Nifty 9,653/Sensex 31,273 / Bank Nifty 23,375
26 Advances / 23 Declines/ 2 Unchanged
Indian equity indices end at record highs; Nifty breaches 9650 mark
Indian benchmark equity indices staged a wonderful performance on the last day of the week by gaining close to half percent in the session and conquering their psychological levels. The indices ended at record highs on Friday, tracking upbeat trend in global markets, while hopes of good southwest monsoon rains also lifted sentiment. Market participants took some encouragement with the Moody's Investors Service stating that India's key reforms, including the impending goods and services tax and resolution of sticky loans may improve the country's credit profile. Some support also came with NITI Aayog Vice Chairman Arvind Panagariya's statement that India will regain the crown of the fastest growing major economy, overtaking China, as early as the first quarter of 2017-18. He said that India, on an annual basis, is ahead of China and will regain the growth momentum soon on the back of host of reforms initiated by the Modi government in the last three years. Besides, the appreciation in rupee value against the dollar added to the optimistic sentiments. Rising for the third straight day, Indian rupee strengthened by 14 paise to 64.34 against the US dollar in early trade on sustained selling of the American currency by banks and exporters. However, broader gains were capped due to caution ahead of the Reserve Bank of India's policy meeting next week. The central bank is expected to keep rates on hold on June 7, though it could soften its hawkish tone after data showed easing inflation.
On the global front, Asian equity markets ended higher on Friday, as a set of upbeat economic data from the US and Europe helped investors shrug off US President Donald Trump's decision to withdraw from the Paris climate agreement. US factory activity ticked up in May after slowing for two straight months and private employers stepped up hiring, suggesting the economy is regaining speed after struggling at the start of the year. While Chinese stocks ended little changed as investors fretted over tighter liquidity and slowing economic growth, Japan's Nikkei share average broke through the 20,000-point barrier for the first time since December 2015. Meanwhile, all the major European counterparts were trading in the green where major indices like CAC and DAX were trading with a gain of over half a percent at this point of time.
Back home, after getting a firm start, the local benchmarks maintained most of their gains throughout the session and ended the trading day with strong gains. The NSE's 50-share broadly followed index Nifty got buttressed by over quarter percent to settle above the crucial 9,650 support level, while Bombay Stock Exchange's Sensitive Index-Sensex accumulated over hundred and thirty points and closed above the psychological 31,200 mark. Further, the broader markets managed a touch better than the larger peers today as the BSE's midcap and smallcap indices settled with gains of 0.72% and 0.50% respectively. The market breadth remained optimistic, as there were 1461 shares on the gaining side against 1224 shares on the losing side, while 165 shares remained unchanged.
FII’s Activity 2-June-17
The FIIs as per Friday’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 4547.31 crore against gross selling of Rs 4998.12 crore. Thus, FIIs stood as net sellers of Rs 450.81 crore in equities.
In the debt segment, the gross purchase was of Rs 2316.78 crore with gross sales of Rs 1157.53 crore. Thus, FIIs stood as net buyers of Rs 1159.25 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9580 and resistance at 9680.
Above 9650 will see further upside rally till 9680 mark. More and more power will see only close above 9680 else it could test its support level of 9580 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 23200 and resistance at 23400
Above 23400 will see further upside rally till 23600---23750 mark.
More upside rally will see only close above 23750 level else it could test its support level of 23200 again.
Today's Top Pick
Insecticides (india) Limited
Support at 675 and Resistance at 690
Above 690 will see upside rally till 708---715+++ mark.
Looks weak only if close below 675
Ex-Dividend Today
ITC Rs 4.75 per share
More will update soon!!
