Nifty 8192/Sensex 26643/ Bank Nifty 18035
28 Advances /23 Declines/ 0 Unchanged
Nifty Trades in Narrow Range
Tuesday’s trading session was clearly of consolidation as the Indian frontline equity indices appeared a bit fatigued and remained in tight range for most part of the day. Investors got some comfort after Finance Minister Arun Jaitley expressed hope that Goods and Services Tax (GST) will be implemented in 2017 and a digitised economy will be future of India. He also said that the last year was a very successful year for India as the country continued to remain the fastest economy in the world.
He further added that Indian economy will continue to be one of the fastest growing economies in 2017 as well. Some support also came with the report that Core sector output rose 4.9% in November on the back of a strong expansion in steel production and electricity generation, though the pace is down from 6.6% in October 2016, due to decline in production of crude oil and natural gas. However, the upside remained capped with report that global private equity players pulled out a record $10.3 billion of their investments in 2016 from domestic markets.
While demonetisation still dominates most of the headlines, rising crude prices could prove to be the next policy headache. India, which depends on imports to meet 80 per cent of its oil needs, will have to spend Rs 9,126 crore ($1.36 billion) more every year for one dollar per barrel increase in crude oil. Oil prices rose in the first trading day of 2017, buoyed by hopes that a deal between OPEC and non-OPEC members to cut production, which kicked in on Sunday, will be effective in draining a global supply glut.
Meanwhile, select IT companies like Infosys and Wipro were trading under pressure after Wipro Chairman Azim Premji and Infosys CEO Vishal Sikka have sent out letters to their respective employees cautioning them about serious dangers facing the world and the IT industry. Globalised industries like IT services are at risk due to the recent political and social developments pose huge risks.
On the other hand, sugar stocks gained traction on report from domestic rating agency ICRA that Sugar prices are expected to remain firm in the near term due to tight stock position following 9% decline in production and steady growth in consumption. Shares of logistics companies edged higher ahead of the GST Council meet today.
On the global front, Asian equity markets ended higher on Tuesday, with economic sentiment upbeat after better-than-expected manufacturing data from China. The Caixin manufacturing PMI for December came in at 51.9, well above the expected 50.7 and a jump from 50.9 in November. While overnight gains in European markets and higher oil prices supported underlying sentiment, trading volumes remained thin amid the New Year holidays in Tokyo and New Zealand.
Investors remained cautious over Geopolitical tension, which was stoked by a tweet from US President-elect Donald Trump warning North Korea on testing an intercontinental ballistic missile. Meanwhile, European markets edge higher, heading for a fresh one-year high after upbeat Chinese data calmed fears of a slowdown in the world’s second largest economy.
Back home, the local benchmark got off to a soft start as the indices showed signs of consolidation in early trade, as traders remain cautious ahead of the GST Council meet today. But the frontline indices slowly but steadily started gathering steam and surged by around quarter percent by late morning trades. Thereafter, the key indices oscillated in an extremely tight range through the session as market participants remained on the sidelines in the absence of any fresh triggers.
FII Activity (3 January 2017)
The FIIs as per Tuesday’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 867.26 crore against gross sell of Rs 1215.04 crore. Thus, FIIs stood as net sellers of Rs 347.78 crore in equities.
In the debt segment, the gross purchase was of Rs 49.63 crore with gross sales of Rs 54.15 crore. Thus, FIIs stood as net sellers of Rs 4.52 crore in debt.
Major News on Board
Power Grid Corporation transfers 3.06 crore shares of POSOCO to GoI
Power Grid Corporation of India (PGCIL) has transferred 3,06,40,000 equity shares of Rs 10 each of Power System Operation Corporation (POSOCO) to Government of India (GoI). This step has been taken on receipt of purchase consideration of Rs 81.21 crore.
Technical Levels for Power Grid
Support at 180 and Resistance at 190
Break and sustain above 190 will see sharp upside rally till 194—196+ mark in days to come, further upside rally will on close above 196, else could tests its support level of 180.
Fresh selling can be initiated below 180
Trade with levels.
Exide Industries inaugurates battery manufacturing unit in Haldia
Exide Industries has inaugurated its punched grid battery making unit at Haldia in West Bengal. Built in technical collaboration with East Penn Manufacturing Company of the USA, the new unit set up within Exide Industries' Haldia plant premises will use the punched grid technology to manufacture technically advanced lead acid storage batteries.
Technical Levels for Exide Industries
Support at 169 and Resistance at 185.50
Break and sustain above 185.50 will see sharp upside rally 190—195 and then to 205+ mark in days to come else could tests its support level of 169.
Looks weak below 169.00
Trade with levels.
Now what to expect??
Nifty Future Levels
Nifty unable to sustain at upper level..it made high of 8227 and slipped.
Now what to expect?
Nifty future has support at 8130 and resistance at 8220.
Close above 8220 will take to its resistance level of 8280---8320 else could test its support level of 8130 again.
Further downside panic will see only close below 8130 mark.
Trade with levels only.
Bank Nifty Future Levels
Support at 17800 and resistance at 18050---18400.
Break and sustain below 17800 will take to 17500---17200 else could test its resistance level of 18050---18250---18400 again.
Fresh buying can be initiated only above 18400 mark
Trade with levels only.
Today's Top Pick
Yes Bank
Yes Bank formed double bottom pattern on daily chart. Close above 1175 will see sharp upside rally till 1220—1250 and then to 1320 mark
Support intact at 1100.00
