Nifty 8391/Sensex 27117/ Bank Nifty 18842
34 Advances / 16 Declines/ 1 Unchanged
Markets start F&O expiry week on an optimistic note
In a volatile trading session, Indian benchmark indices managed a green close on Monday as investors' sentiments remained buoyed by rupee appreciation, coupled with hopes of positive incentives in the upcoming Union Budget and broadly positive Asian indices.
Some support also came with the BRICS nation’s National Development Bank chief K V Kamath’s statement that India will continue to grow on the back of its consumption-driven economy. He also said that the demonetisation move in India would have only a short-term blip after which India should be back on a clear growth path.
Furthermore, in a written response to the Parliament's Public Accounts Committee (PAC), the Revenue Department said that due to the withdrawal of old high-value notes, the idle or hidden cash has come into the formal system which will be utilised for productive purposes. Regarding other implications, it said that increasing use of non-cash modes of transactions will promote transparency and have a lasting positive impact on tax collections, both direct and indirect.
However, the upside remained capped by the report that foreign investors have pulled out over Rs 5,100 crore from the Indian capital market so far this month over concerns regarding 'lower prospects' of economic growth as compared to other emerging markets. The latest FPI outflow followed withdrawal of close to Rs 77,000 crore on net basis from equity and debts together in last three months (October-December).
Meanwhile, describing the official data on the index of industrial production (IIP) for November 2016, during which demonetisation was announced, as a ‘false positive’, Crisil Research has said that the latest IIP figures do not reflect the true condition of the Indian manufacturing sector. Belying popular expectations, India's factory output, as measured by the IIP released earlier this month, has rose 5.7% in November, the first month of the government's demonetisation drive.
On the global front, Asian markets ended mostly higher on Monday, though the Japanese shares declined as exporters fell on a stronger yen and after Donald Trump took office as the US president and promised ‘American first’ policies, adding to concerns about the threat of protectionism. Demand for safe haven assets rose while the U.S. dollar slumped after Bank of Japan Governor Haruhiko Kuroda said that the greenback could strengthen in the Trump presidency. Oil prices traded above the $53 per barrel mark along with gold, which continued its gaining streak. Meanwhile, European stocks dropped in early trade, as equity investors got their first chance to react to U.S. President Donald Trump’s inauguration speech, seen as taking a protectionist tone.
Back home, after getting a cautious start, the local benchmarks soon capitalized on the momentum and touched intraday highs in late morning session, but the indices failed to hold onto the highs and slipped into lower levels in noon trades post weak European market opening. Yet, final hour buying ensured that the key indices do not shut shops way below the intraday highs.
FII’s Activity 23-Jan-17
FIIs stood as net buyers in equities as per January 23 data: NSDL
The FIIs as per Monday’s data were net buyers in equity segment, while they were net sellers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 4542.43 crore against gross selling of Rs 4509.14 crore. Thus, FIIs stood as net buyers of Rs 33.29 crore in equities.
In the debt segment, the gross purchase was of Rs 565.76 crore with gross sales of Rs 1238.71 crore. Thus, FIIs stood as net sellers of Rs 672.95 crore in debt.
Key Result
Ajanta Pharma Ltd
Bharat Financial Inclusion Ltd
Bharti Airtel Ltd
Biocon Ltd
Crompton Greaves Consumer Electrical Ltd
Greenply Industries Ltd
H T Media Ltd
HCL Technologies Ltd
HDFC Bank Ltd
ICICI Prudential Life Insurance Company Ltd
Indian Overseas Bank
Inox Leisure Ltd
Kajaria Ceramics Ltd
L&T Finance Holdings Ltd
Mahindra & Mahindra Financial Services Ltd
Nilkamal Ltd
Syngene International Ltd
Tata Sponge Iron Ltd
TVS Motor Company Ltd
Wockhardt Ltd
Zee Entertainment Enterprises Ltd
Zensar Technologies Ltd
Nifty Levels
Nifty unable to breach its support level of 8320 and bounced back sharply.
Now what to expect??
Support 8320 and resistance at 8450—8520
Looks positive and could touch its resistance 8450—8520, further upside rally will see on close above 8520 else it could touch its support level of 8320.
Fresh selling can be initiated below 8320
Bank Nifty Levels
Bank Nifty too unable to breach its support level of 18880 and bounced back sharply.
Now what to expect??
Support at 18800 and resistance at 19300
Looks positive and could touch its resistance level of 19300, further upside rally will see on close above 19300 else could touch its support level of 18800.
Looks weak only if close below 18800.00
Today's Top Pick
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