Shield Research
Weekly Report02th Aprilto06th April 2018.
Upcoming Week Nifty Movement:
On Wednesday, the S&PBSESensexended at 32,968, down 206 points while the broader Nifty50 index settled at 10,113, down 71 points.Among major economic data released on Wednesday, India reported a fiscal deficit of Rs 7.2 trillion ($110.42 billion) for April-February or 120.3% of the budgeted target for the current fiscal year that ends this month.
The Nifty50 witnessed selling pressureon Wednesday amid heightened activity in the futures and options segment as the March series F&O contracts settled at 10,113. A bearish candle on the daily chart, following a 'Doji' formationon Tuesdaysuggested weakness in the market.
"On the weekly scale, the index formed a Harami candle, which indicated that the bulls were not ready to lead, even after a major downtrend. If the index sustains below 10,141, a fresh push could take it towards 10,050 levels. On the upside, a major hurdle is seen at 10,230.
Support for the index lies in the zone of 10030 to 9955 where break out levels and medium term moving averages are lying. If the index manages to close below these levels then the index can drift to the levels of 9830 to 9685 where the index has taken multiple supports in the month of September-2017 & October-2017 and long term moving averages are lying.
Resistance for the index lies in the zone of 10200 to 10276 from where the index has opened gap down. If the index manages to close above these levels then the index can move to the levels of 10350 to 10480 from where the index broke down after consolidation.
Broad range for the week is seen from 9685 on downside & 10480 on upside.
Indian equity, forex, money and commoditymarketswill remain closed on Thursday and Friday on account of Mahavir Jayanti and Good Friday respectively.
The bourses will now open on Monday, April 02, 2018.
The mixed bag of losers included members from metal, telecom, pharma, bank, auto and oil & gas sectors.Leaders among losers Tata SteelBSE -3.25 % and Bharti AirtelBSE -3.05 % cracked over 3 per cent in the Sensex index.
Adani ports, Sun PharmaBSE -1.95 %, ICICI BankBSE -1.94 % and Bajaj AutoBSE -1.94 % too figured among the top drags.
On the other hand, shares of WiproBSE 3.27 %, with a gain of over 3 per cent, remained at the top in the Sensex kitty. Coal IndiaBSE 2.94 % and Hero MotoCorp too bucked the trend, both gaining over 2 per cent.
WEEKLY INDEX LEVELS:
Nifty / CMP / Pivot Point / Support1 / Support2 / Support3 / Resistance1 / Resistance2 / Resistance310113.70 / 10093 / 9978 / 9844 / 9594 / 10228 / 10342 / 10592
Upcoming Week Bank Nifty Movement:
Bank Nifty opened in the negative and traded in a comparatively narrow range for the entire session. It formed multiple Dojis on the daily chart, which meant the bears were putting pressure at higher levels whereas the bulls did not lose their grip either. Now Nifty has to hold above 24,350 to witness an upmove towards 24,500 levels, while a drift below 24,100 could open its decline towards 23,750 and 23,600 levels.
Nifty Bank closed the week on positive note gaining around 2.50%.
The index has closedaround the support zone of 24080 to 23900 from where the index broke out of triple top pattern and long term moving averages are lying. If the index manages to close below these levels then the index can drift to the levels of 23600 to 23475 where Fibonacci levels are lying.
Minor resistance for the index lies in the zone of 24530 to 24670. Resistance for the index lies in the zone of 25090 to 25400 where short term moving averages are lying. If the index manages to close above these levels then the index can move to the levels of 25780 to 26000 from where the index has opened gap down.
Range for the week is seen from 23475 on downside & 26000 on upside.
The domestic banking sector reported a total of 12,553 fraud cases worth Rs 18,170 crore in fiscal 2016-17, with state-run Bank of MaharashtraBSE -2.86 % registering the highest number of such cases, says a report.
While Bank of Maharashtra reported 3,893 cases of fraud, private sector lender ICICI BankBSE -1.94 % came a close second with 3,359 cases and HDFC BankBSE -0.09 % the third with 2,319 fraud cases, in the last financial year, according to proxy advisory firm Institutional Investor Advisory Services (IiAS).
In terms of the quantum, Punjab National BankBSE -3.83 % (PNB) had reported the highest amount of frauds at Rs 2,810 crore in the last financial year, followed by Bank of India at Rs 2,770 crore, State Bank of IndiaBSE -1.48 % at Rs 2,420 crore and Bank of Maharashtra at Rs 2,041 crore.
The report comes amid a string of banking frauds recently, including the Rs 13,000-crore PNB scam involving billionaire jeweller Nirav Modi and his uncle Mehul Choksi.
"In 2016-17, the Indian banking sector reported 12,553 frauds aggregating to Rs 181.7 billion (Rs 18,170 crore)," IiAS said.
