Nifty 9045/Sensex 29237/ Bank Nifty 21056.90
Indian benchmarks end a disappointing day with over half a percent cut
Indian equity markets concluded the fresh week on a depressing note, tracking weak global cues as US President Donald Trump's failure on healthcare reform, raised questions about his ability to push through tax cuts and fiscal spending to boost the economy. The focus also remains on Brexit-related events ahead of the British government's planned triggering of Article 50 this week.
On the domestic front, sentiments
were undermined by Skymet Weather prediction that monsoon 2017 would be below normal with error margin of plus and minus 5%. Between June and September, which is the monsoon season in India, rainfall is forecast to be at 95% of the long period average of 887 mm. About 70% of India’s rainfall happens in this period and irrigates almost half of India’s farmland, being of particular importance for Kharif crops. There is a fifty percent chance of an El Nino developing in the second half of the monsoon season, which translates into deficit rainfall in the months of July. Although expectations about roll out of the Goods and Services Tax from July 1, 2017 appear to be limiting the market's downside, the mood is quite cautious with investors looking ahead to the reporting season that is just a few sessions away.
Meanwhile, aviation stocks gained traction after the report that India has become the third largest aviation market in terms of domestic passenger traffic.
India’s domestic air passenger traffic stood at 100 million in 2016 and was behind only the US (719 million) and China (436 million). Further, PSU Bank gained as Finance Minister Arun Jaitley last week said that the government, in tandem with the RBI, is working on a radical proposal to resolve the issue of bad loans in the banking system.
On the global front, Asian equity markets ended mostly lower on Monday as cautiousness prevailed among investors with lingering doubts about the future policy agenda of the new U.S. administration following the health care reform failure. President Donald Trump suffered a stunning political setback in a Congress controlled by his own party when Republican leaders pulled legislation to overhaul the US healthcare system, a major 2016 election campaign promise of the president and his allies. Further, Japan's Nikkei edged lower as the yen rebounded in the face of renewed US dollar weakness. In South Korea, the Kospi declined after South Korean prosecutors said they will seek a detention warrant for ousted President Park Geun-hye, who has been accused of taking bribes from big businesses. Meanwhile, European shares fell in early deals, hit by losses among miners and banks.
Back home, the local benchmarks got off to a somber opening as pessimistic sentiments prevailed across Asian markets. The selling pressure accentuated in the noon trades as investors took to across the board risk aversion post weak opening of European markets. However, late short covering in blue-chip stocks ensured that local bourses go home with relatively small losse.
FII Activities 27 March 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 5359.81 crore against gross selling of Rs 4776.19 crore. Thus, FIIs stood as net buyers of Rs 583.62 crore in equities.
In the debt segment, the gross purchase was of Rs 1472.39 crore with gross sales of Rs 557.66 crore. Thus, FIIs stood as net buyers of Rs 914.73 crore in debt.
Now what to expect next??
Nifty and Bank Nifty Levels
Nifty has support 8980 and resistance 9170--9248 while Bank Nifty has support at 20700 and resistance at 21500.
Trade in range with levels only and wait for confirmation. Either side break or close with volume will decide further.
Today's Top Pick
Mannapuram Finance
Support at 95.50 and Resistance at 100
Break and sustain above 100 will take it to 106--108 and then to 112 + mark in days to come.
Looks weak only below 95.50
More will update soon!!
