Nifty 9198/ Sensex 29,706/ Bank Nifty 21431
14 Advances / 37 Declines/ 0 Unchanged
Indian markets reel under global pressure; settle with loss of over half a percent
Indian equity markets concluded the week on a daunting note with the benchmark indices suffering nasty lacerations of over half a percent in Friday's session. The frontline gauges failed to showcase any kind of resilience through the session and kept drifting to lower levels, to eventually settle around the psychological 9,200 (Nifty) and 29,700 (Sensex) levels. Market participants turned skittish after the United States launched cruise missiles against an air base in Syria, raising the risk of confrontation with Syrian backers Russia and Iran. Facing his biggest foreign policy crisis since taking office in January, Trump took the toughest direct U.S. action yet in Syria's six-year-old civil war. On the domestic front, sentiments were undermined as Reserve Bank of India (RBI) projected retail inflation to increase to 5% in the second half of the current fiscal citing risks of El Nino impacting the monsoon and one-off effects of the Goods and Services Tax. The central bank also said that a prominent risk could emanate from managing the implementation of the allowances recommended by the 7th Central Pay Commission (CPC). Investors got nervous as rupee surged to 20-month high, by extending gains to as much as 64.15 per dollar, it’s highest since August 2015. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports, while it also make the country's other major exporters less competitive. Meanwhile, telecom stocks Bharti Airtel and Idea Cellular rose after rival Reliance Jio Infocomm, a unit of Reliance Industries, withdrew its summer surprise offer to subscribers. Further, Avenue Supermarts, which runs a chain of retail stores under the D-Mart brand, rallied after rating agency CRISIL upgraded its ratings on the bank facilities of the company.
On the global front, Asian stocks ended mixed on Friday as geopolitical concerns grew after the United States launched cruise missiles against an air base in Syria. Eyes are also on Florida as Chinese President Xi Jinping and Donald Trump kicked off a two-day meeting after the US tycoon's accusations that Beijing was killing US jobs and manipulating its currency to give it a trade advantage. However, Chinese market ended higher, led by the Shanghai benchmark closing at a 15-month high, with risk appetite lifted by Beijing's decision to launch a new economic zone in Hebei province. Oil prices surged to a one-month high on concerns the military intervention could impact supplies from the Middle East. Meanwhile, European markets declined in early trade, weighed down by weakness in mining stocks as investors locked in some profits following the sector's stellar run this year.
Back home, the local indices got off to a somber opening, extending the downtrend for the second straight session as pessimistic sentiments prevailed across Asian markets. Thereafter, the key indices failed to show any kind of fervor due to lack of encouraging leads. The key gauges suffered a setback in late afternoon trades as sudden bouts of selling emerged in the local markets. Finally, the NSE's 50-share broadly followed index - Nifty plunged by over half a percent to settle below the crucial 9,200 support level, while Bombay Stock Exchange's Sensitive Index - Sensex took a triple digit cut and closed tad above the psychological 29,700 mark. The market breadth remained pessimistic, as there were 1277 shares on the gaining side against 1640 shares on the losing side, while 125 shares remained unchanged.
FII’s Activity 7th-April-17
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 5331.32 crore against gross selling of Rs 4890.95 crore. Thus, FIIs stood as net buyers of Rs 440.37 crore in equities.
In the debt segment, the gross purchase was of Rs 2185.66 crore with gross sales of Rs 786.01 crore. Thus, FIIs stood as net buyers of Rs 1399.65 crore in debt.
Now what to expect??
Nifty Levels
Support at 9080 and Resistance at 9330--9380.
Above 9250 will see upside rally till 9290 and then to 9330--9380 mark else we will see sharp downside panic in it.
Bank Nifty Levels
Support at 21400 and resistance at 21700
Trend Looks positive and could touch its resistance level of 21700. Close above 21700 will see further upside rally in it else could touch its support level of 21400 again.
Trade in a range with levels only.
More will update soon!!
