Thursday, February 8, 2018

Update on Nifty levels, Bank Nifty levels and Equity Pick of the day 8th Feb 2018

Update on Nifty levels, Bank Nifty levels and Equity Pick of the day 8th Feb 2018

Nifty 10476 /Sensex 34082 / Bank Nifty 25670

24 Advances /26 Declines/ 0 Unchanged

Benchmarks end lower as RBI maintains status quo

Indian equity benchmarks extended its southward journey for seventh straight session and settled with a cut of around quarter a percent, as Reserve bank of Indian (RBI) kept repo rate unchanged. Markets started the session on optimistic note amid firm global cues. Traders took some encouragement with report that as many as 67 foreign direct investment proposals (FDI) worth Rs 117 billion were approved during the first nine months of the ongoing financial year. Some support also came with report that Indian firms mobilized Rs 21,000 crore by issuing shares to institutional investors during the December quarter of the current fiscal, resulting into an over 13-fold rise from the year-ago period. The firms had mopped up Rs 1,576 crore in the same period of the previous fiscal. The funds have been mobilized for business expansion, refinancing of debt, working capital requirements and other general corporate purposes. Meanwhile, Finance Secretary Hasmukh Adhia said that the import duty hike in 45 items announced in the Budget will earn about Rs 7,000 crore revenues to the government and is mainly intended to give a push to the MSMEs for domestic manufacturing.

However, markets turned choppy after RBI kept the key policy rate unchanged at 6% for the third consecutive time in view of firming inflation. Reverse Repo rate was also maintained at 5.75%. The Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel had last reduced the benchmark lending rate by 0.25 percentage points to 6% last August, bringing it to a 6-year low. Sentiments also remained dampened with RBI cutting its FY18 GVA growth to 6.6%. The policy added that retail inflation, measured by the year-on-year change in the Consumer Price Index (CPI), increased for the sixth consecutive month in December on account of a strong unfavourable base effect. Traders also remained concerned on report that India’s fiscal deficit is expected to come in at 3.5% of GDP in financial year 2018-2019, as policymakers seek to promote economic growth by reducing the pace of fiscal consolidation. According to the report by BMI Research, a unit of Fitch Group, there is room for fiscal slippage as the government seeks to achieve its 7.5% growth target.

On the global front, European markets were trading in green in early deals breaking a seven-day losing streak as investors took heart from a strong bounce on Wall Street at the end of a rollercoaster session. Asian markets ended mixed, as investors monitored oil price movements and kept a cautious eye on bond markets after a brutal selloff in global equity markets earlier this week.

Back home, RBI enlightened that financial markets have become volatile in recent days due to uncertainty over the pace of normalization of the US Fed monetary policy in view of January payrolls data showing rapidly accelerating wage growth and better than expected employment. Meanwhile, sugar stocks remained on buyers’ radar after the government doubled import duty on sugar to 100% to protect domestic farmers. At present, customs duty or import tax on sugar is 50%. Steel stocks ended mixed on report that realising the importance of iron ore and coking coal to the competitiveness of steel making, the Union steel ministry said it wants to be consulted on all decisions concerning the two commodities.

FII’s Activity 7th-Feb-18

The FIIs as per Wednesday data were net sellers in equity segment, while they were net buyers in debt segment, according to data released by the NSDL.

In equity segment, the gross buying was of Rs 6511.16 crore against gross selling of Rs 8229.49 crore. Thus, FIIs stood as net sellers of Rs 1718.33 crore in equities. 

In the debt segment, the gross purchase was of 1937.58 crore with gross sales of Rs 1468.00 crore. Thus, FIIs stood as net buyers of Rs 469.58 crore in debt.

In the hybrid segment, the gross buying was of Rs 0.31 crore against gross selling of Rs 0.11 crore. Thus, FIIs stood as net buyer of Rs 0.20 crore in hybrid segment.

Now what to expect ??

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Nifty Levels 

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Support at 10300. Now fresh selling will do only close below 10300 marks else we will see sharp upside rally in it.

Hurdle intact at 10650---10725.

Trade with levels only

Bank Nifty 

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Support at 25400. Breaks and sustain below 25400 will take it 24850---24700.

Hurdle intact at 26300

MCX- Top Pick

After long correction from 1157 to 704, Now stock showing bottom out pattern from the level of 717 which the short term trend is expected to turn bullish. 

Now what to expect???

On Daily chart, break and sustain above 735 will see rally till 770—790 in weeks to come. support intact at 700.

Any sharp downside panic will be buying opportunity in it. 

Trading Recommendation (8th Feb 2018) 

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Buy MCX above 735 with stop loss below 700 (on a closing basis) Target 770—790.

Corporate Action

Indian Oil Corporation Limited-Interim Dividend Rs 19/- Per Share

Power Grid Corporation of India Limited-Interim Dividend Rs 2.45 Per Share (Purpose Revised)

Bharat Electronics Limited-Buyback

Bharat Electronics Limited-Interim Dividend Rs 1.60 Per Share

Results Today

ACC Limited

Steel Authority of India Limited

Tata Communications Limited

Torrent Pharmaceuticals Limited

Page Industries Limited

Manappuram Finance Limited.

Petronet LNG Limited

Muthoot Finance Limited

Reliance Capital Limited

Granules India Limited

 Pharmaceuticals Limited

Bharat Heavy Electricals Limited

Bharat Forge Limited
CESC Limited

Balrampur Chini Mills Limited

Cadila Healthcare Limited

Andhra Bank

More Will Update Soon!!