Nifty 9,621/Sensex 31,145 / Bank Nifty 23,424
22 Advances / 29 Declines/ 0 Unchanged
Indian benchmarks end a dull session with modest cut; broader markets outclass blue-chips
It turned out to be a lackadaisical performance from Indian benchmark indices on Wednesday, as they failed to snap the session in the green territory and settled marginally below the neutral lines. The frontline gauges took a breather, after closing at record highs for the previous sessions, as investors waited for gross domestic product (GDP) data due later in the day and searched for fresh corporate triggers with the results season coming to an end. According to India’s former chief statistician Pronab Sen, the country’s GDP for 2016-17 will get 50 basis points (bps) push to 7.6 percent from the government’s estimate of 7.1 percent, due to the recent revision of the base year of the Wholesale Price Index (WPI) and the Index of Industrial Production (IIP).
Further, investors around the world also turned cautious after a powerful bomb exploded in the morning rush hour in the center of Kabul on Wednesday, killing at least 80 people, wounding hundreds and sending clouds of black smoke into the sky above the presidential palace and foreign embassies. However, losses remained capped with the Moody's Investors Service’s report stating that Indian economy will grow by 7.5 per cent in the current fiscal year, 7.7 per cent in 2018-19 and will reach to around 8 per cent in 3-4 years on the back of government's various reforms. Some support also came with report that Southwest monsoon arriving in Kerala on the expected date this year and also advancing into some parts of the Northeast India. Also, Prime Minister Narendra Modi while speaking at the Indo-German Business Summit in Berlin said that India has one of the most liberal FDI policy regimes in the world and more than 90 percent of foreign investment flows are under automatic route. Meanwhile, Aviation stocks gained traction on expectations that a slide in oil prices would reduce carriers' fuel cost, which typically constitute about 50% of airlines' operating costs.
On the global front, Asian markets ended mixed on Wednesday, as investors turned cautious amid political worries in Europe as well as weaker commodity markets. Japanese stocks dropped after weakness in US shares and a stronger yen hurt sentiments, while sliding oil prices dragged down the mining sector. However, investors got some confidence after China reported official manufacturing PMI for May at 51.2, compared with a level of 51.0 seen, and steady with 51.2 in April. The non-manufacturing PMI came in at 54.5, up from a level last at 54.0 in April. A figure above 50 denotes expansion. In commodities, oil prices remained soft, as concerns lingered about whether the extension of output cuts by OPEC and other producing countries will be enough to support prices.
Back home, the benchmark got off to a cautious start, tracking the dismal leads prevailing in Asian markets. Thereafter, the indices kept oscillating in a narrow range through the day’s trade. Eventually, the NSE’s 50-share broadly followed index - Nifty settled with trivial losses of three points above the psychological 9,600 levels, while Bombay Stock Exchange’s Sensitive Index - Sensex shed thirteen points and closed above the psychological 31,100 mark. Moreover, broader market outperformed the frontline indices with the S&P BSE Midcap and the S&P BSE Small cap indices rising up to 1%. The market breadth remained in favor of advances, as there were 1380 shares on the gaining side against 1289 shares on the losing side, while 182 shares remain unchanged.
FII’s Activity 31-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 3421.99 crore against gross selling of Rs 3593.76 crore. Thus, FIIs stood as net sellers of Rs 171.77 crore in equities.
In the debt segment, the gross purchase was of Rs 1857.26 crore with gross sales of Rs 691.66 crore. Thus, FIIs stood as net buyers of Rs 1165.60 crore in debt.
Now what to expect next ??
Nifty Levels
Support at 9580 and resistance at 9650.
Above 9650 will see further upside rally till 9687---9707 mark else it could test its support level of 9680 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 23160 and resistance at 23465
Above 23465 will see further upside rally till 23557---23613 mark.
More upside rally will see only close above 23613 level else it could test its support level of 23336---23160 again.
Today's Top Pick
Gujarat State Fertilizer & Chemicals
Support at 128 and Resistance at 132
Above 132 will see upside rally till 135---138+++ mark.
Looks weak only if close below 128
Ex-Dividend Today
Infosys Rs 14.75 per share
Page Industries Limited Rs 26 per share
More will update soon!!
