Nifty 8740/Sensex 28240/ Bank Nifty 20196
25 Advances / 25 Declines/ 1 Unchanged
Indian benchmarks unable to gather stem; end on a flat note
Indian benchmark indices ended the range bound day of trade on a flat note with positive bias as investors preferred to stay on the side-lines ahead of the Reserve Bank of India's (RBI’s) policy meeting next week.
Sentiments got some support with the American industry bodies lauding the Budget, saying Finance Minister Arun Jaitley has done an 'admirable job' in creating a vision that will propel the domestic economy while remaining cognizant about foreign investors eying the Indian market. However, investors remained cautious with the report that India’s services languished, with new business orders falling for the third straight month, amid muted inflationary pressure that could offer RBI much room to remain accommodative in its next policy meet next week.
The Nikkei India Services Purchasing Managers’ Index (PMI), which tracks services sector companies on a monthly basis, came in at 48.7 in January, from 46.8 in December 2016. A reading above 50 indicates expansion while any score below the mark denotes contraction. Meanwhile, shares of public sector undertaking (PSU) banks extended their rally for the third straight trading sessions post Budget. Around six PSU banks, including Bank of Baroda, Bank of India, IDBI Bank, Indian Bank, Union Bank of India and Vijaya Bank have hit their respective 52-week highs on the in other wise range-bound market. On the other hand, auto stocks declined after the report that the automobile sales in January were a mixed bag in all segments, including passenger cars, two-wheelers and commercial vehicles, as rural markets have still not picked up. In scrip specific development, Sun TV Network hogged the limelight by gaining as much as 26% after a special CBI court on Thursday dropped all charges against former telecom minister Dayanidhi Maran and Sun TV promoter Kalanithi Maran in the Aircel-Maxis case. Also, shares of Bombay Stock Exchange (BSE) made a strong debut on Friday, with the scrip listing at Rs 1,085, a 35% premium over the issue price of Rs 806 on the NSE. The stock eventually settled the trade 33% higher at Rs 1,070 against its issue price.
On the global front, Asian equity markets ended mostly in green on Friday, with Japanese shares closing higher after the yen weakened and the Nikkei survey showed that Japan's services sector continued to expand in January, although at a slower pace, with a PMI score of 51.9.
However, Chinese stocks slumped after Beijing unexpectedly raised short-term interest rates, adding to growing concerns about US President's Donald Trump's aggressive policies. The Caixin China manufacturing purchasing managers' index dropped to 51 from 51.9 in December, suggesting a loss of momentum in output and new orders. Meanwhile, Investors all around the world await the outcome of a key U.S. monthly jobs report later in the day that will set the tone for the Federal Reserve's policy outlook.
Back home, the local benchmarks got off to a sedate opening tracking the dismal leads prevailing in Asian markets on growing concerns about US President's Donald Trump's aggressive policies. Thereafter, the frontline indices kept losing steam and even drifted to the lowest point in the session in noon trades. However, the key gauges managed to gain some momentum and bounced into the positive terrain by the end of trade.
FII Activity (3rd Feb 2017)
The FIIs as per Friday’s data were net buyers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 5913.15 crore against gross selling of Rs 5193.20 crore. Thus, FIIs stood as net buyers of Rs 719.95 crore in equities.
In the debt segment, the gross purchase was of Rs 1271.68 crore with gross sales of Rs 1171.65 crore. Thus, FIIs stood as net buyers of Rs 100.03 crore in debt.
Key Results
Aarti Industries Ltd
Abbott India Ltd
Astral Poly Technik Ltd
Caplin Point Laboratories Ltd
Gujarat Gas Ltd
Gujarat State Petronet Ltd
Honeywell Automation India Ltd
Jubilant Foodworks Ltd
Marksans Pharma Ltd
Titagarh Wagons Ltd
Tube Investments of India Ltd
Now what to expect??
Nifty Future Levels
Support at 8680 and Resistance at 8780
Looks positive can could touch its resistance level of 8780. Further upside rally will see on close above 8780 for the upside target of 8850---8880 and then to 8990+++ mark else could touch its support level of 8680 again
Looks weak only close below 8680 mark.
Bank Nifty Future Levels
Support at 19900 and Resistance at 20400--20650.
Bank nifty looks positive and could touch its resistance level of 20400—20650. Further upside rally will see on close above 20650.
Support and revise stop loss below 19900 on closing basis.
Trade with levels only... Any reversal seems will update.
Today's Top Pick
Today will concentrate on Banking and IT stocks as both sector looks positive on charts.
Axis Bank (Cash)
Break and sustain above 492.50 will take it to 502—508 and then to 525+ mark in days to come else could touch its support level of 480.
Looks weak only close below 480 mark
On the other hand... Concentrate on
Tech Mahindra
Above 482 (Cash)... Catch it. We will see sharp upside rally till 498---504 and then to 520+++ mark
Support and stop loss below 462.00 on closing basis.
More will update soon!!
