Nifty 8080 /Sensex 26228/ Bank Nifty 19088
22 Advances / 29 Declines/ 0 Unchanged
“Sensex falls for 4th consecutive day, Nifty ends below 8100”
Equity benchmarks closed range bound session on a negative note Thursday with the Nifty ending below 8100 for the first time since June 27. Investors remained cautious about 2HFY17 growth after demonetization.
The 30-share BSE Sensex was down 71.07 points at 26227.62 and the 50-share NSE Nifty fell 31.65 points to 8079.95 while the broader markets were also under pressure. The BSE Midcap and Small cap indices slipped 0.4 percent and 0.6 percent, respectively.
Gautam Duggad of Motilal Oswal India Strategy says against the current backdrop, he expects Q3FY17 earnings to be impacted the most and, thus, the earnings recovery thesis of 2HFY17 is now in jeopardy.
Post demonetization, he sees obvious downside risks to FY17 earnings estimates for the Motilal Oswal universe as well as the benchmark Sensex.
Tanvee Gupta Jain of Macquarie Capital Securities expects a 30-50 bps downside to their GDP estimate of 7.4 percent for FY17 but she sees a higher probability of 25 bps cut in RBI's December policy.
“US polls sparked EMs sell-off, allocation to equities at 5-yr low”
The survey, conducted between 9-14 November after the US election results, also says that the US election result accelerated rotation into banks, out of high dividend yield and bond proxies and catalyzed buying of US equities. This drove allocation to US equities improving to net 4 percent overweight from net 7 percent underweight last month.
The US election may have knocked off a chunk of wealth from emerging markets. According to a Bank of America Merrill Lynch November fund manager survey, the US polls results led to selling in emerging markets as allocation to EM equities fell sharply to net 4 percent overweight in November from 31 percent overweight last month, making it the biggest monthly decline since February 2011
The survey, conducted between 9-14 November after the US election results, also says that the US election result accelerated rotation into banks, out of high dividend yield and bond proxies and catalyzed buying of US equities. This drove allocation to US equities improving to net 4 percent overweight from net 7 percent underweight last month.
“Fed unshaken by U.S. election, focused on rate hikes: Mester”
The Federal Reserve must not overreact to market moves following the shock U.S. presidential election in part because it is too early to predict any new spending and trade policies, so the plan remains for gradual interest rate hikes, Cleveland Fed President Loretta Mester said in an interview.
The dollar index was near a 14-year high on Wednesday, a week after Americans defied predictions and polls and elected Republican Donald Trump as president.
Stocks, Treasury bond yields and inflation expectations have shot up as traders piled on bets Trump and a Republican-controlled Congress would embark on tax cuts and federal spending that would boost the economy and run up deficits. Trump's promises of heavy restrictions on immigration and trade, however, could hurt business activity and economic growth.
Key results on 18th November 2016
3M India
JB Chemicals
NHPC
Precision Camsh
Rashtriya Chem
Ricoh India
*Important Result : Precision Camshaft
Technical Levels: Precision Camshaft
Precision Camshaft CMP 154 has immediate support at 150 levels and resistance at 160. If mentioned level is not sustained and breached negatively then we will see more panic as lower support at 144—140.
Immediate hurdle is intact at 160.
FII’s activity on 17-11-2016
Derivative Segment (Rs in Cr)
Index futures: +344.79
Index options: -141.98
Stock futures: +200.25
Stock options: -159.15
Net F&O Position: +243.91
Open Interest in F&O: +0.70%
F&O Total: Put-Call Ratio at 0.83 vs 0.78
Now what to expect??
Nifty and Bank Nifty Levels
-Nifty has immediate support at 8050 and resistance is at 8180---8230
A move and sustain below 8050 will take to 7980---7030. Further downside panic will see only close below 7930 mark else it could test its resistance level of 8180—8230 again.
-On the other hand, Bank Nifty has immediate support 18850. Below 19100 it can test 19000--18850. Further downside panic will see only close below 18850.
Hurdle at 19400
Today's Top Pick
Bharti Airtel... Looks weak on charts. Weekly close below 290 will see sharp downside fall in it.
So don't jump to buy at all... Any sharp rise will be selling opportunity in it.
So trade safely with levels only
