Nifty 9237/ Sensex 29,910/ Bank Nifty 21547
26 Advances / 24 Declines/ 1 Unchanged
Indian benchmarks start FY18 on optimistic note; Sensex ends above 29900 mark
After snapping the last quarter of FY17 with over eleven percent gains, Indian equity markets have started the FY18 on an optimistic note thanks to the supportive global as well as local tidings. Sentiments got some support with the report that the health of India's manufacturing sector rose to a five-month in March 2017. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose to 52.5 in March from 50.7 in February. The survey said that incoming new orders expanded at a stronger pace, thereby leading to quicker increases in production and input purchasing. Moreover, firms hired additional employees to cope with greater workloads. Investors got some comfort with the report that the India's GDP growth is expected to pick up again to 7.6 per cent next year thanks to improving consumption, timely rains, higher public sector spending and better export growth. According to the report, the ongoing reforms will strengthen the productivity part of growth and the country's GDP will benefit from India's favourable working age population growth. Some support also came with Union Minister of State for Finance Arjun Ram Meghwal's assurance that the historic tax reform Goods and Services Tax (GST) will see 100 percent implementation from July 1, 2017. He also said that the Centre is already working on ironing out any road-block and even States are co-operating. However, gains remained capped with the report that Core sector growth slowed to a 15-month low in February, led by a drop in cement output. Growth, as measured by the index of eight core industries, eased to 1 percent in February from 3.4 percent in January and 9.4 per cent a year earlier.
On the global front, Asian markets ended higher on Monday as traders eye news ahead of Chinese President Xi Jinping's visit to the U.S. Japanese shares edged higher in spite of yen strength after the latest BOJ Tankan survey of manufacturing and service companies showed an improvement in corporate sentiment in the first quarter of 2017. Further, while a private survey on China's manufacturing on Saturday came in below market expectations it still showed a healthy expansion after a similar survey by the government on Friday pointed to strong growth in the sector. The main focus for markets this week centre on U.S. payrolls figures due on Friday. Meanwhile, gains in commodity producers pushed European stocks higher after the region's equities completed a third straight quarterly advance.
Back home, the local indices got off to a positive start in the morning trade as investors were largely influenced by the supportive leads from Asian markets. Thereafter, the benchmarks slowly but steadily started gathering more steam and surged by over half a percent by noon trades. The bourses further capitalized on the momentum and spurted in late afternoon trades on the back of broad based buying in frontline blue-chip stocks. Finally, the NSE's 50-share broadly followed index Nifty, got buttressed by over half percent to settle above the crucial 9,200 support level, while Bombay Stock Exchange's Sensitive Index-Sensex accumulated around three hundred points and closed above the psychological 29,900 mark. On the BSE sectoral space, buying was evident across the board and investors piled up hefty positions in Capital Goods counter, which rocketed by over three percent, while the Industrials, Energy and Healthcare pockets too gained from strength to strength and climbed by over a percent each. However, IT, Teck and Telecom indices closed with moderate losses. The market breadth remained optimistic, as there were 2080 shares on the gaining side against 793 shares on the losing side, while 161 shares remained unchanged.
FII’s Activity 3rd-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 12232.93 crore against gross selling of Rs 11790.15 crore. Thus, FIIs stood as net buyers of Rs 442.78 crore in equities.
In the debt segment, the gross purchase was of Rs 1520.03 crore with gross sales of Rs 987.46 crore. Thus, FIIs stood as net buyers of Rs 532.57 crore in debt.
Now what to expect??
Nifty Levels
Support at 9084 and Resistance at 9330--9380.
Above 9280 will see upside rally till 9330--9380 mark.
Trade in a range with levels only.
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.
Today's Top Pick
Godrej Industries
Support at 525 and resistance at 540
Trend looks positive and could touch its resistance level of 540 … above 540 it can touch 548---552+++ mark.
Looks below only if closes below 525 mark
More will update soon!!
