Nifty 9,915 /Sensex 32,074/ Bank Nifty 24,015
40 Advances / 11 Declines/ 0 Unchanged
Benchmarks resume record setting spree; Nifty settles above 9,900 mark for first time
Resuming their record setting spree, Indian equity benchmarks ended the session with decent gains, with Sensex closing at new peak and Nifty ending above 9,900 mark for the first time. Markets after making an optimistic start traded in tight band throughout the session. Sentiments remained up-beat with latest edition of the Organisation for Economic Co-operation and Development’s (OECD) economic outlook report on India stating that economic growth is projected to remain strong and India will remain the fastest growing G20 economy. It added that private consumption has been buoyant, boosted by the increase in public wages and pensions and by higher agricultural and rural incomes. Traders also took some support with report that India’s trade deficit narrowed in June after swelling to a 30-month high in May even as exports grew slowly in the month. Exports grew 4.39%, a four-month low in the 10-months of continuous growth, to $23.5 billion. Trade deficit was $8.1 billion in the year ago period and $13.84 billion in May. Some support also came with report that Prime Minister Narendra Modi held a meeting with senior government functionaries to review the country’s current foreign direct investment (FDI) policy, which discussed measures to further liberalise the policy, so as to attract more FDI in various sectors.
Adding to the optimism, foreign investors have poured nearly Rs 11,000 crore in the capital markets in the first two weeks of July, supported by the trouble-free rollout of GST and stimulating Indian economy. The latest inflow comes following a net infusion of over Rs 1.62 lakh crore in the previous five months (February-June) on several factors. Meanwhile, both houses of Parliament were adjourned until Tuesday after making obituary references to members who passed away recently and to victims of Amarnath Yatra terror attack in which seven people were killed.
On the global front, Asian shares set a fresh two-year high, boosted by stronger-than-expected economic growth in China and bets that lacklustre US data will keep the Federal Reserve cautious about the pace of further policy tightening. However, European markets trading mostly in red at this point of time, as investors are eyeing second round of Brexit talks.
Back home, market capitalization of India’s most valued firm Reliance Industries (RIL) surpassed Rs 5 lakh crore level in trade. Shares of the company have been on a rising spree since the launch of its telecom unit Reliance Jio Infocomm in September last year. However, tobacco stocks like ITC, Godfrey Phillips India and VST Industries closed in red on reports that the Goods and Services Tax (GST) Council is likely to meet today to consider a cess on tobacco.
FII’s Activity 17-July-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 4307.53 crore against gross selling of Rs 3771.99 crore. Thus, FIIs stood as net buyers of Rs 535.54 crore in equities.
In the debt segment, the gross purchase was of Rs 1505.56 crore with gross sales of Rs 724.65 crore. Thus, FIIs stood as net sellers of Rs 780.91 crore in debt.
Now what to expect next??
Nifty Levels
Above 9950 will see rally till 9980---10035 mark
Immediate support at 9850.
Bank Nifty Levels
Support at 23800 and resistance at 24050
Close above 24050 will take to 24250---24400.
Support and stop loss below 23800 on closing basis
Trade with levels only
Daily Derivative Outlook 18th July
•Nifty (July) futures closed at a Premium of 17.20 points versus Discount of 13.20 points.
• Maximum call writing was seen at 9950 strikes, and maximum put writing was seen at 9900 strikes.
• Maximum positions are at 10000 CE and 9800 PE. Nifty likely to trade in range of 10000--9800
• JUSTDIAL (25%), JUBLFOOD (24%), SREINFRA (23%), UBL (17%) and MRPL (16%) were the top open interest gainers in the market.
• GRASIM (-38%), AUROPHARMA (-9%), BIOCON (-7%), PNB (-7%) and INDIGO (-6%) were the top open interest losers in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.67 against 1.63 for Friday’s trade.
• Around 2.84 lakh shares were shaded in open interest with increase in price. This indicates that short covering was observed by market participants in Monday’s trade.
• On the options front, the volatility index increased in Monday’s trade by around 2.55%.
Derivative Idea
Bharat Forge added around 9.8% of open interest as long build up on Daily.
On Daily charts, Bharat Forge has given fresh breakout with volumes at 1145 mark. Bharat Forge 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 Bharat Forge (July) Future above 1152. Stop Loss 1120. Target 1190—1210+++
Today's Top Pick
BPCL... Above 469 will see upside rally till 475---480+++ mark in days to come.
Looks bearish only if close below 460.
Any sharp downside fall will be buying opportunity in it.
Result Today
UltraTech Cement Limited
TV18 Broadcast Limited
Hindustan Unilever Limited
More Will Update Soon!!
