Nifty 9,675/Sensex 29,518/ Bank Nifty 23,459
33 Advances / 18 Declines/ 0 Unchanged
Indian markets settle with moderate gain; Sensex ends above 31,300 for first time
Indian stock markets, which appeared to be wandering on a directionless trajectory through the morning trades, witnessed some renewed buying interests in Consumer Durables and Realty counters during the noon session, which helped the equity indices to snap second straight session on a positive note. The gains were, however, capped as investors remained cautious ahead of the Reserve Bank of India (RBI)'s policy meeting, which begins tomorrow. Market is hoping that RBI may review its current stance of neutral to accommodative considering the slowdown in economic activity and consolidation in current & future outlook in inflation. Furthermore, HSBC's latest report indicated India's economic growth is expected to remain flat at 7.1% in current fiscal as investment is still weak and government spending might not be as high given the fiscal consolidation. According to the global financial services major, the GDP growth momentum is slowing since mid-2016 and this trend is expected to continue going forward.
Sentiments got a boost with the report that Services sector activity in India grew at the fastest pace in four months in May riding piggyback on higher work orders as companies inducted more people to cope with greater workloads. The Nikkei India Services Purchasing Managers' Index (PMI), which tracks services sector output on a monthly basis, rose from 50.2 in April to 52.2 in May. Some support also came with World Bank report indicating that successful demonetization will help in raising revenues on sustained basis as more and more people will come under the tax net. During 2016-17, India generated additional tax revenues as unreported cash identified both through the amnesty scheme and demonetisation were brought under the tax net. Meanwhile, shares of jewellery companies rose sharply today, following the government's announcement of GST rates on gold. The GST Council on Saturday announced that the rate on gold and gold jewellery would be at 3%, while the import duty of 10%, which will be over and above the 3%, remains unchanged. Currently, tax on gold and jewellery is at 2% and the current GST rate is slightly higher at 3%, but lower than the 5% rate that was expected.
On the global front, Asian markets ended the session mixed on Monday, as investors turned jittery after deadly attacks in London at the weekend and the potential impact on parliamentary elections scheduled for June 8, 2017. Prices of oil rose following reports that four Arab nations cut diplomatic ties to Qatar. Further, China's stocks declined, as sharp losses in financial firms offset news the securities regulator had cut the number of initial public offerings coming onto the market. China Securities Regulatory Commission (CSRC) approved on Friday only four IPOs to raise up to 1.5 billion yuan ($220.5 million), down from 7 IPOs in the past week. Japanese shares ended flat, keeping close to a 22-month high scaled at the end of last week as the yen's rise against the dollar stalled. Meanwhile, Europe markets were trading mostly weak, as investors eyed an upcoming monetary policy meeting from the European Central Bank (ECB).
Back home, the local equity benchmark started the session on cautious note, tracking mixed trade in other regional markets and disappointing US jobs data. The indices gained movement in late morning trade and surged around quarter percent, but weak opening of European markets and cautiousness ahead of the RBI’s monetary policy meet tomorrow, keep the indices in tight range for rest of the session. Finally, the NSE's 50-share broadly followed index Nifty got buttressed by around quarter percent to settle above the crucial 9,650 support level, while Bombay Stock Exchange's Sensitive Index-Sensex accumulated over thirty points and closed above the psychological 31,300 mark. The market breadth remained optimistic, as there were 1438 shares on the gaining side against 1237 shares on the losing side, while 189 shares remained unchanged.
FII’s Activity 05-June-17
The FIIs as per Monday’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 4535.70 crore against gross selling of Rs 4422.33 crore. Thus, FIIs stood as net buyers of Rs 113.37 crore in equities.
In the debt segment, the gross purchase was of Rs 3004.00 crore with gross sales of Rs 403.09 crore. Thus, FIIs stood as net buyers of Rs 2600.91 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9580 and resistance at 9735.
Above 9680 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 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
Bharat Wire Ropes Limited
Support at 95 and Resistance at 103
Above 103 will see upside rally till 114---118+++ mark.
Looks weak only if close below 95.00
More will update soon!!
