Sunday, October 15, 2017

Weekly Review - 16th Oct, 2017

Dear All,


Energy giant Reliance Industries Ltd (RIL) on Friday reported a 12.5% increase in consolidated net profit for the quarter ended September, helped by a strong performance by its refining business, and said its telecom venture was poised to turn profitable shortly.

RIL’s group-level profit rose to Rs8,109 crore in the fiscal second quarter from Rs7,209 crore a year earlier. Consolidated revenue from operations rose to Rs95,085 crore from Rs81,651 crore a year earlier.

A Bloomberg poll of four analysts had estimated consolidated net profit at Rs8,263.3 crore. A poll of three analysts had expected net sales at Rs85,785.3 crore.

Revenue was higher than forecasted because Reliance Jio Infocomm Ltd, the telecom venture, started charging for its services in the quarter. The unit, whose launch in September last year with free voice and data services has disrupted the telecom industry, made a profit at the earnings before interest and tax (Ebit) level even though it ended up with a net loss of Rs271 crore.

The telecom unit reported revenue of Rs 6,147 crore and Ebit of Rs 260 crore. The company said it had added 15.3 million users during the three months to September, taking its total subscriber base to 136.8 million.

Jio also reported average revenue per user (ARPU) of Rs156.4 per subscriber per month. For comparison’s sake, market leader Bharti Airtel Ltd reported ARPU of Rs154 for the June quarter. Jio also claimed average voice traffic of 2.67 billion minutes a day and a low customer churn of 1% per month. This is the first time RIL is reporting Jio’s numbers.

Macro Data

The Street will continue to monitor the macroeconomic data, which could set the tone for the market. Globally, trends have been on the positive side in the past few sessions, which have been responsible to drive up markets, including India. Back, home, the Street will be watching out for wholesale inflation that will be released next week.

Globally, Europe and China will be declaring data on the inflation front, CPI inflation that could keep investors on the fence ahead of that along with GDP from China later in the week. Additionally, the US would also declare data on industrial production and housing trend, among others.

F&O data :-

On Friday, put OI of 71.54 lakh contracts was seen at strike price 10,000, which will act as a crucial base for the index in October series, followed by 9,900, which now holds 55.48 lakh contracts and 9,800 which has now accumulated 53.13 lakh contracts in open interest.

Meanwhile, maximum Call open interest (OI) of 39.89 lakh contracts stands at strike price 10,200, which will act as a crucial resistance level for the index in the October series, followed by 10,000, which now holds 31.66 lakh contracts in open interest, and 10,300, which has accumulated 28.89 lakh contracts in OI.

Global Cues :-

Positive global cues, apart from good macro data back home, drove up the markets in the past few sessions. US markets were at a record high, while markets in Europe and Asia too were on the higher side with some bouts of profit booking.

Geopolitical tensions due to North Korean crisis may keep investors cautious. The rogue nation on Friday raised the threat to launch a ballistic missile toward the US Pacific territory of Guam. It still hasn't followed through on another threat: to conduct an atmospheric hydrogen bomb test.

The new Guam threat comes ahead of planned US-South Korean joint maritime exercises scheduled to start next week in the Asia-Pacific region. A Navy statement issued Thursday indicated exercises will include the aircraft carrier USS Ronald Reagan and at least two destroyer vessels.

FII Data :-

Foreign institutional investors (FIIs) sold shares worth Rs 1,698.5 crore, while domestic institutional investors bought shares worth Rs 1,590.13 crore in the Indian equity market on Friday.

As far as monthly trends are concerned, FIIs have been net sellers, but support has been visible from domestic institutional investors. As of October 13, FIIs have net sold Rs 6,476.58 crore worth of shares, while DIIs purchased Rs 7,050.10 crore.

>>> Nifty Daily Chart - Posted Last Weekly Review <<<

>>> Click the chart to see on full screen <<<

Last Weekly mentioned 9990 as key resistance.

>>> Nifty Daily Chart <<<

>>> Click the chart to see on full screen <<<

Price made 10190 > Above may rally till 10255 and 10335.

>>> Nifty Hourly Chart - Posted on Friday <<<

>>> Click the chart to see on full screen <<<

Wrote - Above 10104 price may test 10190.

>>> Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

As expected Price Tested 10190, Above Next Resistance @ 10255 & 10335.

>>> Bank Nifty Daily Chart <<<

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Bank Nifty facing resistance near channel between 24900 - 25000.

>>> Bank Nifty Hourly Chart <<<

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Price need to take off 24770 & 24980 for any further rally.

>>> CNXPSU-Bank Nifty Hourly Chart <<<

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PSU Bank Index still under the risk of Bears. Resistance @ 3078 - 3100 - 3128 must cross for a Bulls wave. Else may correct again.

>>> NIFTY-MIDCAP50- Daily Chart - Posted Last Weekly Review <<<

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Last Week Posted - Mid Cap Index may Test 4910 & 4980. As Expected Index Tested a high of 4923.

>>> NIFTY - MIDCAP50 - Daily Chart <<<

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MidCap INdex May play a crucial role next week. Watch all Mid Cap Stocks for Action.

>>> CNXPHARMA - Hourly Chart - Posted on Last Weekly Review <<<

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Last Week posted - PHARMA Index may test 9640 & 9800. As expected 9613 made High.

>>> CNXPHARMA - Hourly Chart <<<

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Break on either side may decide the Next path.

>>> DrREDDY - Hourly Chart - We have Booked Profit Rs.18000/- <<<

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Booked Profit Rs.18K and Exited. No Position Now.

>>> NIFTY-IT - Daily Chart - Posted on Last Weekly Review <<<

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PostedNifty IT may test 10930 & 11040. We are Long from 10540.

>>> NIFTY - IT - Daily Chart - Booked Profit 440 Points <<<

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Above 10980 may test 11350. We have booked our Profit with 440 points. No Holdings.

>>> TCS - Daily Chart - Posted on 12th Oct, 2017 <<<

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Posted - we are long form 2460.

>>> TCS - Daily Chart - Profit Booked Rs.30,000/- <<<

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Booked Profit with Rs.30,000/- No Holdings. Price if breaks above 2580 again may give another 100 points rally.

>>> ITC - Daily Chart <<<

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Almost looks like - Price bottomed out. If so, Expect a Bounce back rally soon. We are Long.

>>> Performance till 13th Oct, 2017 <<<

>>> Click the image to see on full screen <<<

Above performance is not a Promise or guarantee for the given Profits or Loss.Performance given based on 1 lot at a time and clients Profit differ as per the margin availability and Number of Lots taken by them. We may or may not re-enter the Calls given here hit Stop Loss, as per market movement. The charts given above are just for educational purpose only and we don't recommend any Entry / Buy or Exit / Sell. Reader must taken their own decision or consult their qualified Analyst before making any decision.

>>> N4A @ Whatsapp <<<


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