Nifty 9,873 /Sensex 31,904/ Bank Nifty 24,213
12 Advances / 39 Declines/ 0 Unchanged
Benchmarks end with modest cut
Indian equity benchmarks undo all the good work done in early part of the session and ended the lackluster day of trade slightly in red, as traders remained on sidelines.Though, markets made an optimistic start with Finance Minister Arun Jaitley’s statement, describing the Goods and Services Tax (GST) as a ‘win- win’ deal for all as it will expand the tax net, end ‘inspector raj’ and bring down prices of goods. Jaitley added that prices of goods have come down between four to eight percent since its roll-out on July 1. Traders also took some encouragement with a private report that India will reclaim its position as the fastest growing major global economy this year, partly propelled by benefits from a new tax system and bolstered by an expected central bank interest rate cut.
Market took U-turn in second half of trade where traders opted to book profit ahead of RIL’s Q1 numbers slated to be announced after market hours. According to a private poll, the company is expected to post consolidated net sales of Rs 76,326 crore and net profit of Rs 7,764.5 crore for the three months ended 30 June. Though, downside remained capped, as traders get some solace with the Asian Development Bank’s report stating that the South Asia will remain the fastest growing of all sub-regions in Asia and the Pacific, while Indian economy is expected to achieve previous growth projections 7.4 percent in 2017 and 7.6 percent in 2018 on the back of strong consumption demand.
On the global front, European markets were trading in green in early deals, supported by a surge in global stocks, as investors awaited a rate decision by the European Central Bank (ECB). Asian markets ended mostly in green on Thursday. The Bank of Japan kept monetary policy steady and pushed back again the timing for achieving its 2 percent inflation target, reinforcing expectations it will lag well behind major global central banks in dialing back its massive stimulus programme.
Back home, the government said that tax rates under the Goods and Services Tax (GST) will not be revised unless there is an anomaly, but promised to go slow on enforcement actions in the first six months on genuine mistakes. On the sectoral front, oil and gas stocks remained in focus after the government cleared the sale of Hindustan Petroleum to flagship explorer ONGC with the aim of creating an integrated oil company.
FII’s Activity 20-July-17
The FIIs as per Thursday’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 6580.42 crore against gross selling of Rs 5563.54 crore. Thus, FIIs stood as net buyers of Rs 1016.88 crore in equities.
In the debt segment, the gross purchase was of Rs 1079.61 crore with gross sales of Rs 244.05 crore. Thus, FIIs stood as net buyers of Rs 835.56 crore in debt.
Now what to expect??
Nifty Levels
Above 9950 will see rally till 9980---10035 mark.
Panic will see only close below 9830 level only
Bank Nifty Levels
Support at 24000 and resistance at 24250
Close above 24250 will take to 24500---24650+++ mark.
Support and stop loss below 24000 on closing basis
Trade with levels only
Daily Derivative Outlook 21th July
• Nifty July 2017 futures closed at 9888.05 on Thursday at a premium of 14.75 points over spot closing of 9873.30.
• 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
• INFIBEAM (16.55%), ICICIPRULI (15.60%), UBL (9.30%), ENGINERSIN (16%) and MINDTREE (5.40%) were the top open interest gainers in the market.
• JUSTDIAL (-23.17%), ULTRACEMCO (-16.16%), OIL(-15.70%), REPCOHOME (-14.90%) and CUMMINS (-12.80%) were the top open interest losers in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.35 against 1.49 for Tuesday’s trade.
Derivative Idea
PFC losses around 4.70% of open interest as Short Unwinding on Daily basis.
On Daily charts, PFC looks positive above 128.50, Break and sustain above 128.50 will take it to 135—138 and then to 142++. Support and stop loss below 122.50
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation
Buy PFC (July) Future above 128.50. Stop Loss 122.50. Target 135.00—138.00 and then to 142.00++
Today's Top Pick
Time Technoplast
Above 167 will see upside rally till 174---180++ mark in days to come.
Looks weak only if close below 160.
Any sharp down fall will be buying opportunity in it.
Corporate Action Ex-Date Today
V-Guard Industries Limited- Annual General Meeting/Dividend - Re 0.70 Per Share
Shree Cements Limited -Dividend - Rs 24 Per Share
Piramal Enterprises Limited - Dividend - Rs 21 Per Share
Results Today
Can Fin Homes Limited
Mangalore Refinery and Petrochemicals Limited
Indian Bank
Ashok Leyland Limited
Dewan Housing Finance Corporation Limited
Resuts on Saturday 22nd th July
Divi's Laboratories Limited
SREI Infrastructure Finance Limited
More will update soon!!
