Nifty 9087/Sensex 29442/ Bank Nifty 21102
44 Advances / 7 Declines/ 0 Unchanged
Indian benchmarks stage a remarkable rally; Sensex rallies around 500 pts
Indian benchmark equity indices staged a blockbuster performance on the first day of the new week by vivaciously rallying over one and half percent in the session and conquering their important psychological levels. Investors continued to build hefty positions across the board as sentiments got a boost from BJP’s stunning victory in Uttar Pradesh assembly elections, which gives it room for adding more representatives in the Rajya Sabha.
On Saturday, the BJP won an unexpected 312 out of 403 seats in the assembly elections of the India’s largest state, raising expectations of continued political stability, smooth implementation of a proposed goods and services tax and reforms in areas such as labour laws and land acquisition.
Furthermore, Investors’ morale also remained upbeat as Industrial production bounced back into expansion in January, kicking off the financial year’s last quarter on a positive note albeit amid expectations that it will bear the brunt of demonetisation. The index of industrial production (IIP) rose 2.7% in January from a year ago, the second fastest monthly growth this financial year behind 5.7% recorded in November 2016.
Some support also came with the report that India's foreign exchange reserves rose $1.2 billion to reach $364 billion as on February 17, 2017.
Buoyed by a strong domestic market and a stable Rupee, the central bank has been buying foreign currency in order to strengthen its foreign exchange reserves.
However, markets participant didn’t give any response to wholesale price index-based inflation (WPI), which jumped to a 39-month high of 6.55% in February compared to 5.25% in the previous month on the back of expensive food and fuel items, even as manufacturing products saw a decline in inflation. The data justifies the Reserve Bank of India's caution on loose monetary stance amid expected increase in interest rates in the United States in the next few days.
On the global front, Asian stock markets ended mostly higher on Tuesday, as investors awaited the outcome of the Federal Reserve's meeting, and a batch of economic and political events later this week. Further, Chinese shares ended on a flat note even as a slew of economic reports suggested that the world's second-largest economy remained strong at the start of 2017. Chinese factory output and fixed-asset investment figures for the first two months of the year exceeded estimates, but annual growth in retail sales slowed during the period. However, Japanese shares fell from a 15-month high as the dollar fell against the yen ahead of this week's BoJ and Federal Reserve monetary policy meetings.
The Fed is widely expected to increase interest rates at the end of its two-day policy meeting on Wednesday, while the Bank of Japan is expected to keep its rates and yield-curve policy steady when it reviews its monetary policy on Thursday. Meanwhile, European markets declined in early trade, as investors step back before this week’s Dutch election and developments from the U.K. moves closer calling the start of the Brexit process.
Back home, after getting a gap up start, the local benchmarks maintained their early gains throughout the session and ended the first day of new week on promising note.
FII Activity (14th March 2017)
The FIIs as per Tuesday’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 4717.37 crore against gross selling of Rs 4373.39 crore. Thus, FIIs stood as net buyers of Rs 343.98 crore in equities.
In the debt segment, the gross purchase was of Rs 1056.00 crore with gross sales of Rs 718.76 crore.
Thus, FIIs stood as net buyers of Rs 337.24 crore in debt.
Now what to expect next??
Nifty Future Levels
Support at 8980 and Resistance at 9218---9248.
Looks positive and could touch its resistance level of 9218—9248 else could touch its support level of 8980 again.
Fresh selling can be initiated below 8980
Bank Nifty Future Levels
Support at 21000 and resistance at 21500
Break and sustain above 21500 will see upside in it, else could touch its support level of 21000 again.
Looks weak below 21000
Today's Top Pick
Tata Power
Above 84 rally remain continue till 87—90 and then to 95 ++mark in days to come.
Support and stop loss below 81.50
More will update soon!!
