Nifty 10,057 /Sensex 32,273/ Bank Nifty 24906
19 Advances / 32 Declines/ 0 Unchanged
Benchmarks end choppy day of trade with marginal losses
Indian equity benchmarks ended the lackluster day of trade marginally in red on Monday, with frontline gauges swinging between green and red for most part of the day. Market traded near neutral lines throughout the session amid lack of any major domestic cues, but selling in dying hour of trade mainly dragged the key gauges in red terrain. Traders opted to remain on sidelines on concerns that factors such as positive earnings and hopes of an improving economy were already factored into prices. Sentiments also remained dampened on ASSOCHAM’s report that with the external value of the Indian rupee superseding its internal strength despite lower inflation, the resultant mismatch and the continuing trend is hurting exporters, whose competitive edge gets directly hit with the declining value of the dollar against the domestic currency.
However, losses remained capped as traders took some solace with the government’s statement that rollout of goods and services tax (GST) by and large has been smooth and it has deployed a large number of senior officials to regularly review the working of the new indirect tax regime. Separately, after one month of the implementation of GST, the collections from customs duty and Integrated-GST (IGST) from imports has almost doubled to Rs 30,000 crore in July. The July collections compare to indirect tax collection of over Rs 16,000 crore of the same month of 2016. Some support also came with NITI Aayog Member Bibek Debroy’s statement that it is not reasonable to connect the GST regime with slowdown in manufacturing output as the issues that the sector is facing goes beyond the tax reform. He also said that these are very temporary things which they don’t need to worry about because it is a blip that will go away once the transition is complete.
On the global front, European counters were trading mostly in green despite global geopolitical tensions. Investors’ sentiments in the euro zone remained stable in August, buoyed by strong current conditions, but future expectations slumped amid growing concerns about the US economy and the potential impact of a widening car emissions scandal. Asian markets ended mostly in green, as markets welcomed harder sanctions on North Korea’s missile and nuclear programs, thought caution ruled with the reclusive country yet to respond.
Back home, stocks related to gold and jewellery sector remained buzzing, as the Finance Ministry turned down the Commerce Ministry’s pitch for a reduction in import duty on gold, citing improved data in respect of the current account deficit (CAD). On the earning front, Jaiprakash Associates gained around 15% to hit its 52-week high after the company reported standalone net profit of Rs 764.99 crore in the quarter ended June, on higher income and lower expenses incurred during the period. Shares of Britannia Industries surged around 5% to hit its lifetime high despite the FMCG major reported 1.41% year-on-year decline in its consolidated net profit for the quarter ended June 30, 2017.
FII’s Activity 7-Aug-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 4321.80 crore against gross selling of Rs 5190.50 crore. Thus, FIIs stood as net sellers of Rs 868.70 crore in equities.
In the debt segment, the gross purchase was of Rs 2048.87 crore with gross sales of Rs 533.54 crore. Thus, FIIs stood as net buyers of Rs 1515.33 crore in debt.
Now what to expect??
Nifty Levels
Support at 10020---9950 and resistance at 10150
Close above 10150 with volume will see rally till 10220---10280 and then to 10400+++ mark else it could test its support level of 10020---9950 again.
Trade with levels only
Daily Derivative Outlook 08th August
• Nifty (Aug) futures closed at a Premium of 34.35 points versus a premium of 42.15 points.
• Call Writing was seen at 10200 Strike and Put writing was seen at Nifty 10100 strike
• Maximum positions are at 10200 CE and 10000 PE. Nifty expected trading range spread to 10500—10000.
• REPCOHOME (76%), APOLLOTYRE (33%), BRITANNIA (30%), ARVIND (23%) and INFRATEL (14%) were the top open interest gainers in the market.
• CHOLAFIN (-13%), PCJEWELLER (-11%), PIDILITIND (-9%), HDIL (-7%) and DALMIABHA (-7%) were the top open interest losers in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.03.
• Advance Decline ratio in F&O segment was at 2.01, Advance (145) + Decline (72) + Unchanged (2) = 219
Derivative Idea (08-08-2017)
Just dial gain around 3.00% of open interest as long build-up on Monday’s trade.
Hurdle at 378... Above 378 rally remain continue till 392—398 and then to 410+++ mark.
Support and stop loss below 349.00
Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.
Top Pick 8th August
PTC India
Above 123 will see upside rally till 128---132++ mark in days to come.
Looks bearish only if close below 116.
Any sharp downside fall will be buying opportunity in it.
Corporate Action
LIC Housing Finance Limited- Annual General Meeting/Dividend - Rs 6.20 Per Share
Results Today
Bank of India
Century Textiles & Industries Ltd
Jindal Steel & Power Ltd
Kaveri Seed Company Ltd
Muthoot Finance Ltd
NCC Ltd
SRF Ltd
Tata Chemicals Ltd
More Will Update Soon!!
