Nifty 9143/ Sensex 29,409/ Bank Nifty 21391
28 Advances / 21 Declines/ 2 Unchanged
Markets to get a positive start on penultimate session of F&O expiry
After trading in tight range for most part of the session, the Indian equity benchmarks have snapped the day with about half a percent gains. Sentiments remained upbeat with Finance Minister Arun Jaitley terming the GST bill revolutionary and hoping all the political parties would pass the related bills through consensus in the current session of Parliament. Allaying apprehension of spike in prices of goods and commodities after the roll out of the GST, Jaitley said the tax rates will be kept at the current levels so as not to have any inflationary impact. Further, the rupee strengthened to a 17-month high of 64.95 against the dollar, which also helped improve the risk appetite. Adding optimism among investors, Minister of State for Planning Rao Inderjit Singh said that long-term strategic plans are being prepared for overall development of the country and consultations with states and other stakeholders have been completed with respect to these proposed initiatives. Some support also came with the report that foreign portfolio investors (FPIs) bought shares worth a net Rs 6415.38 crore on March 28, 2017. However, gains remained capped with the report that Reserve Bank of India is likely to keep policy rates on hold this year but there are risks tilted towards a hike in 2018. According to the report, inflation is likely to remain within the RBI's target range of 2-6%, but India is still some time away from bringing inflation to its 4% target sustainably. Meanwhile, shares of major automobile majors took a hit as investors turned cautious of the Supreme Court's verdict on BS-III vehicles. A bench of justices Madan B Lokur and Deepak Gupta said that health of millions of citizens was more important that commercial interests of manufacturers and directed the government not allow registration of polluting BS-III vehicles after March 31.
On the global front, Asian equity markets ended mostly higher on Wednesday, as investors remained cheerful after Wall Street steadied overnight as data showed US consumer confidence soaring to a more than 16-year high. US consumer confidence surged amid growing labour market optimism, while the trade deficit in goods narrowed sharply in February. Some support also came as oil extended overnight gains, buoyed by disruptions to Libyan crude production and a more positive OPEC attitude towards extending production cuts. However, investors remained cautious as British Prime Minister Theresa May signed a letter on Tuesday to European Council President Donald Tusk notifying the European Union of Britain's intention to leave the bloc. The letter is due to be delivered to Brussels later on Wednesday, triggering years of uncertain negotiations that will test the endurance of the European Union. Japanese shares closed higher as gains in energy stocks were offset by losses in the banking and realty sectors. However, Chinese shares fell slightly amid concerns about liquidity and tighter regulation to curb speculation in the housing market.
Back home, after getting a firm start, the local benchmarks soon gathered momentum and traded with around quarter a percent gains through the morning session. Second half of the session saw the key indices capitalize on the momentum further and spurt to session's highest levels in dying hour. Finally, the NSE's 50-share broadly followed index Nifty, got buttressed by around half a percent to settle above the crucial 9,100 support level, while Bombay Stock Exchange's Sensitive Index- Sensex accumulated over one hundred and twenty points and closed above the psychological 29,500 mark. The market breadth remained pessimistic, as there were 1182 shares on the gaining side against 1669 shares on the losing side, while 237 shares remained unchanged.
FII’s Activity 29-March-17
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??
Nifty Levels
Support at 9050 and Resistance at 9155.
Above 9155 will see upside rally till 9218---9248 mark. More and more upside rally will see only weekly close above 9248 else it could test its support level of 9050 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 21000 and resistance at 21500.
Trend looks positive and could touch its resistance level of 21500. Weekly close above 21500 will see more upside rally in it.
Support and stop loss below 21000.
Today's Top Pick
Sundram Fasteners
Support at 383 and resistance at 391
Trend Looks positive and could touch its resistance level of 391. Break and sustain above 391 will take to 400—405+++ mark.
Looks weak below 383 mark.
More will update soon...
