Nifty 9,647/Sensex 31,213/ Bank Nifty 23,536
23 Advances / 27 Declines/ 1 Unchanged
Indian benchmarks settle with moderate losses; Nifty ends below 9650 mark
It turned out to be a lethargic performance from Indian benchmark indices on Thursday, as they failed to snap the session in the green territory and settled marginally below the neutral line. Today’s session largely remained characterized by choppiness, as the aimless indices moved only sideways in a tight band for most part of the day, as investors and foreign funds were adopting a cautious approach, ahead of key political and economic events in the U.S. and Europe. Sentiments remained subdued after Reserve Bank of India (RBI) raised concerns over the possibility of fiscal slippages due to the farm loan waivers. RBI Governor Urjit Patel said unless that state governments' budgets allow that fiscal space to go in for a loan waiver, it would be risky to tread on that path. RBI also cut the economic growth projection to 7.3% for the current fiscal from 7.4% earlier. The central bank, however, used a less hawkish tone and reduced the Statutory Liquidity Ratio (SLR) in its second bi-monthly monetary policy for financial year 2017-18.
Traders turned anxious after chief economic adviser Arvind Subramanian expressed his unhappiness over the Reserve Bank's inflexibility on interest rates. He warned that real policy rates are becoming tighter and rising at a time of low inflation and slowing growth. However, losses remained capped with UNCTAD’s latest report that India would be the top prospective foreign direct investment (FDI) destination globally after the US and China. It also said that an improved economic outlook in major Asian economies such as India, China is likely to lift investor confidence and help boost FDI inflows by about 15 percent in 2017.
On the global front, Asian equity markets made a mixed closing on Thursday, as investors braced for any surprises from the UK elections, the European Central Bank's policy meeting and congressional testimony from ex-FBI director James Comey who was fired by President Donald Trump last month. The British pound held firm at $1.2957, near its highest levels in two weeks, supported in part by polls showing Prime Minister Theresa May is on course to increase her majority in parliament. Japanese shares ended lower as the yen edged higher in late Asian deals on a report that the Bank of Japan was re-calibrating its communications to acknowledge it is thinking about how to handle a withdrawal from its monetary stimulus. However, Chinese shares ended higher after Chinese exports and imports data topped expectations. Exports advanced 8.7% year-on-year in dollar terms in May, while Imports climbed 14.8%.
Back home, many liquor stocks gained traction after Karnataka state government decided to send a proposal to the union government seeking to de notify the national highways (NH) pass through urban local bodies in Karnataka as local roads. Likewise, shares of steel companies were trading higher in an otherwise subdued market on the expectations of a revival in consumption during the current financial year 2017-18. The market breadth remained pessimistic, as there were 1328 shares on the gaining side against 1351 shares on the losing side, while 177 shares remained unchanged.
FII’s Activity 8-June-17
The FIIs as per Thursday’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 5119.15 crore against gross selling of Rs 5029.81 crore. Thus, FIIs stood as net buyers of Rs 89.34 crore in equities.
In the debt segment, the gross purchase was of Rs 3466.96 crore with gross sales of Rs 742.97 crore. Thus, FIIs stood as net buyers of Rs 2723.99 crore in debt.
Now what to expect??
Nifty Levels
Support at 9580 and resistance at 9735.
Above 9660 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 23400 and resistance at 23570
Above 23570 will see further upside rally till 23670---23750 mark.
More upside rally will see only close above 23750 level else it could test its support level of 23400 again.
Today's Top Pick
EIH Limited
Support at 127 and Resistance at 135
It looks positive on charts. Above 135 will see upside rally till 148---153+++ mark.
Looks weak only if close below 127 mark
More will update soon!!
