Nifty 9,789.05 /Sensex 31,747/ Bank Nifty 23,548
28 Advances / 23 Declines/ 0 Unchanged
Benchmarks manage to end at all-time closing highs
Indian equity benchmarks, paring most of their early gains, managed to settle at new all-time closing highs with modest gains on Tuesday. Markets started the day on optimistic note and extended their northward journey to attain crucial 31,800 (Sensex) and 9,800 (Nifty) bastions, as investors expect inflation for the month of June to be at record low which could lead to a rate cut in the next monetary policy review. According to a private report, easing further from May’s 2.18%, Consumer price inflation (CPI) for June is predicted to cool to 1.70%, below the RBI’s medium-term target of 4% for the eighth successive month. The CPI is slated to be announced tomorrow. Traders also took some encouragement with India Meteorological Department’s (IMD’s) statement that the seasonal monsoon rains have covered most of India and the amount of precipitation so far is within expectations, raising hopes for higher farm output after increased sowing of rice and soybean crops.
Adding to the optimism, Revenue Secretary Hasmukh Adhia enlightened that the Goods and Services Tax (GST) will help bring down the inflation by one to two per cent by the end of this year. The secretary said that the government’s objective is to ensure that inflation does not increase, and added that the government has tried to keep items frequently used by the consumers under the lower tax bracket. However, it was the last hour of trade which played spoil sports for the markets and traders opted to book most of their initial gains at higher levels. Meanwhile, IMF chief Christine Lagarde, warning against complacency in the current phase of global economic recovery has asked the members of G20 group, which includes India, to step up reforms by reducing trade barriers and subsidies to promote a level playing field.
Weak opening in European counters too dampened sentiments, as markets kept an eye out for appearances from central bank members on both sides of the Atlantic. However, Asian markets ended mostly in green on Tuesday, as investors awaited testimony from Federal Reserve Chair Janet Yellen for clues on when the central bank would tighten US monetary policy.
Back home, kicking off the earnings season, IndusInd Bank remained flat even after it posted a 26.49% rise in its net profit at Rs 836.55 crore for the quarter ended June 30, 2017, as compared to Rs 661.38 crore for the same quarter in the previous year, helped by higher interest income. On the sectoral front, auto stocks remained in top gear despite SIAM’s report that domestic automobile sales saw a muted growth of one percent in June as the passenger vehicle (cars, utility vehicles and vans) segment declined more than 11 percent. A four percent growth in two-wheelers, however, helped the industry to remain in the green. Sugar stocks remained in sweet spot, as the government hiked the import duty on sugar from 40 percent to 50 percent, to check cheap imports. Cheaper imports have been adversely affecting domestic sugar mills.
FII’s Activity 11-July-17
The FIIs as per Tuesday’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 2301.25 crore against gross selling of Rs 2139.30 crore. Thus, FIIs stood as net buyers of Rs 161.95 crore in equities.
In the debt segment, the gross purchase was of Rs 2059.26 crore with gross sales of Rs 955.86 crore. Thus, FIIs stood as net buyers of Rs 1103.40 crore in debt.
Now what to expect??
Nifty Levels
Above 9790 will see rally till 9830---9880 mark.
Panic will see only close below 9660 level only
Bank Nifty Levels
Support at 23400 and resistance at 23600
Close above 23600 will see further upside rally till 23800---24000.
Support and stop loss below 23400 on closing basis.
Trade with levels only
Daily Derivative Outlook 12th July
• Nifty (Jul) futures closed at a Premium of 1.20 points versus a Premium of 5.90 points.
• Maximum Call writing was seen at 10000 strikes, Maximum put writing was seen at 9800 strikes.
• Maximum positions are at 9800 CE and 9600 PE. Nifty expected trading range is 10000--9800.
• AJANTPHARMA (50%), HINDPETRO (47%), NIITTECH (38%), AMARAJABAT (19%) and
LICHSGFIN (18%) were the top open interest gainers in the market.
• ASHOKLEY (-10%), CONCOR (-8%), BHARTIARTL (-7%), BHARATFIN (-6%) and HINDZINC (-6%) were
the top open interest losers in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.39 against 1.36 for monday's trade.
• Around 6.15 lakh shares were shaded in open
interest with an increase in price. This indicates
that a long buildup was observed by market
participants in today’s trade.
• On the options front, an increase of 0.5% in the
volatility index was witnessed in today’s trade
Derivative Idea
Jindal Steel sheds around -0.4% of open interest as short unwinding.
On Daily charts, Jindal Steel has given a fresh breakout above 137 mark and trading above 21 and 55 DEMA which stood at 127 and 121 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 Jindal Steel (July) Future above 140.50. Stop Loss 135. Target 145---148++
Corporate Action Today
Srei Infrastructure Finance Limited- Dividend - Re 0.50 Per Share
Kotak Mahindra Bank Limited-Annual General Meeting/Dividend-Re 0.60 Per Share
Canara Bank-Annual General Meeting/Dividend - Re 1 Per Share
More Will Update Soon!!
