Update on Nifty levels, Bank Nifty levels, Derivative Outlook and Equity Pick of the day 18th Dec 2017
Nifty 10333 /Sensex 33246/ Bank Nifty 25168
33 Advances / 17 Declines/ 0 Unchanged
Dalal Street cheers exit poll results; Nifty regains 10,300 mark
Jubilation continued on Dalal Street for second straight session and Indian equity benchmarks ended the session with a gain of over half a percent, recapturing their crucial 10,300 (Nifty) and 33,400 (Sensex) levels. Markets after a gap-up opening traded with traction with exit polls indicating both Himachal Pradesh and Gujarat going in favour of ruling BJP. Exit polls conducted by various polling agencies have predicted that BJP would retain Gujarat, the major battle ground despite a reduced margin of seats in the 182-member assembly. Some support also came with global rating agency Moody’s statement that it has a stable outlook for non-financial corporate in the country, except for telcos, on which it has a negative outlook for 2018. It said that stable outlook is underpinned by the expectation that GDP growth of around 7.6% will result in higher sales volumes. Traders also took some encouragement with Finance minister Arun Jaitley identifying infrastructure creation, resolution of non-performing assets and recapitalization of banks as the priority areas to push the country further on growth path.
Sentiments also remained up-beat as the International Monetary Fund (IMF), which is slated to come out with an update of its projections of India’s growth rate along with the rest of the world in January, sees benefits in the medium-term from the demonetisation exercise which India carried out about a year ago. Besides, traders took support with the private report stating that India’s economic growth has bottomed out and the GDP growth will recover further to 7% over the next few quarters but it is likely to take few years to return to 7.5% above levels. Though, markets ended off day highs, as traders opted for wait and watch approach, eyeing the winter session of Parliament. During a total of 14 sittings over a duration of 22 days, both the Houses, Lok Sabha and Rajya Sabha, will take up 25 Bills, including GST compensation to states, for consideration and passing.
On the global front, European markets were trading in red terrain in early deals, as fresh concerns over US tax reform plans dampened market sentiment and as investors were still digesting the European Central Bank's latest policy decision. Asian shares edged higher on Friday, on track for weekly gains, though sentiment was kept in check by Wall Street's weakness on concerns about the progress of US tax reform.
Back home, the Supreme Court on Thursday reserved its interim order for Friday on a batch of pleas seeking a stay on the government's decision of mandatory linking of Aadhaar with various welfare schemes, as the Centre extended the deadline up to March 31 next year. On the sectoral front, shares of metal companies remained on buyers’ radar with the Nifty Metal index gaining more than 2% on the National Stock Exchange (NSE) as higher base metals prices in global commodities markets. Meanwhile, shares of multi-specialty hospital chain Shalby, which recently concluded its Rs 504 crore initial public offering, listed with a discount of over three and half percent at Rs 239.25 on the BSE against the issue price of Rs 248.
FII’s Activity 15th-Dec-17
The FIIs as per Friday’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 5252.85 crore against gross selling of Rs 4788.00 crore. Thus, FIIs stood as net buyers of Rs 464.85 crore in equities.
In the debt segment, the gross purchase was of Rs 605.60 crore with gross sales of Rs 1041.82 crore. Thus, FIIs stood as net sellers of Rs 436.22 crore in debt.
Now what to expect ??
Nifty Levels
Close above 10370 will see rally till 10460---10530. More and more upside rally will see only close above 10530 else it could test 10200---10160 again.
Trade within a range
Bank Nifty
Above 25600 will see panic till 25760---25875. More and more upside rally will see only close above 25875 else it could test 25200 again.
Trade within a range
GNFC - Top Pick
Price just got above it's 50-day simple moving average which is a positive signal. According to simple moving average analysis, gnfc is in a uptrend.
Bollinger bands has hit the upper band which is also a positive signal.
Now what to expect??
Above 584 will see rally till 610-—620 in days to come. Further upside will see if closes above 620.
Support intact at 560
Any sharp upside rally will be selling opportunity in it.
Trading Recommendation (18th Dec 2017)
Buy GNFC above 584 with stop loss below 460 (on a closing basis) Target 610--—620.
Corporate Action ( Ex-Date)
Colgate Palmolive (India) Limited- Interim dividend- Rs 4/- Per share (Purpose Revised)
