Nifty 8104/Sensex 26374/ Bank Nifty 18257
19 Advances /31 Declines/ 1 Unchanged
“D-Street witnesses wild swings in late trade; registers fourth straight downfall”
Indian market commenced the fresh week on a depressing note as the benchmark indices extended previous week’s sell-off and sank by close to half a percentage points during the session. Sentiments took a hit after the industry body ASSOCHAM in its latest report said that prospects of interest rate cut in near future may be bleak due to factors like continuous pressure on rupee against dollar, firming of the US interest rates and hardening of crude oil prices. Apart from continued outflows by foreign funds, a weak trend in Asia and concerns of an expected jump in US interest rates next year also weighed on the sentiment. Foreign investors have pulled out more than Rs 19,500 crore from the capital market this month so far.
The FPI outflows took place following a withdrawal of over Rs 49,700 crore on net basis from the capital market (equity and debt) in last two months (October-November). However, investors got some comfort with Finance Minister Arun Jaitley’s statement that infrastructure investment needs a booster and his next Budget in February will focus on encouraging more public as well as private spending to boost economic growth.
Some support also came with Union Transport Minister Nitin Gadkari’s statement that India’s infrastructure sector has the potential of boosting GDP growth up to 3% and efforts are being put in by the centre to achieve this objective. Meanwhile, shares of oil marketing companies (OMCs) settled higher in otherwise weak market after these companies raised petrol and diesel prices with effect from midnight of 16th / 17th December 2016. This week, the market is likely to be rangebound as the holiday spirit is expected to keep the market muted on account of less volume on the FII counter.
On the global front, Asian markets ended the session on dull note on Monday as investors trimmed their equity holdings following hawkish comments from the US Federal Reserve on interest rate hikes last week. Richmond Fed President Jeffrey Lacker said that the U.S. central bank will likely need to raise interest rates more than three times next year. However, a selloff in global markets eased after China agreed to return a US drone it had seized, easing worries about rising diplomatic tensions between the world's two biggest economic powers.European stocks fell, halting two straight weeks of gains, as investors kicked off the last full week of trading of the year.
Back home, the local benchmark got off to a soft start this morning tracking the Asian peers which traded on a subdued note in the early hours. Thereafter, the key indices failed to show any kind of fervour due to lack of encouraging leads. The key gauges suffered a setback in late afternoon trades as sudden bouts of selling emerged in the local markets after weak start of European markets.
Finally, the NSE’s 50-share broadly followed index - Nifty settled with modest losses of fourteen points, below the psychological 8150 levels, while Bombay Stock Exchange’s Sensitive Index - Sensex shed thirty points and closed below the psychological 26500 mark.
Now what to expect??
Nifty Future Levels
Nifty has support 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 mark
Today's Top Pick
Market is highly range bound... That's why we will update top pick during market hours on our application.
