Nifty 8801/Sensex 28439/ Bank Nifty 20371.
33 Advances / 18 Declines/ 1 Unchanged
Indian benchmarks extend uptrend; Nifty ends above 8800 mark
It turned out to be a stable day for the Indian equity indices, which sustained sanguinity for the fourth successive session and climbed well over half a percent on Monday on hopes of a rate cut by the Reserve Bank of India at its policy meet scheduled on Wednesday, and increased inflows by foreign funds. Slowing inflation and a fiscally responsible budget may sway the Reserve Bank of India (RBI) to cut interest rates this week. Further, after four months of selling frenzy, overseas investors turned net buyers in February and pumped in over Rs 2,300 crore in the capital market over the last three sessions, enthused by clarity on FPI taxation. The latest inflow followed a net pullout of Rs 80,310 crore from equity and debt together in the past four months (October-January). Prior to that, FPIs had invested over Rs 20,000 +crore in the capital market. Besides, firm global cues coupled with the appreciation in rupee value against the dollar added to the optimistic sentiments.
Investors’ morale remained upbeat with Economic Affairs Secretary Shaktikanta Das’ statement expressing confidence that the economy will grow upwards of 7 per cent next fiscal. He reiterated that there will be transient impact of demonetisation on the economy, but it will not spill over to the next fiscal. The Economic Affairs Secretary taking a dig at global rating agencies for failing to upgrade India's sovereign rating despite significant improvement in macroeconomic parameters, has said the agencies are several steps behind from reality and are missing out on something which only they can best explain.
Meanwhile, Realty stocks extended their gains for the fourth consecutive sessions after finance minister Arun Jaitley accorded infrastructure status to affordable housing in Budget 2017 to encourage investment in the segment and offered tax sops for developers sitting on completed unsold inventories. Further, Auto stocks gained traction on Union Minister Nitin Gadkari’s statement that government is keen on implementing vehicle policy that aims at scrapping 15-year old commercial vehicles in the first phase and it will send the proposal to GST Council after Cabinet nod.
On the global front, Asian markets ended higher on Monday, cheered by the rise on Wall Street after President Donald Trump moved to scale back regulations on the financial industry last week. Solid US jobs data, higher oil prices on fears of new US sanctions against Iran and expectations that the Federal Reserve will refrain from raising interest rates next month, also supported regional sentiment. Furthermore, Chinese stocks ended higher, even as a private business survey showed growth in China's services sector lost momentum at the start of 2017. The Caixin China General Services Business Activity Index fell to 53.1 in January from December's 17-month high of 53.4.
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 key indices capitalized on the momentum and touched intraday highs in noon session but the indices failed to hold onto the highs and receded to intraday lows in mid afternoon trades. Yet, final hour buying ensured that the key indices do not shut shops way below the intraday highs.
FII Activity (6th Feb 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 5376.17 crore against gross selling of Rs 4772.35 crore. Thus, FIIs stood as net buyers of Rs 603.82 crore in equities.
In the debt segment, the gross purchase was of Rs 729.92 crore with gross sales of Rs 537.85 crore. Thus, FIIs stood as net buyers of Rs 192.07 crore in debt.
Key Results
Bayer CropScience Ltd
BF Utilities Ltd
Bharat Heavy Electricals Ltd
Blue Dart Express Ltd
CEAT Ltd
Cera Sanitaryware Ltd
Dhanuka Agritech Ltd
EID Parry (India) Ltd
Gati Ltd
Gillette India Ltd
Gujarat Mineral Development Corporation Ltd
Hexaware Technologies Ltd
IDBI Bank Ltd
Jubilant Life Sciences Ltd
Mangalore Refinery And Petrochemicals Ltd
Minda Industries Ltd
NHPC Ltd
Procter & Gamble Hygiene and Health Care Ltd
Punjab National Bank
Rajesh Exports Ltd
Ramco Systems Ltd
Tata Steel Ltd
The Ramco Cements Ltd
Titan Company Ltd
Now what to expect??
Nifty Future Levels
Support at 8680 and Resistance at 8850
Three consecutive close + weekly close above 8850 will take it to 8980—9050 and then to 9200+ in days to come else could touch its support level of 8680 again
Looks weak below 8680.
Bank Nifty Future Levels
We recommended buying in bank nifty above 19900. It flared and made high of 20504. We booked full profit around 20400
Now what to expect???
Support at 19900 and Resistance at 20650.
Looks positive and could touch its resistance level of 20650. Further upside rally will see only close above 20650 else it could touch its support level of 19900 again.
Looks weak only below 19900 mark.
Trade with levels only.
More will update soon!!
