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Sensex falls, Nifty ends at 8153 after Fed move;

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Major headlines

·         Indian equites trade flat on profit booking, global cues

·         We want discussion on Agusta Westland deal

·         SC bans sale of liquor near all highways

INDEX PERFORMANCE

 

 

Index

Close

% Chg

Sensex

26,519.07

-0.31

Nifty

8,153.60

-0.35

Indian Indices: Altering between positive and negative territory, Indian equity benchmarks are now trading with small gains in late noon session led by upmove in frontline blue chip stocks such as TCS, Wipro and Axis Bank among others. Some support came with private report stating that the Reserve Bank is expected to meet its inflation target 'comfortably' as CPI inflation is likely to remain well below 5 per cent over the first half of 2017. On the global front, European Markets were trading mixed and Asian markets were trading mostly in red after the U.S. Federal Reserve announced a 25 basis point rate increase and opened the door to three hikes next year. Back home, stocks related to the IT sector were trading firm on the back of weakness in rupee. The rupee weakened to 67.77 against the U.S. dollar, down 33 paise from its previous close. Shares of ports, shipping and logistics companies were trading higher on the bourses after the Cabinet approved a Major Port Trust Authorities Bill to replace the Major Port Trusts Act of 1963.

The BSE Sensex is currently trading at 26655.16, up by 52.32 points or 0.20% after trading in a range of 26407.58 and 26737.86. There were 18 stocks advancing against 12 stocks declining on the index. The broader indices were trading in green; the BSE Mid cap index gained 0.32%, while Small cap index was up by 0.45%.

The CNX Nifty is currently trading at 8193.75, up by 11.30 points or 0.14% after trading in a range of 8121.95 and 8225.90. There were 27 stocks advancing against 24 stocks declining on the index.

MARKET INDICATORS

·           

 

Top Movers (Group A)

 

 

Company

Cmp

% chg

Gainers

 

 

Hathway

36.20

5.39

IFCI

27.20

4.62

IGL

906.75

4.25

Mphasis

555.00

4.10

 Losers

 

 

Nationalum

61.05

-7.78

Sunpharma

649.45

-4.36

Unitech

4.56

-3.59

Intellect

160.30

-3.49

Market Statistics

 

 

 

BSE

NSE

Advances

1190

648

Declines

1397

811

 

Market Sentiment:  

The market breadth on BSE was positive in the ratio of 1190: 1397, while 159 scrips remained unchanged.

Crporate Front:

The Lok Sabha lost the second last day of the winter session on Thursday to disruptions, with the opposition benches demanding a debate on demonetisation while the treasury benches demanded a discussion on the AgustaWestland helicopter deal.

Macroeconomic front:

Union Minister M. Venkaiah Naidu on Thursday said that the government wants to discuss the Agusta Westland VVIP chopper deal in Parliament over the allegations of the kickbacks paid to political leaders and officers.

 

On the global front:

On the global front, The Chinese diplomat said that mutual cooperation between the two countries has resulted in a win-win situation for both and would help increase profitability in the coming years. Co-chairman of CII Task Force on Ease of Doing Business and CMD Chemtrols Industries K. Nandakumar said that India is at the same position where China was 10 years ago and hence there is a huge potential here considering its present demographics.

Commodity Updates:

Commodity Prices (MCX):

Commodity

Rs

% Chang

Gold

27155.00

-1.57

Silver

40574.00

-2.77

Crude oil

3480.00

-0.49

Natural Gas

239.50

0.29

Alluminium

117.90

0.0

Copper

389.00

0.03

Top Sectoral & Stock Screening:    The top gainers on the Sensex were TCS up by 2.63%, Axis Bank up by 1.96%, Power Grid Corpn. up by 1.68%, Adani Ports &Special up by 1.30% and Wipro up by 1.18%. On the flip side, Sun Pharma  down by 2.44%, Tata Motors down by 1.46%, NTPC down by 1.22%, ITC down by 1.01% and Lupin down by 0.84% were the top losers.

Top Nifty Movers:     The top gainers on Nifty were TCS up by 2.58%, Axis Bank up by 2.20%, HCL Tech. up by 1.69%, Power Grid Corpn. up by 1.57% and Adani Ports &Special up by 1.20%. On the flip side, Sun Pharma Inds. down by 2.37%, Grasim Industries down by 1.69%, Tata Motors down by 1.44%, NTPC down by 1.22% and Tata Motors - DVR down by 1.10% were the top losers.

 

Global Signals:

The Asian markets were trading mostly in red; Hang Seng decreased 397.22 points or 1.77% to 22,059.40 , Shanghai Composite decreased 22.85 points or 0.73% to 3,117.68 , Taiwan Weighted decreased 8.17 points or 0.09% to 9,360.35 , Jakarta Composite decreased 5.67 points or 0.11% to 5,257.15, FTSE Bursa Malaysia KLCI decreased 5.35 points or 0.33% to 1,637.94 and KOSPI Index decreased 0.22 points or 0.01% to 2,036.6. On the flip side, Nikkei 225 increased 20.18 points or 0.1% to 19,273.79. 

