Weekly Report 29Th Jan to 02Nd Feb 2018

Shield Research Weekly Report 29th Jan to 02nd Feb 2018.

Upcoming Week Nifty Movement:

Presently Nifty is highly bullish, continue sustains above its pattern breakout it has already seen a superlative rise of almost 200 points in this week. The upward rally has been a parabolic rise without any major Correction.

On the weekly formation, the index had given the target is Nifty 10907-11110. Thus, in the intermediate timeframe one can expect a test of the above targets i.e. Nifty 11110- 11300 for this week.

WWW.SHIELDRESEARCH.IN Shield Research The Sensex and Nifty snapped their six-day gaining streak and closed lower in volatile trade on derivatives expiry for January.

Markets are usually volatile on the settlement date for futures and options contracts. Now, markets are waiting for the annual budget.

State-run lender SBI (4.96%) was the top Sensex loser a day after the government moved proposal to infuse additional grant of Rs 88,139 crore - Rs 80,000 crore through Recap Bonds and Rs 8,139 crore as budgetary support - for 2018 under the public sector banks recapitalization plan.

On Tuesday, 23 January, eight days before finance minister Arun Jaitley unveils the last full budget of the National Democratic Alliance (NDA) government, India’s benchmark stock indices soared to new heights.

For the first time ever, the Bombay Stock Exchange’s 30-stock Sensex closed above 36,000 points at 36,139.98, and the National Stock Exchange’s Nifty above 11,000 points at 11,083.70 points, lifted by a tide of liquidity.

A key concern is the likely introduction of a long-term capital gains tax on equities.

Market participants expect the budget to boost spending on housing and rural welfare to lift the rural economy, with an eye on the general election next year, which will be preceded by a string of state polls.

There are usually three aspects to the budget — expenditures, direct taxes and indirect taxes. The new indirect tax regime, the goods and services tax (GST), is now overseen by the GST Council, which is composed of state finance ministers and headed by Jaitley.

Since most of the jobs being created are in the informal sector, the policy would seek to reverse this trend. About 90% of workers are engaged in informal employment, not covered by any social security law and most likely not getting the minimum wage.

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WEEKLY INDEX LEVELS:

Nifty CMP Pivot Support1 Support2 Support3 Resistance1 Resistance2 Resistance3 Point 11069 11020 10930 10791 10562 11159 11249 11477

Upcoming Week Bank Nifty Movement:

Bank Nifty is also continuing sustain above its pattern breakout. Bank nifty has already seen a superlative rise of almost 690 points in this week (26947 To 27637) and also gave strong closing above last week high.

Last week we have given the target for Bank nifty 26950 to 27700 which had almost achieved (made high 27637). If bank nifty sustains above 27375 then can easily touch the level of 28000 in this week.

Bank Nifty recovered 300 points from day's lows to close 47 points higher at 27,445. The index earlier hit a lifetime high of 27,522 levels.

WWW.SHIELDRESEARCH.IN Shield Research Finance minister Arun Jaitley has announced the reform package for the public sector banks (PSBs) that control two-thirds of the banking in India in terms of deposits and advances. Let's look at what the reform means for PSBs.

The central bank last year ordered banks to push some 40 of the country's biggest corporate defaulters into bankruptcy proceedings through greater powers given to it as part of the government's banking sector reforms programmed. The government has also announced a $33 billion recapitalization of the state-run banks that account for the bulk for the soured loans.

The government on 23rd January announced the first tranche of the capital injection programmed, pledging to inject nearly $14 billion into 20 state banks by March.

The Reserve Bank is planning to launch a full-fledged multi-media and multi-lingual campaign to create general awareness among citizens about the regulations and initiatives of the central bank.

RBI's department of communication has sought applications from advertising agencies for designing the creative’s for pan-India public awareness campaign.

Minister of Commerce and Industry Suresh Prabhu on Wednesday said that the Indian government was not really competing with China in economic growth, but instead concerned about doubling the farmers' income in next five years. He was speaking at World Economic Forum's session on 'India's Role in the World'.

Rating agency Crisil today revised upwards the outlook on 18 state-run banks to 'stable' from 'negative' and also reaffirmed their ratings following the Rs 88,139-crore capital infusion by government.

The report said asset quality issues are peaking for these banks with incremental slippages to NPAs expected to taper in FY18 and FY19 as credit health of corporate are improving.

WEEKLY INDEX LEVELS:

Bank Nifty CMP Pivot Support1 Support2 Support3 Resistance1 Resistance2 Resistance3 Point 27374 27271 26904 26435 25599 27740 28106 28942

Technical Movement:

WWW.SHIELDRESEARCH.IN Shield Research Jain Irrigation Systems Limited: -

Jain Irrigation Systems Limited: -

Trend of the stock is highly bullish, it gave immediate weekly breakout 147.10 (made high 147.45) & also completed its bullish flag pattern, gave strong closing near its pattern breakout at 146.55, if it sustains above 147.50 one can go for buying with stop loss at 133 for the targets of 160-170 Trend of the stock is up in weekly chart and strategy advised is buy on dips.

WWW.SHIELDRESEARCH.IN Shield Research "The GST on drip irrigation systems including laterals, sprinklers products has been reduced from 18 percent to 12 percent as per decision taken at 25th GST Council Meeting held on January 18," the company said in its filing.

Bharat Heavy Electricals Limited:-

Technical Movement:

Bharat Heavy Electricals Limited:-

WWW.SHIELDRESEARCH.IN Shield Research The stock is giving weekly resistance & inverse head n shoulders pattern breakout 102 (Made high 107) & gave closing above its pattern breakout at 103.20, also took support pattern breakout & 30 day ema. If it sustains above 102 one can go for buying with stop loss at 95 for the targets of 112-122Trend of the stock is up in daily chart and strategy advised is buy on dips.

Previous Archives

LAST WEEK RECO RECO PRICE TGT FOLLOW UP REMARK STOCKS

WWW.SHIELDRESEARCH.IN Shield Research IBULHSGFIN FUT 1300 1330-1365 DONE FINAL TGT MADE HIGH 1409.40 CMP 1389.40 LT FUTURES 1355 1400-1420 DONE FINAL TGT MADE HIGH 1430.60 CMP 1412.20

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