Nifty 9,511 /Sensex 30,958/ Bank Nifty 23,216
16 Advances / 34 Declines/ 1 Unchanged
Indian equities decline for second straight session; Sensex slips below 31000 mark
Indian equity bourses commenced the fresh week on a depressing note, as the benchmark indices extended previous week's sell-off and sank by over half a percent, as investors maintained conservative approach and remained cautious ahead of Federal Reserve Chair Janet Yellen’s speech later Tuesday for clues on the outlook for US monetary policy. The broader markets too failed to show any kind of fervor and plunged by close to a percent, underperforming their larger peers by quite a margin. Sentiments were undermined after CRISIL enlightened that the steps taken by Reserve Bank of India (RBI) to resolve NPAs are likely to raise provisioning by a whopping 25% this year as lenders will take up to 60% hair cut while resolving these accounts. Further, the central bank told banks to set aside at least 50% of loan amount for cases referred to insolvency process. The move could take its toll on banks’ earnings.
Adding the cautiousness among market participants, Finance Minister Arun Jaitley said that the Centre made a last-ditch effort to get Jammu & Kashmir on board to launch goods and services tax (GST) from July 1 suggesting that the state government had elbow room to convey its concurrence to join the new regime. He cautioned that a failure to launch GST will impact consumers and businesses in the state. Meanwhile, Prime Minister Narendra Modi and President Donald Trump have agreed to strengthen the Indo-US economic partnership in a way that results in a win-win for the two major economies, while amicably working on resolving differences. Going forward in near term, Market is expected to stay choppy ahead of F&O expiry due this week and GST rollout lined up for June 30 midnight.
On the global front, Asian equity markets ended mostly in green on Tuesday, as investors awaited an appearance by Federal Reserve Chair Janet Yellen for clues on the outlook for interest rates and the American economy. Chinese shares ended higher after official data showed profit growth in China's industrial sector picked up speed in May, but investors turned cautious amid a strong rally in blue-chips after MSCI decided last week to add 222 China-listed stocks to its Emerging Markets Index. Furthermore, Japan's Nikkei share average edged up to hover near two-year highs as a weaker yen helped exporters rise, while financial stocks rebounded from Monday's declines. Meanwhile, European markets dropped in early trade, feeling the weight of a rising euro, as profit warnings and merger concerns pulled regional equities toward their lowest level in nearly two weeks.
Back home, the market breadth remained pessimistic, as there were 711 shares on the gaining side against 1881 shares on the losing side, while 180 shares remained unchanged.
FII’s Activity 27-June-17
The FIIs as per Tuesday’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 5058.09 crore against gross selling of Rs 4569.92 crore. Thus, FIIs stood as net buyers of Rs 488.17 crore in equities.
In the debt segment, the gross purchase was of Rs 1451.86 crore with gross sales of Rs 1215.25 crore. Thus, FIIs stood as net buyers of Rs 236.61 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9500 and resistance at 9650
Close below 9500 will see panic till 9420---9380 mark else it could test its resistance level of 9650 again.
Rally will see only close above 9650 level only
Bank Nifty Levels
Support at 23215 and resistance at 23420
Below 23215 will see further upside rally till 22965---22840 mark.
Rally will see only close above 23420 level only
Trade with levels only
Today's Top Pick
DCB Bank
Below 195 will see downside panic till 180 mark in days to come.
Looks positive only if close above 208. Any sharp rise will be selling opportunity in it.
Corporate Action Today
Hindustan Construction Company Limited- Annual General Meeting
Engineers India Limited- Buyback
More will update soon!!
