Nifty 9,504 /Sensex 30,857/ Bank Nifty 23,227
25 Advances / 26 Declines/ 0 Unchanged
Indian market gives up most of its gains in final hour
Indian stocks markets showed a volte-face on the final day of June F&O series, as what started on a promising note ended as a dismal show. The frontline indices pared most of intraday gains to close marginally in green, with the S&P BSE Sensex ending below its crucial 31,000 marks, while the Nifty50 settled just a tad above 9,500 marks. Sentiments got some support with the report that India's GDP growth witnessed a trough in January-March quarter, but going forward the economy is expected to see gradual improvement in growth numbers primarily driven by consumption. The report added that consumption has recovered from the demonetization shock and while external demand may be down, it remains supportive of growth. Some support also came with the report that investments in domestic capital markets via participatory notes (P-notes) have surprisingly surged to a seven-month high of Rs 1.81 lakh crore at the end of May despite stringent norms put in place by SEBI to curb inflow of illicit funds. According to Sebi data, total value of P-note investments in Indian markets - equity, debt and derivatives - increased to Rs 1,80,718 crore at May-end after hitting a four-month low of Rs 1,68,545 crore at the end of April.
However, the sanguinity in local markets was under check as profit booking in Energy and Healthcare counters exerted downside pressure on the frontline indices and dragged them even below to the psychological 9,550 (Nifty) and 30,900 (Sensex) levels. Investors remained cautious after hawkish comments from major central banks signalled rate hikes and that the era of stimulus might be coming to an end. In Britain, Bank of England Governor Mark Carney surprised many by conceding a hike was likely to be needed as the economy came closer to running at full capacity. Further, some weakness also came with the private report indicating that Loan waiver schemes being doled out to farmers could have a significant impact on state government finances and pose risk of further fiscal slippages. Four states-- Uttar Pradesh, Maharashtra, Punjab and Karnataka, which account for around one-third of India's population-- have announced farm loan waivers and other state governments are likely to feel pressure to implement similar policies, particularly in states with upcoming elections.
On the global front, Asian equity markets ended higher on Thursday, reflecting investors' confidence in the global economic outlook after central bankers around the world signalled that interest rates may need to rise. Japanese shares closed near their highest level in nearly two years as the yen held steady despite North Korea's warning that the country would keep building up its nuclear arsenal regardless of sanctions, pressure or military attack. Investors are awaiting the release of China's official monthly indexes on factory and service sector activity Friday. The numbers are widely watched early indicators of the health of the world's No. 2 economy and investors will be watching fresh insight into China's recovery. Meanwhile, European markets steadied as bank stocks extended a winning streak, after the US Federal Reserve cleared capital return plans from big banks.
Back home, the market breadth remained in favour of Advances, as there were 1616 shares on the gaining side against 958 shares on the losing side, while 163 shares remain unchanged.
FII’s Activity 29-June-17
The FIIs as per Thursday’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 5205.96 crore against gross selling of Rs 5569.06 crore. Thus, FIIs stood as net sellers of Rs 363.10 crore in equities.
In the debt segment, the gross purchase was of Rs 1982.54 crore with gross sales of Rs 500.47 crore. Thus, FIIs stood as net buyers of Rs 1482.07 crore in debt.
Now what to expect??
Nifty Levels
Support at 9500 and resistance at 9580
Weekly close below 9500 will see panic till 9420---9380 mark else it could test its resistance level of 9580 again.
Rally will see only close above 9580 level only
Bank Nifty Levels
Below 23230 will see further downside panic till 23000---22850 mark.
Rally will see only close above 23650 marks
Trade with levels only
Today's Top Pick
JSW Steel
Above 205 will see upside rally till 208--213++ mark in days to come.
Looks weak only if close below 197.
Any sharp down fall will be buying opportunity in it.
Corporate Action Today
Hero MotoCorp Limited- Annual General Meeting/ Dividend - Rs 30/- Per Share
JSW Energy Limited- Annual General Meeting
More will update soon!!
