Nifty 10,020 /Sensex 32,382/ Bank Nifty 24670
30 Advances / 21 Declines/ 0 Unchanged
Nifty settles above 10k mark for the first time; Sensex ends at record high
Wednesday turned out to be a historic day of trade for Indian equity benchmarks, with Nifty settling above magical five-digit mark of 10,000 for the first time ever on the back of positive sentiments flow among the market participants during the ongoing corporate earnings season. Sentiments remained up-beat since morning, as markets started the session in green with report that the government approved an addition of 7.47 lakh new registration applications under the Goods and Services Tax (GST) regime. Traders also took some encouragement with private report that Foreign portfolio investors (FPIs) pumped in over $25.4 billion into the Indian equity and debt market segments thus far in calendar year 2017 (CY17). The flows have come in on expectation of a revival in India's economic growth and recent government-backed reforms, especially in the banking sector.
It was the last leg of trade where markets extended its northward journey and ended above the all-time closing high levels, with traders taking support with report stating that a team of officers, led by the commerce secretary, is holding detailed consultations with states to clear the bottlenecks that are hampering exports. Traders shrugged off private brokerage firm report which highlighted that retail inflation in India is expected to rise noticeably from trough in June to 4.4 percent in the second half of this year, driven mostly by food prices and the base effect. The report added that although inflation has bottomed, in the medium term it is expected to see a significant uptrend and rise above the RBI's target.
Firm opening in European counters too aided sentiments with all the indices trading in green, as investors geared up for a rate decision from the US Federal Reserve and continued to digest earnings reports. Asian markets ended mostly in green, as investors awaited the Federal Reserve’s policy decision on wednesday for more clues on its tightening plans.
Back home, power stocks remained on buyers’ radar, as the Ministry of Power said that outstanding liabilities of power distribution companies to central public sector undertaking power producers have halved under the Ujwal Discom Assurance Yojana. Moreover, the banking and telecom stocks remained buzzing, as the Finance Minister Arun Jaitley said banks have an exposure of Rs 97,681 crore in the telecom sector, which is grappling with financial stress. Total outstanding (funded) advances by public sector banks to the 'communications' sector stood at Rs 63,415 crore, while total exposure to the sector worked out to be Rs 97,681 crore.
FII’s Activity 26-July-17
The FIIs as per Wednesday’s data were net buyers in equity segment, while they were net sellers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 5636.61 crore against gross selling of Rs 5315.48 crore. Thus, FIIs stood as net buyers of Rs 321.13 crore in equities.
In the debt segment, the gross purchase was of Rs 336.96 crore with gross sales of Rs 650.39 crore. Thus, FIIs stood as net sellers of Rs 313.43 crore in debt.
Federal Reserve Holds Interest Rates Steady
After a two-day meeting in Washington, D.C., Federal Reserve policymakers say they'll keep their benchmark rate in a range between 1 percent and 1.25 percent for the time being.
Fed officials said "job gains have been solid" and the U.S. "labor market continues to strengthen" in the statement after a meeting of the Federal Open Market Committee.
The officials described economic activity as "rising moderately." They noted that unemployment rate has declined since the beginning of the year. The Fed is close to meeting its mandate to maximize employment.
However, officials also noted Wednesday that inflation is running below the 2 percent target they think is best for supporting economic growth. Concern about lagging inflation could pressure the Fed to hold rates lower for a longer period of time.
Fed officials also said that they plan to begin selling off some of the securities on their huge balance sheet "relatively soon." The Fed bought trillions of dollars in government bonds and mortgage-backed securities after the financial crisis, injecting money into the economy in an effort to boost growth. During that time, the total value of securities on the Fed's balance sheet rose from under $900 billion to over $4.5 trillion.
Analysts expect the Fed will begin the process of selling those securities this fall. However, the sell-off will happen over a period of years. Dumping the securities on the market rapidly could destabilize financial markets and harm the economy.(CNBC)
Now what to expect??
Nifty Levels
Above 10035 will see rally till 10069---10137 mark.
Panic will see only close below 9950 level only
Bank Nifty Levels
Support at 24400 and resistance at 24700
Close above 24700 will take to 24900---25050+++ mark.
Support and revise stop loss below 24400 on closing basis
Trade with levels only
Daily Derivative Outlook 27th July
• Nifty (Jul) futures closed at a Premium of 9.25 points versus a premium 9.25 of 10.60 points.
• Maximum call writing was seen at 10100 strike, and maximum put writing was seen at 10000 strikes.
• Maximum positions are at 10000 CE and 9900 PE. Nifty likely to trade in range of 10100--9900
• KPIT (239%), HEXAWARE (32%), JPASSOCIAT (27%), YESBANK (23%) and DLF (18%) were the top gainers in open interest in the market.
• CADILAHC (-19%), ADANIPOWER (-14%), IDBI (-12%), UNIONBANK (-11%) and DABUR (-11%) were the top losers in open interest in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.65 against 2.01 for Tuesday’s trade.
• Advance Decline ratio was at 1.08, Advance (113) + Decline (105)+ Unchanged (1) = 219
Derivative Idea (27-07-2017)
KPIT gain around 59.9% of open interest as long build up on and 994.8% rise in volume on Yesterday’s trade.
On Daily charts, KPIT has Support at 118.50 and Resistance at 128, Break and sustain below 128 will take it to 135--138 and then to 145 + mark. Looks weak only if closes below 118.50.
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Trading Recommendation
Buy KPIT (AUG) Future in panic around 122.50--120.00 with stop loss of 118.50. Target 135—138 and then 145
Today's Top Pick
ITC
Above 294 will see upside rally till 302--312++ mark in days to come.
Looks bearish only if close below 285 any sharp downside fall will be buying opportunity in it.
Corporate Action
Cummins India Limited-Annual General Meeting/Dividend - Rs 9/- Per Share
Arvind Limited- Annual General Meeting/Dividend - Rs 2.40 Per Share
Cadila Healthcare Limited-Annual General Meeting
Ujjivan Financial Services Limited-Annual General Meeting/Dividend - Re 0.80 Per Share
Rbl Bank Limited- Annual General Meeting/Dividend - Rs 1.80 Per Share
The Ramco Cements Limited- Dividend - Rs 3 Per Share
Tech Mahindra Limited--Annual General Meeting/ Dividend -Rs 9/- Per Share
Berger Paints Limited - Annual General Meeting/Dividend - Rs 1.75/- Per Share
MRF Limited- Annual General Meeting/Dividend - Rs 54/- Per Share
Results Today
Dr. Reddy's Laboratories Limited
Tata Elxsi Limited
Reliance Capital Limited
Maruti Suzuki India Limited
Oil & Natural Gas
Corporation Limited
ITC Limited
IDFC Bank Limited
IDFC Limited
Idea Cellular Limited
HCL Technologies
Limited
ICICI Bank Limited
Exide Industries Limited
Glenmark
Pharmaceuticals Limited
Biocon Limited
Cholamandalam Investment and Finance Company Limited
More Will Update Soon!!
