Update on Nifty levels, Bank Nifty levels and Equity Pick of the day 5th Dec 2017
Nifty 10127 /Sensex 32869/ Bank Nifty 25075
28 Advances / 20 Declines/ 2 Unchanged
Benchmarks eke out slender gains ahead of RBI policy
Indian equity benchmarks ended the choppy day of trade with marginal gains on Monday, as traders remained on the sidelines ahead of Reserve Bank of India’s (RBI) monetary policy meeting which is scheduled to begin on December 5. The central bank is widely expected to keep rates on hold, investors will watch out for any hints of a cut in its policy statement. Markets after a cautious start gained some ground and traded in green for most part of the day’s trade but in narrow range. Sentiments remained positive with former vice-chairman of NITI Aayog Arvind Panagariya’s statement that the economy will grow by over 6.5% in the current financial year. He said the macroeconomic indicators have remained stable for the past three years with current account deficit hovering around one per cent and inflation moderating. Traders also took some solace with the statement of Mukesh Ambani, Reliance Industries chairman that India’s GDP will double to $ 5 trillion in the next seven years and hit $ 10 trillion by 2030 as it will elbow out China by the middle of 21st century. Meanwhile, the International Monetary Fund (IMF) has said that it will update its growth rate forecast for India in January.
Finance Minister Arun Jaitley’s statement that the GST has made doing business easier for traders, to spread business activities in the country, too aided sentiments. He added the market place for traders had opened the horizons and there is lesser tax compliance burden. However, gains remained capped with Chief Economist at World Bank Kaushik Basu expressing disappointment at the 6.3% GDP expansion in the September quarter said that with oil prices so low, India’s economic growth should have been back at over 9%. He added that this massive slowdown needs to be properly diagnosed. Sentiments also weighed down on private report stating that CPI inflation is expected to firm up in the coming months driven by cyclical recovery in the economy and further implementation of pay commission-related hikes by states.
Positive opening in European counters too aided sentiments, as positive news on the Brexit and the US tax reform front improved sentiment around the globe. UK construction sector activity grew more than expected in November, hitting its fastest pace in five months and bolstering optimism over the British economy. Asian markets exhibited mixed trend, as traders marked the passage of a US Senate tax bill over the weekend, a move that raises the risk of more aggressive rate hikes in the world’s largest economy.
Back home, Infosys remained the top gainer in on the Sensex after the IT giant named Salil S Parekh, a member on the board of its global rival Capgemini, as its new chief executive officer (CEO) and managing director (MD), ending a three-month-long search. On the sectoral front, PSU stocks remained on buyers’ radar on report that the Centre is likely to come up with expression of interest (EOI) for strategic sale in three-to-four out of the 16 odd public sector units (PSUs) shortlisted. Some banks have already got approval from the finance ministry while others are in the process of getting the green signal for raising capital either through private placement or the rights issue. Stocks related to media sector remained in focus on a private report that the Indian media and entertainment (M&E) industry would nearly double in size by 2022, clocking 11-12% CAGR between 2016 and 2022.
FII’s Activity 4th-Dec-17
The FIIs as per Thursday’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 4859.48 crore against gross selling of Rs 5481.92 crore. Thus, FIIs stood as net sellers of Rs 622.44 crore in equities.
In the debt segment, the gross purchase was of Rs 1607.38 crore with gross sales of Rs 1479.42 crore. Thus, FIIs stood as net buyers of Rs 127.96 crore in debt.
Now what to expect ??
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Nifty Levels
Below 10125 will see more downside panic till 10080 mark. More and more downside panic will see only close below 10080 else it could test 10250---10320 again.
Bank Nifty
Below 25050 will see more downside panic till 24900---24800 mark else it could test its resistance level of 25450 again
Trade within a range
MGL - Top Pick
Break and sustain above 1125 will see rally till 1145---1160 in days to come. Further upside will see if closes above 1160.
Support intact at 1105
Any sharp downside panic will be buying opportunity in it.
Trading Recommendation (5th Dec 2017)
Buy MGL above 1125 with stop loss below 1105 (on a closing basis) Target 1145—1160.
More Will Update Soon!!
