Nifty 9,891 /Sensex 32,037/ Bank Nifty 23,888
37 Advances / 13 Declines/ 0 Unchanged
Benchmarks hit fresh record closing highs on rate cut hopes
Bulls tightened their grip on Dalal Street, with frontline gauges extending their record hitting streak for fourth straight session with Sensex conquering 32,000 mark, while Nifty settled just shy of 9,900 mark. Sentiments remained up-beat throughout the session and markets traded with traction, as tepid data of industrial output coupled with record low inflation figures have rekindled hopes of a rate cut when the RBI reviews its monetary policy on August 2. Industrial output growth of India slowed down to 1.7% in the month of May 2017, as compared to 8% in the same month last year and 3.1% in April 2017, mainly due to poor performance of mining and manufacturing, while India’s retail inflation hit a record low of 1.54% in June 2017, down from 2.18% in May and 5.77% in June last year. June’s retail inflation was lowest since the government began issuing data based on the consumer price index (CPI) in 2012.
Some support to the markets also came with rating agency Fitch’s report that the global sovereign credit cycle is likely to turn less negative in 2017 as the global GDP growth forecast for 2017 and 2018 had improved. Traders also took some encouragement with report that India’s overseas shipments to top 10 destinations worldwide which include the countries like US, Japan, Hong Kong and UAE have gained strength in the passing financial year. According to the industry body, the PHD Chamber of Commerce and Industry (PHDCCI), the country’s share of exports to top 10 destinations grew to 51.6% in the financial year 2016-17 from 49% in the financial year 2013-14.
Firm opening in European counters too aided sentiments, after Fed Chair Janet Yellen’s comments about gradual policy tightening soothed fears of a central bank moving too fast. Asian markets scaled a two-year top on Thursday, as investors wagered policy tightening in the United States would be glacial at best, lifting Wall Street to record peaks and lowering bond yields almost everywhere.
Back home, traders also took support after the largest oil producing bloc OPEC in its monthly report highlighted that India’s economic growth will accelerate to 7.5% in the next year 2018, widening the lead over China, whose economic expansion will slow further to 6.2%. Adding to the optimism foreign Portfolio Investors (FPIs) have poured a record $15.86 billion into Indian debt so far this calendar year, according to data available till July 11. This is the highest amount of net inflows into Indian debt on a year-to-date basis.
FII’s Activity 13-July-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 4631.63 crore against gross selling of Rs 4084.63 crore. Thus, FIIs stood as net buyers of Rs 547.00 crore in equities.
In the debt segment, the gross purchase was of Rs 2640.25 crore with gross sales of Rs 690.10 crore. Thus, FIIs stood as net buyers of Rs 1950.15 crore in debt.
Now what to expect??
Nifty Levels
Above 9885 will see rally till 9920 mark. Soon we will see rally to cross 10000 mark too
Support and revise stop loss of 9830.
Daily Derivative Outlook 14th July
• Nifty (Jul) futures closed at a discount of 4.20 points versus premium of 6.25 points.
• Maximum call writing was seen at 9900 strikes, and maximum put writing was also seen at 9900 strikes.
• Maximum positions are at 10000 CE and 9600 PE. Nifty likely to trade in range of 10000--9600
• CHOLAFIN (38%), UJJIVAN (33%), GODFRYPHLP (20%), NATIONALUM (20%) and BALKRISIND (18%) were the top open interest gainers in the market.
• SINTEX (-14%), EQUITAS (-12%), INDIAB (-11%), HEXAWARE (-8%) and PAGEIND (-7%) were the top open interest losers in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.35 against 1.34 for Wednesday's trade.
• Around 12.34 lakh shares were shaded in open interest with increased price. A long buildup was observed by market participants in today’s trade.
• On the options front, the volatility index increased in today’s trade by around 1.50%.
Derivative Idea
Godfrey Phillips added around 20% of open interest as long buildup.
On Daily charts, Godfrey Phillips is trading above 21 and 55 DEMA indicates upside momentum in it.
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation
Buy Godfrey Phillips (July) Future above 1282. Stop Loss 1245. Target 1310--1330++.
Today's Top Pick
VEDL
Above 263 will see upside rally till 270---276++ mark in days to come.
Looks bearish only if close below 255.
Any sharp downside fall will be buying opportunity in it.
Corporate Action Today
Mahindra & Mahindra Financial Services Limited-Annual General Meeting/Dividend - Re 2.40 per Share
Housing Development Finance Corporation Limited- Dividend - Re 15 per Share
Result Today
Infosys Limited
More Will Update Soon!!