European Markets were trading mixed; France’s CAC increased 18.14 points or 0.38% to 4,787.38 and Germany’s DAX increased 40.8 points or 0.36% to 11,285. On the flip side, UK’s FTSE 100 decreased 9.07 points or 0.13% to 6,940.12.

 

 


US indices correct after 8 days of gains as Federal rate hike acts as temporary pause in rally!!

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Major headlines:

·         Oil prices stablilise after Fed hike as tighter market looms

·         China’s yuan opens at weakest vs dollar since june 2008

·         Gold falls to over 10- month low as Fed signals more rate hikes

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

26180

26550

Nifty

8075

8195

 

Indian Indices:  Asian markets opened weak with the exception of the Japanese 'Nikkei" index which traded higher on the back of a weaker yen. Initial reaction to the Federal Reserve rate hike saw bond yields rise & the US $ get stronger which as a follow through will see most Asian indices trade in the red. Gold prices hit new 1 year lows & oil prices also traded near US$50 which should see return of smart money to equity with Asian stocks becoming value picks after the sharp under performance.

Nifty continues to trade sideways with a negative bias as muted foreign flows combined with weak rhetoric on the impact of demonetization keeps the index in check. The rise in yields could see some more foreign money exit even as India remains in total opposition to the global markets with surplus cash in the system seeing our yields hit 6 year lows. For today expect smart money to buy the fall as we head closer to 8100 as nearness to budget in next 45 days should see value buying emerge.  

The BSE Sensex is currently trading at 26675.05, up by 72.21 points or 0.27% after trading in a range of 26407.58 and 26737.86. There were 15 stocks advancing against 15 stocks declining on the index. The broader indices were trading in green; the BSE Mid cap index was up by 0.38%, while Small cap index was up by 0.73%.

 

MARKET INDICATORS

·           

 

Group ATop Gainers

 

 

Company

Price (Rs)

% chg

Hathway

36.05

4.95

IFCI

27.00

3.85

Hindzinc

283.95

2.92

Justdial

390.00

2.92

Group ATop Losers

 

 

Nationalum

62.80

-5.14

Hindpetro

420.70

-3.22

Unitech

4.62

-2.33

Muthootfin

274.15

-1.93

Market Statistics

 

 

 

BSE

NSE

Advances

1349

1092

Declines

715

333

 

Technical view: Nifty finds support @ 8100 & faces resistance around 8200, any breach either way will see move up or down. Bank Nifty also finds support around 18250 & faces resistance around 18600.

 

Market Sentiment:

The market breadth on BSE was positive in the ratio of 1349:715, while 104 scrips remained unchanged.

 

Trading ideas :        MOTHERSUMI Dec Fut (Sell below Rs 319  for Target of Rs 305 , SL at Rs 326): The stock has taken resistance on the upper band of the weekly channel and moving down. Multiple attempts to close above Rs 331 went futile, and stock also made a bearish engulfing pattern in yesterday's trade. Sustaining below Rs 319, stock would see a pennant breakdown. We advise to SELL Mothersumi Dec Fut at Rs 319, stop loss at Rs 326, and Target of Rs 305.

 

Macroeconomic Front:    Amid concerns of missing the GST rollout deadline of April 1, the government Wednesday came out with a report card detailing the efforts being made to reach a consensus on support legislations for timely implementation of the new indirect tax regime, reported PTI. "All efforts are being made to meet the necessary deadlines to ensure that GST is rolled out by April 1, 2017.

Corporate Snippets: Bharti Airtel and Vodafone India are pushing ahead the government’s broad agenda to move towards cashless economy, at a time when demonetization has crippled cash payments due to inadequate cash in the system.

 

Bajaj Electricals has entered in to a strategic alliance with the UK based firm Gooee to create lighting products and solutions on the Internet of Things platform.

 

Lupin has received approval from the US health regulator to market its Desoximetasone ointment, used for providing relief from inflatmmation and itching in a skin disease.

Top Sectoral& Stock Screening:  The top gaining sectoral indices on the BSE were IT up by 1.71%, TECK up by 1.30%, Realty up by 1.09%, Bankex up by 0.64% and Metal up by 0.50%, while Oil & Gas down by 0.59% and FMCG down by 0.38% were the losing indices on BSE.

Nifty Movers:   The top gainers on Nifty were TCS up by 2.58%, HCL Tech up by 2.17%, Infosys up by 1.58%, Mahindra & Mahindra up by 1.54% and IndusInd Bank up by 1.54%. On the flip side, Sun Pharma down by 1.58%, Tata Motors down by 1.17%, Bharti Airtel down by 1.04%, BPCL down by 1.03% and NTPC down by 0.98% were the top losers

 

 

 

On the global front:       On the global front, Asian shares were trading mostly in red, after the US Federal Reserve overnight indicated it would raise interest rates faster than expected in 2017. The rate hike in US would lead outflow of money from emerging market equities into US bonds which are considered as safer investment options. This is only for the second time in a decade that the Federal Reserve has raised its rate.

