Nifty 9929 /Sensex 31662/ Bank Nifty 24305
29 Advances / 22 Declines/ 0 Unchanged
Benchmarks eke out slender gains
Indian equity benchmarks ended the volatile day of trade with marginal gains, as simmering geopolitical tensions kept many investors on edge. Markets started the session on optimistic note with both key indices recapturing their crucial 9,950 (Nifty) and 31,700 (Sensex) levels, mainly supported by firm global cues with report that US President Donald Trump and congressional leaders agreed to raise the government debt limit until December, eliminating the risk of a government shutdown for now. Back on regional turf, traders also took some support with a private report stating 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. It further said that a number of high frequency growth indicators are indicating that end demand is holding up well and is running counter to the slowdown exhibited in the national accounts.
However, markets failed to hold on to their initial gains and pared most of their gains to go home with small gains, as there was some concern in the markets with market regulator Securities and Exchange Board of India (SEBI) expressing its worries over stronger rupee. It has stated that the huge inflow of foreign investments into the country is having an impact on the rupee and regulators need to manage it through a calibrated system. As per SEBI data foreign portfolio investors have invested Rs 44,150 crore in Indian equities and Rs 1.29 lakh crore in debt so far this year. Separately, North Korea’s Minister of External Economic Relations and head of the delegation at the Eastern Economic Forum in Vladivostok, Kim Yong-jae, said that the country will introduce strong countermeasures against the United States’ attempts to exert pressure through strong sanctions.
Firm opening in European counters provided some support to domestic markets with all CAC, DAX and FTSE trading in green, as markets waited to hear just how close the European Central Bank is to scaling back its more than 2 trillion euro ($2.75 trillion) stimulus program. Asian markets closed mixed, amid hopes for a temporary extension of the US debt ceiling.
Back home, most of the export oriented stocks edged higher, as the Commerce Minister Suresh Prabhu said his ministry is looking at certain measures to rev up country’s exports in a “shortest possible time” and will also strive to address the issues facing exporters post GST. He added that exports to gross domestic product (GDP) ratio of India has to improve substantially as the outbound shipments have a great ability to generate economic activity. Select sugar stocks too edged higher on report that India's sugar output is expected at 25.1 million tonnes in the year beginning October, up 24.2% from the 2016/17 season.
FII’s Activity 7-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.
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
Daily Derivative Outlook 8th September 2017
• Nifty September 2017 futures closed at 9954.70 on Thursday at a premium of 24.80 points over spot closing of 9929.90.
• Maximum call writing seen at 10000, Maximum put writing seen at 9900.
• Maximum positions are at 10000 CE and 9700 PE.
• VGUARD (28.80%), EQUITAS (18.30%), NATIONALUM (17.00%), RAYMOND (11.50%) and TATACHEM (11.00%) were the top gainers in open interest in the market.
• APOLLOHOSP (-7.60%), OIL (-6.00%), NBCC (-3.30%), PVR (-2.90%) and CESE (-2.6%) 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.
Derivative Idea (07-09-2017)
Tata Elxsi gain around 13.5% of open interest as long build up on Thursday’s trade. It has also breached its immediate resistance level of 1785 on the upper side with noticeable rise in volume while it is also trading above 21 and 55 DEMA on daily chart.
Now what to expect??
Hurdle at 1810, Above 1810 rally likely to remain continue till 1880—1900 and then to 1950++ mark in days to come. Further upside rally will see on close above 1950.00
Ultimate Target is 2200++ mark.
Support and stop loss below 1750
Current chart pattern and derivatives data suggest that we expect further rally in coming sessions.
Trading Recommendation(08-09-17)
Buy Tata Elxsi(SEPT) future above 1810 Stop loss 1750(on closing basis) Target 1880—1900 and then to 1950++ mark.
Top Pick-- Only to our subscribers
Corporate Action
Grasim Industries Limited-Annual General Meeting/Dividend - Rs 5.50 per Share
More Will Update Soon!!
