Nifty 9,665 /Sensex 31,360/ Bank Nifty 23,449
19 Advances / 31 Declines/ 1 Unchanged
Benchmarks end marginally lower; Sensex hold 31,300 marks
Friday turned out to be a choppy day of trade for Indian equity benchmarks, where Sensex and Nifty went home with marginal cut, as market participants opted to remain on side-lines ahead of the quarterly earnings starting next week. Markets started the session on pessimistic note and extended southward journey, breaching their crucial 31,300 (Sensex) and 9,650 (Nifty) levels, as traders remained cautious with the report that India slipped by one spot to become the fourth-largest foreign investor into the UK. India set up 127 new projects in Britain last year and safeguarded 7,645 existing jobs as a result and created 3,999 new jobs in 2016-17. Traders also stayed on side-lines ahead of outcome of the G20 Summit began on July 7, as world leaders assembled to discuss fight against terrorism and ways to improve open trade.
However, markets witnessed recovery in afternoon deals and get back their crucial bastions, as traders took some solace with report that net direct tax collection grew by 14.8 percent to Rs 1.42 lakh crore at the end of first quarter on account of surge in advance tax payments. According to the Ministry of Finance, the net direct tax collection represents 14.5% of the total Budget estimates of direct taxes of Rs 9.8 lakh crore for FY18. Traders also took some relief with Finance Minister Arun Jaitley’s statement that the rollout of the Goods and Services Tax has been smooth, without causing much disruption. He said the economy has not been disrupted and we don’t expect any disruption ahead, refuting critics who had thought that the GST rollout would impact trade and industry.
On the global front, European markets were trading mostly in red terrain in early deals on Friday, as investors look out for fresh economic data. Asian shares lost ground and snapped the session largely in red after a weak session on Wall Street, while global sovereign debt yields were elevated across the board on bets the European Central Bank is moving closer to unwinding its massive monetary stimulus.
Back home, appreciation in Indian rupee too aided sentiments. The Indian rupee strengthened against the US dollar at 64.60 at the time of equity markets closing from its previous close of 64.77 on fresh selling of the American unit by exporters and banks, after a key US employment report showed that the job growth has slowed. On the sectoral front, PSU Banking stocks remained buzzing on reports that the government is likely to infuse more money in state-run banks amid crackdown on bad loans and increasing capital needs under Basel III guidelines. Sugar stocks remained in sweet spot on report that the central government is considering steps to protect the industry and farmers’ realizations as sugar production in India is estimated to go up 25-30% in the sugar year 2017-18. Meanwhile, the market breadth remained positive, as there were 1395 shares on the gaining side against 1282 shares on the losing side, while 137 shares remained unchanged.
FII’s Activity 7-July-17
The FIIs as per Friday’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 4829.86 crore against gross selling of Rs 4223.68 crore. Thus, FIIs stood as net buyers of Rs 606.18 crore in equities.
In the debt segment, the gross purchase was of Rs 2523.51 crore with gross sales of Rs 930.13 crore. Thus, FIIs stood as net buyers of Rs 1593.38 crore in debt.
Now what to expect next??
Nifty Levels
Above 9680 will see rally till 9720---9770 mark.
Panic will see only close below 9580 level only
Bank Nifty Levels
Support at 23225 and resistance at 23480.
Close above 23480 will see further upside rally till 23800---24000.
Support and stop loss below 23225 on closing basis.
Today's Top Pick
PNB
Break and sustain above 144 will see upside rally till 149---155+++ mark in days to come.
Looks weak only if close below 140
Corporate Action Ex-Date Today
MindTree Limited-ANNUAL GENERAL MEETING/DIVIDEND - RS 3/- PER SHAR
UltraTech Cement Limited-ANNUAL GENERAL MEETING/DIVIDEND - RS 10 PER SHARE
IDBI Bank Limited-ANNUAL GENERAL MEETING
More will update soon!!
