Nifty 10,020 /Sensex 32,383/ Bank Nifty 24922
18 Advances / 33 Declines/ 0 Unchanged
Late hour selloff drag benchmarks near neutral lines on F&O expiry
Markets went home empty handed on July month F&O expiry despite trading jubilantly for most part of the day. It was the final hour of trade which played spoil sports for Indian equity benchmarks and rally got fizzled out with key indices ended unchanged, as traders opted to book profits at higher levels. Markets kick started the day on optimistic note, hitting lifetime highs of 32,672.66 (Sensex) and 10,114.85 (Nifty) levels, as sentiments remained up-beat with news that retirement fund body the Employees’ Provident Fund Organisation is planning to pump in Rs 22,500 crore in exchange traded funds in 2017-18 following approval from the central board of trustees to increase the equity investment from 10 per cent to 15 per cent. Traders also took some comfort with report that Bharatiya Janata Party (BJP) strengthened its foothold in Bihar after Nitish Kumar ended his party, JDU’s mahagathbandhan or Grand Alliance with Lalu Yadav’s RJD and the Congress last evening and joined hands with his former partner BJP.
Investors also took note of global financial services major report that the Reserve Bank of India is expected to go for a 25 basis points (bps) repo rate cut in its policy review meet on August 2 as inflation is likely to have reached a new normal of 4 percent. The report highlighted that inflation in India has fallen dramatically, and though the excessively low level it witnessed this fiscal is not sustainable, the rebound may not be too sharp either. However, markets failed to hold their early gains and started moving southward to end flat on account of late selling in bluechips like Reliance Industries, ITC, Infosys, TCS and Bharti Airtel. A string of mixed-to-weak corporate earnings also soured sentiment.
On the global front, European markets trading mostly in green in early deals as investors reacted to a slew of earnings reports. Growth in bank loans to euro zone corporations slowed sharply in June but household lending held at a post-crisis high and a key money supply indicator, which often predicts future economic activity firmed. Asian markets rallied on Thursday after the US Federal Reserve kept interest rates unchanged on Wednesday.
Back home, stocks related to infra space edged higher despite Global Infrastructure Outlook report that India is underperforming in terms of spending needs (in relation to GDP) in several infrastructure segments, within its peer group. On earning front, Dr. Reddy’s Laboratories ended with a cut of over three percent after it reported 57 percent decline in profit for the April June quarter impacted by GST-led destocking. Shares of the country’s largest car maker Maruti Suzuki pared most of their gains after a mixed set first quarter earnings. The company reported a net profit of Rs 1,560 crore, missing street expectation for a profit of Rs 1,690 crore.
FII’s Activity 27-July-17
The FIIs as per Thursday’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 5456.65 crore against gross selling of Rs 5649.21 crore. Thus, FIIs stood as net sellers of Rs 192.56 crore in equities.
In the debt segment, the gross purchase was of Rs 2769.81 crore with gross sales of Rs 594.77 crore. Thus, FIIs stood as net buyers of Rs 2175.04 crore in debt.
Now what to expect??
Nifty Levels
Support at 9950 and Resistance at 10182
Above 10070 will see rally till 10137---10182 mark else it could test its support level of 9950 again.
Daily Derivative Outlook 28th July
• Nifty (Jul) futures premium increased from 42.00 points to 42.90 points with 1.72 crore shares in open interest.
• Maximum call writing was seen at 10300 strike, and maximum put writing was seen at 10000 strikes.
• Maximum positions are at 10000 CE and 9800 PE. Nifty likely to trade in range of 10100--9800
• CENTURYTEX (96%), MCX (93%), JSWENERGY (92%), GSFC (92%) and IBREALEST (92%) witnessed good rollover in the next series.
• POWERGRID (40%), INFIBEAM (56%), VOLTAS (57%), EICHERMOTOR (58%) and TECHM (61%) witnessed low rollover in the next series.
• The Nifty Put Call Ratio (PCR) finally stood at 2.01.
• Advance Decline ratio was at 0.79, Advance (92) + Decline (126)+ Unchanged (1) = 219
Derivative Idea (28-07-2017)
Oriental Bank gain around 14.7% of open interest as short build up on Yesterday’s trade.
On Daily charts, Oriental Bank has support 147.50, Below 147.50 panic remain continue till 141—138 and then to 135 mark.
Hurdle intact at 155.00
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation
Sell Oriental Bank (AUG) Future below 147.50 Stop loss 155 Target 135—138 and then 135
Corporate Action
Century Textiles & Industries Limited-Annual General Meeting/Dividend - Rs 5.50 Per Share
Ceat Limited- Annual General Meeting/Dividend - Rs 11.50 Per Share
Amara Raja Batteries Limited-Annual General Meeting/ Dividend - Rs 4.25 Per Share
Bharat Forge Limited- Dividend - Rs 5/- Per Share
Srf Limited- Annual General Meeting
Results Today
Equitas Holdings Limited
Larsen & Toubro Limited
LIC Housing Finance Limited
The India Cements Limited
Escorts Limited
Balkrishna Industries Limited
NTPC Limited
More Will Update Soon!!
