Nifty 9,203/Sensex 29,643 / Bank Nifty 21,666
19 Advances / 32 Declines/ 0 Unchanged
Indian equities resume declining trend; Nifty holds 9200 mark
A session after showcasing a wonderful rally, Indian equity indices faltered and failed to extend the winning momentum on Wednesday as investors turned cautious ahead of key economic data- index of industrial production (IIP) for February and consumer price index (CPI) for March-to be released later in the day. Sentiments remained downbeat over Former finance minister P Chidambaram's comment that a more realistic deadline for rolling out the goods and services tax was October 1, instead of the scheduled date of July 1. While maintaining GST would be good for the country in the long-term, the senior Congress leader cautioned the government saying that implementation of the mega tax reform could be inflationary in the short-term. He cited the preparation time needed for small and medium-scale enterprises to get on to the new tax reform structure and the time needed for activating the GSTN platform as the main reasons why he thought October was a more realistic deadline. Adding the woes, leading exporters' body EEPC India has raised a red flag against the debilitating impact of sharp rise in rupee against dollar in the last three months on exports, which may slip off from the recovery path, if the situation persists further. Since the first week of January, rupee has gained by close to six per cent, eroding significantly the exporters' margins and more importantly the competitive edge against India's trade rivals in the international markets.
On the global front, Asian equity markets made a mixed closing on Wednesday, as tensions continue to ratchet up on the Korean Peninsula following a warning from North Korea of a nuclear attack on the US. Chinese stocks edged lower, as softer producer inflation data raised questions on the sustainability of the country's economic recovery and some shares that had rallied on plans for a new economic zone lost steam. Further, Japanese market declined as rising geopolitical tensions curbed risk appetite, with exporters badly hit as the safe-haven yen spiked to a five-month high. However, a rise in oil prices on reports that Saudi Arabia wants output cuts extended for another six months, supported market sentiments. Meanwhile, European shares edged higher, as uncertainty over the forthcoming French presidential elections calmed down a little.
Back home, after getting a cautious start, the local benchmarks slipped into lower level in late morning session, tracking weak trade in other regional markets. However, the indices recover most of their losses and ended the session moderately lower. Finally, the NSE's 50-share broadly followed index - Nifty plunged by over quarter percent to settle above the crucial 9,200 support level, while Bombay Stock Exchange's Sensitive Index - Sensex took a triple digit cut and closed below the psychological 29,700 mark. The market breadth remained optimistic, as there were 1144 shares on the gaining side against 1756 shares on the losing side, while 136 shares remained unchanged.
FII’s Activity 12-April-17
The FIIs as per Wednesday’s data were net sellers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 4649.18 crore against gross sell of Rs 5373.96 crore. Thus, FIIs stood as net sellers of Rs 724.78 crore in equities.
In the debt segment, the gross purchase was of Rs 995.17 crore with gross sales of Rs 1200.41 crore. Thus, FIIs stood as net sellers of Rs 205.24 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9080 and Resistance at 9330--9380.
Above 9250 will see upside rally till 9290 and then to 9330---9380 mark else we will see sharp downside panic in it.
Support intact at 9080.
Bank Nifty Levels
Support at 21550 and resistance at 21800
Trend Looks positive and could touch its resistance level of 21800. Close above 21800 will see further upside rally in it else could touch its support level of 21550 again.
Trade in a range with levels only.
Today's Top Pick
Oriental Hotels
Support at 35 and Resistance at 40.
Weekly close above 40 will see upside rally till 44---48 and then to 55+++ mark in days to come.
Looks weak only if close below 35.00
Results Today
Infosys Limited
Reliance Power Limited
More will update soon!!
