Nifty 9,311/Sensex 29,894 / Bank Nifty 22,307
25 Advances / 26 Declines/ 0 Unchanged
* Indian equity indices end a lacklustre session with small cut*
Indian equity benchmarks showed a volte-face on Wednesday as what started on a promising note ended as a dismal show. The optimism in local markets petered out completely by the end of trade and the benchmarks drifted into the negative territory despite getting off to a gap-up opening. Sentiments remained subdued on the report that Global agency Fitch Ratings retained the 'BBB-' sovereign rating-the lowest investment grade-on India as weak public finances continue to constrain India's ratings. The rating agency said that India's sovereign ratings balance a strong medium-term growth outlook and favorable external balances with a weak fiscal position and difficult business environment. Further, many investors remained on the sidelines and refrained from any buying activity ahead of the US Federal Reserve's policy outcome, due later yesterday. Traders are largely indulging in stock specific activity, tracking quarterly earnings reports, sales and shipments data of automobile and cement companies, and other corporate news. Meanwhile, market participants got some comfort with the report that Prime Minister Narendra Modi is reviewing the progress of the government's agenda to curb black-money and tax evasion as well as the roll out of the Goods and Services Tax (GST). The government intends to implement the GST from July 1, 2017. Further, Asian Development Bank's (ADB's) Chief Economist Yasuyuki Sawada said the reforms like the GST and the new bankruptcy law will make it easier to do business in India.
On the global front, Asian equity markets ended mixed on Wednesday, as strong earnings and manufacturing data boosted risk appetite, while expectations that the Federal Reserve will signal a June rate increase later in the session kept investors on their toes. The US central bank is expected to hold rates steady amid signs of softening inflation, but its commentary will be scrutinized for new clues as to the Fed's views on the economy and interest rates. Chinese shares edged lower, with investors turning cautious on lingering worries about the country's tougher regulations and a shift toward tighter policy. Meanwhile, European markets were trading lower in early trade, as investors turned cautious ahead of the May 7 vote in the country to elect the new president. Trading sentiment was dampened after reports emerged that the U.K. could be facing a Brexit bill from the European Union of up to 100 billion euro.
Back home, the benchmark got off to a positive start in the morning trade as investors were largely influenced by the supportive leads from Asian and US markets. However, the indices dropped into the red terrain sooner than later, lacking any significant upside cues. Thereafter, the indices kept oscillating in a narrow range through the day's trade. Eventually, the NSE's 50-share broadly followed index Nifty, suffered a moderate cut of around two points to settle above the crucial 9,300 support level, while Bombay Stock Exchange's Sensitive Index-Sensex- slipped around twenty-six points and closed below the psychological 29,900 mark. On the BSE sectorial space, Healthcare index remained the top laggard in the space and settled with around a percent laceration followed by the Oil & Gas and Consumer Durable pockets, which went home with around half a percent cuts. However, the high beta Realty along with export driven software and technology counters remained the top gainers in the space with gains of around a percent.
FII’s Activity 3rd-May-17
The FIIs as per Wednesday’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 5682.40 crore against gross selling of Rs 6015.64 crore. Thus, FIIs stood as net sellers of Rs 333.24 crore in equities.
In the debt segment, the gross purchase was of Rs 813.84 crore with gross sales of Rs 253.66 crore. Thus, FIIs stood as net buyers of Rs 560.18 crore in debt.
Now what to expect??
Nifty Levels
Support at 9240 and Resistance at 9380---9450.
Above 9380 will see further upside rally till 9420---9450 mark else will it could test its support level of 9240 again.
Close below 9240 will take to 9180---9130---9080 mark.
Major support intact at 9080
Bank Nifty Levels
Support at 21800 and resistance at 22500
Trend Looks positive and could touch its resistance level of 22500.
Weekly close above 22500 will see further upside rally in it else could touch its support level of 21800 again.
Trade in a range with levels only.
Today's Top Pick
TCS
Support at 2270 and Resistance at 2335
Above 2335 will see upside rally till 2370---2390+++ mark.
Looks weak only if close below 2270
Results Today
Exide Industries Limited
Wockhardt Limited
Tata Communications Limited
L&T Finance Holdings Limited
MRF Limited
Housing Development
Finance Corporation Limited
Board Meeting
Indiabulls Housing Finance will announce Dividend of Rs 9.0.
More will update soon!!
