Update on Nifty levels, Bank Nifty levels and Derivative Outlook of the day 11th Jan 2018
Nifty 10635 /Sensex 34352/ Bank Nifty 25676
17 Advances / 33 Declines/ 0 Unchanged
Benchmarks end choppy day with minimal losses
Indian equity benchmarks ended the choppy day of trade with minimal losses, as traders remained on sidelines ahead of ahead of key corporate earnings later this week and the federal budget next month. Market participants also opted to stay away from buying risky assets ahead of the outcome of meeting organized by government think tank NITI Aayog, and attended by a host of ministers including Finance Minister Arun Jaitley, NITI Aayog functionaries and leading economists. Some concerns also came with rating agency ICRA’s latest report stating that credit growth of Infrastructure finance firms will remain subdued over the short term. However, losses remained capped with the World Bank projecting India’s growth rate to 7.3 per cent in 2018 and 7.5 for the next two years. It said that with an “ambitious government undertaking comprehensive reforms”, India has “enormous growth potential” compared to other emerging economies. The 2018 Global Economics Prospect released by the World Bank also said that India, despite initial setbacks from demonetization and Goods and Services Tax (GST), is estimated to have grown at 6.7 per cent in 2017.
Traders also got some solace with domestic rating agency CRISIL expecting India Inc’s revenue growth to hit a five-year high of 9 per cent for the October-December 2017 period, on higher realizations in steel, aluminum, cement and crude oil-linked sectors, and a pick-up in consumption-driven sectors such as auto and aviation. However, profits will continue to contract, primarily due to the rising commodity prices. Traders also took some comfort with the Cabinet approving key changes in India’s Foreign Direct Investment (FDI) policy by easing investment norms across sectors including aviation, construction and single brand retail among others. These amendments are government’s broader strategy to liberalize and simplify the FDI policy to facilitate ease of doing business and turn India into a global investment hotspot.
On the global front, European counters were trading in red in early deals ahead of the first earnings season of the year. British industrial output looks set to make a strong contribution to economic growth in the final months of 2017 but construction is likely to drag. Asian markets closed mostly in red, amid oil prices touching three-year highs due to production cuts and a fall in inventories.
Back home, stocks related to IT pack remained buzzing, as US authorities said that the Trump administration is not considering any proposal that would force H-1B visa holders to leave the country. The announcement by the US Citizenship and Immigration Services (USCIS) came days after reports emerged that the Trump administration was considering tightening H-1B visa rules that could lead to deportation of 7,50,000 Indians. Stocks related to oil companies edged higher, despite the international oil prices hitting their highest levels since 2014. Telecom stocks are ringing loud in early deals, as the Telecom Commission (TC) has decided to relax spectrum holding caps, giving a boost to M&As and spectrum sale. In scrip specific development, Tech Mahindra moved up on entering into partnership with edX.org, while Power Grid advanced on receiving nod to invest Rs 92.13 crore.
FII’s Activity 10th-Jan-18
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 5028.52 crore against gross selling of Rs 5050.21 crore. Thus, FIIs stood as net sellers of Rs 21.69 crore in equities.
In the debt segment, the gross purchase was of Rs 2164.26 crore with gross sales of Rs 808.00 crore. Thus, FIIs stood as net buyers of Rs 1356.26 crore in debt.
In the hybrid segment, there was no gross buying against gross selling of Rs 3.55 crore. Thus, FIIs stood as net sellers of Rs 3.55 crore in hybrid.
Now what to expect ??
Nifty Levels
Support at 10530 and Resistance at 10660
Below 10530 will see panic till 10480---10430 mark else could touch its resistance level of 10660 again
Trade with levels only
Bank Nifty
Support at 25500 and Resistance at 25780
Below 25500 will see panic till 25350---25200 mark else could touch its resistance level of 25780 again
Trade with levels only
Daily Derivative Outlook 11th January 2018
• Nifty (January) futures closed at a premium of 4.85 points versus a premium of 9.90 points.
• NIITTECH (40%), NMDC (27%), PAGEIND (20%), BERGEPAINT (19%) and HAVELLS (17%) were the top gainers in terms of OI.
• ARVIND (-11%), GRASIM (-8), GLENMARK (-6%), KAJARIACER (-5%) and RELCAPITAL (-5%) were the top losers in terms of OI.
• Maximum call buying was seen at Nifty 10700 strike and maximum put writing was seen at Nifty 10600 strikes.
• Maximum positions are at 10700 CE and 10500 PE.
• The Nifty Put Call Ratio (PCR) finally stood at 1.36 for January month contract.
• Advance Decline ratio in F&O segment was at 0.54, Advance (75) + Decline (140) + Unchanged (2) = 217
Results Today
IndusInd Bank Limited
Tata Consultancy Services Limited
Shree Cement Limited
More Will Update Soon!!
