Nifty 9916 /Sensex 31662/ Bank Nifty 24279
19 Advances / 32 Declines/ 0 Unchanged
Benchmarks end lower on geopolitical concerns
Wednesday turned out to be a disappointing day of trade for Indian equity benchmarks, with frontline gauges ending below their crucial 31,700 (Sensex) and 9,950 (Nifty) levels, as tensions over North Korea’s latest nuclear test showed few signs of abating and continued to spook global investors. Markets started off on pessimistic note as sentiments remained dampened with government saying that names of over 2.09 lakh firms have been struck off from register of companies for failing to comply with regulatory requirements and action has been initiated to restrict operations of their bank accounts. The Centre has also stepped up action against such entities by bringing in restrictions on the operation of their bank accounts by their existing directors and authorised representatives. Besides, cracking the whip, SEBI barred 19 domestic and foreign entities from securities markets for manipulation in issuances of global depository receipts and warned several others including FIIs.
However, markets trimmed some of their initial losses in second half of the trade, as market participants took some solace with the new Commerce and Industry Minister Suresh Prabhu’s statement that the Ministry will soon bring out a policy framework for facilitating access to global markets for the Indian agriculture produce. The recovery proved short lived and was not able to take markets into green, as investors took note of Economic Survey-II saying that demonetization has hurt the informal economy and triggered a rush for distress labour under job guarantee scheme (MGNREGA), though the wages available under the scheme may also have helped contain rural unrest and a political backlash to some extent. Meanwhile, private report said that economic activity in the country lost some pace amid GST related disruptions but underlying growth momentum remains strong and the country may clock 6.7 percent growth this fiscal.
Weak opening in European counters on the eve of a European Central Bank meeting too dampened sentiments. The ECB’s latest interest rate decision is due on Thursday with no major policy changes expected. The euro zone monetary authority is unlikely to provide big hints on its strategy for eventually winding down, or tapering, its asset purchase program. Asian markets ended mostly in red, as tension on the Korean peninsula weighed on sentiments.
Back home, this year’s kharif harvest may be lower than 2016 because of floods in several states and lower planting of some crops. The output of pulses and oilseeds is expected to fall because of lower planting, while production of rice, the main kharif crop, is likely to be the same as last year as higher yields will offset lower sowing. On the sectoral front, stocks related to banking counters edged lower, as former RBI Governor Raghuram Rajan said that the biggest challenge is cleaning up the balance sheets of public sector banks. Garment and textile stocks remained buzzing, as the garment exporters have asked the Centre for clarity on the refund process for Integrated Goods and Services Tax (IGST) paid on import of machinery as they were not in a position to use input tax credit.
FII’s Activity 6-Sept-17
The FIIs as per Wednesday’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 2848.20 crore against gross selling of Rs 3074.56 crore. Thus, FIIs stood as net sellers of Rs 226.36 crore in equities.
In the debt segment, the gross purchase was of Rs 1598.63 crore with gross sales of Rs 1100.24 crore. Thus, FIIs stood as net buyers of Rs 498.39 crore in debt.
Daily Derivative Outlook 7th September 2017
• Nifty September 2017 futures closed at 9935.35 on Wednesday
at a premium of 19.15 points over spot closing of 9916.20.
• Maximum call writing seen at 9900, Maximum put writing seen at 9800.
• Maximum positions are at 10000 CE and 9800 PE.
• EQUITAS (23%), PNB (23%), REPCOHOME (21%), GODREJCP (20%) and MUTHOOTFIN (18%) were the top gainers in open interest in the market.
• CONCOR (-11%), COALINDIA (-5%), DCBBANK (-4%), ULTRACEMCO (-4%) and RBLBANK (-4%) were the top losers in open interest in the market.
• The Nifty Put Call Ratio (PCR) finally stood at 1.33 for September month contract.
• Advance Decline ratio in F&O segment was at 0.75, Advance (91) + Decline (125) + Unchanged (2) = 219
Now what to expect??
Nifty Levels
Above 10020 will see more upside rally till 10080---10150 marks else it could test its support level of 9880 again.
Below 9880 will see more downside panic till 9850---9820 and then to 9700 mark
Indian Bank- Top Pick(07-09-17)
According to RSI analysis, Indian Bank is technically weak and also fibonacci retracement, price is below all levels.
During the final trading hours Indian Bank was seen to be priced at Rs.283.85 while being 1.1 points above the day's lowest and 2.8 points below the day's highest. With this, the day's high was Rs.286.65 and the day's low was Rs.282.75 .
By this time of the day, a total of 962,447 shares were traded with the 5 day volume being 1,123,076 , 10 day average volume being 1,073,607 and 30 day average volume being 1,129,672 .
Now what to expect???
Indian Bank.... Break and sustain below 283 will see downside panic till 276---272++ mark in days to come.
Looks bullish only if close above 290 marks.
Trading Recommendation (7th September 2017)
Sell Indian Bank below 283 with stop loss of 290 (on a closing basis) Target 276---272+++.
Corporate Action
Reliance Industries Limited-Bonus 1:1
Petronet LNG Limited-Annual General Meeting/Dividend - Rs 2.50/- Per Share (Purpose Revised)
Escorts Limited-Dividend - Rs 1.50 per Share
Apollo Hospitals Enterprise Limited--Annual General Meeting/Dividend - Rs 6/- Per Share
Godfrey Phillips India Limited-Annual General Meeting/Dividend - Rs 8/- Per Share
Strides Shasun Limited-Annual General Meeting/Dividend - Rs 4.50 per Share
NTPC Limited-Annual General Meeting/Dividend - Rs 2.17 per Share
NBCC (India) Limited-Annual General Meeting/ Dividend - Rs 1.10 per Share
More will update soon!!
