Nifty 9,105/Sensex 29,319 / Bank Nifty 21,671
13 Advances / 38 Declines/ 0 Unchanged
Indian equity indices fail to maintain gains; settle with moderate cuts
Indian equity markets showed a volte-face on Tuesday as what started on a promising note ended as a dismal show. The optimism in local markets petered out completely by the end of trade and the indices even drifted in to the negative territory despite getting off to a gap-up opening. Market men were optimistic for most part of the morning session as World Bank in its report said that Indian economy will claw back to 7.2 percent growth this financial year and rise further to 7.5 percent in 2018-19. It also said that timely and smooth implementation of the GST could prove to a significant benefit to economic activity. However, sentiments got spooked in early afternoon trades following the sell-off in European markets as British Prime Minister May called a snap election for June 8, 2017. The shock announcement comes nearly one month after the UK triggered Article 50 to leave the European Union. Besides, profit booking in Realty and Metal counters exerted downside pressure on the frontline indices and dragged them even below to the psychological 9,150 (Nifty) and 29,400 (Sensex) levels. Sentiments wakened further after Indian Meteorological Department (IMD) released its prediction for this year's monsoon and said that monsoon rainfall may be 96% of the normal with an error margin of 5% on either side. IMD also said that there is more than 50% chance of El-Nino developing from August. Monsoon predictions are considered to be vital for Indian economy as agriculture still largely is dependent on the weather phenomenon.
On the global front, Asian equity markets ended on a mixed note on Tuesday as tensions over the situation on the Korean Peninsula softened somewhat following U.S. Vice President Mike Pence's departure from South Korea for Japan. Chinese market ended lower amid worries over increasing regulation and the sustainability of the country's economic growth. Stronger than expected first quarter GDP and March economic data on Monday failed to impress investors, who fear momentum will begin to fade in coming months. Meanwhile, European stocks were in selloff mode in early trade, with commodity shares struggling and investors nervous ahead of the first round of voting in France's presidential election on Sunday. U.K. stocks contributed to the slide, holding to losses following news of an unscheduled statement to be made by U.K. Prime Minister Theresa May.
Back home, the benchmark got off to a positive start in the morning trade as investors were largely influenced by the supportive leads from Asian markets. Thereafter, the indices climbed to intraday highs in late morning session and traded around the psychological 29,700 (Sensex) and 9,200 (Nifty) levels through the morning trades. But the optimism soon started showing signs of easing in late hours of trade and profit booking in few sectors amid drifting European markets weighed down the local bourses by the end of session. Eventually, the NSE's 50-share broadly followed index - Nifty plunged by over quarter percent to settle just above the crucial 9,100 support level, while Bombay Stock Exchange's Sensitive Index - Sensex took ninety-four points cut and closed above the psychological 29,300 mark.
Moreover, the broader markets succumbed to the selling pressure despite showing positive moves early on and settled with large cuts of over half a percent. The market breadth remained pessimistic, as there were 1112 shares on the gaining side against 1771 shares on the losing side, while 143 shares remained unchanged.
Finally, the BSE Sensex decreased 94.56 points or 0.32% to 29319.10, while the CNX Nifty was down by 34.15 points or 0.37% to 9,105.15.
FII’s Activity 18-April-17
The FIIs as per Tuesday’s data were net sellers in equity segment, while they were net buyers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 1960.91 crore against gross selling of Rs 2028.18 crore. Thus, FIIs stood as net sellers of Rs 67.27 crore in equities.
In the debt segment, the gross purchase was of Rs 1898.45 crore with gross sales of Rs 418.41 crore. Thus, FIIs stood as net buyers of Rs 1480.04 crore in debt.
Nifty Levels
Support at 9100 and Resistance at 9191—9218.
Below 9100 will see downside correction till 9080--9000 mark else we will see sharp upside rally in it.
Bank Nifty Levels
Support at 21400 and resistance at 21920
Trend Looks weak and could touch its support level of 21400. Close below 21400 will see downside correction in it else could touch its resistance level of 21920 again.
Trade in a range with levels only.
Top Pick
Chambal Fertilisers
Support at 82 and Resistance at 86
Above 86 will see upside rally till 91---97+++ mark.
Looks weak only if close below 82
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