Nifty 9,763 /Sensex 31,715/ Bank Nifty 23,675
45 Advances / 6 Declines/ 0 Unchanged
Markets close at record highs amidst technical glitch at NSE
Monday turned out to be a fabulous day of trade for Indian equity markets, with bulls tightening their grip with frontline indices ending at all-time closing highs. Sensex surpassed its crucial 31,700 level, while Nifty50 achieved 9,750 mark for the first time ever despite trading remained shut on NSE in cash and F&O segment for 3 hours in the morning trade due to a technical glitch. Markets traded jubilantly throughout the session on report that Associated Chambers of Commerce and Industry of India (Assocham) said that the Goods and Services Tax (GST) will boost the competitiveness of micro, small and medium enterprises (MSMEs). Traders also took some encouragement after Prime Minister Narendra Modi, noting that the GST, which was implemented last week, was the biggest tax reform in the last 70 years has said it would help businesses and create a unified market of 1.3 billion people. Modi also underlined support for free and open trade regime of World Trade Organization (WTO).
Adding to the optimism, Union minister Mukhtar Abbas Naqvi said that the new tax regime would prove to be a game changer for the country’s economy, terming the GST a revolutionary reform taken in the interest of common people and small traders. The introduction of the new tax system by the Narendra Modi Government was the biggest economic reform since the Independence. Some support also came with reports that Foreign Portfolio Investment (FPI) inflows during the period between January-June 2017 (H12017) stood at nearly $23 billion into the Indian capital markets, largely driven by several factors, including expectations from the government that it would speed up development and economic reforms.
Firm opening in European counters too aided sentiments with CAC, DAX and FTSE trading with a gain of around half a percent, as world leaders met over the weekend in Hamburg at the 12th G-20 talks wherein global issues such as trade, climate change and defence were discussed. Asian markets ended mixed, as crude oil prices rebounded after settling nearly 3 percent lower on Friday.
Back home, appreciation in Indian rupee too supported sentiments with rupee was trading strong at 64.53 against the dollar on fresh selling of the US currency by banks and exporters. Moreover, quarterly corporate earnings optimism gave domestic institutional and retail investors much hope to go in for fresh bets. On the sectoral front, Auto stocks travelled northward during the trade despite domestic passenger vehicle sales declined by 11.21 per cent to 198,399 units in June from 223,454 units in the same month last year. Stocks related to aviation sector flied higher, as the Finance Ministry exempted aircraft imported on lease from the 5 percent GST levy. Under the recently introduced GST regime, aircraft imported on lease basis attracted integrated GST (iGST) of 5 percent.
FII’s Activity 10-July-17
The FIIs as per Monday’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 3717.12 crore against gross selling of Rs 4136.98 crore. Thus, FIIs stood as net sellers of Rs 419.86 crore in equities.
In the debt segment, the gross purchase was of Rs 1603.15 crore with gross sales of Rs 1130.23 crore. Thus, FIIs stood as net buyers of Rs 472.92 crore in debt.
Now what to expect??
Nifty Levels
Nifty future skyrocketed. We are holding long from 9600 and above 9720 mark
Now what to expect???
Above 9780 will see rally till 9830---9880+++mark.
We will maintain revise stop loss of 9660.
Bank Nifty Levels
Too flared like anything. Not able to breach 23000 and skyrocketed. We clearly mentioned that above 23500 rally remain continue till 23800---24000.
Hold long with revise stop loss of 23400
Trade with levels only
Daily Derivative Outlook 11th July
• Nifty (Jul) futures closed at a Premium of 5.90 points versus a Premium of 1.20 points.
• Call writing was seen at 9800 strikes, put writing was seen at 9600 strike.
• Maximum positions are at 9800 CE and 9600 PE. Nifty is expected range shifted to 9800-9600 from 9500-9700.
• AJANTPHARMA (10%), JETAIRWAYS (8%),
TATAGLOBAL (8%), IDFC (7%) and MRPL (6%) were
the top open interest gainers in the market.
• BERGERPAINT (-15%), UNIONBANK (-12%), PNB
(-11%), COALINDIA (-8%) and DISHTV (-7%) were the
top open interest losers in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.36 against 1.27 for Friday trade.
• On the options front, volatility index increased in
Monday's trade by around 0.50%.
Derivative Idea
Jet Airways added around 8% of open interest as Long positions.
On Daily charts, Jet Airways is trading above 21 and 55 DEMA which stood at 560 and 528 respectively and too indicates upside momentum in it.
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation
Buy Jet Airways (July) Future above 611. Stop Loss 590. Target 630---640+++
Corporate Action Today
Ashok Leyland Limited- ANNUAL GENERAL MEETING/DIVIDEND - RS 1.56/- PER SHARE
Hindustan Petroleum Corporation Limited-BONUS 1:2/ DIVIDEND - RS 1.10 PER SHARE
Results Today
Indusind Bank Limited
The South Indian Bank Limited
More Will Update Soon!!
