Nifty 8179/Sensex 26595/ Bank Nifty 18177
28 Advances /23 Declines/ 0 Unchanged
Nifty Starts with a Positive Note On First Trading Session of 2017
Indian markets showed smart recovery despite snapping the first trading day of 2017 in the red territory. Renewed buying in auto, cement and realty stocks, after banks announced reduction in lending rates, helped the indices to recoup most of the losses in the second half of the trading session.
The country’s largest bank State Bank of India (SBI) announced a steep interest rate cut in several years, by reducing its marginal cost of funds based lending rate (MCLR) by 90 basis points (bps) across all maturities, while Union Bank of India and Punjab National Bank also announced cuts ranging from 60 to 90 basis points. Lending rate cuts by the several banks and Narendra Modi's announcement of new sops to boost low-cost housing ahead of the Union Budget affected the sentiment despite India's December manufacturing PMI dropping for the first time in a year.
Meanwhile, Prime Minister has announced interest subsidy of up to 4% on loans taken in the New Year under the Pradhan Mantri Awaas Yojana (PMAY). According to the scheme, loans of up to Rs 900,000 taken out in 2017 to receive interest rebate of 4%, while loans of up to Rs 1,200,000 taken out in 2017 to receive interest rebate of 3% and loans of up to Rs 200,000 taken in 2017 for new housing, or extension of housing in rural areas, to receive an interest rebate of 3%.
On the Sectoral front, oil marketing companies such as HPCL, BPCL and IOC gained after they increased petrol prices by Rs 1.29 a litre - the third increase in a month, and diesel price by 97 paise a litre - the second hike in a fortnight. Shares of sugar companies edge higher for the second straight session and rallied by up to 20% on hopes of debt restructuring.
According to the reports, the Union finance ministry is considering a proposal to restructure sugar mills’ debt, which is under severe stress due to lack of capacity utilisation.
On the global front, after a late-year rally fueled by the U.S. election pushed stocks to surprising new peaks, investors are wary that the market could be primed for a spill to start 2017. US markets ended in red on the last session of the year but were well off the day’s low. While globally, Japan, China, Hong Kong, Singapore, the US and the UK will be closed for the day on account of New Year's Day, the People’s Bank of China has said that China should set a more flexible 2017 economic growth target to give policy makers more room to enact reform.
Meanwhile, European stocks traded higher in early trade, driven largely by gains for banks across the board, though volumes were expected to be thin as many traders remained out for an extended New Year’s break.
Back home, after getting a weak start, the frontline indices kept losing steam thereafter and even drifted to the lowest point in the session in early afternoon trades. Thereafter started the road to recovery for the bourses which kept slowly but steadily moving towards the neutral line.
FII Activity (2 January 2017)
The FIIs as per Monday’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 2231.13 crore against gross selling of Rs 2910.00 crore. Thus, FIIs stood as net sellers of Rs 678.87 crore in equities.
In the debt segment, the gross purchase was of Rs 1000.43 crore with gross sales of Rs 524.52 crore. Thus, FIIs stood as net buyers of Rs 475.91 crore in debt.
Major News on Board
Lupin receives USFDA approval for Generic Evoxac Capsules
Lupin has received final approval for its Cevimeline Hydrochloride Capsules, 30 mg from the United States Food and Drug Administration (USFDA) to market a generic version of Daiichi Sankyo Inc's Evoxac Capsules, 30 mg. Lupin shall commence promoting the product shortly. Lupin's Cevimeline Hydrochloride Capsules, 30 mg are the AB rated generic equivalent of Daiichi Sankyo Inc's Evoxac Capsules.
Technical Levels for Lupin
Support at 1480 and Resistance at 1520
Break and sustain above 1520 will see sharp upside rally 1550—1580 and then to 1620+ mark in days to come else could tests its support level of 1480.
Trade with levels.
JSW Energy raises Rs 500 crore through NCDs
JSW Energy has raised Rs 500 crore through issuance of redeemable nonconvertible debentures (NCDs) on private placement basis. The fund raised would be used for business operations, various capex requirement, repayment/ prepayment of existing debt and general corporate purposes.
Technical Levels for JSW Energy
Support at 60.00 and Resistance at 62.80—63.00
Break and sustain above 63.00 will see sharp upside rally 65.50---68.00+ mark in days to come else could tests its support level of 60.00.
Looks weak below 60.00
Trade with levels.
Now what to expect??
Nifty Future Levels
We clearly indicated Nifty looks positive above 8220….. it made high of 8217 and slipped.
Now what to expect?
Nifty future has support at 8130 and resistance at 8220.
Above 8220 it could test its resistance level of 8280---8320 else could test its support level of 8130 again.
Further downside panic will see only close below 8130 mark.
Trade with levels only.
Bank Nifty Future Levels
Support at 17800 and resistance at 18050---18400.
Break and sustain below 17800 will take to 17500---17200 else could test its resistance level of 18050---18250---18400 again.
Fresh buying can be initiated only above 18400 mark
Trade with levels only.
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