Nifty 8879/Sensex 28661/ Bank Nifty 20667
35 Advances / 16 Declines/ 0 Unchanged
Indian benchmarks kickoff the week on a sanguine note
Indian stock markets finished the first day of F&O expiry week on an optimistic note, with Sensex gaining over half a percept, while Nifty closed above 8850 mark. Investors continued to build hefty positions across the board as sentiments got a boost after the report that GST Council on Saturday approved a law to compensate states for any loss of revenue from the implementation of the new national sales tax but deferred approval for enabling laws to the next meeting.
The council will meet again on March 4 and 5 to approve the legally vetted draft of the supporting legislations for Central GST (C-GST) and Integrated GST (I- GST), days before the start of the second leg of the Budget Session. Some support also came with the report that overseas investment in India is likely to surge to a record in the year ending March despite temporary growth hiccups ascribed to the currency swap programme. India’s FDI in the April-December period rose 22% to $35.8 billion from the year earlier. With three months to go for the fiscal year end, the government expects fresh inflows into equity to top the $40 billion India got in FY16.
Meanwhile, stocks related to Sugar sector remained in focus after the report that India's sugar deficit increased to 15% as on February 15, from 10% on January 31, as sugarcane crushing season in Karnataka has almost come to an end, while that of Maharashtra is at its fag end. Furthermore, some banking stocks came into lime light on the report that once the Insolvency and Bankruptcy Bill is passed, the sale of bad loans to asset reconstruction companies (ARCs) could improve substantially to 30-35% of the loans put on the block by banks and financial institutions from the current 10-15%.
On the global front, Asian markets ended mostly in green on Monday, though traders remained cautious ahead of key US Federal Reserve events, including minutes of the last policy meeting and speeches by five heads of Fed regional banks. Chinese shares ended higher after reports that pension funds are entering the stock market. Investor sentiment boosted after China's securities regulator unveiled new rules on Friday restricting excessive and frequent fundraising by some listed companies. Further Japanese shares eked out small gains in a choppy session marked by low volumes as investors stayed on the sidelines with the US markets closed for a holiday. Meanwhile, European stocks edged higher, as higher commodity prices and optimism about U.S. President Donald Trump's promised tax and regulation cuts helped outweigh French election worries.
Back home, the local benchmarks got off to a soft start as the indices showed signs of consolidation in early trade amid political uncertainty infecting markets across the Asia. But the frontline indices slowly but steadily started gathering steam and surged by quarter percent by late morning trades. The bourses further capitalized on the momentum and spurted in afternoon trades on the back of broad based bottom fishing in undervalued stocks.
FII Activity (20th 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 13274.72 crore against gross selling of Rs 5215.43 crore. Thus, FIIs stood as net buyers of Rs 8059.29 crore in equities.
In the debt segment, the gross purchase was of Rs 487.71 crore with gross sales of Rs 437.32 crore. Thus, FIIs stood as net buyers of Rs 50.39 crore in debt.
Key Results
Castrol India Ltd
ITD Cementation India Ltd
Now what to expect next??
Nifty Future Levels
Above 8850 rally remain continue till 8980---9050 mark, further upside rally will see on close above 9050.
Looks weak only on close below 8720 only.
Bank Nifty Future Levels
Support at 20200---19900 and resistance at 20650---20900.
Traders can trade in a range with strict stop loss and wait for confirmation.
Today's Top Pick
Hindzinc
Support at 300 and Resistance at 307
Break and sustain above 307 will take it to 315---320 and then to 330+ mark else could touch its support level of 300.
Looks weak only if close below 300
More will update soon!!
