Nifty 9,624/Sensex 31,109 / Bank Nifty 23,307
34 Advances / 17 Declines/ 0 Unchanged
Indian benchmarks settle with marginal gains but outclass global peers
Indian benchmark indices managed to extend the winning momentum for the fourth consecutive day and settled at fresh closing highs on Tuesday, as arrival of monsoon rains cheers, but the gains were capped as the investors booked profit in recent outperformers. The monsoon, which delivers about 70% of India's annual rainfall, arrived at the southern Kerala coast today, in line with forecasts, brightening the outlook for higher farm output and robust economic growth. Simultaneously, the onset is also likely over Lakshadweep, coastal Karnataka, some parts of Tamil Nadu and most parts of northeastern states in the next 24 hours. Despite settling with only two tens of a percent gains, the frontline indices managed to outclass all the peers in Asia and Europe by quite a margin. The global markets continued to exhibit somber trends as investors at large remained cautious on worries about a Greek bailout and the possibility of an early election in Italy.
Sentiments got some support with World Bank's expectation that India, the fastest growing major economy in the world, will grow at 7.2% in the current fiscal and further up to 7.7% by 2019-20 on strong fundamentals, reform momentum and improving investment scenario. It noted that demonetization in November 2016 caused a slight disruption to India's growth recovery, following a favorable monsoon last fiscal, but things seem to be bettering. However, weak trend in global markets, continued foreign fund outflows and muted earnings posted by some blue-chip companies, have limited the gains. Meanwhile, India's capital market regulator has proposed to tighten rules on offshore derivative instruments (ODI) by imposing 'regulatory fees' and prohibiting the sales of such products unless they are issued for hedging purposes.
On the global front, concerns about a Greek bailout, early Italian elections and comments by the European Central Bank chief about the need for continued stimulus, sapped risk appetite, weighing on Asian markets and lifting safe havens including the yen and gold, though trading was thin with several markets closed for holidays. Sentiments remained downbeat on the report that North Korean leader Kim Jong-un supervised the test of a new ballistic missile controlled by a precision guidance system and ordered the development of more powerful strategic weapons. Japan's Nikkei ended flat, held back by a stronger yen whereas South Korea's KOSPI edged lower as investors took profits following the market's record-breaking rally this month. Markets are awaiting economic indicators including French first quarter gross domestic product, German inflation data for May, and US inflation for April later in the session. Meanwhile, China, Hong Kong and Taiwan markets are closed for holidays on Tuesday.
Back home, after getting a cautious start, the local benchmarks traded in tight range near neutral lines, altering between positive and negative territory, for most part of the session and ended the trading day once again at record highs. Finally, the NSE's 50-share broadly followed index Nifty, convalesced by close to quarter percent to settle above the crucial 9,600 support level, while Bombay Stock Exchange's Sensitive Index, Sensex accumulated over fifty points and closed above the psychological 31,150 mark. Moreover, broader markets managed to outperform the larger peers as the BSE's midcap and small cap indices settled with around half a percent. The market breadth remained pessimistic, as there were 1229 shares on the gaining side against 1450 shares on the losing side, while 157 shares remained unchanged.
FII’s Activity 30-May-17
The FIIs as per Tuesday’s data were net sellers in equity segment, while they were net buyers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 3952.28 crore against gross selling of Rs 4759.88 crore. Thus, FIIs stood as net sellers of Rs 807.60 crore in equities.
In the debt segment, the gross purchase was of Rs 612.80 crore with gross sales of Rs 320.42 crore. Thus, FIIs stood as net buyers of Rs 292.38 crore in debt.
Now what to expect??
Nifty Levels
Support at 9580 and resistance at 9640.
Above 9640 will see further upside rally till 9661---9686 and then to 9721 mark else it could test its support level of 9580 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 23198---23093 and resistance at 23317
Above 23317 will see further upside rally till 23361---23417 mark. More upside rally will see only close above 23465 level else it could test its support level of 23198---23093 again.
Today's Top Pick
Ashok Leyland
Support at 90 and Resistance at 95
Above 95 will see upside rally till 100---105+++ mark.
Looks weak only if close below 90
Result Today
Castrol India Limited
More will update soon!!
