Nifty 8236/Sensex 26726/ Bank Nifty 18286
35 Advances /15 Declines/ 1 Unchanged
*Nifty reclaims 8,250 mark - wash-off two days losses *
A session after exhibiting a distressing performance, Indian equity indices have managed to pull through a sparkling performance by gaining over half percent on Tuesday, thanks to the hefty short covering in the beaten-down but fundamentally strong stocks.
Sentiments remained up-beat after Finance Minister Arun Jaitley dismiss the slowdown concerns, said that higher tax mop up indicates uptick in economic activity. He further added that demonetised notes had no role to play in the tax collections for December as people were allowed to pay taxes in the spiked currency only in November and the indirect and direct tax collections between April and December this year increased by 25 percent and 12.01 percent respectively compared to the same period last year.
. Some support also came after RBI’s newly-appointed Deputy Governor and noted economist Viral Acharya said, India, one of the world’s fastest growing economies, is at an “exciting but challenging time” and has massive potential to become an economic powerhouse. However, some traders remained on the side-lines and refrained from any buying activity ahead of India's Budget scheduled on February 1, and caution ahead of key global events such as Donald Trump's swearing-in as US president later this month.
Meanwhile, third-quarter earnings season kicked off today, with fairly upbeat numbers from IndusInd Bank. The Private lender reported a better-than-expected 29 per cent rise in net profit at Rs 750.64 crore for the quarter ended December 31, 2016 against Rs 581.02 crore in the corresponding quarter last year.
On the global front, Asian markets ended mixed on Tuesday, tracking the lackluster cues from Wall Street and the plunge in crude oil prices overnight. Worries about the likelihood of a ‘hard Brexit’ also weighed on investors sentiments. Japan's Nikkei share average ended lower with a strengthening yen weighing on exporter shares, although hopes that US President-elect Donald Trump would provide hints about stimulus at an upcoming speech helped curb the losses. China's Shanghai Composite index declined as investors booked some profits after recent sharp gains on hopes of reforms in state-owned enterprises. Though, Hong Kong stocks hit a one-month high as Chinese commodity prices rallied, offsetting pressure from profit taking in some SOEs, which rose last week on restructuring hopes. Meanwhile, European stock markets opened broadly lower, with stocks and sterling tumbling over political uncertainty over Britain's future ties with the European Union and the policies of the incoming U.S. president, Donald Trump.
Back home, the benchmark got off to an optimistic opening, shrugging the sluggish sentiments prevailing in Asian markets post weak closing of US markets overnight. The frontline indices soon gathered momentum and traded with around half a percent gains through the morning session of trade. Second half of the session saw the key gauges capitalize on the momentum further and spurt to session’s highest levels in dying hour.
FII Activity (10th 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
South Bank
Support at 20.50 and resistance at 21.50
Break and sustain above 21.50 will take it to 22.50—23.50 and then to 25.00+ mark in days to come else could test its support level of 20.50.
Further downside panic will see below 20.50
Now what to expect??
Nifty Future Levels
Nifty future has support at 8180 and resistance at 8320
Two consecutive close + weekly above 8320 will take it to 8450—8520+ mark. Further upside rally will if 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
We clearly indicated that bank nifty looks positive above 18400 ... it made high of 18458.
Now what to expect???
Trend remain positive above 18400 and it could touch 18900—19050 in days to come.
Support intact at 18200
Trade with levels only.
Today's Top Pick
Apollo Tyre
Above 195 rally remain continues … two consecutive close + weekly close above 195 will take it to 202—208 and then to 215+ mark in days to come.
Support intact at 188
