Nifty 8236/Sensex 26726/ Bank Nifty 18286
22 Advances /28 Declines/ 1 Unchanged
Indian benchmarks end a disappointing session with modest cut
Indian equity markets commenced the week on a sluggish note as the frontline indices showcased an unenthusiastic performance on Monday and settled with moderate cuts of around ten basis points. Market participants remained on the side-lines and refrained from any buying activity after the US payrolls data released on Friday indicated strong underlying wage growth, strengthening the case for more rate increases in 2017.
The US Labor Department said non-farm payroll employment climbed by 156,000 jobs in December, while hourly pay jumped 2.9 percent from the year before, which was the biggest monthly increase in seven years. For 2016 overall, job growth in the world’s biggest economy remained steady, although the pace was slower than in 2015. On the domestic front, sentiments were undermined by the advance estimates of GDP data for fiscal year 2017, indicated a slowdown in growth even though the figures do not take into account the demonetisation impact. GDP growth is estimated to slow down to 7.1% in the current fiscal, from 7.6% in 2015-16, mainly due to slump in manufacturing, mining and construction sectors. sentiments weakened further on the report that Foreign investors pulled out more than $3 billion of the so-called 'hot money' from the Indian capital markets in 2016, making it the worst period in last eight years in terms of foreign investments.
However, investors got some ease with Finance minister Arun Jaitley’s statement that the impact of demonetization on the economy would be “transient” but in the medium and long run, the GDP would be “bigger and cleaner” and it will also help lower interest rates. He also said that the Goods and Services Tax (GST), which will be implemented this year, will provide for better indirect tax administration. Some support also came with the report that India has emerged as the most optimistic country globally in terms of business optimism as the country’s businesses are high on expectations of increasing revenue, employment, profitability. According to the report, there is an overall increase in global optimism which augurs very well for India in terms of attracting investments and providing markets for Indian products and services globally.
On the global front, Asian markets ended mostly lower on Monday as investor caution grew before a news conference by President-elect Donald Trump on Wednesday, where his views on global trade and China will be carefully scrutinized for future policy implications. Sentiments also remained down-beat after US employment increased less than expected in December but a rebound in wages pointed to sustained labor market momentum that sets up the economy for stronger growth and further interest rate increases from the Federal Reserve this year.
However, Chinese shares ended higher, led by defense stocks as more central state-owned enterprises (SOEs) mulled plans to push mixed-ownership reforms. Meanwhile, European shares edged lower in early deals, bucking the trend seen across other global markets, as investors focused on fresh data from the euro zone and volatility in oil markets.
Back home, after getting a positive start, the local benchmarks immediately drifted into the negative zone and slipped to intraday lows in late morning trade. Thereafter, the indices traded in the tight range for most part of the session as investors remained sideways in the absence of any significant trigger at domestic front.
FII Activity (9th January 2017)
The FIIs as per Monday’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 3511.02 crore against gross selling of Rs 3829.52 crore. Thus, FIIs stood as net sellers of Rs 318.50 crore in equities.
In the debt segment, the gross purchase was of Rs 563.75 crore with gross sales of Rs 751.19 crore. Thus, FIIs stood as net sellers of Rs 187.44 crore in debt.
Key Results
IndusInd Bank
Support at 1130 and resistance at 1175
Break and sustain above 1175 will take it to 1200—1220 and then to 1250+ mark in days to come else could test its support level of 1130.
Further downside panic will see below 1130.0
Now what to expect??
Nifty Future Levels
Nifty future has support at 8180 and resistance at 8290—8320
Three consecutive close + weekly above 8320 will take it to 8450—8520 mark. Further upside rally will see if it close above 8520 else it could test its support level of 8180 again.
Fresh selling can be initiated below 8180 mark
Trade with levels only.
Bank Nifty Future Levels
Support at 18000--17800 and resistance at 18400.
Three consecutive close + weekly close above 18400 will take it to 18900---19050+ mark in days to come else could test its support level of 18000—17800.
Further downside panic will see on close below 17800
Trade with levels only.
Today's Top Pick
India Bulls Housing Finance
Support at 660 and Resistance 685
Break and sustain above 685 will take it to 702---708 and then to 725+ mark in days to come else could touch its support level of 660 again.
Further downside panic will see below 660
