Nifty 9,966 /Sensex 32,245/ Bank Nifty 24420
29 Advances / 22 Declines/ 0 Unchanged
* Markets hit fresh all-time highs; Sensex surpasses 32,200 mark*
Bulls tightened their grip on Dalal Street and frontline gauges ended the Monday’s trade at fresh all-time closing high levels, with Sensex and Nifty surpassing their crucial 32,200 and 9,950 marks respectively. Traders remained optimistic since morning with markets making a positive opening on report that retaining its growth forecast of 7.2% for India for the current fiscal year, the International Monetary Fund (IMF), in its latest update report ‘World Economic Outlook, July 2017’ said that the country would grow at 7.7% in 2018-19, keeping growth rates forecast in line with the April 2017 forecast. Traders also took some encouragement with India Meteorological Department’s (IMD) statement that the cumulative rainfall received till Sunday across the country was 103% of the benchmark long period average (LPA). Both the north-west and central parts of the country have received ‘excess’ rainfall with 116% and 113% of LPA, respectively.
Markets extended their northward journey and hit all-time highs in noon deals, as some support came with Union minister Nitin Gadkari’s statement that the Goods and Services Tax (GST) will accelerate the growth and ease of doing business and help in nation building. Besides, as per Reserve Bank of India (RBI) data, the country’s foreign exchange reserves rose by $2.681 billion to touch a new life-time high of $389.059 billion in the week to July 14, helped by increase in foreign currency assets (FCAs). Meanwhile, NITI Aayog Vice Chairman Arvind Panagariya, despite acknowledging creation of “good jobs” in India remains a big challenge, has said that India’s economic growth rate is likely to be 7.5% for the current financial year.
Firm trade in Asian counters too aided sentiments with most of the regional peers ended in green on Monday. However, European counters were trading lower in early deals, as the weakness of the US dollar continued to affect global markets. Investors kept an eye on oil prices ahead of the joint OPEC and non-OPEC ministerial meeting later in the day to discuss the issue of rising output in Nigeria and Libya.
Back home, impressive quarterly showings by Reliance Industries on Friday and HDFC Bank on Monday have boosted investor sentiments. On the sectoral front, banking stocks remained on buyers’ radar, as RBI Deputy Governor Viral Acharya said the cleaning of banks’ balance sheet is the ‘number one priority’ for the central bank. Aviation stocks flied higher on reports that domestic air traffic were up 20% in June. Domestic airlines flew 95.86 lakh passengers in June, registering a growth of 20% over the 79.75 lakh passengers flown during the same month in the previous year.
FII’s Activity 24-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 5481.45 crore against gross selling of Rs 5583.40 crore. Thus, FIIs stood as net sellers of Rs 101.95 crore in equities.
In the debt segment, the gross purchase was of Rs 2177.36 crore with gross sales of Rs 986.52 crore. Thus, FIIs stood as net buyers of Rs 1190.84 crore in debt.
Now what to expect??
Nifty Levels
Successful break & hold 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 24500
Close above 24500 will take to 24800---25000+++ mark.
Support and stop loss below 24000 on closing basis
Trade with levels only
Daily Derivative Outlook 25th July
• Nifty (Jul) futures closed at a Discount of 10.60 points versus a discount of 4.70 points.
• Maximum call writing was seen at 10050 strike, and maximum put writing was seen at 9950 strikes.
• Maximum positions are at 10000 CE and 9900 PE. Nifty likely to trade in range of 10000--9900
• HCC (17%), DABUR (16%), IRB (16%), M&MFIN (15%) and SREINFRA (14%) were the top open interest gainers in the market.
• BANKINDIA (-9%), CUMMINSIND (-9%), RCOM (-8%), CANBK (-7%) and CADILAHC (-7%) were the top open interest losers in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.63 against 1.44 for Friday’s trade.
• Advance Decline ratio was at 1.10, Advance (115) + Decline (104) = 219
Derivative Idea
Andhra Bank losses around 2.80% of open interest as Short Unwinding on Daily basis.
On Daily charts, Above 59.20 rally remain continue till 62.00—65.50++ mark. Support and stop loss below 56.50
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation
Buy Andhra Bank (July) Future above 59.20 Stop Loss 56.50 Target 62.00—65.50++
Corporate Action
ACC Limited- Interim Dividend - Rs 11/- Per Share
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