Nifty 8641/Sensex 27882/ Bank Nifty 19708
32 Advances / 18 Declines/ 1 Unchanged
Indian benchmarks extend gains for fourth straight session; Nifty settles at 3-month high
Indian equity indices staged a decent performance on the last day of the week by gaining around half percent in the session. Wednesday’s optimism got spilled over into the Friday’s session helping the frontline indices in extending the winning momentum for fourth successive session as investors remain optimistic ahead of the Union Budget next week.
Besides, better than expected corporate earnings also aided the sentiments. Investors remained optimistic after Finance Minister Arun Jaitley put up a spirited defence of demonetisation, saying the drive 'shook' the financial system for a short while, but will integrate the shadow economy with the formal in the long run and ensure better tax compliance. He also said most contentious issues regarding the Goods and Services Tax (GST) have been sorted out between the Centre and states and the new indirect tax regime is at the final stages of implementation. Furthermore, market participants got some comfort with the report indicating that money in circulation is rising again in India post-demonetisation period and at the current rate, currency-to-GDP ratio will reach about 9 per cent by March -- sufficient to stabilise economic activity.
According to report, the negative effects of demonetisation on growth are likely to be transitory as demand conditions are likely to re-surface after remonetisation and the economy is expected to see a V-shaped recovery. Some support also came in on report that foreign institutional investors bought shares worth Rs 1378.81 crore on January 25, 2017. However, gains remained capped with Reserve Bank of India’s (RBI) statement that business sentiments of the Indian manufacturing sector deteriorated in the third quarter of the current financial year and are likely to decline in the fourth quarter.
The survey, which conducted between October and December, shows that businesses were less optimistic about several parameters like order books, capacity utilisation and imports. The mood around exports, however, improved reflecting a recent pick-up in export growth.
On the global front, Asian markets ended mostly lower on Friday amid a deepening rift between the U.S. and Mexico and ahead of U.S. fourth-quarter advance GDP figures on tap later in the day. Mexico's President Enrique Pena Nieto on Thursday scrapped his trip to Washington after U.S. President Donald Trump signed an executive order to move forward on construction of a physical wall between the two countries and repeated his claim for Mexico to foot the bill. While higher oil prices supported energy stocks, trading volumes were relatively thin amid holidays in China, South Korea and Taiwan for the start of Lunar New Year.
Chinese markets are closed through next Thursday. Meanwhile, European stocks edged lower, trimming a weekly gain, with banks underperforming, after UBS posted a drop in full-year profit and warned there might be some significant changes if there is a 'hard Brexit'.
Back home, the benchmark got off to an optimistic opening, shrugging the sluggish sentiments prevailing in Asian markets following mixed cues from Wall Street. The key indices soon capitalized on the momentum and touched intraday highs in late morning session but the indices failed to hold onto the highs and slipped to lower levels in afternoon session post weak European market opening and profit booking in some frontline blue-chip stocks.
FII Activity (27th January 2017)
The FIIs as per Friday’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 8879.99 crore against gross selling of Rs 7645.91 crore. Thus, FIIs stood as net buyers of Rs 1234.08 crore in equities.
In the debt segment, the gross purchase was of Rs 200.26 crore with gross sales of Rs 784.51 crore. Thus, FIIs stood as net sellers of Rs 584.25 crore in debt.
Key Results
Astra Microwave Products Ltd
Bajaj Finance Ltd
Bajaj Finserv Ltd
Dish TV India Ltd
Emami Ltd
GE T&D India Ltd
Godrej Consumer Products Ltd
Grasim Industries Ltd
Housing Development Finance Corporation Ltd
Info Edge (India) Ltd
Kitex Garments Ltd
Mahindra Lifespace Developers Ltd
Monsanto India Ltd
Motilal Oswal Financial Services Ltd
Nava Bharat Ventures Ltd
Pfizer Ltd
Sharda Cropchem Ltd
Shree Cement Ltd
Shriram City Union Finance Ltd
Tech Mahindra Ltd
V-Guard Industries Ltd
Zydus Wellness Ltd
Now what to expect??
Nifty Future Levels
Nifty future flared and made a high of 8698. We recommended positional buying in Nifty future above 8300 mark.
To know read our report on Nifty
Now what to expect??
Nifty future has resistance at 8720—8750. Further upside rally will see on close above 8750 else it could test it's support level of 8620---8550 again.
Trade with levels only.
Bank Nifty Future Levels
Above 19000 our target was 19800---20400.
Flared like anything and hit our initial target very well.
Now what to expect???
Support at 19400 and resistance at 19800—20000
Looks positive and could touch its resistance level of 19800—20000 and then to 20400.
Further upside rally will see on close above 20400 else it could touch its support level of 19400 again.
Looks weak on close below 19400
Trade with levels only.
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