Nifty 9,386 /Sensex 30,365 / Bank Nifty 22,652
18 Advances / 33 Declines/ 0 Unchanged
Feeble global cues drag benchmarks lower; Nifty ends below 9400 mark
Indian benchmark indices failed to extend the gains on Tuesday as jittery investors chose to take profits off the table amid weak global cues. An explosion struck an Ariana Grande concert in northern England late yesterday, killing at least 19 people and injuring dozens. Britain’s terrorist threat level has been set at ‘severe’ in recent years, indicating an attack is highly likely. The sentiment was also dragged down by geopolitical tensions as Indian army strikes Pakistan military posts. Indian Army spokesperson Major General Ashok Narula said Pakistan Army has been supporting armed infiltration in Kashmir and targeted attacks have been carried out to put an end to such activities. Sentiments also remained dismal with India Ratings and Research’s (Ind-Ra) latest report indicating that Goods & Service Tax (GST) implementation will affect the working capital cycle of business in the initial phase owing to the lock up of input credit. It noted that easy liquidity in the system is essential to minimize the magnitude of such disruption at the earliest and to absorb the sudden changes in requirement of short term finance. Furthermore, with the prices of crude oil starting to recover, investors remained concerned over the report that India’s petroleum self-sufficiency fell to 17.9% in 2016-17, its lowest annual level since 2011. The self-sufficiency percentage is calculated by using the total production from Indigenous Crude & Condensate and the total petroleum consumption of the country. For the month of April, this percentage fell further to 16.6%, lower from 17.9% seen for the month of April 2016. India’s fast-growing demand for petroleum products has been the significant contributor to the fall in its self-sufficiency in meeting these demands. Investors failed to get any sense of relief with a new survey by the Confederation of Indian Industries (CII) and Indian Bank’s Association (IBA) showing that the outlook towards the financial condition of the country has taken a positive turn during the first quarter of the ongoing fiscal. The CII-IBA Financial Conditions Index stood at 56.9 for first quarter of 2017-18, as compared to 48 during the previous quarter.
On the global front, Asian markets ended mixed on Tuesday as investors digested news of a terrorist attack in Manchester, northern England, and fresh revelations provided additional evidence that the White House actively sought to undermine the FBI investigation into Russia. Japanese market failed to get any sense of relief from healthy exports data and ended lower. Japan's exports rose in April to mark their fifth straight month of gains, as shipments of semiconductors and steel expanded, signaling that more robust overseas demand could underpin a steady economic recovery. Exports rose 7.5% in April from a year ago, below the median estimate of 7.8% annual growth. It followed a 12.0% rise in March. Meanwhile, oil prices fell after US President Donald Trump proposed the sale of half of the country’s strategic oil reserves in his budget plan, just as producer club OPEC and its allies are cut back output to tighten the market.
Back home, after getting a cautious start, the local benchmarks plunged below their psychological levels 30,450 (Sensex) and 9400 (Nifty) respectively in early trade as funds and retail investors engaged in reducing positions amid weak global cues. Thereafter, the indices traded in tight range throughout the morning trade and witnessed a good recovery in early afternoon session, tracking positive opening of European Markets. However, the key gauges suffered a setback in final hour of trades as sudden bouts of profit booking emerged in the local markets. Finally, the NSE’s 50-share broadly followed index Nifty, slipped by over half a percent to settle below the crucial 9,400 support level, while Bombay Stock Exchange’s Sensitive Index Sensex deposed over two hundred points and closed below the psychological 30,400 mark. Moreover, the broader markets had to bear a brutal assault as they went on to underperform their larger peers by quite a margin with BSE’s midcap shaving off 1.56% and BSE’s small cap shelving 1.89%.
FII’s Activity 23-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 5360.40 crore against gross selling of Rs 4465.52 crore. Thus, FIIs stood as net buyers of Rs 894.88 crore in equities.
In the debt segment, the gross purchase was of Rs 807.56 crore with gross sales of Rs 114.54 crore. Thus, FIIs stood as net buyers of Rs 693.02 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9363---9345 and Resistance at 9456.
Below 9345 will see further downside panic till 9313---9284 mark else it could test its resistance level of 9417---9456 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 22232 and resistance at 22853
Below 22469 will see further downside panic till 22413---22356---22232 mark. More downside panic will see only close below 22232 level else it could test its resistance level of 22718---22853 again.
Today's Top Pick
JK Lakshmi Cement
Support at 470 and Resistance at 489
Above 489 will see upside rally till 500---515+++ mark.
Looks weak only if close below 470
Results Today
Dish TV India Limited
Kaveri Seed Company Limited
Jain Irrigation Systems Limited
Lupin Limited
Adani Ports and Special Economic Zone Limited
Adani Enterprises Limited
Bharat Forge Limited
Amara Raja Batteries Limited
More will update soon!!
