Nifty 8273/Sensex 26878/ Bank Nifty 18115
44 Advances /7 Declines/ 0 Unchanged
Firm global cues lift Indian benchmarks; Nifty reclaims 8,250 mark
After remaining in a consolidation mood for last two trading sessions, Indian benchmark indices showed dramatically up-move on Thursday, as trading sentiments turned bullish after US Fed minutes suggested a less hawkish stance from policymakers. Also underpinning the cautious streak of optimism has been a steady stream of upbeat factory and service sector surveys out of the US, Europe and Asia this week, prompting some banks to raise their global growth forecasts for 2017.
On the domestic front, sentiments remained optimistic with the private report indicating that the government is expected to meet the fiscal deficit target of 3.5% of GDP in the current financial year, despite recent demonetisation move and potential delay in roll out of the Goods and Services Tax (GST). Fiscal deficit has been pegged at Rs 5.33 lakh crore, or 3.5% of GDP, in 2016-17.
Some support also came with Finance Minister Arun Jaitley expressing confidence that direct and indirect tax mop-up will surpass Budget estimate of Rs 16.3 lakh crore by March-end. Jaitley had in his Budget for 2016-17 fiscal put gross tax revenue estimates at Rs 16.3 lakh crore, about 11 percent higher than gross tax receipts of Rs 14.5 lakh crore for the previous fiscal. Indirect tax collections till November had shown a 26.2 percent jump to Rs 5.52 lakh crore when compared with a year ago collections.
Going forward, market would be driven by corporate earnings, with Tata Consultancy Services (TCS) and Infosys scheduled to post their quarterly results on January 12 and January 13, respectively. the country is also gearing up to its annual budget, and investors hope the government would keep spending under control and promote growth after its move to ban higher-value banknotes paralysed large parts of the economy.
On the global front, Asian markets ended the session on firm note on Thursday, buoyed by further gains on Wall Street and an overnight bounce in oil prices that bolstered energy and resource shares. Investors digested minutes from the Federal Reserve's December meeting released overnight, which indicated that the Fed's decision to raise interest rates by a quarter point was partly due to an assumption of more expansionary fiscal policy under President-elect Donald Trump. Chinese shares ended higher after a private survey showed growth in China's services sector accelerated to a 17-month high in December, adding to recent signs of stability in the world's second-largest economy. However, Japanese shares edged lower, hit by a stronger yen and some profit booking after the previous session's strong rally.
Back home, after getting a gap up start, the local benchmarks extended their gains in late morning session, tracking firm trade in other regional markets. Thereafter, the indices extended their northward journey and touched the day’s high in final hour of the trade.
FII Activity (5 January 2017)
The FIIs as per Thursday’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 3544.24 crore against gross sell of Rs 4226.17 crore. Thus, FIIs stood as net sellers of Rs 681.93 crore in equities.
In the debt segment, the gross purchase was of Rs 963.55 crore with gross sales of Rs 1440.27 crore. Thus, FIIs stood as net sellers of Rs 476.72 crore in debt.
Now what to expect??
Nifty Future Levels
Minted money in Nifty future or not???
Unable to breach it's support and bounced back sharply.
Now what to expect???
Nifty future has support at 8180 and resistance at 8290—8320
Weekly close above 8320 will take it to 8380—8450+ mark else could test its support level of 8180.
Fresh selling can be initiated below 8180
Trade with levels only.
Bank Nifty Future Levels
Support at 17800 and resistance at 18300---18400.
Looks positive and could test its resistance level of 18300—18400. Weekly close above 18400 will take it to 18800---19050+ mark in days to come.
Support intact at 17800
Today's Top Pick
Havells
Hope you all minted money in Havells. Clearly indicated to buy around 350 mark.
Now what to expect???
Support at 345 and Resistance 362
Weekly close above 362 will take it to 370—383 and then to 400+ mark in days to come else it could test its support level of 345 again.
Further downside panic will see below 345 only
Trade with levels only.
More will update soon!!
