Update on Nifty levels, Bank Nifty levels and Equity Pick of the day 7th Nov 2017
Nifty 10451 /Sensex 33685/ Bank Nifty 25650
19 Advances / 31 Declines/ 0 Unchanged
Benchmarks witness consolidation on Monday
Indian equity benchmarks witnessed consolidation on Monday amid volatility, as traders remained on sidelines ahead of GST Council meeting, slated later during the week which is expected to consider lowering of the 28 percent GST rate on certain common use items. After a cautious start markets traded choppy in first half, as sentiments remained dampened on foreign brokerage report which highlighting adverse macroeconomic impact of rise in crude oil prices, said every $10 per barrel rise in the price will worsen India’s fiscal balance by 0.1 percent and current account balance by 0.4 percent of GDP. At the same time, it also estimated that every $10/bbl rise in crude oil price would hit the central government’s fiscal balance by 0.1 percent of GDP. It also added that every $10/bbl rise in crude oil price would increases CPI inflation by 0.6-0.7 percentage points.
Markets gained momentum and entered into green terrain in second half of trade to hit all-time record highs. Traders took some encouragement with report that government could consider a proposal to stagger deadlines for filing of monthly returns under the Goods and Services Tax for small and large firms. The move would ensure that the rush towards the last few days gets partly dissipated and leads to lower burden on the IT systems as well that often leads to large delays in uploading of returns and invoices. Some support also came with Prime Minister Narendra Modi’s statement that the recently introduced GST regime will further improve India’s ranking in the ease of doing business and pointed that the recent ranking did not take into account implementation of GST. However, profit booking which emerged in dying hour of trade mainly dragged key indices near neutral lines and domestic bourses ended flat.
Weak opening in European counters too dampened sentiments. CAC, DAX and FTSE were trading in red in early deals, as investors focus on earnings and monitor President Donald Trump's comments in Asia. Asian markets exhibited mixed trend on Monday. Chinese shares ended higher even as banking stocks fell after People's Bank of China Governor Zhou Xiaochuan spelled out his strategy to ward off systematic financial risks.
Back home, auto stocks remained in top gear after ICRA said that the domestic commercial vehicle (CV) sales are expected to grow by around 7 percent in the current fiscal on the back of pent-up demand post GST and replacement cycle in CVs driving the sales. The rating agency added that the industry will find its momentum back aided by increased thrust on infrastructure and rural sectors in the recent budget, potential implementation of fleet modernization and higher demand from consumption-driven sectors. PSU banking stocks were buzzing on report that the Finance Ministry may infuse about Rs 70,000 crore through recapitalization bonds in the NPA-hit public sector banks in the next four months. Food processing and related stocks remained in focus, as the Minister for Railways and Coal Piyush Goyal said that the categorisation of the food processing sector for bank credit should be reviewed as it could in turn help double farmers’ income. Meanwhile, shares of Reliance Nippon Asset Management Company (AMC) made a decent debut and went home with around 13% gains. The IPO got tremendous response and was oversubscribed by 81.54 times.
FII’s Activity 6th-Nov-17
The FIIs as per Monday’s data were net buyers in equity segment, while they were net sellers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 4688.52 crore against gross selling of Rs 4240.13 crore. Thus, FIIs stood as net buyers of Rs 448.39 crore in equities.
In the debt segment, the gross purchase was of Rs 1608.72 crore with gross sales of Rs 1813.89 crore. Thus, FIIs stood as net sellers of Rs 205.17 crore in debt.
Now what to expect ??
Nifty Levels
Close above 10500 will see more upside rally till 10540 and then to 10600---10650 mark else it could test its support level of 10345 again.
Close below 10345 will see more downside panic in Nifty.
Trade within a range
Bank Nifty
Close above 25700 will see more upside rally till 25850 and then to 26000+++ mark else it could test its support again.
Break and sustain below 25400 will see more downside panic till 25250 and then to 25000---24900 mark
Dabur- Top Pick
Management indicated that worst is behind now and expects market share improvement. The
Company has turned aggressive with new product launches which is positive for stock.
According to bollinger bands, dabur is technically strong.
Now what to expect???
On Daily chart, Dabur Limited break and sustain above 347 will see nonstop rally till 355--360++ in weeks to come.
Looks bearish only if close below 340 marks.
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (7th Nov 2017)
Buy Dabur above 347 with stop loss below 340 (on a closing basis) Target 355---360++.
Corporate Action
Dabur India Limited-Interim Dividend - Rs 1.25 per Share (Purpose Revised)
Result Today
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Manappuram Finance Limited
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Balrampur Chini Mills Limited
More Will Update Soon!!
