Nifty 8190/Sensex 26633/ Bank Nifty 17891
24 Advances /27 Declines/ 0 Unchanged
Indian benchmarks end a disappointing day modestly in red
It turned out to be a disappointing performance from the Indian benchmark indices on Wednesday, as they failed to snap the session in the positive territory and settled slightly below the neutral line.
Investors turned jittery after Centre and state governments failed to reach consensus on the issue of dual control at Goods and Services Tax (GST) Council meeting. States such as Kerala and West Bengal are understood to have stuck to their stance and have sought exclusive control over businesses with an annual turnover of Rs 1.5 crore.
Market participants remained cautious over the report that indicate Fiscal impact of the recent measures announced by prime minister Narendra Modi aimed at helping economically weaker sections could be around Rs 3500 crore. Prime Minister had announced three broad schemes including interest rate sops for housing for the poor and farm loans besides financial incentives for pregnant women.
Meanwhile, metal stocks came under pressure after the process plant and Machinery Association of India, which represents the Capital Goods and Process Equipment manufacturing industry, urged the government to reduce import duty on steel to 7.5% from 12.5% to correct the inverted duty structure.
On the global front, Asian markets ended mostly higher on Wednesday, boosted by a round of factory surveys from China, the euro zone and United States that pointed to more momentum in the global economy. US factory activity accelerated to a two-year high in December, while manufacturing in the euro zone grew at its fastest pace in five years and China's factory activity was better than expected. Further, Japan's stock market edged higher on account of upbeat global economic data and the latest survey from Nikkei revealing its gauge of Japan's manufacturing activity hit a one-year high in December due to sharp rise in production as well as new orders. Meanwhile, European markets slipped into red as investors awaited flash inflation figures for the euro zone.
Back home, the local benchmarks got off to a positive start in the morning trade as investors were largely influenced by the supportive leads from Asian markets. Thereafter, the frontline indices soon gathered momentum and touched intraday highs in early hours but the optimism fizzled out sooner and the indices sea-sawed around the neutral line through the session.
FII Activity (4 January 2017)
The FIIs as per Wednesday’s data were net sellers in equity segment, while they were net buyers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 1863.97 crore against gross selling of Rs 2417.00 crore. Thus, FIIs stood as net sellers of Rs 553.03 crore in equities.
In the debt segment, the gross purchase was of Rs 2373.02 crore with gross sales of Rs 1694.13 crore. Thus, FIIs stood as net buyers of Rs 678.89 crore in debt.
Major News on Board
HCL Technologies concludes acquisition of Butler Aerospace
HCL Technologies (HCL) has concluded the acquisition of Butler America Aerospace, LLC (Butler Aerospace) with effect from January 3, 2017. Butler Aerospace is a provider of engineering, design services and aftermarket engineering services to US Aerospace and Defense customers. Butler Aerospace is a wholly owned subsidiary of Butler America LLC.Earlier in October, the company had entered into an agreement to acquire Butler Aerospace. Butler Aerospace had revenues of $85.4 million for the year ending December 31, 2015 at EBIT of 12.2%.
Technical Levels for HCL Tech
Support at 830 and Resistance at 860
Break and sustain above 860 will take it to 890—910+ mark in days to come else could tests its support level of 830.
Looks weak only close below 830.
Trade with levels.
Now what to expect??
Nifty Future Levels
Nifty continued to trade in sideways range for third consecutive session.
Now what to expect?
Nifty future has support at 8130 and resistance at 8220
Trading in range either side breakout with volumes will decide further, till then traders can trade in range with strict stop loss.
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
Jet Airways
Support at 359 and Resistance 375
Two consecutive close + weekly close above 375 will take it to 389—394 and then to 415+ mark in days to come else it could test its support level of 359 again.
Further downside panic will see only below 359 only.
