Nifty 9,657 /Sensex 31,311 / Bank Nifty 23,742
33 Advances / 17 Declines/ 1 Unchanged
Sensex closes at record high; Nifty recaptures 9650 mark
Indian equity indices commenced the week on an optimistic note as the benchmarks showcased an energetic performance on Monday and settled with gains of around three fourth of a percent. Investors continued to build hefty positions across the board as sentiments got a boost after Finance Minister Arun Jaitley said India will launch a new national Goods and Services Tax (GST) as planned on July 1 and gave return filing breather to India Inc for two months. Adding optimism among investors, the industry body Confederation of Indian Industry (CII) said India Inc is ready for the implementation of the GST from July 1, as the new indirect tax regime will contribute significantly towards economic growth, job creation and exports expansion. Besides, firm global cues, after French President Emmanuel Macron's party won a parliamentary majority at the weekend, too added to the optimistic sentiments.
Some support also came with the report that Net income tax collection grew at a healthy 26.2% to Rs 101,024 crore from across the country as of June 15 this fiscal from Rs 80,075 crore in the year ago period. Meanwhile, lenders such as State Bank of India gained after the central bank asked banks to start banktruptcy process against 12 large loan defaulters, raising hopes that reduction of bad debt will start to quicken. Also, Capital market regulator SEBI is again extending a helping hand to the government and the RBI in their fight against bad loans. According to the reports, Securities and Exchange Board of India is planning to ease the acquisition rules to allow investors to buy distressed assets from banks.
On the global front, Asian equity markets ended mostly higher on Monday as weaker than expected US housing and consumer sentiment data tempered expectations for a spate of interest rate increases this year. Chinese shares ended higher as liquidity conditions have eased and data showed the property market continued to stabilize in May after stricter measures to curb demand. Further, Japanese shares hit two-week highs amid yen weakness as data showed Japan saw a surprise trade deficit in May because of a rise in imports. Meanwhile, European markets were trading higher in early trade, as markets geared up ahead of Brexit negotiations between the UK and the European Union, and as French President Emmanuel Macron's party won a parliamentary majority at the weekend.
Back home, after getting a firm start, the local benchmarks maintained their gains through the morning trade and extended it in late afternoon to end near day’s high levels. Finally, the NSE’s 50-share broadly followed index, Nifty jumped over half a percent to settle above the crucial 9,650 level, while the Bombay Stock Exchange’s Sensitive Index, or Sensex garnered over two hundred and fifty points to scale over the psychological 31,300 mark. Further, the broader markets underperformed their larger peers by a fat margin as the BSE’s midcap index went home with gains of 0.07%, while the small cap index declined by 0.08%. The market breadth remained pessimistic, as there were 1197 shares on the gaining side against 1468 shares on the losing side, while 194 shares remained unchanged.
FII’s Activity 19-June-17
The FIIs as per Monday’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 7994.39 crore against gross selling of Rs 8688.50 crore. Thus, FIIs stood as net sellers of Rs 694.11 crore in equities.
In the debt segment, the gross purchase was of Rs 2384.50 crore with gross sales of Rs 1351.01 crore. Thus, FIIs stood as net buyers of Rs 1033.49 crore in debt.
Now what to expect next??
Nifty Levels
Above 9680 will see rally till 9730---9775 mark. Those are holding long can revise stop loss at cost to cost.
Panic will see only close below 9580 level only
Bank Nifty Levels
Above 23680 will see further upside rally till 23750---23900 and then to 24400+++ mark.
Fresh downside panic will see only close below 23350 mark.
Trade with levels only
Today's Top Pick
FSL
Support at 31 and Resistance at 34
Above 34 will see upside rally till 37--42++ mark in days to come.
Looks weak only if close below 31
ICICI Bank Limited-
Annual General Meeting/Dividend - Rs 2.50 Per Share/Bonus 1:10 (Revised)
Allahabad Bank- Annual General Meeting
More will update soon!!
