Nifty 9261/ Sensex 29,927/ Bank Nifty 21622
26 Advances / 25 Declines/ 0 Unchanged
Indian benchmarks settle in the red but outclass most of the global peers
Indian equity benchmarks showed smart recovery despite snapping the day in the negative territory as they managed to outclass most of the Asian and Europe peers by fat a margin. Sentiments got a boost after the Reserve Bank of India (RBI) projected India's growth to strengthen to 7.4% in 2017-18 from 6.7% in 2016-17. The central bank has maintained status quo on policy rate by leaving the repurchase rate (or repo rate) unchanged at 6.25% in its first bimonthly policy of FY18. However, it raised the reverse repo rate by 25 basis points to 6%. Further, RBI projected inflation to average around 4.5% in the first half of 2017-18 and 5% in the second half. Investors also got some confidence with Asian Development Bank's (ADB) report that India's growth rate will improve to 7.4% during 2017-18 and go up further to 7.6% in the next fiscal. According to the ADB, India has taken a host of economic reforms initiative, including the Goods and Services Tax (GST) and liberalization of the FDI regime, with a view to improve business climate and promote growth. Some support also came after the country's services sector registered second straight month of growth in March, driven by strong rise in new work orders amid softer inflationary pressures. The Nikkei India Services Purchasing Managers' Index (PMI), which tracks the services sector output on a monthly basis, rose from 50.3 in February to 51.5 in March. Meanwhile, Real estate shares gained traction after RBI allowed banks to invest in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Further, shares of railway related companies such as Texmaco Rail & Engineering, Kernex Microsystems and Stone India surged after the government approved setting up of Rail Development Authority.
On the global front, Asian markets ended mostly lower on Thursday, as investors were spooked by Federal Reserve minutes showing it is mulling a plan to tighten monetary policy by sucking cash out of the financial system. Investors were also wary ahead of a potentially tense meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping, the first between the world's two most powerful leaders. However, Chinese shares hit four-month highs, led by infrastructure companies after Beijing announced plans to build a special economic zone in the heartland of sleepy Hebei province. Meanwhile, losses in banks dragged European stocks lower in early trade, shaken by the Federal Reserve's plan to start reducing its buildup of government and mortgage-backed bonds that's been a pillar of support for equity markets worldwide.
Back home, after getting weak start, the local indices traded in tight range for most part of the session, but witnessed a strong recovery in the final hour of trade and finished the day with moderate losses. Finally, the NSE's 50-share broadly followed index - Nifty settled with trivial losses of three points above the psychological 9,250 levels, while Bombay Stock Exchange's Sensitive Index - Sensex shed forty six points and closed above the psychological 29,900 mark. The market breadth remained optimistic, as there were 1469 shares on the gaining side against 1413 shares on the losing side, while 137 shares remained unchanged.
FII’s Activity 6th-April-17
The FIIs as per Thursday’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 7909.95 crore against gross selling of Rs 7428.83 crore. Thus, FIIs stood as net buyers of Rs 481.12 crore in equities.
In the debt segment, the gross purchase was of Rs 5168.25 crore with gross sales of Rs 1781.52 crore. Thus, FIIs stood as net buyers of Rs 3386.73 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9080 and Resistance at 9330--9380.
Above 9285 will see upside rally till 9330---9380 mark else it could test it's support again.
Looks weak below 9280 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.
21700. Close above 21700 will see further upside rally in it
else could touch its support level of 21400 again.
Today's Top Pick
Tata Elxsi
Support at 1530 and resistance at 1570
Above 1570... it can test 1590---1620+++ mark.
Looks below only if closes below 1530
More will update soon!!
