Nifty 9,512 /Sensex 30,322 / Bank Nifty 22,928
36 Advances / 15 Declines/ 0 Unchanged
Indian benchmarks end at record high; Nifty breaches 9500-mark
Indian benchmark indices continued their record-setting spree, closing at all-time highs for the fourth time in last five sessions with the Nifty closing above 9,500 level for the first time and the Sensex ending firmly above 30,500 mark. Bullishness seemed to be returning to the markets as investors aggressively piled up positions in key heavyweight stocks on account of robust foreign fund inflows, better-than-expected earnings by some blue-chip companies so far, and overnight gains in the US markets. Some support also came with the report that India's monsoon rains are expected to arrive on the southern Kerala coast on May 30, two days ahead of schedule. India looks likely to receive higher monsoon rainfall than previously forecast as concern over the El Nino weather condition has eased. Further, investors’ morale got a boost with Industry body FICCI’s latest Economic Outlook Survey pegging India's gross domestic product (GDP) growth at around 7.4% for the fiscal year 2017-18. The survey was conducted during March and April 2017 and recorded a median GDP group forecast of 7.4% for the current fiscal year, with a minimum and maximum level of 7% and 7.6% respectively. The pick-up in overall GDP growth will also be supported by an improvement in industry and services sector growth.
The markets paid no heed to the report that India’s trade deficit swelled to a 29-month high in April as imports led by gold grew sharper than exports. While Imports grew 49% from a year ago to $37.8 billion, buoyed by a 211% rise in gold imports, exports increased 19.7% to $24.6 billion, widening trade deficit to $13.2 billion from $4.8 billion in the year ago period. Meanwhile, India and Japan are together embarking upon multiple infrastructure projects across Africa, Iran, Sri Lanka and Southeast Asia in what could be viewed as pushback against China’s massive, unilateral infrastructure initiatives under the One Belt One Road (OBOR) project connecting it with Europe and Africa. While in East Africa, Delhi and Tokyo are planning to fund infrastructure and capacity building projects, Japan is expected to join the Indian foray into the expansion of Iran’s Chabahar port and the adjoining special economic zone.
On the global front, Asian equity markets ended mostly lower on Tuesday, as valuations look stretched with the latest rally taking place in thin volumes and led by just a few sectors. Chinese markets edged lower, after data on Monday disappointed with retail sales and industrial production seeing slower growth in April, while fixed asset investment in the first four months of the year failed to meet expectations, rising just 8.9% compared with the same period the year before. However, Japan's Nikkei share average ended higher, drawing support from a sagging yen and Wall Street hitting record highs overnight. Meanwhile, European Markets were trading mostly lower in early trade, as disappointing earnings updates weighed on banks and pharma stocks, though a well-received outlook from Vodafone helped Britain's FTSE 100 touch a record high.
Back home, after getting a firm start, the local frontline indices slowly started gathering steam and surged around half a percent by noon trades. The bourses further capitalized on the momentum and spurted in afternoon trades on the back of broad based bottom fishing in undervalued stocks. Eventually the NSE’s 50-share broadly followed index Nifty, got buttressed by over half a percent to settle below the crucial 9,500 support level while Bombay Stock Exchange’s Sensitive Index-Sensex accumulated over two hundred points and closed above the psychological 30,500 mark. The broader markets underperformed their larger peers by good margin as the BSE’s midcap index went home with gains of 0.27% while the small cap index climbed 0.38%.
FII’s Activity 16-May-17
The FIIs as per Tuesday’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 4730.79 crore against gross selling of Rs 4346.06 crore. Thus, FIIs stood as net buyers of Rs 384.73 crore in equities.
In the debt segment, the gross purchase was of Rs 3544.02 crore with gross sales of Rs 1080.40 crore. Thus, FIIs stood as net buyers of Rs 2463.62 crore in debt.
Now what to expect??
Nifty Levels
We have seen mind blowing rally. Above 9450 our target was 9530---9580.
Now what to expect???
Support at 9450---9380 and Resistance at 9535
Above 9535 rally remain continue till 9580---9620+++ mark else it could test its support level of 9450---9380 again.
Trade with levels only
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 it could touch its support level of 22550 again.
Today's Top Pick
Blue Star
Support at 655 and Resistance at 682
Above 682 will see upside rally till 707---727+++ mark.
Looks weak only if close below 655
Results Today
United Breweries Limited
Mangalore Refinery and Petrochemicals Limited
JSW Steel Limited
Hindustan Unilever Limited
Bajaj Finance Limited
More will update soon!!
