Nifty 9,964 /Sensex 32,228/ Bank Nifty 24420
24 Advances / 27 Declines/ 0 Unchanged
Markets end with modest cut; Nifty fails to hold 10k mark
Indian equity benchmarks ended the volatile day of trade with modest cut on Tuesday, as traders opted to remain on sidelines ahead of Fed’s two-day meeting starting later in the day to discuss its monetary stance. It turned out to be a historic day of trade for Nifty where it breached the 10,000 mark for the first time in opening trade but soon slipped below the landmark, making the affair a touch-and-go one, as traders opted to book profit at higher level. Sensex too hit another record high of 32,374.30 in initial trade before closing lower by 18 points. However, losses remained capped with commerce and industry minister Nirmala Sitharaman’s statement that Foreign Direct Investment (FDI) inflows into the country increased 23 percent in the first two months of the current fiscal from a year ago. The minister said the government has put in place an investor-friendly policy for FDI and except for a small negative list most sectors are open for 100 percent FDI.
Some solace also came with report that India ranked number two on Grant Thornton’s Business Optimism Index in the second quarter of 2017. The Grant Thornton International Business Report (IBR) said that the confidence in Indian businesses is backed by a buoyant economy and continued reforms. According to the IBR survey, India’s ranking has gone up from fourth to the second position in Q2. 94 percent of the surveyed businesses are confident about the growth of the Indian economy. Traders also took some comfort with report that government think tank Niti Aayog has made a strong case for boosting investments and savings, with an aim to push India’s economic growth at a rapid pace. The Aayog stressed on sustaining macro-economic stability in its appraisal of the Twelfth Five Year Plan (2012-17). The document noted that lower savings and investment rates are still a major cause of worry.
On the global front, European markets were trading in green in early deals, as investors monitored earnings and awaited the start of a two-day policy meeting of the Federal Reserve. Asian markets closed mixed. China’s economy is likely to grow at an annual rate of around 6.7 percent in the second half of 2017, slowing slightly from the first half of the year, the State Information Center (SIC) said.
Back home, telecom stocks rang loud on report that telecom operators could get some relief, as a draft recommendations of the government-appointed inter-ministerial group (IMG) were discussed at a recent meeting between the finance ministry and the department of telecommunications, wherein it was decided to provide some cash flow relief to the operators. However, the auto sector edged lower despite the Deputy Chairman of Rajya Sabha PJ Kurien calling for an all-party meeting today to discuss the Motor Vehicle (Amendment) Bill. Meanwhile, Union Road Transport and Highways Minister Nitin Gadkari has said that driverless cars will not be allowed in India because they will lead to more unemployment.
FII’s Activity 25-July-17
The FIIs as per Tuesday’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 4806.28 crore against gross selling of Rs 5076.61 crore. Thus, FIIs stood as net sellers of Rs 270.33 crore in equities.
In the debt segment, the gross purchase was of Rs 2855.92 crore with gross sales of Rs 1228.54 crore. Thus, FIIs stood as net buyers of Rs 1627.38 crore in debt.
Now what to expect next??
Nifty Levels
Above 9980 will see rally till 10020---10035 mark.
Panic will see only close below 9900 level only
Bank Nifty Levels
Support at 24300 and resistance at 24600
Close above 24600 will take to 24900---25050+++ mark.
Support and stop loss below 24300 on closing basis
Trade with levels only
Daily Derivative Outlook 26th July
• Nifty (Jul) futures closed at a Premium of 9.25 points versus a Discount of 10.60 points in the previous trading session.
• Maximum call writing was seen at 10000 strike, and maximum put writing was seen at 9950 strikes.
• Maximum positions are at 10000 CE and 9700 PE. Nifty likely to trade in range of 10000--9900
• NHPC (17%), UPL (16%), RCOM (16%), BHARATFORG (15%) and HEXAWARE (14%) were the top open interest gainers in the market
• JUSTDIAL (-16%), AMBUJACEM (-14%), JPASSOCIAT (-12%), DCBBANK (-11%) and TITAN (-8%) were the top open interest losers in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.65 against 1.63 for Friday’s trade.
• Advance Decline ratio was at 1.23, Advance (119) + Decline (97)+ Unchanged (3) = 219
Derivative Idea
Jet Airways losses around 5.2% of open interest as Short build up on Daily basis.
On Daily charts, Support at 581, Break and sustain below 581 will take it to 575—568 and then to 560 mark. Hurdle and stop loss above 601
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation
Sell Jet Airways Future below 581.00. Stop loss 601. Target 575—568 and then to 560
Today's Top Pick
Petronet Lng
Above 206 will see upside rally till 212---218++ mark in days to come.
Looks bearish only if close below 200 any sharp downside fall will be buying opportunity in it.
Corporate Action
Colgate Palmolive (India) Limited- Annual General Meeting/Dividend - Rs 2/- Per Share
Cipla Limited-Annual General Meeting/Dividend - Rs 2/- Per Share
Marico Limited-Annual General Meeting
Results Today
Bharat Financial Inclusion Limited
PVR Limited
L&T Finance Holdings Limited
Housing Development Finance Corporation Limited
The Federal Bank Limited
More Will Update Soon!!
