Update on Nifty levels, Bank Nifty levels and Equity Pick of the day 10th Oct 2017
Nifty 9988/Sensex 31846/ Bank Nifty 24251
27 Advances / 23 Declines/ 0 Unchanged
Benchmarks eke out slender gains
Indian equity benchmarks ended the volatile day of trade with marginal gains on Monday, as traders remained on sidelines ahead of July-September quarter earnings, slated to be released this week. Soon after a cautious start, markets gained momentum and regained their crucial 10,000 (Nifty) and 31,900 (Sensex) levels, as traders took encouragement with the GST Council on Friday announcing a slew of decisions to reduce compliance burden, including the eventual setting up of an e-wallet for input tax credits for exporters, and the option for small businesses to file returns and pay taxes only once a quarter. The GST Council also reduced the tax rates on 27 items. Some support also came with Finance Minister Arun Jaitley stating that government’s initiatives like Swachh Bharat, Goods and Services Tax (GST) and demonetization are having desired impact, with the latter two resulting in increasing tax compliance and squeezing quantum of cash in the economy. Traders also took note of Revenue Secretary Hasmukh Adhia’s statement that the government will clear pending GST refunds of exporters by November-end and over the next six months no tax will be levied on exports as the Council has decided to revert to the pre-GST era.
However, traders booked profit at higher levels and markets ended the session marginally in green terrain. Gains remained capped on geopolitical concern after report emerged that North Korea to mark a major anniversary this week may do another missile test. Also, as though the GST breather given to small and medium enterprises (SMEs) and exporters will address their liquidity issues, large corporates are disappointed as the GST Council didn't address many key issues such as anti-profiteering laws, transition credit issues and denial of certain input credit.
On the global front, European markets made a weak start on Monday. Britain’s statistics office said that it had underestimated the pace of growth in costs in the labor market, one of the pieces of data that the Bank of England is looking at as it considers whether to raise interest rates next month. Asian markets closed mostly higher, as investors digested the release of China Caixin services PMI.
Back home, Jewellery stocks remained buzzing after the Government withdrew its GST notification on gems and jewellery. Permanent Account Number (PAN) card will no longer be mandatory on the purchase of jewellery for over Rs 50,000. Select Movies & Entertainment stocks was in focus in today’s trade on report that the Indian film industry is expected to grow at 11.5% year-on-year, reaching total gross realization of Rs 23,800 crore ($3.7 billion) by 2020. Stocks related to oil & gas sector edged lower despite report that the Prime Minister Narendra Modi will hold a high-profile meeting with CEOs of foreign and Indian companies, as the government seeks big-ticket investment in its vast, rapidly growing energy market.
FII’s Activity 9th-Oct-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 3661.23 crore against gross sell of Rs 4615.08 crore. Thus, FIIs stood as net sellers of Rs 953.85 crore in equities.
In the debt segment, the gross purchase was of Rs 4093.69 crore with gross sales of Rs 1064.34 crore. Thus, FIIs stood as net buyers of Rs 3029.35crore in debt.
Now what to expect ??
Nifty Levels
Above 10020 will see more upside rally till 10065 and then to 10130---10180 mark again else it could test its support again
Break and sustain below 9880 will see more downside panic till 9800 and then to 9765---9720
Trade within a range
Bank Nifty
Close above 24350 will see more upside rally till 24450 and then to 24608---24720 mark else it could test its support again.
Break and sustain below 24150 will see more downside panic till 24000---23990 and then to 23840
Trade within a range
Shivam Autotech- Top Pick
Shivam Autotech saw 17 percent increase in sales in the month of September. Neeraj Munjal, MD of the company spoke about the numbers and his outlook going ahead.
Munjal expect Rs 600 crore sales in FY18. Shivam Autotech is one of the largest manufacturers of gears and Hero Motocorp is our biggest client, said Munjal.
We have diversified into different industries and added new clients, Munjal added.He expects 15 percent growth going ahead.
Now what to expect???
On Daily chart, Shivam Autotech is showing breakout point above 80 level. Break and sustain above 80 will see nonstop rally till 90--100++ in weeks to come.
Looks bearish only if close below 70 marks.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (10th Oct 2017)
Buy Shivam Autotech above 80 with stop loss below 70 (on a closing basis) Target 100+++
Result
The South Indian Bank Limited
More Will Update Soon!!
