Nifty 9,438 /Sensex 30,570 / Bank Nifty 22,652
19 Advances / 32 Declines/ 0 Unchanged
Indian benchmarks settle with modest gain
Monday's trading session was clearly of consolidation as the Indian benchmark indices appeared a bit fatigued and remained in tight range for most part of the day. Sentiments got some support after the government last week finalized rates for the upcoming goods and services tax (GST). The government on Friday unveiled four bands of rates under the GST for services in line with those applying to goods, a big departure from the current single rate of 15% applied on most services. Adding the optimism of investors, Revenue Secretary Hasmukh Adhia said Inflation will fall by 2% on implementation of the GST and create buoyancy in the economy. With the stage set for the biggest overhaul of India's tax system since Independence, the government will launch a massive awareness campaign to educate consumers about GST so that they are not fleeced by traders in the name of new tax. Some support also came after Maharashtra Assembly passed the GST Bill in today's session of its lower house. GST, which will come in force from July 1, will unify the country's economy into a common market and eliminate a string of central and state levies. The act is significant as the BMC gets a considerable share of its revenue through octroi, which will now be scrapped with the introduction of the GST regime. Meanwhile, Foreign Direct Investment (FDI) inflows into the country touched a new high of $60.08 billion in 2016-17. FDI Inflows grew by 8% over the previous high of $55.6 billion posted in 2015-16. Increased FDI inflows in the country are largely attributed to intense and bold policy reforms the government undertook to bring pragmatism in the FDI regime.
On the global front, Asian markets ended mostly higher on Monday as the Japanese yen weakened and US crude futures climbed back above $50 per barrel on expectations that major oil producing nations might extend their production cuts beyond an agreed-on June deadline when they meet on May 25. Investors shrugged off a weekend missile test by North Korea that raised further concerns on its ability to deliver a nuclear warhead as far as the US states of Hawaii and Alaska. Chinese shares ended lower as worries over slowing economic growth and tighter regulations continued to haunt investors.
Back home, after getting a firm start, the local benchmarks traded in a tight range, above the neutral line, for most part of the session and ended the day with marginal gains. The NSE's 50-share broadly followed index - Nifty settled with modest gains of ten points above the psychological 9,400 levels, while Bombay Stock Exchange's Sensitive Index - Sensex gained over quarter percent and closed above the psychological 30,500 mark. However, the broader markets failed to show any kind of fervor and closed with losses of over a percent. The market breadth remained pessimistic, as there were 877 shares on the gaining side against 1844 shares on the losing side, while 190 shares remained unchanged.
FII’s Activity 22-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 8772.35 crore against gross selling of Rs 5599.70 crore. Thus, FIIs stood as net buyers of Rs 3172.65 crore in equities.
In the debt segment, the gross purchase was of Rs 1148.66 crore with gross sales of Rs 469.77 crore. Thus, FIIs stood as net buyers of Rs 678.89 crore in debt.
Now what to expect??
Nifty Levels
Yesterday we have seen Nifty consolidate on day one of expiry week
Now what to expect???
Support at 9350 and Resistance at 9550.
Below 9425 will see further downside panic till 9380---9350 mark. More downside panic will see only close below 9350 level only else it could test its resistance level of 9480---9550 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 22356 and resistance at 23177
Below 22631 will see further downside panic till 22562---22493---22356 mark. More downside panic will see only close below 22356 level else it could test its resistance level of 22972---23177 again.
Today's Top Pick
IOC
Support at 423 and Resistance at 433
Break and sustain below 423 wil l take to 415---407 mark.
Looks strong only if it close above 433 mark
Results Today
Jindal Steel & Power Limited
Voltas Limited
Torrent Power Limited
Tata Motors Limited
NCC Limited
More will update soon!!
