Nifty 8602/Sensex 27375/ Bank Nifty 19473
44 Advances / 07 Declines/ 0 Unchanged
Late surge bolsters benchmarks to snap January F&O series near 3-month high
The January series expiry of Futures and Options turned out to be jubilant event for the Indian frontline indices, which finished the session with strong gains of over a percentage point on account of fresh buying ahead Union Budget next week. Hefty short covering in the dying hours ahead of the series expiry stoked the benchmarks to settle near the high point of the day.
Sentiments remained upbeat with report that Donald Trump and Narendra Modi have discussed opportunities to strengthen the partnership between the United States and India in broad areas such as the economy and defense.
Strong earnings from lenders such as HDFC Bank and Kotak Mahindra Bank raised optimism that the impact of note ban could be less than expected. Kotak Mahindra Bank posted a 34% Y-O-Y increase in its consolidated net profit at Rs 1266.59 crore for the quarter ended December 2016, while HDFC Bank reported 15.15% rise in its net profit at Rs 3865.33 crore for the quarter as compared to Rs 3356.84 crore for the same quarter in the previous year.
Some support also came with the repot that Germany is set to finance long-term strategic projects in India particularly in the railway, infrastructure and smart cities sectors as part of efforts to support India's growth story. Meanwhile, the markets paid no heed to a report that demonetisation has stymied India's GDP growth and the October-December quarter show is likely to be around 6%, while for January-March it could climb down to 5.7%.
According to the financial services major, the consumption and services, which were the fastest growing segments pre-demonetisation, were the worst-hit. Meanwhile, credit ratings agency India Ratings in its report said most Indian companies with overseas debt have not hedged enough of their foreign currency risk, making them vulnerable to any sharp movements in the rupee.
The study of 100 companies holding 19.5 trillion rupees ($286.30 billion) of debt abroad as of March 2016, showed 54 of them, with 14.5 trillion
The local benchmarks started the session on firm note amid strong cues from Asian markets following gains in Wall Street as investors welcomed US President Donald Trump’s growth initiatives. Thereafter, the frontline indices slowly but steadily started gathering steam and surged by over half a percent by noon trades. The bourses further capitalized on the momentum and spurted in afternoon trades on the back of broad based bottom fishing in undervalued stocks.
FII Activity (25th January 2017)
The FIIs as per Wednesday’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 5153.98 crore against gross selling of Rs 5043.48 crore. Thus, FIIs stood as net buyers of Rs 110.50 crore in equities.
In the debt segment, the gross purchase was of Rs 772.29 crore with gross sales of Rs 1027.88 crore. Thus, FIIs stood as net sellers of Rs 255.59 crore in debt.
Key Results
Avanti Feeds Ltd
Bharat Electronics Ltd
Colgate-Palmolive (India) Ltd
Eveready Industries India Ltd
India Cements Ltd
Indoco Remedies Ltd
ITC Ltd
Just Dial Ltd
Sun Pharma Advanced Research Company Ltd
Tata Coffee Ltd
Now what to expect next??
Nifty Future Levels
We clearly indicated above 8520 nifty could touch 8600—8650, it made high of 8606.
Now what to expect??
Support at 8450 and resistance at 8650
Weekly close above 8650 will take it to 8720--8750 and then to 8800+ mark in days, else could touch its support level of 8450.
Looks weak only below 8450.00
Trade with levels only.
Bank Nifty Future Levels
We clearly indicated Bank nifty looks positive above 19300. If flared and made high of 19486.65.
Now what to expect?
Above 19300… rally likely to remain continue till 19500—19800 and then to 20000+ mark else could touch its support level of 19000 again.
19000 act as a major support.
Trade with levels only.
Today's Top Pick
Apollo Hospital
Support at 1180 and Resistance at 1230
Break and sustain above 1230 will take it to 1260--1285 and then to 1300+ mark else could test its support level of 1180
Looks weak on weekly close below 1180
