Nifty 9100/Sensex 29,409/ Bank Nifty 21225
40 Advances / 11 Declines/ 0 Unchanged
Indian equity indices convalesce; Sensex ends above 29400 mark
It turned out to be a stable day for the Indian benchmark indices, which climbed well over half a percent point and managed to end above the crucial support levels. Investors remained optimistic on hopes that the Goods and Services Tax (GST) will be implemented on time. The government introduced the supporting legislation for the GST in Parliament on Monday, reinforcing expectations that it would make the July 1 deadline for the roll-out of this singular tax reform. According to Revenue Secretary Hasmukh Adhia, GST will not only usher in a transparent tax system thereby reducing cascading of taxes, but will also result in reduction of prices for consumers and broaden the tax base in the country. Investors got further confidence with the report that manufacturing activity improved in March after a three months of decline, while various government measures are likely to push up activity in the infrastructure sector going forward. The yearly SBI Composite Index, one of leading indicator for manufacturing activity in the Indian economy, bounced back to above 50-mark level to 50.3 after 3-months of decline. The report also noted that going by the findings, index of industrial production (IIP) growth may continue to be in the positive territory in February and March, this year. However, gains remained capped with the report that India will face a below normal rainfall during the June to September south-west monsoon season. About 70% of India's rainfall happens in this period and irrigates almost half of India's farmland, being of particular importance for Kharif crops.
On the global front, Asian equity markets ended mostly higher on Tuesday as investors shrugged off US President Donald Trump's drubbing on health care and turned hopeful that the White House will take a lead role in crafting legislation to overhaul the US tax code, which has bi-partisan support across the country. Japan's Nikkei closed up 1.1%, its biggest one-day gain in more than two weeks, while Australian stocks ended the day 1.3% higher, their strongest performance since November 23, 2016. South Korean stocks gained after data showed the domestic economy grew at a slightly faster pace than initially thought in the fourth quarter of 2016, supported by strong construction activity. However, Chinese market ended lower on concerns about tightening liquidity conditions after the central bank refrained from injecting short-term funds into the banking system for the third session in a row. Meanwhile, European stocks rebounded in a broad rally after two days of declines as investor concerns over U.S. President Donald Trump's policy efforts eased and mining shares rose.
Back home, the local benchmarks got off to a positive start in the morning trade as market participants were largely influenced by the supportive leads from Asian markets. Thereafter, the frontline indices soon gathered momentum and traded with over half a percent gains through the session. Finally, the NSE's 50-share broadly followed index Nifty, got buttressed by over half a percent to settle just above the crucial 9,100 support level, while Bombay Stock Exchange's Sensitive Index- Sensex accumulated over one hundred and seventy points and closed above the psychological 29,400 mark. Moreover, the broader markets too participated in the rally and closed with gains of around half a percent. The market breadth remained optimistic, as there were 1448 shares on the gaining side against 1391 shares on the losing side, while 215 shares remained unchanged.
FII’s Activity 28-March-17
The FIIs as per Monday’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 5359.81 crore against gross selling of Rs 4776.19 crore. Thus, FIIs stood as net buyers of Rs 583.62 crore in equities.
In the debt segment, the gross purchase was of Rs 1472.39 crore with gross sales of Rs 557.66 crore. Thus, FIIs stood as net buyers of Rs 914.73 crore in debt.
Now what to expect next??
Nifty Levels
Support at 8980 and Resistance at 9180-9248.
Above 9155 will see upside rally till 9218---9248 mark. More and more upside rally will see only weekly close above 9248 else it could test its support level of 8980 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 20700 and resistance at 21500
Trend Looks positive and could touch its resistance level of 21500 will see upside in it, else could touch its Support level of 20700.
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