Nifty 8142 /Sensex 26394/ Bank Nifty 18223
32 Advances /19 Declines/ 0 Unchanged
"Sensex pares gains, Nifty fails to hold 8150 amid late sell-off"
Equity benchmarks hit two-week highs intraday Tuesday but late sell-off forced the Sensex to pare gains and the Nifty to end below 8150 level. The selling pressure was seen in FMCG, technology and select banks while auto, oil and telecom stocks gained.
The market gained for the third consecutive session, though it closed off day's high. The 30-share BSE Sensex rose 43.84 points to 26394.01 and the 50-share NSE Nifty advanced 15.25 points to 8142.15 after hitting a two-week high of 8197.35.
The broader markets also halved gains with the BSE Midcap and Smallcap indices rising half a percent each on positive breadth
"By and large, almost all the major sectors, barring banking, have played their part in recent rebound but failed to change the prevailing negative sentiments. So now, all depends on the performance of banking pack for next directional move in index," Jayant Manglik of Religare Securities said. He advised investors to maintain caution and wait for further clarity.
"See Nifty earnings growth at 5% in FY17: UBS Securities"
Speaking to CNBC-TV18 Gautam Chhaochharia, Head of India Research at UBS Securities, said that the longer India story remains intact. Demonetisation doesn’t impair the economic trajectory in the long term. He said he is estimating a 3-6 month disruption which may have been priced in by many stocks already.
It is difficult to assess the impact on GDP rate owing to cash ban. “It is difficult to take a linear view,” he said, adding that he believes the GDP for this fiscal year could be about 6 percent, but it will go up to 8 percent because of base effect.
Nifty earnings growth in FY17 will be 5 percent, and 14 percent for FY18, he said.
FIIs have been net sellers in the last two weeks on buzz that the US Fed will hike rates and make borrowings expensive. Till a week ago, markets were EM driven, he said, admitting that over the last week India has been underperforming a bit.
He is overweight on NBFCs. But the risk-reward skew is wider, he warned. SBI and ICICI Bank remain top picks and should benefit from higher deposits and credit cycle, he said.
Key Results Today
Balkrishna Ind
Guj State Petro
Man Infra
Punj Lloyd
Ratnamani Metal
RESULT ANALYSIS & POLL
IMPORTANT RESULT: Ratnamani Metal
TECHNICAL LEVELS: Ratnamani Metal
CMP 584. Ratnamani Metal has immediate resistance 590 and crucial support at 574
If resistance of 590 is positively breached and sustained then it could test it's resistance level of 608--613 else it could test its support level of 574 again. Break and sustain below 574 will make it positionally weak.
Now what to expect next??
Nifty and Bank Nifty future levels
Nifty has immediate resistance at 8230 and support at 8080---8020
Break and sustain above 8230 will take Nifty to 8290---8330+ mark else it can test its support level of 8130 and then to 8080---8020 again
-On the other hand....
Bank Nifty has immediate support at 18200.A move and sustain below 18200 will make it positionally weak else it could test its resistance of 18650 again. A move and sustain above 18650 will take bank nifty to 18900--19050 mark.
Traders can trade with levels only and wait for confirmation.
Today's Top Pick
Today's top pick will update during market hours
More will update soon!!
