Nifty 8632/Sensex 27849/ Bank Nifty 19585
18 Advances / 33 Declines/ 0 Unchanged
Indian frontline indices end a lacklustre session with modest cut
Indian equity markets commenced the week on a sluggish note as frontline indices showcased an unenthusiastic performance on Monday and finished the session on a dull note, marginally below the neutral line, as investors at large remained reluctant to build on long positions ahead of government's Budget session, which will start tomorrow with the Economic Survey of India and Annual Budget presentation for financial year 2017-18 by the Finance Minister Arun Jaitley on Wednesday.
Sentiments remained subdued with Former Finance Minister P Chidambaram’s statement that cash crunch in the wake of demonetisation is still continuing in many places in the country even though it has eased to an extent in the metros. Broader sentiment was also hit by fears about the impact of US President Donald Trump's immigration curbs. Trump on Friday signed an executive order that suspends the arrival of refugees for at least 120 days and bars visas for travellers from seven Muslim majority countries including Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen for the next three months.
The downside risk for the frontline indices was limited by Union Finance Minister Arun Jaitley’s statement that the implementation of the Goods and Services Tax (GST), along with demonetisation will bring more revenues as far as states and the central government is concerned and enlarges the size as far as the formal economy is concerned. Giving some comfort to investors , the Central Board of Direct Taxes in clarifications on GAAR, said that the adequate procedural safeguards are in place to ensure that General Anti-Avoidance Rules (GAAR), which seeks to prevent companies from routing transactions through other countries to avoid taxes, are invoked in a uniform, fair and rational manner. Some support also came in from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs.211.77 crore on January 27, 2017.
On the global front, Asian equity markets ended in red on Monday, as investors digested lacklustre US GDP data and the US immigration ban on seven predominantly Muslim countries. The immigration curbs introduced by US President Donald Trump heightened concerns about the impact of the new administration's policies on trade and the economy. Eyes are now on the Friday release of US jobs data for January, which comes a week after figures showing US growth reached a sluggish 1.9 percent in October-December, well below the 3.5 percent in the third-quarter and below expectations. Meanwhile, European stock markets slid on Monday as traders began the week on a sour note, while Wall Street appeared headed for a weaker opening, with e-mini futures contracts on the S&P 500 stocks index down 0.2 percent.
Back home, after getting a cautious start, the local benchmarks kept losing steam and drifted to the lowest point in the session in mid-morning trades. Thereafter, the indices kept oscillating in a narrow range through the day’s trade.
FII Activity (30th January 2017)
The FIIs as per Monday’s data were net buyers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 5854.23 crore against gross selling of Rs 5626.91 crore. Thus, FIIs stood as net buyers of Rs 227.32 crore in equities.
In the debt segment, the gross purchase was of Rs 1915.25 crore with gross sales of Rs 1049.91 crore. Thus, FIIs stood as net buyers of Rs 865.34 crore in debt.
Key Results
Akzo Nobel India Ltd
Bajaj Auto Ltd
Bajaj Holdings & Investment Ltd
Bank of Maharashtra
Cadila Healthcare Ltd
Capital First Ltd
Century Plyboards (India) Ltd
Century Textiles & Industries Ltd
Dabur India Ltd
Firstsource Solutions Ltd
GHCL Ltd
HCL Infosystems Ltd
ICICI Bank Ltd
IDFC Ltd
Indian Oil Corporation Ltd
Interglobe Aviation Ltd
Jai Corp Ltd
JSW Steel Ltd
K E C International Ltd
Kansai Nerolac Paints Ltd
Kaveri Seed Company Ltd
Mahindra Holidays & Resorts India Ltd
MphasiS Ltd
Narayana Hrudayalaya Ltd
Navneet Education Ltd
Oil & Natural Gas Corpn Ltd
Oil India Ltd
Shoppers Stop Ltd
Shriram Transport Finance Company Ltd
Syndicate Bank
TTK Prestige Ltd
UCO Bank
WABCO India Ltd
Welspun India Ltd
Wonderla Holidays Ltd
Now what to expect??
Nifty Future Levels
Support at 8620---8550 and Resistance at 8720—8750
Nifty…if unable to breach its resistance level of 8720—8750 then we can see downside panic till 8620—8550.
Further downside panic will see if closes below 8550
Trade with levels only.
Bank Nifty Future Levels
Bank nifty unable to breach its resistance level of 19800—20400 and slipped.
Now what to expect?
Support at 19400 and resistance at 19800—20400
Break and sustain below 19400 will take it to 19100—18800 else could touch its resistance level of 19800—20400 again.
Trade with levels only.
Today's Top Pick
Amaraja Batteries
Support at 880 and Resistance at 925—930
Amaraja Batteries…Looks positive and could touch its resistance level of 925—930,
Break and sustain above 930 will take it to 950—970 and then to 1000+ mark in days to come else could touch its support level of 880.
Looks weak below 880.00
More will update soon!!
