Nifty 9904 /Sensex 31795/ Bank Nifty 24237
19 Advances / 32 Declines/ 0 Unchanged
Benchmarks eke out modest gains from a choppy session
Indian equity benchmarks managed to keep their head above water in a choppy day of trade and settled with modest gains. Markets swung in both directions as investors remained cautious with private report stating that retail and wholesale inflation accelerated in July and the uptrend is likely to continue in the coming months, limiting the space for further monetary easing. Though markets traded mostly in green during the session, as traders took some encouragement with the government raising estimate on food grain output for the crop year ended June on an increase in the estimated yields of paddy and wheat. The government has revised upward the country’s overall food grain production by 2.3 million tonnes (MT) to a record 275.68 MT in 2016-17 crop year that ended in June. Adding to the optimism, American think-tank Council on Foreign Relations’ Senior Fellow for India Alyssa Ayers said that the country has emerged as a strong world power but still has ‘a long way to go’. Reports that Mutual funds managers pumped more than Rs 30,000 crore in the stock markets during April-July of the current financial year because of strong participation from retail investors, too contributed to the gains.
However, markets pared most of their gains in dying hour of trade with report that the overwhelming presence of public sector is holding back the Indian economy. Investors also took cues from minutes from the last meeting of Monetary Policy Committee (MPC) whose members said easing inflation had supported the need for a rate cut at its August meeting, but warned consumer prices could start accelerating.
Weak opening in European counters too dampened sentiments, as uncertainty surrounding internal US policy continued to put pressure on investor sentiment despite the reduction of the tensions from North Korea. Asian stocks edged higher on Thursday, as tensions between the United States and North Korea came off the boil.
Closer home, some support to the market came after the cabinet cleared the CGST refund scheme with a budgetary allocation of Rs 27,413 crore. This will come as a big relief to sectors like Pharma, Automobiles and FMCG units. Separately, in line with the government’s policy, the RBI said farmers can avail of short-term crop loans of up to Rs 3 lakh at subsidized interest rate of 7% that could go down to 4% on prompt repayment.
FII’s Activity 17-Aug-17
The FIIs as per Wednesday’s data were net sellers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 3288.81 crore against gross selling of Rs 4812.62 crore. Thus, FIIs stood as net sellers of Rs 1523.81 crore in equities.
In the debt segment, the gross purchase was of Rs 292.38 crore with gross sales of Rs 489.78 crore. Thus, FIIs stood as net sellers of Rs 197.40 crore in debt.
Now what to expect??
Nifty Levels
Close above 9950 will see more upside rally till 9980---10050 mark else it could test it's support level of of 9880 again
Below 9880 will see more downside panic till 9830---9780 and then to 9700 mark
Trade with levels only
Tata Steel
We recommend sell in Tata steel due to RSI bearish divergence in it.
Moody's Investors Service has upgraded its outlook for the Asian steel industry to 'stable' from 'negative', but has maintained its negative outlook for Tata Steel Ltd.
As on Jun 30, Tata Steel had a consolidated gross debt of 878.12 bln rupees, while net debt was at 717.03 bln rupees.
Trading Recommendation
Below 624 will see downside panic till 612---605 mark in days to come.
Looks bullish only if close above 633 mark.
Any sharp upside rise will be selling opportunity in it.
Corporate Action
Indian Oil Corporation Limited- Annual General Meeting/Dividend - Re 1/- Per Share
Interglobe Aviation Limited- Annual General Meeting/Dividend - Rs 34/- Per Share
L&T Finance Holdings Limited - Annual General Meeting/Dividend - Re 0.80 per Share
Kaveri Seed Company Limited- Annual General Meeting
Jubilant Foodworks Limited - Annual General Meeting/Dividend - Rs 2.50 per Share
Results Today
Castrol India Limited
More will update soon!!
