Nifty 9,445/Sensex 30,322 / Bank Nifty 22,821
32 Advances / 19 Declines/ 0 Unchanged
* Indian benchmarks settle with moderate cuts; Sensex slips below 30,200 mark*
Indian stock markets witnessed a fairly stable day of trade on Monday as sanguinity got reinforced after consumer inflation in April eased to its lowest in at least five years, reviving a debate on whether the central bank should cut interest rates. Hopes for further easing of inflation got a boost with the India Meteorological Department (IMD) stating that monsoon rains had reached the country's Andaman and Nicobar islands ahead of the schedule. Meanwhile, Consumer Price Index (CPI)-based inflation eased to 2.99% in April, from 3.89% in March, due to lower cost of food items. Also, the inflation based on the wholesale price index (WPI) slipped to a four-month low of 3.85% in April as both food articles and manufactured items showed cooling in prices. The street shrugged off industrial output growth data which slipped to 2.7% in March compared to 5.5% in March 2016, mainly on account of poor performance of manufacturing sector.
Adding the optimism among market participants, the private report indicated that trustees of retirement fund body EPFO are likely to raise the investment limit in exchange traded funds (ETFs) to 15% of the investible deposits, from 10% at present, in the current fiscal. The higher limit would help the Employees’ Provident Fund Organization’s (EPFO) park around Rs 15,000 crore in stock markets in 2017-18 as its investible deposits are close to Rs 1 lakh crore annually. Some support also came with the report that Private equity investments saw a significant upturn in April with deals worth $ 3.16 billion, up 69 per cent from a year ago, due to big ticket transactions. From a 32-month low recorded in February this year, the deal tally in April represents a significant bounce back both in terms of number of deals as well as value. According to the report, there were 86 PE deals worth $ 3.16 billion in last month, while 63 such transactions worth $ 1.87 billion were announced in April last year.
On the global front, Asian markets ended mostly higher on Monday as oil prices jumped and weak US data raised a question mark over the extent of Fed tightening. Yet another missile launch by North Korea too appeared to have little impact, while upbeat talk on trade and infrastructure investment at a top-level conference in China brightened sentiment. Oil prices jumped after Saudi Arabia's energy minister and Russia's oil minister said at a joint briefing in Beijing that they agreed output cuts should be extended to March 2018. However, Japanese shares closed marginally lower, pressured by a stronger yen, a widespread cyber-attack and North Korea's missile test over the weekend. Meanwhile, European markets were trading mixed in early trade as a ransom ware attack that locked up more than 200,000 computers in over 150 countries, kept investors on edge.
Back home, after getting a firm start, the local benchmarks protected their gains throughout the session and ended the first trading day of the week on optimistic note. The NSE's 50-share broadly followed index Nifty, got buttressed by close to half a percent to settle above the crucial 9,400 support level, while Bombay Stock Exchange's Sensitive Index-Sensex accumulated over hundred points and closed above the psychological 30,300 mark. Broader markets managed a touch better than the larger peers today as the BSE’s midcap and small cap indices settled with gains of 1.25% and 0.78% respectively. The market breadth remained optimistic, as there were 1483 shares on the gaining side against 1297 shares on the losing side, while 209 shares remained unchanged.
FII’s Activity 15-May-17
The FIIs as per Monday’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 4782.52 crore against gross selling of Rs 3866.47 crore. Thus, FIIs stood as net buyers of Rs 916.05 crore in equities.
In the debt segment, the gross purchase was of Rs 2347.51 crore with gross sales of Rs 503.00 crore. Thus, FIIs stood as net buyers of Rs 1844.51 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 9280 again.
Bank Nifty Levels
Support at 22550 and resistance at 23075
Trend Looks positive and could touch its resistance level of 23075. Close above 23075 will see further upside rally in it else could touch its support level of 22550 again.
Today's Top Pick
Carborundum Universal
Support at 292 and Resistance at 311
Above 311 will see upside rally till 330---340+++ mark.
Looks weak only if close below 292
Results Today
Andhra Bank
Shree Cements Limited
Tata Steel Limited
Punjab National Bank
Oracle Financial Services Software Limited
Grasim Industries Limited
More will update soon!!
