Nifty 8939/Sensex 28892/ Bank Nifty 20876
23 Advances / 28 Declines/ 0 Unchanged
Benchmarks extends gain for sixth consecutive session
Indian equity indices continued their northward journey for sixth consecutive day and ended the last trading session of the week with marginal gains. Sentiments got some support with International Monetary Fund (IMF) assessment report that the adoption of the GST could help raise India's medium-term GDP growth to over eight per cent and create a single national market for enhancing the efficiency of the movement of goods and services. Noting that India's tax revenue-to-GDP ratio (at around 17 and a half per cent) remains considerably below than its emerging market peers, the IMF said the implementation of a robust GST should be a key priority given its growth-enhancing effects. Adding optimism among inventors, RBI Governor Urjit Patel said faster remonetisation and return of discretionary consumer demand will push economic activity in the latter part the fiscal. Patel, during the two-day Monetary Policy Committee meeting on February 7-8, also said that shifting monetary policy stance from accommodative to neutral will provide sufficient flexibility to move the policy rate in either direction. However, upside remained capped with the SBI’s report that the growth estimate in the country’s economic output or gross domestic product (GDP) may be scaled down to less than 6% for the FY’17 as the impact of demonetisation hurt consumption and output. CSO is going to release Q3 F17 GDP estimate on February 28, 2017.
The Q3 estimates will be very critical as they cover the two-month period of demonetisation and might give the glimpses of what happened in the economy during those two months. Furthermore, investors remained cautious with report that India’s corporate debt repayment rate is abysmally low- around, only 25.7 cents to a dollar loaned (or Rs 17 on Rs 67 lent) ever returns to the lender after years of protracted recovery proceedings. Indian banks are staring at a bad-debt accumulation of Rs 6.68 lakh crore. Moreover, the existing legal and reparation infrastructure - such as debt recovery tribunals (DRTs) and SARFAESI Act - is inadequate for handling the volume of recovery cases.
On the global front, Asian markets made a mixed closing on Thursday, following their US counterparts after the Federal Open Market Committee released the minutes of its two-day meeting ended Feb. 1, where members believed it might be appropriate to lift U.S. interest-rates “fairly soon.”
Chinese stocks slipped, with realty and construction-related stocks leading declines, after reports emerged that China's financial regulators are working on new rules to rein in asset management risks. Meanwhile, European stocks ping-ponged between small gains and losses, as investors sifted through earnings reports and assessed the mixed tone on U.S. interest rates from the Federal Reserve.
Back home, after getting positive start, the key gauges capitalize on the momentum further and spurt to session’s highest levels in afternoon session. However, the optimism started showing signs of easing in late hours of trade and profit booking in few sectors and drifting European markets weighed down the local bourses by the end of session.
FII Activity (23rd Feb 2017)
The FIIs as per Thursday’s data were net buyers in equity segment, while they were net sellers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 6454.69 crore against gross selling of Rs 6203.10 crore. Thus, FIIs stood as net buyers of Rs 251.59 crore in equities.
In the debt segment, the gross purchase was of Rs 334.75 crore with gross sales of Rs 1707.06 crore. Thus, FIIs stood as net sellers of Rs 1372.31 crore in debt.
Now what to expect??
Nifty Future Levels
Nifty unable to breach its resistance level of 8980 it made high of 8982 and slipped sharply.
Now what to expect??
Support at 8870 and Resistance at 8980—9050
Looks positive and could touch its resistance level of 8980—9050, further upside rally will see on close above 9050 mark else could touch its support level of 8870 again.
Below 8870... Will see more downside panic till 8830---8780 and then to 8720 mark.
Bank Nifty Future Levels
Support at 20700 and resistance at 21000
Break and sustain above 21000 will take to 21300---21550+++ mark else it could test it's support level of 20700 again.
Looks weak below 20700 only.
Trade in a range with levels only and wait for confirmation
More will update soon!!
