinese Foreign minister has not found the signing of two bills from U.S. President Trump cheerful for them  as it has insulted the Chinese’ sovereignty, rights and growth. Moreover, the recent act is likely to keep the investors tilted towards safe-haven. However, market will keep a close eye over ISM Manufacturing PMI data, Jobless Claims, Non-Farm Payrolls. MCX Gold has been bounced back after the successful re-test of previous a low that was placed at 37,540 levels. The precious metal is closed above 20 days Exponential Moving Average. RSI has been bounced back after sensing support from 40 levels. We are expecting a breach of 38,140 levels will activate more buyers to a high of 38,400 and 38,786 levels respectively.

Crude Oil: Even though the supply decision from OPEC and its allies will continue to keep a lid over the black gold prices but still a favorable decision from the alliance could not support the falling prices as the demand slippages will continue to remain a concern for market participants. Moreover, the optimism over trade deal between U.S-China is fading away as U.S President Trump is going to slap more tariffs to be initiated from Dec 15, if the deal fails to take place. MCX Crude Oil is slipped below the ‘Rising Channel’ that signals for a bearish reversal after a consolidated positive move. The black gold is expected to extend its losses after breaching 3,968 levels. Stochastic oscillator has given a bearish crossover.  RSI is closed at 44.85 levels below the trend line placed. Next week, a breach of 3,960 levels will trigger the breakout of ‘Rising Channel’ formed on hourly scale and activate more sellers to a low of 3,850 and 3,800 levels respectively.

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POTENTIAL CONFLICT OF INTEREST DISCLOSURE (as on date of report) Disclosure of interest statement –

• Analyst interest of the stock /Instrument(s): - No.

• Firm interest of the stock / Instrument (s): - No.