Nifty 9,827 /Sensex 31,710/ Bank Nifty 24,022
29 Advances / 22 Declines/ 0 Unchanged
Benchmarks snap bullish run; Sensex breaches 31,800 mark
Tuesday turned out to be a daunting session of trade for Indian equity benchmarks where frontline gauges ended with a cut of around a percent, breaching their crucial 31,800 (Sensex) and 9,850 (Nifty) levels, as market participants opted to book profit at record levels. Markets started the session on pessimistic note, as traders remained concern with the industry body Associated Chambers of Commerce & Industry of India’s (ASSOCHAM) latest report stating that the inflation outlook is expected to remain quite muted at least till festival season of Durga Puja and Diwali. Adding to the pessimism, a private report showed that India’s Current Account Deficit (CAD) is likely to widen to 1.3% of GDP in 2017 from 0.6% in 2016, largely owing to stronger domestic growth in the second half of this year. The report highlighted that the import demand is expected to resume once GST disruptions settle down after July. The report said lower commodity prices and adverse base effects will continue to cap the year-on-year growth rates in second half of 2017, partly offsetting the continued recovery in advanced economies.
Besides, some concerns also spread among the inventors with Fitch Ratings’ latest report that new indirect tax regime GST will have a negative impact on oil and gas, and SME sectors. Investors shrugged off private survey stating that Indian CEOs are confident about the growth prospects of the country over the next three years, compared to that of global economy. Meanwhile, the Supreme Court granted one week’s time to the Reserve Bank of India (RBI) to respond to a report of a committee appointed to deal with bad loans with banks that have crossed Rs 8 lakh crore.
Weak opening in European counters too dampened sentiments on account of a disappointing set of results from blue chips including Ericsson and Lufthansa, while scaled-back expectations of rate hikes at central banks spurred some profit-taking in financials. Asian markets ended mixed, as passage of a US healthcare Bill grew doubtful, and as investors bet the Federal Reserve will be more cautious about raising interest rates.
Back home, stocks related to cigarette space remained under pressure, as the GST Council raised the cess on cigarettes to take away an estimated Rs 5,000 crore annual ‘windfall’ manufacturers could have reaped from lower GST rates. The telecom stocks too edged lower despite the Telecom Minister Manoj Sinha’s statement that the Communications Ministry will 'analyse' the impact of GST on telecom subscribers, and approach the Finance Ministry in case consumers or players face “genuine problems”.
FII’s Activity 18-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 4567.92 crore against gross selling of Rs 4192.13 crore. Thus, FIIs stood as net buyers of Rs 375.79 crore in equities.
In the debt segment, the gross purchase was of Rs 1037.17 crore with gross sales of Rs 414.37 crore. Thus, FIIs stood as net buyers of Rs 622.80 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9830 and resistance at 9950
Below 9830 will see panic till 9780---9750 mark else it could test it's resistance level of 9880---9950 again.
Rally will see only close above 9950 mark only
Bank Nifty Levels
Support at 23800 and resistance at 24060
Close above 24060 will take to 24250---24400.
Support and stop loss below 23800 on closing basis
Trade with levels only
Daily Derivative Outlook 19th July
•Nifty (Jul) futures closed at a Premium of 19.15 points versus a Premium of 17.20 points.
• Maximum call writing was seen at 10000 strikes, and maximum put writing was seen at 9800 strikes.
• Maximum positions are at 10000 CE and 9800 PE. Nifty likely to trade in range of 10000--9800
• ITC (23%), HAVELLS (13%), PCJEWELLER (13%), INDIANB (12%) and ICICIPRULI (10%) were the topvopen interest gainers in the market.
• HDFC (-13%), GRASIM (-12%), OIL (-11%), POWERGRID (-10%) and HINDALCO (-9%) were the top open interest losers in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.29 against 1.67 for Monday’s trade.
• Around 18.02 lakh shares were shaded in open interest. A decrease in price indicates that long unwinding was observed by market participants in today’s trade.
• On the options front, the volatility index has increased in today’s trade by around 0.10%.
Derivative Idea
IDFC added around 0.4% of open interest as long build up on Daily basis.
On Daily charts, IDFC has resistance at 57.60, Break and sustain above 57.60 will take it to 59.50—60.50 and then to 62.00+++ mark in days to come. Support and stop loss below 55.30. IDFC is trading above 21 DEMA.
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation
Buy IDFC (July) Future above 57.60. Stop Loss 55.30. Target 59.50—60.50 and then to 62.00++
Result Today
Cesc Limited - Annual General Meeting
Cholamandalam Investment and Finance Company Limited- Annual General Meeting/Dividend - Rs 2/- Per Share
Exide Industries Limited- Annual General Meeting/Dividend - Re 0.80/- Per Share
Grasim Industries Limited- Scheme of Arrangement
https://www.nseindia.com/content/circulars/FAOP35387.pdf
https://www.nseindia.com/content/circulars/FAOP35387.pdf
More Will Update Soon!!