WEEKLY INDEX LEVELS:
Bank Nifty / CMP / Pivot Point / Support1 / Support2 / Support3 / Resistance1 / Resistance2 / Resistance324339.30 / 24175 / 23832 / 23325 / 22475 / 24682 / 25025 / 25875
IDBIBankLtd said on Tuesday fraudulent loans of Rs 7.72 billion ($118.8 million) were issued from five of its branches inAndhra Pradeshand Telangana, sending its shares lower on Wednesday.Some of the loans, which were issued during fiscal years 2009-2013 for fish farming businesses, were obtained against fake lease documents of non-existent fish ponds and by inflating the value of collateral, the company said.
The company found major lapses in processing and disbursing the loans by two of its officials.The lender dismissed one of the officials, while the other officers had already retired, it said.
TheCentral Bureau of Investigation(CBI) has registered cases for two of the five complaints, relating to branches at Basheerbagh and Guntur, the company said.
Thebanksaid earlier on Tuesday it initiated a quality assurance audit, expected to be completed by April.On Wednesday, IDBI shares onBSEclosed 5.2 per cent lower at Rs 72.25.
Punjab National Bank(PNB) on Wednesday decided to clear all other banks’ dues, amounting to Rs 65 billion, to be paid before March 31 in relation to the Rs 140-billion fraud case.
“The board of PNB, in a meeting held on Wednesday, has approved payment related to letters of undertaking (LoUs) and foreign letters of credit (FLCs) issued by the bank which mature on or before March 31, 2018,”PNBsaid in a statement.
The decision will help the bank settle claims worth Rs 65 billion against LoUs issued to sevenbanks— Union Bank of India, Allahabad Bank, Bank of India, Canara Bank, State Bank of India (SBI), Axis Bank, and UCO Bank.
PNB’s decision to repay came after thefinanceministry’s meeting on Tuesday with some bankers, including those from PNB, to break the stalemate betweenbanks.
ICICI Bank was on Thursday slapped with a Rs 589-million penalty by theReserve Bank of India(RBI) for selling bonds from the lender'sHeld To Maturity (HTM)category.
Bonds in theHTM categoryare kept for redemption at the end of maturity and are not for the purpose of trading.The RBI allowsbanksto shift from one basket to the other once a year, typically at the beginning of the financial year.
On the day The Indian Express reported about ICICI Bank’s Rs 3,250-crore loan to Videocon Group whose ownerVenugopal Dhootlater offered a sweetheart deal to the husband of bank MD and CEOChanda Kochhar, bank chairman M K Sharma said Kochhar was part of the credit committee which sanctioned the loan but did not recuse herself from the committee.
An investigation by The Indian Express showed that in December 2008, Venugopal Dhoot of the Videocon Group set up a company called NuPower Renewables Pvt Ltd withDeepak Kochhar, husband of Chanda Kochhar, and two of her relatives; then gave a Rs 64-crore loan to this company through a fully owned entity before he transferred the latter’s ownership to a trust headed by Deepak Kochhar for just Rs 9 lakh.
The CBI has registered a preliminary enquiry (PE) into the alleged nexus between ICICI BankBSE -1.94 % MD and CEO Chanda Kochhar’s husband Deepak Kochhar and Videocon group chairman Venugopal Dhoot.
A PE is the first step to investigate an alleged act of corruption/fraud. As part of the procedure, the CBI collects material to determine if there is prima facie criminality requiring the registration of an FIR. If investigators conclude that there is not enough basis to register a regular case, the PE is closed after approval from the CBI director.
In a signal that interest rates are set to rise further, the country’s largest lender State Bank of India (SBIBSE -1.48 %) unexpectedly increased those on fixed deposits by 10-25 basis points (bps), reflecting the turnaround in credit growth amid an economic revival.
Kolkata-based private lender Bandhan Bank on Tuesday made a dream market debut as the scrip got listed at Rs 499 on the NSE, a 33 per cent premium to the issue price of Rs 375. The stock also got listed on the BSE.The bank's Rs 4,473 crore IPO, which concluded last week, was subscribed 14.62 times. At the issue price, the offer was priced at 10.2x its FY17 adjusted book value (ABV) and 8.6x its 9MFY18 ABV.The scrip ended the day at Rs 470, a 25.33 per cent premium over issue price.
Technical Movement:
Apollo Tyre Limited: -
Apollo Tyre Limited: -
Trend of the stock isbullish, it took support previous breakout and trend line, also gave closing near pattern breakout at 273.80ifit sustains above 272one can go for buying with stop lossat 260for the targets of278-288Trend of the stock is up in weeklychart and strategy advised is buy on dips.
Technical Movement:
Bajaj Finance Limited:-
Bajaj Finance Limited:-
Trend wise Bajfinance is highly bullish, the stock is giving weeklyresistancebreakout 1736 (Made high 1802.30) &gave strong closing above weekly major level at 1778.45,also took support previous breakout in weekly chart.Next week If it sustains above 1745one can go for buying with stop loss at 1710for the targets of 1780-1850, Trend of the stock is up in dailychart and strategy advised is buy on dips.
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LAST WEEK RECO STOCKS / RECO PRICE / TGT / FOLLOW UP / REMARKBharatfin Future / 1055 / 1080-1120 / Done 1st Target / Made High 1112.60, CMP 1102.70
Balramchini Future / 70 / 85-100 / Did Not Execute / Made Low 74.85, CMP 76.25
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