Nifty 8139/Sensex 26489/ Bank Nifty 18312
18 Advances /33 Declines/ 0 Unchanged
“Nifty Trades in a Narrow Range on the Last Day of the Week”
Indian equity benchmarks have prolonged the lull for third straight day and completed the session on a dull note, marginally below the neutral line as market participants at large remained reluctant to build on long positions amid lacklustre trading on European and Asian bourses.
The session largely remained characterized by choppiness as the aimless indices moved slowly and crept towards the previous closing levels after the early decline. Sentiments remained down-beat for most part of the session on the report that India's trade deficit widened to $13 billion in November, the highest since July 2015 and sharply wider than the $10.41 billion gap in October, as imports, including purchases of gold, outpaced exports of goods. Oil imports rose 5.9% to US$ 6.84 billion, while the non-oil imports gained 11.7% to US$ 26.18 billion in November 2016 over November 2015.
Though, for the third consecutive month, exports recorded a positive growth of 2.29 per cent year-on-year to $20 billion, but imports grew at a faster pace of 10.4 percent to $33.02 billion.
Meanwhile, Indian market looks more vulnerable than other emerging markets due to the ongoing demonetisation drive and its impact on corporate performances. According to industry body CII, India’s economic growth will see a ‘significant fall’ in the second half of the current fiscal on account of cash crunch following demonetisation. However, losses remained capped with the report that more than 1,700 new foreign portfolio investors (FPIs) have registered with capital markets watchdog SEBI in the first seven months of the current fiscal, a sign of their willingness to be a part of India’s growth story in the long term.
FPIs consider India as a preferred and stable market, given its macro-economic stability, long-term growth prospects and ongoing economic and social reforms. Some support also came with NITI Aayog CEO Amitabh Kant stated that cash shortages following the demonetisation of high value currency notes will end by mid-January.
On the global front, Asian markets ended mostly higher on Friday as investors adjusted their portfolios before year-end to face the prospect of a faster-than-expected pace of U.S. rate hikes next year. Japanese shares rose after scaling a one-year peak on the export prospects from a weaker yen, while China’s central bank has pumped 600 billion yuan into the financial system over the past two days, stabilizing the bond and stock markets.
European shares steadied in early dealings, but were heading for a second straight week of gains, with the prospect of more mergers and acquisitions underpinning sentiment. Meanwhile, Oil prices stabilized as evidence rose that producers in the Middle East were informing customers of upcoming supply cuts as part of a coordinated effort to drain a global glut.
Now what to expect??
Nifty Future Levels
Nifty has support 8120---8070 and resistance 8180.
Break and sustain below 8070 will take it to 7930—7850 marks else could test its resistance level of 8180 again.
Break and sustain above 8180 will take to 8230---8270 and then to 8350.
Chances are unlikely to breach 8400 mark in near years but trade with levels only.
Today's Top Pick
NTPC
Support at 159 and resistance at 168
Break and sustain below 159 will take it to 151---148 mark.
Fresh buying can be initiated only close above 168.
Trade with levels only
