Nifty 7985/Sensex 26040/ Bank Nifty 17884
25 Advances /26 Declines/ 0 Unchanged
F&O expiry ahead: Volatility Expected
Snapping seven days losing streak, Indian equity benchmarks ended the session slightly in green on Friday as traders opted to buy beaten down but fundamentally strong stocks after seven days of continues drubbing. Markets made weak start and traded subdued in early deals, tracking sluggish global cues. Sentiments also remained dampened on report that the share of foreign portfolio investments (FPI) through participatory notes (P-notes) slipped to its lowest level in nearly three years to Rs 1.79 lakh crore in end-November. P-Notes investments have fallen to a 33-months low, the total value of P-Notes investment in Indian markets equity, debt and derivatives has plunged to Rs 1,79,648 crore in November-end, from Rs 1,99,987 crore at the end of October.
Though, domestic gauges pared all of their initial losses and entered into green terrain, as traders took some encouragement with some signs of thaw appearing on the GST issue, and the prospects of early roll out of goods and services tax (GST) brightening with the states and the Centre making progress on a crucial legislation, amid indications that the states may get concessions to tide over possible demonetisation-related revenue loss. Some support also came after NITI Aayog vice-chairman Aravind Panagariya has termed Prime Minister Narendra Modi's demonetisation scheme as a “frontal attack” on black money and said that more such actions are in store to curb corruption. Traders also got some sense of relief with Union Minister for Statistics and Programme Implementation D. V. Sadananda Gowda’s statement that demonetisation could bring down the growth rate by just 0.2 percent and not more than that. He added that India’s GDP stood at 7.6 percent and it may go down to 7.4 percent.
On the global front, European markets were trading mostly in green, buoyed by the banking sector after Credit Suisse and Deutsche Bank settled mortgage securities fraud suits with the United States, and as Italy's Monte dei Paschi agreed to a bailout. Asian markets ended mostly in red, with investors looking to US economic data scheduled later in the day for potential catalysts.
Back home, on the sectoral front, auto stocks remained under pressure on reports that the Centre is looking at introducing a law where one may not be allowed to register new car or any other vehicle unless he produce proof that he has adequate parking space for it. Shares of non-banking finance companies (NBFCs) plummeted further on report that the Maharashtra government will form a special investigation team (SIT) to investigate violations of norms by microfinance companies.
FII Activity (Dec 23, 2016)
The FIIs as per Friday’s data were net sellers in equity segment, while they were net buyers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 3642.09 crore against gross selling of Rs 4215.62 crore. Thus, FIIs stood as net sellers of Rs 573.53 crore in equities.
In the debt segment, the gross purchase was of Rs 1247.63 crore with gross sales of Rs 301.04 crore. Thus, FIIs stood as net buyers of Rs 946.59 crore in debt.
Now what to expect??
Nifty Future Levels
Support at 7930 and resistance 8030--8070
Break and sustain below 7930 will take it to 7850—7780 and then to 7700 else could test its resistance level of 8030---8070 again.
Further upside rally will see only above 8070.
Bank Nifty Future Levels
Support at 17850 and resistance at 18050--18300
Break and sustain below 17850 will take to 17550—17400 and then to 17000 else could test its resistance level of 18050--18300.
Further upside rally will see only above 18300.
Today's Top Pick
VEDL
As expected... Panic continues in VEDL. Told to sell below 222 mark.
Now what to expect???
Break and sustain below 213 will take to 209---203 and then to 190 mark in days to come else could test its resistance level of 220 again.
