Nifty 8896/Sensex 28812/ Bank Nifty 20613
08 Advances / 43 Declines/ 0 Unchanged
Indian benchmarks snap 6-Day winning streak: Nifty slips below 8900 mark
Indian benchmark indices snapped its 6-day winning streak on Monday as market participants remained cautious ahead of the US president Donald Trump's speech to a joint session of Congress on Tuesday night. On the domestic front, sentiments were undermined by the report that economic think tank National Council of Applied Economic Research (NCAER) has lowered the country's growth forecast to 6.9% for the current fiscal on account of demonetization.
According to NCAER, the growth rate would rebound to 7.3% for 2017-18. Recently, IMF lowered GDP growth forecast to 6.6% due to the strains that have emerged in the economy as a result of ‘temporary disruptions’ caused by demonetisation. Furthermore, Investors turned jittery with a private survey stating that the full impact of the government's decision to demonetise high denomination currency in November is likely to show up in the December quarter's GDP growth number that comes out Tuesday.
It expects the GDP growth for the quarter ended December 31, to be in the range of 5.5 to 6.5 percent. However, the downside remained capped by gains in index heavyweight Reliance Industries, which surged to eigth-year high on continued hopes about its telecom unit Reliance Jio. In past four trading sessions, the stock jumped 17% from Rs 1,074 on February 20, after Reliance Jio Infocomm (RJio), a subsidiary of RIL, announced that its tariff plans will become applicable from April 1, 2017.
Some support also came with the report that Foreign Direct Investment (FDI) in India grew 18% during 2016 to touch $46 billion. The main sectors, which attracted the highest foreign inflows, include services, telecom, trading, computer hardware & software and automobile.
On the global front, Asian markets ended mostly lower on Monday as investors looked ahead to US President Donald Trump's speech to Congress this week for details of promised tax cuts and infrastructure spending. Also upcoming are public comments from various Fed officials in the coming weeks, and some significant economic data that could provide insights into the likelihood of an interest-rate increase in March. The February employment report - which usually comes out on the first Friday of the month - has been pushed back to March 10.
Japan led the declines amid a rising yen, which has pushed to the high end of its six-week trading range with the dollar at ¥112. Meanwhile, most of the European market rose in early trading, tracking another set of record highs for Wall Street’s main equities gauges. US equity futures are pointing to further gains after a late rally on Friday pushed the S&P 500 up 0.2%, while the blue-chip Dow Jones Industrial Average gained 0.1%.
Back home, after getting cautious start, the local benchmarks slipped into lower level in late morning session, tracking weak trade in other regional markets. Thereafter, the indices traded in tight range for most part of the session, but witnessed sharp selling in frontline blue-chip stocks in final hour of trade.
FII Activity (27th 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 9747.78 crore against gross selling of Rs 9059.76 crore. Thus, FIIs stood as net buyers of Rs 688.02 crore in equities.
In the debt segment, the gross purchase was of Rs 696.74 crore with gross sales of Rs 674.06 crore. Thus, FIIs stood as net buyers of Rs 22.68 crore in debt.
Now what to expect next??
Nifty Future Levels
Support at 8870 and Resistance at 8980—9050
Break and sustain below 8870 will take it to till 8830---8780 and then to 8720 mark, else could touch its resistance level of 8980—9050 again.
Further upside rally will see on close above 9050.
Bank Nifty Future Levels
Below 20750 will see panic till 20400---20250 mark.
Looks positive only above 21025 only.
Trade in a range with levels only.
Today's Top Pick
Ajanta Pharam
Support at 1700 and Resistance at 1750
Break and sustain above 1750 will take it to 1830—1880 and then to 1920+ mark else could touch its support level of 1695
Looks weak only close below 1695 mark.
More will update soon!!
