Nifty 8247 /Sensex 26694/ Bank Nifty 18515
47 Advances /4 Declines/ 0 Unchanged
“Sensex gains 457pts on short covering, weak dollar; metals shine”
Equity benchmarks staged spectacular performance on Thursday with the Sensex rising nearly 500 points intraday on short covering after yesterday's unexpected RBI action.
Withdrawal of incremental CRR hike by the central bank, bargain hunting, weakness in dollar (& positive global cues) ahead of European Central Bank meeting due later today and renewed FIIs buying interest also boosted the market sentiment.
The market ended at almost one-month closing high. The 30-share BSE Sensex shot up 457.41 points or 1.74 percent to 26694.28 and the Nifty climbed 144.80 points or 1.79 percent to 8246.85, outperforming broader markets.
Analysts expect the upside might continue in near term due to under performance of India compared with global markets but they don't rule out extreme volatility or consolidation ahead of Federal Reserve policy meeting next week.
"While we see some upside in equities in the very near term as the Donald Trump trade unwinds somewhat, we anticipate a difficult H12017 as earnings momentum slows and valuations come under pressure," says Mixo Das of Nomura who is overweight on India.
Jaspreet Singh Arora of Systematix Shares & Stocks says the implementation of GST in April 2017 along with other measures like a possible repo rate cut next fiscal by around 50-75 basis points and likely higher infrastructure spending and rationalising of taxes in Union Budget could help earnings growth back to double digit.
The BSE Midcap and Smallcap indices gained 1.5 percent and 1.3 percent, respectively. However, the gap between advances and declines narrowed as the day progressed. More than 2 shares gained for every share falling against the ratio of 5:1 in early trade on the BSE.
Key Results Today
NLC India
SJVN
Jaiprakash Power
Puravankara
NMDC
Welspun Enter
Orissa Minerals
DLF
J kumar infra
RESULT ANALYSIS & POLL
IMPORTANT RESULT: DLF
TECHNICAL LEVELS: DLF
CMP 113. DLF has immediate resistance at 116 and support is intact at 110.
If immediate resistance of 116 is positively breached and sustained then next resistance seen around 120—122 else it could test its support level of 110 again. Break and sustain below 110 will take it to 105---102
Trade with levels only.
OUR RECOMMENDATIONS
Our call to buy Titan (FUT) above 330 proved great as it flared and made high of 335.10 before settling at 325.55 .We booked part profit at 335.
[Profit of Rs 7500 on 1 Lot]
Our call to buy HDIL 62.50 CE around 2.55—2.50 proved great as it flared and made high of 3.25 before settling at 2.70 on closing. We booked part profit at 3.25.
[Profit of Rs 6000 on 1 Lot].
Our call to buy Jain irrigation around 89 proved great as it flared and made high of 90.90 before settling at 90.05 on closing. We booked part at 90.50.
[Return of almost 2% in a day]
Now what to expect??
Nifty Futures Levels
Nifty has resistance at 8270 and support is intact at 8150---8070
Nifty is forming double bottom pattern on daily chart. A break and sustain above 8270 will take to 8350---8380 and then to 8450+++ mark.
Close above 8270... We will expect almost 300 upside move in it.
Else it could test its support level of 8150---8070 again.
Further downside panic will see only close below 8070 mark.
Today's Top Pick
INFY... Hurdle at 990 and support at 970.
Break and sustain above 990 will see sharp upside move till 1020---1035+++ mark.
Support intact at 970
Our 2nd pick
UPL... Above 705. We will see sharp upside move till 725---740+ mark.
Support and stop loss below 685
Trade with levels only. More levels and update will provide during market hours
More will update soon!!
