Nifty 9,668/Sensex 31,262/ Bank Nifty 23,690
26 Advances / 25 Declines/ 1 Unchanged
Late hour recovery help benchmarks to end near day’s high
Recovering from day’s lows, Indian benchmark indices completed the last day of the week on optimistic note, as investors showed huge buying interests in Realty, Metal and Auto counters. Sentiments got a boost after Goods and Services Tax (GST) Council constituted 18 sectoral groups like telecom, textiles, gems and jewellery, e-commerce and mining, constituting officers both from the Centre and states to address sector-specific issues and assist in smooth roll-out of the new indirect tax regime from July 1, 2017. Some support also came with UN trade report that despite stagnant foreign direct investment (FDI) inflow of $44 billion in 2016, India will most likely remain most favoured destination due to its attractiveness among MNCs for cross-border mergers and acquisitions. Besides, India Met Department (IMD) has said that a low-pressure area would form in the Bay of Bengal in the next two days, boosting prospects of accelerated progress of the monsoon, also supported the sentiments. However, global market sentiment took a hit after UK elections left no single party with a clear claim to power ahead of talks to exit the European Union (EU), sideswipe investors who had already weathered major risk events in the United States (US). Further, market participants also remained anxious as a survey by the Reserve Bank of India showed that the economy will gradually consolidate growth in the current fiscal. The survey enlightened that real gross domestic product (GDP) and real gross value added (GVA) are expected to grow by 7.4% and 7.2%, respectively, in 2017-18 and consolidate further by 40 basis points (bps) and 50 bps, respectively in the following year. According to the forecasters, retail inflation is expected to gradually rise to 5% by the fourth quarter of 2017-18.
On the global front, Asian equity markets made a mixed closing on Friday, as investors largely shrugged off political uncertainty in the UK and looked ahead to the Federal Reserve meeting due next week. Japanese market ended higher as index-heavyweight SoftBank soared more than 7 percent after its unit agreed to buy US robotics firm Boston Dynamics from Alphabet. Also, the yen remained weak against the dollar after Bank of Japan Governor Haruhiko Kuroda said there is still a long way to go until the inflation target of 2 percent is achieved. Further, Chinese shares rose slightly despite inflation data painting a mixed picture of the world's second-largest economy. Meanwhile, European markets were advancing in early trade as oil prices gained traction and after the European Central Bank (ECB) raised its economic growth projections through 2019, and said that it would carry on with its bond purchases at least through December.
Back home, state-owned electric utilities companies such as NHPC and SJVN rallied on reports that the government has decided to provide a Rs 16,000-crore bailout package to the hydropower sector, drowning under a spate of stalled and stressed projects. The market breadth remained pessimistic, as there were 1391 shares on the gaining side against 1289 shares on the losing side, while 177 shares remained unchanged.
FII’s Activity 09-June-17
The FIIs as per Friday’s data were net buyers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 5906.79 crore against gross selling of Rs 3834.14 crore. Thus, FIIs stood as net buyers of Rs 2072.65 crore in equities.
In the debt segment, the gross purchase was of Rs 4609.71 crore with gross sales of Rs 1273.07 crore. Thus, FIIs stood as net buyers of Rs 3336.64 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9580 and resistance at 9735.
Above 9670 will see upside rally till 9735 mark. More and more power will see only close above 9735 else it could test its support level of 9580 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 23540 and resistance at 23700
Above 23700 will see further upside rally till 23815---23860 mark.
More upside rally will see only close above 23860 level else it could test its support level of 23540 again.
Today's Top Pick
Kesoram Industries Limited
Support at 135 and Resistance at 150
Above 150 will see upside rally till 165--170++ mark in days to come.
Looks weak only if close below 135
Ex-Dividend Today
JSW Steel Limited Rs 2.25/- Per share
More will update soon!!
