Nifty 8032/Sensex 26213/ Bank Nifty 17879
47 Advances /4 Declines/ 0 Unchanged
Indian benchmarks stage a remarkable rally; Nifty ends above 8000 mark
A session after displaying a stressful performance, Indian equity indices pulled through a sparkling performance by confidently rallying over one and half percent on Tuesday, thanks to the hefty buying in some blue-chip counters, which were heavily over-sold in last few trading sessions and covering-up of pending short positions by speculators ahead of the December futures and options expiry on Thursday.
The relentless across the board value picking ensured that the frontline indices settle over the psychological 8,000 (Nifty) and 26,200 (Sensex) levels.
The sharp up-move was mostly seen as a technical bounce following the brutal mayhem that had pulled stocks in oversold territory. Sentiments got support with FM Arun Jaitley’s hint of a lower tax regime; he said that India has been guided by the principle that a lower level of taxation is the key to building a globally competitive economy in the past two and a half decades since liberalization.
Some support also came with Union Minister Nitin Gadkari’s statement that demonetisation will help to increase government revenue and enable it to allocate more funds to welfare scheme for the people. He further said that India is moving towards a less cash economy like many other countries of the world. Therefore, if something big has to be achieved, then one has to face some difficulties in the beginning.
On the global front, Asian markets ended mostly higher on Tuesday amid low-volume trading in the absence of fresh cues as the US markets were closed overnight for Christmas holidays. Japanese markets end higher, buoyed by a weaker yen, even after the release of sluggish economic reports. Japan's core consumer prices marked the ninth straight month of annual declines in November and household spending fell an annual 1.5 percent in the month while the jobless rate climbed to 3.1 percent from 3.0 percent in the previous month. However, China’s stock market edged lower despite the positive economic data and a rally of infrastructure-related sectors after Chinese regulators announced policies to encourage the financing of public private partnership (PPP) projects.
Back home, the local benchmark got off to an optimistic opening, shrugging the sluggish sentiments prevailing in Asian markets. The frontline indices soon gathered momentum and traded with around half a percent gains through the morning session of trade. Second half of the session saw the key gauges capitalize on the momentum further and spurt to session’s highest levels in dying hour. However, a mild profit booking in dying moments of trade ensured that the key indices shut shops off the intraday highs.
FII Activity (Dec 27, 2016)
The FIIs as per Tuesday’s data were net sellers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 1000.07 crore against gross sell of Rs 2099.91 crore. Thus, FIIs stood as net sellers of Rs 1099.84 crore in equities.
In the debt segment, the gross purchase was of Rs 120.55 crore with gross sales of Rs 938.82 crore. Thus, FIIs stood as net sellers of Rs 818.27 crore in debt.
Our STBT Call of Workhard Pharma and PNB proven great. After that minted money in our buy call of Nifty and Bajaj Finance too.
Now what to expect??
Nifty Future Levels
Yesterday Nifty future unable to breach it's support level of 7880 and bounced back sharply. We recommended buying above 7970 mark
Now what to expect???
Break and sustain above 8070 will see further upside rally till 8100--8130 and then to 8200 else could test its support level of 8010---7970 and then to 7880 again.
Further downside rally will see only below 7880.
Today's Top Pick
BHEL
Support at 116 and Resistance at 122
Break and sustain above 122 will take it to 125--128 and then to 132+ mark in days to come else could test its support level of 116 again.
Looks weak only close below 116
