Nifty 8769/Sensex 28289/ Bank Nifty 20245
32 Advances / 19 Declines/ 0 Unchanged
Indian benchmarks end flat as RBI holds policy rate
It turned out to be a lackadaisical performance from the Indian benchmark indices on Wednesday as they snapped the session near neutral line.
Sentiments remained dismal after Reserve Bank of India (RBI) maintained status quo on interest rates in its sixth monetary policy review of financial year 2016-17. The central bank decided to change the stance from accommodative to neutral and kept the short-term lending rate, called repo rate, unchanged at 6.25%, opting to wait for more clarity on the trend for inflation. RBI has also cut the economic growth forecast to 6.9 percent for the current fiscal from 7.1 percent estimated earlier. However, inventors got some comfort with the central bank’s statement that demonetisation-induced ease in bank funding conditions has led to a sharp improvement in transmission of past policy rate reductions into marginal cost-based lending rates (MCLRs), and in turn, to lending rates for healthy borrowers, which should spur a pick-up in both consumption and investment demand.
It also said the economic activity in cash-intensive sectors such as retail trade, hotels and restaurants, and transportation, as well as in the unorganised sector, is expected to be rapidly restored. Some support also came after Economic Affairs Secretary Shaktikanta Das rejecting arguments that fiscal deficit target of 3.2 per cent is optimistic, said it is realistic and there is all possibility that revenues will exceed the target as Budget has not taken into account the demonetisation windfall. Besides, he said, there would be collection taxes next fiscal from those who fail to avail Pradhan Mantri Garib Kalyan Yojana (PMGKY).
On the global front, Asian markets ended mostly lower on Wednesday on lingering political and economic uncertainty in the United States and Europe, which sapped investors’ confidence. The political situation in France with the potential for a ‘Frexit’ as well as uncertainty about President Donald Trump's policies weighed on investors’ sentiments. However, Chinese shares closed higher, led by financial shares, even as weak forex reserves data highlighted the challenges faced by Beijing in curbing capital outflows. While China's foreign exchange reserves unexpectedly fell below the closely watched $3 trillion in January for the first time in almost six years, the fall in reserves was much smaller than in the same period of last year and December. Meanwhile, European markets rose in early trade, led by mining stocks and financials on a heavy day for regional corporate results.
Back home, after getting cautious start, the local benchmarks traded in tight range, near neutral line, for most part of the morning trade as investors remained on the safer side in the absence of any major trigger. The key gauges suffered a setback in afternoon trades as sudden bouts of profit booking emerged in the local markets after RBI kept its policy rate on hold at 6.25% for a second meeting in a row. However, the bourses recovered from the lows of the day and end the session near neutral line
FII’s Activity 08-Feb-17
The FIIs as per Wednesday’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 4393.68 crore against gross selling of Rs 4123.38 crore. Thus, FIIs stood as net buyers of Rs 270.30 crore in equities.
In the debt segment, the gross purchase was of Rs 2010.85 crore with gross sales of Rs 1302.64 crore. Thus, FIIs stood as net buyers of Rs 708.21 crore in debt.
Key Result
3M India Ltd
ABB India Ltd
Andhra Bank
Aurobindo Pharma Ltd
Bajaj Electricals Ltd
Bank of India
Bata India Ltd
Bharat Petroleum Corporation Ltd
Bliss GVS Pharma Ltd
Bombay Dyeing & Manufacturing Company Ltd
Edelweiss Financial Services Ltd
Escorts Ltd
Gujarat Fluorochemicals Ltd
HeidelbergCement India Ltd
ICRA Ltd
JK Tyre & Industries Ltd
Lupin Ltd
Magma Fincorp Ltd
NCC Ltd
NLC India Ltd
Omaxe Ltd
OnMobile Global Ltd
Page Industries Ltd
Power Grid Corporation of India Ltd
Religare Enterprises Ltd
Shipping Corporation of India Ltd
Steel Authority of India Ltd
T.V. Today Network Ltd
Torrent Power Ltd
Vardhman Textiles Ltd
Now what to expect next??
Nifty Levels
Support 8720 and resistance at 8850
Looks positive and could touch its resistance level of 8850, break and sustain above 8850 will take it to 8900—8950 and then to 9000+ mark in days to come else could touch its support level of 8720 again.
Fresh selling can be initiated below 8720 mark
Bank Nifty Levels
Bank Nifty unable to breach its support level of 19900 and bounced back sharply.
Now what to expect??
Support at 19900 and resistance at 20650
Trend still looks positive and could touch its resistance level of 20650, further upside rally will see on close above 20650 else could touch its support level of 19900
Looks weak only below 19900
Today's Top Pick
Reliance Capital (Cash)
Above 488... Catch it. We will see rally till 502---508 and then to 525+++ mark
Support and stop loss seen below 473.00
More will update soon!!
