Nifty 8934/Sensex 28946/ Bank Nifty 20727
22 Advances / 29 Declines/ 0 Unchanged
SGX NIFTY – Hit All Time high 9198.00
With the poll results out for the five states, the market is expected to continue its upward march on the back of the strong mandate that the BJP has got in the politically crucial and sensitive state of Uttar Pradesh. The poll results were being keenly watched as a strong vote for the BJP is expected to give fillip to the ongoing policy reforms.
“The stock market rejoice on Monday with almost 250 points rally on the SGX Nifty, and likely to continue on Tuesday. This firmly puts the central government’s focus back on the reform path, which will enthuse market. This assumes significance as the GST Council is scheduled to meet on March 16. The last meet held on March 5 gave in-principle approval to two key draft laws.
This week would also see the listing of Music Broadcast, the company that runs Radio City. The company saw a huge interest from investors that led to the public issue getting subscribed close to 40 times. The segment reserved for high networth individuals was subscribed 110 times while that for institutional investors was subscribed 40 times.
While the shares of Avenue Supermarts, which manages the D Mart chain of supermarkets, will be listed on March 21, the week could see investor interest in shares of retail chains and even FMCG companies that see a large chunk of their sales through such modern retail stores.
The initial public offer of Avenue Supermarts was subscribed close to 105 times.
Eye on U.S. rates
The week would also see the U.S. Federal Reserve meeting on this week to decide on increasing interest rates. Interestingly, mortgage rates in U.S., especially those for 30-year home loans, have already risen to their highest level this year ahead of the Fed meeting. The markets also stand to gain from the bullish stance of overseas investors that have turned net buyers in the equity market. Incidentally, the Fed decision could also impact foreign liquidity in all emerging markets, including India.
Data shows that foreign portfolio investors (FPIs) have been net buyers at ₹9,629 crore in March after pumping in ₹9,902 crore in February. Meanwhile, domestic institutional investors (DIIs), that include banks and insurance companies, sold shares worth more than ₹4,000 crore in the previous week.
FII Activity (10th March 2017)
The FIIs as per Friday’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 5792.62 crore against gross selling of Rs 3855.46 crore. Thus, FIIs stood as net buyers of Rs 1937.16 crore in equities.
In the debt segment, the gross purchase was of Rs 755.56 crore with gross sales of Rs 652.67 crore. Thus, FIIs stood as net buyers of Rs 102.89 crore in debt.
Now what to expect ??
Nifty Future Levels
We will expect gap up opening today. Hurdle and target intact at 9218---9248.
Today's Top Pick
Tata Steel
Tata Steel
Tata Steel tumbled over 5 percent last week. The trend looks negative. Major supports are at ₹460-- ₹450. If unable to breach its support level of ₹460-- ₹450 then it can touch its resistance level of ₹500 again. Break and sustain above ₹500 will take it to ₹540-₹550, which act as a crucial long-term resistance zone.
Else if Tata Steel breaks below ₹450, it can touch ₹435-₹430. Further downside panic will see below ₹430 which is unlikely to breach in near term.
A strong trendline support is present around ₹415. which is likely to halt the fall. As such, an upward reversal is more likely thereafter.
More will update soon!!
