Nifty 8103/Sensex 26366/ Bank Nifty 18033
41 Advances /10 Declines/ 0 Unchanged
Indian indices edge higher on F&O expiry day; Nifty ends above 8100 mark
The last day of December series futures and options contract expiry turned out to be a good session for the Indian equity indices as they managed to settle with gains of over half a percent.
Sentiments got some support with the report that the Reserve Bank of India (RBI) further extended the grace period for banks, non-banking finance companies and microfinance companies to classify bad loans by 30 days in the case of agriculture and term loans of up to Rs 1 crore.
Short-covering on the back of F&O expiry and the appreciation in Indian rupee value against the dollar added to the optimistic sentiments. The rupee appreciated by 16 paise to 68.09 against the US dollar at the time of equity markets closing at the Interbank Foreign Exchange. Investors got some comfort with minister of State for Finance Arjun Ram Meghwal saying that once the entire process of cash ban is completed, consumption and investments will pick-up rapidly.
According to him, the move will increase the tax base and improve gross domestic product (GDP) by 2 percent. However, worries about capital outflows from emerging markets to the United States have hit sentiment since November. Foreign investors offloaded net $100.58 million of shares on December 27, having sold $975.80 million worth of local shares this month.
On the global front, Asian equity markets ended mixed on Thursday, as investors turned cautious after Wall Street suffered a mild setback after weeks of gains. Sentiments took a hit after contracts to buy previously-owned US homes fell in November to their lowest level in nearly a year, a sign that rising interest rates could be weighing on the housing market. Also adding to the pessimism is the light global trading ahead of the New Year's holidays, keeping many players wary of taking action. Japanese market edged lower as the yen climbed against the dollar, while Chinese shares ended almost flat, with optimism spurred by fading liquidity stress but investors kept wary by the prospect of regulatory measures to curb aggressive investment in stocks by insurers. Meanwhile, European shares opened slightly lower with all sectors in negative territory in early deals as banking shares and miners fell.
Back home, the benchmark got off to a soft start as the indices showed signs of consolidation in early trade, tracking subdued trend in other regional markets. Thereafter, the key indices traded in tight range for most part of the session due to lack of encouraging leads. However, during the last hour of trade benchmark indices moved higher as traders rushed to rollover their December series contracts.
FII Activity (Dec 29, 2016)
The FIIs as per Thursday’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 2302.10 crore against gross selling of Rs 2828.48 crore. Thus, FIIs stood as net sellers of Rs 526.38 crore in equities.
In the debt segment, the gross purchase was of Rs 1301.32 crore with gross sales of Rs 199.57 crore. Thus, FIIs stood as net buyers of Rs 1101.75 crore in debt.
Now what to expect??
Nifty Future Levels
Nifty…. Unable breach its support level of 8020 and bounce back sharply.
Now what to expect?
Support at 8070---8020 and resistance 8130.
Break and sustain above 8130 will take it to 8180---8240 else it could test its support level of 8070---8020 again.
Fresh selling can be initiated below 8020.
Bank Nifty Future Levels
Support at 17800 and resistance at 18050.
Break and sustain above 18050 will take to 18300---18550 and then to 18800 else could test its support level of 17800 again.
Fresh Selling can be initiated below 17800
Today's Top Pick
GODREJ INDUSTRIES
Support at 418 and Resistance at 428.
Break and sustain above 428 will take it to 440---455 mark else it could test its support level of 418.
Looks weak only close below 415
Trade with levels only
