Nifty 9,285/ Sensex 29,858/ Bank Nifty 22,604
14 Advances / 37 Declines/ 0 Unchanged
Sensex slams double century; Nifty ends above 9,350 mark
A session after showcasing amazing gains of over half a percent, Indian equity indices faltered and failed to extend the winning momentum on Friday. The benchmark indices suffered hefty bouts of profit booking especially in commodities related counters and got dragged below the psychological 9,300 (Nifty) and 29,900 (Sensex) levels. Besides, a selloff in banking shares after the President Pranab Mukherjee Okayed the ordinance on non-performing assets, concerns over French elections on Sunday and mixed global earnings have also hit the sentiment hard. The ordinance promulgated by the government on bad loans has now empowered the Reserve Bank of India to issue directions to banks for resolution of stressed assets. Market participants remained cautious ahead of the Goods and Services Tax (GST) Council meeting, scheduled on May 18-19, to finalise the rates of different commodities and services. It will also approve rates of remaining items. Investors failed to get any sense of relief with Confederation of Indian Industry (CII) President Shobana Kamineni's statement that India can achieve a gross domestic product (GDP) growth of 10 percent by fiscal year 2019-20 on the back of tremendous opportunities available in the economy. Furthermore, Economic Affairs Secretary Shaktikanta Das said Indian economy will grow 8% next fiscal as the full-year impact of the landmark GST will be seen by that time. The GST, dubbed as the biggest tax reform since independence, will club nearly a dozen central and state levies into a single national sales tax, helping the country integrate into one market. Meanwhile, the gold and jewellery stocks gained traction on report that the uptake for gold in India for January-March this year was 124 tonnes, up 15% compared with the overall demand for the same period in 2016.
On the global front, Asian equity benchmarks ended mixed on Friday, as fresh fall in commodities raised concerns about the health of the global economy, though the euro bucked the broad weakness on receding concerns about France's presidential election. Commodity prices across the board tumbled, led by oil, which fell by 5 per cent in overnight trading on concerns of a supply glut with analysts forecasting further losses. Traders are eyeing the release of the US Labor Department's closely-watched monthly jobs data later today for further cues. The energy stocks in the region were under pressure after the crude oil futures plummeted overnight on global glut concern. Chinese stocks led regional losers, falling to a three-month low as concerns about tighter financial regulations weighed on banking shares. Meanwhile, European stocks edged lower in early trade as tumbling oil prices weighed on investor sentiment.
Back home, the local benchmark got off to a gap down opening, in tandem with the somber sentiments prevailing in Asian markets. Thereafter, the key indices failed to show any kind of fervor due to lack of encouraging leads. The key gauges suffered a setback in afternoon trades as sudden bouts of profit booking emerged in the local markets immediately after a somber European market opening. Finally, the NSE's 50-share broadly followed index Nifty, suffered a nasty seventy-point laceration to settle below the crucial 9,300 support level, while Bombay Stock Exchange's Sensitive Index Sensex got obliterated by over two hundred and fifty points and closed below the psychological 29,900 mark. Moreover, the broader markets too failed to show any kind of fervor and settled with large cuts of around a percent.
FII’s Activity 5th-May-17
The FIIs as per Friday’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 6023.42 crore against gross selling of Rs 6163.58 crore. Thus, FIIs stood as net sellers of Rs 140.16 crore in equities.
In the debt segment, the gross purchase was of Rs 975.54 crore with gross sales of Rs 228.60 crore. Thus, FIIs stood as net buyers of Rs 746.94 crore in debt.
Now what to expect??
Nifty Levels
Support at 9240 and Resistance at 9380---9450.
Above 9330 rally remain continue till 9380---9450 mark else it could test its support level of 9240 again.
Close below 9240 will take to 9180---9130 mark.
Major support intact at 9080
Bank Nifty Levels
Support at 22500 and resistance at 22900
Trend Looks positive and could touch its resistance level of 22900.
Close above 22900 will see further upside rally in it else could touch its support level of 22500 again.
Today's Top Pick
Mahindra CIE Automotive
Support at 225 and Resistance at 244
Above 244 will see upside rally till 263---275+++ mark.
Looks weak only if close below 225
Result Today
Canara Bank
Union Bank of India
Bharti Infratel Limited
More will update soon!!
