Nifty 9,400/Sensex 30,188 / Bank Nifty 22,671
19 Advances / 32 Declines/ 0 Unchanged
Indian benchmarks settle with moderate cuts; Sensex slips below 30,200 mark
Indian markets finished last trading session of the week on a pessimistic note, as investors remained cautious ahead of macroeconomic data - industrial production numbers for March and inflation data for April based on Consumer Price Index (CPI) - to be announced later in the day. CPI is expected to have eased to a three-month low of 3.49% in April from 3.81% the previous month. The government will release the new series of Index of Industrial Production (IIP) as well as Wholesale Price Index (WPI), with 2011-12 as the base year, so as to map economic activities more accurately. Also, there was some profit taking in the high fliers of the recent rally that once led Sensex slip below the crucial level of 30,200, but despite the rallies losing fizz, downside remains capped with SBI Research's Ecowrap report, indicating that the easing of crude oil prices will have positive effect not only on inflation but also on GDP growth. It said that average crude oil prices will be around $45 for the next half of this year and this, coupled with positive macro fundamentals, could translate into better growth numbers for the country. Some support also came with Finance Secretary Ashok Lavasa’s statement that India can clock a GDP growth of over 7.5 percent in the fiscal 2017-18 and the country's macro-economic fundamentals, including fiscal deficit and inflation, are all very sound. Lavasa also said that while there has been a general climate of economic slowdown in the last few years across the world, India has managed to maintain a healthy rate of growth. In scrip specific development, the top loser in Nifty was Yes Bank, which came under selling pressure after the bank disclosed that it had reported lower non-performing assets (NPAs) than what was judged by the banking regulator for the year ended March 31, 2016. According to its annual report, the bank had reported gross NPAs worth Rs 748.9 crore as on March 31, 2016, while the RBI, as part of its annual supervisory action, had asked the lender to report gross NPAs worth Rs 4,925.6 crore. Furthermore, Asian Paints shed around three percent even after the company reported 10.13% rise in consolidated net profit to Rs 479.61 crore for the March quarter of last fiscal. On the other hand, Reliance Infrastructure surged after the company won Rs 2,950 crore arbitration award against Delhi Metro Rail Corporation (DMRC) for the alleged breach by the latter of the agreement on the Airport Express line.
On the global front, Asian market ended mixed on Friday, tracking overnight weakness in Europe and the US markets, amid disappointing earnings reports. Heightened political uncertainty in Washington triggered by President Donald Trump's abrupt firing of FBI chief James Comey and the improving odds of a June rate hike also kept underlying sentiment cautious. Japanese shares eased from 17-month highs as a slightly stronger yen triggered selling in futures markets while investors focused on a slew of corporate earnings such as from automaker Nissan on a surprise hike in dividend. However, Chinese shares ended higher after China's central bank injected fresh funds through a medium-term lending facility to keep liquidity stable. Meanwhile, Crude oil prices were steady with international benchmark Brent still above $50/barrel, reportedly as traders now expect production cuts to extend beyond the middle of this year.
Back home, after getting a cautious start, the local benchmarks immediately slipped into negative territory and continued their weak trade throughout the session. Finally, the NSE's 50-share broadly followed index Nifty, suffered a moderate cut of around quarter percent to settle just above the crucial 9,400 support level, while Bombay Stock Exchange's Sensitive Index-Sensex- slipped around sixty-two points and closed below the psychological 30,200 mark. On the BSE sectorial space, Consumer Durables index remained the top laggard in the space and settled with around a percent laceration followed by the Banking, Power and Healthcare pockets, which went home with over half a percent cuts. However, the high beta Realty along with export driven software and technology counters remained the top gainers in the space with gains of around a percent.
FII’s Activity 12-May-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 9717.64 crore against gross selling of Rs 8352.72 crore. Thus, FIIs stood as net buyers of Rs 1364.92 crore in equities.
In the debt segment, the gross purchase was of Rs 678.91 crore with gross sales of Rs 562.70 crore. Thus, FIIs stood as net buyers of Rs 116.21 crore in debt.
Now what to expect??
Nifty Levels
Support at 9280 and Resistance at 9450.
Above 9450 rally remain continue till 9520---9580+++ mark else will it could test its support level of 9380 and then to 9330---9280 again.
Trade with level only
Bank Nifty Levels
Support at 22550 and resistance at 23000
Trend Looks positive and could touch its resistance level of 23000
Close above 23000 will see further upside rally in it else could touch its support level of 22550 again.
Wait for confirmation
Today's Top Pick
Tata Motors
Support at 418 and Resistance at 433
Above 433 will see upside rally till 449---462+++ mark.
Looks weak only if close below 418
Results Today
Bata India Limited
Vedanta Limited
The South Indian Bank Limited
Mangalore Refinery and Petrochemicals Limited
Indo Count Industries Limited
Colgate Palmolive (India) Limited
More will update soon!!
