Nifty 8551/Sensex
27714/Bank Nifty 18571
31 Advances/ 20
Declines/ 0 Unchanged
Sensex closes rangebound
session flat after passage of GST Bill; Tata Motors up 4%
Yesterday remained a very volatile session
Yesterday remained a very volatile session
Equity benchmarks ended flat with a positive bias after a consolidation on Thursday as investors digested the passage of a long-awaited Goods & Services Tax (GST) Bill. The Sensex started off on a strong note, rallying more than 200 points in opening but immediately wiped out gains to trade in a tight range for rest of the session.
The 30-share BSE Sensex was up 16.86 points at 27714.37 and the Nifty gained 6.25 points at 8551.10 while the broader markets mildly outperformed benchmarks, up 0.4 percent on positive breadth. About 1432 shares advanced against 1267 declining shares on the BSE.
Bank nifty behaved similar and closed positive after a highly volatile session gaining 30 points closing at 18571
GST IMPACT
What we witnessed in yesterday’s market was a lot of volatility as the market
opened positive and crashed on profit booking. Chances are high that the market
had already discounted GST and the positive rally which we witnessed in previous
months had GST as one of the positive factors.
The market rallied more than 21 percent on more than Rs 47,000 crore worth of
inflow of foreign money since March, especially on hopes of the GST Bill
getting passed in the monsoon session of Parliament and also due to delay in
rate hike by federal reserve.
Now analysts believe
that we will witness impact of GST in the next 10 years to come and it will be a huge boost to
the Indian economy and India will stand a chance to grow at more than 8 %.
Sectors Benefiting
from GST and companies related with this industry
Sectors
|
Related companies
|
Automobile
|
Hero motors ,
Bajaj, Eicher , Ashok leyland, Maruti, M&M , Escorts
|
Auto- Ancilliares
|
Exide, Amara Raja
|
Building material
|
Kajaria, Century
Ply, Pidilite.
|
Cement
|
Ambuja Cement
|
Consumer Durables
|
Symphony
|
Consumer and Retail
sector
|
HUL , Colgate,
Brittania, Nestle, Dabur, Emami, Asian Paints, Shoppers Stop ,Titan
|
Infrastructure
|
Sadbhav
Enginnering, IL and Fs Transportation,
|
Media
|
Disv Tv , PVR
|
Key highlights of 4th August 2016
No impact on
inflation even if GST rate is 18-20%: FinMin
Fund raising plan
lifts Motherson Sumi 5%, is acquisition on cards?
Future's low-value
products and Paytm a good match: Biyani
Finance Secy confident of maintaining fiscal deficit target
Voltas' projects biz can have a cyclical upside: CS
Brokerages upbeat on
Cadila, see US biz & orders aiding growth
DoT set to notify new
right-of-way rules for telcos by Aug end
India ranked down at 100 in Human Capital Index, finds BofAML
Tata Motors soars 4%
on strong July US Jaguar Land Rover sales
BSE sees 200 listings
on SME platform by FY17
Now what next for today's session??
With this level of volatility in the market due to GST it’s better that we follow the levels on closing price basis to counter the spiked formed and remain cautious.
Now Nifty has immediate
support at 8560, and a break below this level can make nifty to correct further
from current levels .It can correct to 8510 and the then to 8470 levels if the
support of 8560 is broken.
Nearest hurdle is at 8640 levels and only a break and close above this level can bring the strength back in nifty for a further bullish rally.
Bank Nifty on the
other has immediate resistance at 18760—18770. A break and sustain above this
level can first take Bank nifty to 18960 levels .We must need another close
above the level of 18960 for the strength to return and for the bullish rally
to continue.
Support is intact at
18530 and a break below this level can bring further correction to the level of
18480 and then to 18380.
Just trade with
levels and maintain strict stop loss as this week can remain volatile. Happy
Trading!!
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