Nifty 9,525 /Sensex 30,322 / Bank Nifty 22,935
23 Advances / 27 Declines/ 1 Unchanged
* Indian benchmarks notch fresh closing highs for the third straight session*
Domestic frontline indices went through a choppy session of trade to finally negotiate a close in the green territory, as a strong rupee and healthy buying in metal and automobile stocks buoyed investors' sentiments. Further, the continued buying from FII and announcement of good quarterly results by some blue-chip companies kept a positive vibe in the market. Adding the optimism of investors, senior UN economic official has said demonetisation policy is not expected to have a long-term impact on domestic demand in India, which is projected to clock a 7.9% growth in fiscal 2018. Also, the Union Finance Minister Arun Jaitley said that government’s move to demonetise Rs 500 and Rs 1,000 notes has helped the authorities bring 9.1 million people under the tax net as money has lost its anonymity.
Markets exhibited sideways pattern as traders were adopting a cautious approach ahead of a crucial GST (Goods and Services Tax) panel meet in Srinagar starting tomorrow. Besides, negative trend was seen in global markets, amid ongoing political uncertainty in the US, capping the gains. However, investors' sentiments got some support with Indian Meteorological department’s (IMD) statement that the southwest monsoon will hit Kerala on May 30, two days ahead of schedule. The onset of southwest monsoon over Kerala signals the arrival of monsoon over the Indian subcontinent.
Meanwhile, power stocks gained after the CCEA approved a new coal linkage policy to ensure adequate supply of the fuel to power plants through reverse auction. Buying intensified in metal stocks after India Ratings and Research said that the National Steel Policy 2017 announced by the Ministry of Steel will give a boost to the struggling Indian steel industry and it is betting on higher spending on infrastructure and construction sector through government initiatives to push steel demand and increase utilization. The policy focuses on improvement in the efficiency parameters so as to reduce the cost of production and develop advanced steel products to reduce the dependence on imports. Also, Finance Ministry imposed a definitive anti-dumping duty on ‘aluminium foil’ imports from China, giving some relief to local manufacturer. Based on the recommendations of the Designated Authority in the Commerce Ministry, the revenue department levied an antidumping duty that ranged from $0.69 per kilogram to $1.63 per kilogram.
On the global front, Asian markets ended lower on Wednesday, as investors remained cautious about US President Donald Trump’s ability to push through his economic agenda following accusations that he tried to quash an FBI probe. Fresh reports emerged of President Donald Trump's interference in the Federal Bureau of Investigation's probe around his former National Security Advisor Michael Flynn. The latest development adds to the ongoing political turmoil after a report that the US president shared terrorism intelligence with Russian officials, an action he has since defended. Further, Japanese market edged lower after the dollar eased against the yen on weak US economic data, while financials stocks underperformed hit by lower US yields. Also, Japan's core machinery orders fell short of expectations in March from the previous month. Core orders, regarded as a leading indicator of capital spending in the coming six to nine months, rose 1.4% in March from the previous month.
Back home, after getting a cautious start, the local benchmarks traded in tight range near neutral line for most part of the session, but managed to end the day on optimistic note. Finally, the NSE's 50-share broadly followed index - Nifty settled with modest gains of thirteen points above the psychological 9,500 levels, while Bombay Stock Exchange's Sensitive Index - Sensex gained quarter percent and closed above the psychological 30,600 mark. The market breadth remained pessimistic, as there were 1269 shares on the gaining side against 1531 shares on the losing side, while 172 shares remained unchanged.
FII’s Activity 17-May-17
The FIIs as per Wednesday’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 5768.74 crore against gross selling of Rs 4724.55 crore. Thus, FIIs stood as net buyers of Rs 1044.19 crore in equities.
In the debt segment, the gross purchase was of Rs 1236.89 crore with gross sales of Rs 243.14 crore. Thus, FIIs stood as net buyers of Rs 993.75 crore in debt.
Now what to expect??
Nifty Levels
Support at 9450---9380 and Resistance at 9550
Above 9550 rally remain continue till 9580---9620+++ mark else will it could test its support level of 9450---9380 again.
Trade with levels only.
Bank Nifty Levels
Support at 22550 and resistance at 23000
Close above 23000 will see further upside rally in it else it could touch its support level of 22550 again.
Trade in a range with levels only.
Results Today
Cummins India Limited
Strides Shasun Limited
Muthoot Finance Limited
Pidilite Industries Limited
IDBI Bank Limited
Bank of Baroda
More will update soon!!
