Nifty 9,359/ Sensex 30,126/ Bank Nifty 22,720
26 Advances / 24 Declines/ 1 Unchanged
Sensex slams double century; Nifty ends above 9,350 mark
A session after displaying a distressing performance, Indian equity indices have managed to pull through a dazzling performance by gaining over half a percent on Thursday, thanks to encouraging corporate earnings and a string of government reforms, including NPA package for banks and national steel policy. The government has approved a new policy that envisages Rs 10 lakh crore investment to create more capacity in the steel sector. The policy aims at increasing supply of domestic coking coal to cut dependence on imports by half and production of 300 million tonnes of the alloy by 2030-31. Investors' sentiments also got boost after the US Federal Reserve kept its policy rate unchanged in its two-day policy review. Some support also came with the report that services sector grew for the third straight month in April 2017, though the pace of growth moderated amid slower rise in new business and employment. The Nikkei India Services Purchasing Managers' Index (PMI), which tracks services sector output on a monthly basis, was down from 51.5 in March to 50.2 in April, indicating challenging market conditions that hampered growth. A reading above 50 on the index denotes expansion, while one below the benchmark indicates contraction. Meanwhile, shares of PSU banks surged after Cabinet approved new non-performing assets (NPA) policy to deal with stressed assets. The framework includes the promulgation of an ordinance to amend the Banking Regulation Act to give more teeth to the Reserve Bank of India (RBI) and its oversight committees to act on behalf of banks while deciding on NPAs. The proposals are now awaiting the President's assent. Moreover, Bank Nifty ended record high, supported by ICICI Bank that rallied over nine percent post earnings.
On the global front, Asian equity markets ended mixed on Thursday, as investors turned cautious after the US Federal Reserve left interest rates unchanged overnight as expected, but signalled another rate hike is imminent despite recent economic weakness. The Federal Reserve on Wednesday voted unanimously to leave its benchmark interest rate at 0.75% to 1% and continues to project two more rate hikes in 2017. Further, the looming monthly US jobs report and a possible House vote on the American Health Care Act also kept investors on tenterhooks. Chinese markets edged lower after a private survey showed China's service sector activity expanded at a slower rate in April, raising concerns over growing economic risks. The Caixin services PMI slipped to 51.5 in April, the lowest since May 2016, from 52.2 in March. Meanwhile, European stocks rose as a raft of better-than-forecast results from companies including HSBC Holdings Plc, Anheuser-Busch InBev NV and Royal Dutch Shell Plc added to optimism over an earnings recovery in the region. Sentiments got some support after centrist French presidential candidate Emmanuel Macron was perceived to have gotten the better of the far-right's Marine Le Pen in a debate and a survey showed economic growth in the 19-country eurozone striking a six-year high.
Back home, after getting a solid start, the local benchmarks traded in tight range for most part of the morning trade, but witnessed a strong buying in second half of the session post firm opening of European markets. Eventually, the NSE's 50-share broadly followed index Nifty, convalesced by over half percent to settle above the crucial 9,350 support level, while Bombay Stock Exchange's Sensitive Index, Sensex accumulated over two hundred points and closed above the psychological 30,100 mark. Moreover, the broader markets too participated in the rally and closed with gains of around half a percent. The market breadth remained optimistic, as there were 1453 shares on the gaining side against 1406 shares on the losing side, while 146 shares remained unchanged.
FII’s Activity 4th-May-17
The FIIs as per Thursday’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 4033.05 crore against gross selling of Rs 4126.52 crore. Thus, FIIs stood as net sellers of Rs 93.47 crore in equities.
In the debt segment, the gross purchase was of Rs 492.67 crore with gross sales of Rs 339.69 crore. Thus, FIIs stood as net buyers of Rs 152.98 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9240 and Resistance at 9380---9450.
Above 9330 rally remain continue till 9380---9450 mark
Close below 9240 will take to 9180---9130 mark.
Major support intact at 9080
Bank Nifty Levels
Support at 22200 and resistance at 22800
Trend Looks positive and could touch its resistance level of 22800
Weekly close above 22800 will see further upside rally in it else could touch its support level of 22200 again.
Trade in a range with levels only.
Today's Top Pick
Will provide only on our Application during market hours.
Result Today
Apollo Tyres Limited
NIIT Technologies Limited
Equitas Holdings Limited
Eicher Motors Limited
More will update soon!!
