Market Outlook 06-March-2019

Global market & Events:

DOW: -13

SGX NIFTY: 11062 (+21). However NIFTY 50 closed at 10987

Dollar: 70.49

Gold: $ 1287 per ounce

Crude: $ 65.38 per barrel

10 year US bond rate: 2.71 percent
10 year Indian Bond rate: 7.37 percent

VIX: 15.66. (-3.5%)

FII: +752
DII: +580

FII have invested 19000 crore in equity in last 2 months.

Market Outlook – Positive. Highest Call IV moved from 11200 to 11500.

Actionable – Buy ICICI Bank, RBL Bank, Jindal Steel, India Cements, ITC.

Rising Cement prices along with subdued cost of raw material will be positive for Cement companies.. Continue with our Buy recommendation on Ramco Cements.

Independent Auditor Says DHFL Has Not Created Shell Companies. Does not find evidence of insider trading/concealing shareholder information. However, finds some lapses in due diligence related to loan sanctions and in the monitoring of fund used by the borrowers. Positive for DHFL.

CDPQ (One of the largest Pension fund) to invest RS 1800 crores in to Edelweiss Finance (NBFC Arm) of Edelweiss. We don’t have coverage. Positive for the stock.

ITC – Weighted average Cigarette Price increased by 2.2%. Positive for the stock.

Derivatives View – VIX fell down by 3.76% to 15.65 level. Call writing is seen at 11100 then 11200 strike while Put writing is seen at 10800 then 10900 strike. Option band signifies a trading range in between 10900 to 11100 zone.

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