Nifty 8879/Sensex 28743/ Bank Nifty 20607
20 Advances / 31 Declines/ 0 Unchanged
Indian benchmarks once again settle in red zone
Indian benchmark indices once again settled in the red zone on the last trading day of the month as investors stayed cautious ahead of GDP data scheduled to be released later in the day. According to private report, the second official estimate of GDP growth is likely to show the economy expanded below 7% in FY17, tripped by the November 8 demonetisation that dented the consumption demand. Sentiments weakened further with India Ratings and Research’s (Ind-Ra’s) estimates that aggregate fiscal deficit of Indian states will increase marginally to 3.3% of gross domestic product (GDP) in FY18 from its forecast of 38*/.2% for FY17. It expects states’ debt/GDP ratio may increase marginally to 24.3% in FY’18 from 24% forecasted for FY’17.
However, the downside remained capped with Finance Minister Arun Jaitley’s statement that India has potential to grow faster and plans are underway to reduce poverty and create jobs in rural areas. Adding optimism among inventors, Economic Affairs Secretary Shaktikanta Das said Goods and Services Tax (GST) will be implemented from July 1, as all states have agreed on the implementation date. The government plans to get the GST Council's approval on integrated GST (iGST), central GST (cGST) and state GST (sGST) drafts at its March 4-5 meeting before the second half of the budget session of Parliament begins on March 9. Das also said that the positive effects of demonetisation will be visible from April and the completion of remonetisation process will drive consumption going forward. Meanwhile, shares of smallcap companies were in focus with the BSE Smallcap index touched a fresh nine-year high on the BSE in intra-day trade after a sharp rally in select Tata Group companies, logistics, auto ancillary, steel and banking stocks. Tata Teleservices (Maharashtra), TRF, Tata Metaliks and Tata Sponge Iron from Tata Group have surged between 5% and 20% on the BSE.
On the global front, Asian markets ended on a mixed note on Tuesday as market participants awaited US President Donald Trump's address before a joint session of Congress tonight, where he is expected to lay out plans for pro-business policies including tax reform, health care and infrastructure spending. Besides, hawkish comments from Federal Reserve Bank of Dallas President Robert Kaplan overnight renewed market expectations for more U.S. rate increases in the coming months. However, Japanese shares ended higher despite a stronger yen and comments from BOJ Governor Haruhiko Kuroda that Japan was still distant from achieving its 2 percent inflation target. Also, Japan posted its first drop in industrial output in six months in January, as production of cars fell and the Lunar New Year holiday lowered demand from China, an important export market. Chinese shares too inched higher in thin trading after Trump said the United States attaches great importance to cooperative relations with China. Meanwhile, European markets edged higher in early trade as investors waited for details on tax reform in the U.S. and digested fresh corporate earnings.
Back home, after getting a cautious start, the local benchmarks traded on a subdued note for most part of the session and ended the day with moderate cuts. The NSE’s 50-share broadly followed index Nifty, took a cut of around quarter percent to settle below the crucial 8,900 support level, while Bombay Stock Exchange’s Sensitive Index, Sensex slipped by around seventy points and closed above the psychological 28,700 mark.
FII Activity (28th Feb 2017)
The FIIs as per Tuesday’s data were net sellers in equity segment, while they were net buyers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 5185.67 crore against gross selling of Rs 5331.00 crore. Thus, FIIs stood as net sellers of Rs 145.33 crore in equities.
In the debt segment, the gross purchase was of Rs 1014.89 crore with gross sales of Rs 355.89 crore. Thus, FIIs stood as net buyers of Rs 659.00 crore in debt.
Now what to expect??
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
Support at 20600 and resistance at 21025
Break and sustain below 20600 will take to 20400---20250 mark else it could test its resistance level of 21025 again.
Looks positive above 21025 only.
Trade in a range with levels only.
Today's Top Pick
Federal Bank
Yesterday we have seen mind blowing rally in Federal Bank.
Above 87.50…. Rally remain continue till 90---92.50 and then to 100+ mark in days to come.
Support and stop loss below 84.00
More will update soon!!