 

Global Signals:    The Asian markets were trading mostly in red; Hang Seng decreased 395.72 points or 1.76% to 22,060.11, Shanghai Composite decreased 14.79 points or 0.47% to 3,125.74, Taiwan Weighted decreased 8.17 points or 0.09% to 9,360.35, FTSE Bursa Malaysia KLCI decreased 7.03 points or 0.43% to 1,636.26 and Jakarta Composite decreased 6.37 points or 0.12% to 5,256.45.On the other hand, KOSPI Index increased 0.79 points or 0.04% to 2,037.66 and Nikkei 225 increased 92.84 points or 0.48% to 19,346.45.

 

Dow Jones celebrates an early Christmas as it nears 20000, even as Federal Reserve set to hike rates today.

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Major headlines:

·         Key Indian equity indices trade flat during early session

·         Gold prices firm as dollar dips ahead of Fed rate decision

·         Asia resigned to Fed hike, uptight on rate outlook

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

26180

26550

Nifty

8075

8195

 

Indian Indices:  Asian markets opened flat as the overnight cues continued to be bullish with the Dow Jones nearing 20000.The strength in bonds, US$ & strong ETF flows are seeing huge inflows into the US which is heralding a period of growth with capex expansion & strong infrastructure spending. Emerging markets are also facing the brunt of redemptions as short term money chases faster returns in the US.

Nifty also saw a smart comeback recouping 8200 with ease. The pessimism over the Federal Reserve rate hike will last till tomorrow & with the event over we could see another bout of value buying coupled with short covering to drive the Nifty above 8300.For today expect IT stocks to bounce back after positive guidance by Mindtree saw huge short covering in the previous session. 

The BSE Sensex is currently trading at 26649.55, down by 48.27 points or 0.18% after trading in a range of 26624.66 and 26736.34. There were 11 stocks advancing against 19 stocks declining on the index. The broader indices were trading in green; the BSE Mid cap index was up by 0.02%, while Small cap index was up by 0.19%. The CNX Nifty is currently trading at 8196.45, down by 25.35 points or 0.31% after trading in a range of 8192.00 and 8229.40. There were 14 stocks advancing against 37 stocks declining on the index.

 

MARKET INDICATORS

·           

 

Group ATop Gainers

 

 

Company

Price (Rs)

% chg

HCC

41.70

6.79

Welcorp

79.75

6.26

Prestige

166.25

5.15

Mphasis

536.40

3.44

Group ATop Losers

 

 

KSCL

407.00

-5.16

Amtekauto

36.35

-3.45

GMDLTD

97.75

-3.27

Coalindia

297.35

-2.75

Market Statistics

 

 

 

BSE

NSE

Advances

930

1092

Declines

1091

333

 

Technical view:     Nifty found strong support @ 8150, while 8260-8280 will act as strong resistance. Bank Nifty also bounced back from 18300 levels which will act as support while 18700 will act as resistance.

 

Market Sentiment:

The market breadth on BSE was positive in the ratio of 1074:949, while 116 scrips remained unchanged.

 

Trading ideas :       MINDTREE (Buy above Rs 494 for target of Rs 508, SL at Rs 487): Stock has witnessed a classic cup and handle pattern breakout in yesterday's trade. Mindtree also managed to close above 485 levels which has been acting as stiff resistance. In addition, the current up move has also been accompanied with credible volumes. We advise to Buy MINDTREE above Rs 494, stop loss at Rs 487, and Target of Rs 508.

 

Macroeconomic Front:   Rating Agency ICRA has said that with consumption being affected by the demonetisation of higher currency old notes, tax revenues of the state governments for the current financial year is likely to be weaker than budgeted. The Centre on November 8 had announced to withdraw legal tender character of the old Rs 500 and Rs 1,000 notes.

Corporate Snippets: An exhaustive inseption of drug maker Sun Pharma’s manufacturing facililty at Halol by the US FDA pointed to inadequately designed testing programs to assess the stability characteristics of drugs besides faulting accuracy of test methods used at the site.

 

Jubilant FoodWorks which operates Domino’s Pizza in India, said it will offer cashless payment option to all its customers on home deliveries.

 

Wockhardt said the UK health regulator has confirmed that its Daman based manufacturing facility complies with good manufacturing practices.

Top Sectoral& Stock Screening:  The top gaining sectoral indices on the BSE were Realty up by 1.50%, Consumer Durables up by 0.39%, Oil & Gas up by 0.35%, Power up by 0.15% and IT up by 0.13%, while Metal down by 0.71%, PSU down by 0.47%, Auto down by 0.43%, Capital Goods down by 0.39% and Bankex down by 0.30% were the losing indices on BSE.

Nifty Movers:   The top gainers on Nifty were Reliance Industries up by 1.82%, Axis Bank up by 1.27%, Tata Power up by 1.16%, Asian Paints up by 0.96% and NTPC up by 0.91%.  On the flip side, Coal India down by 3.20%, Aurobindo Pharma down by 2.35%, ACC down by 1.52%, Bosch down by 1.47% and HDFC down by 1.34% were the top losers.

 

 

 

On the global front:       On the global front, Asian shares were trading mostly in green, ahead of critical meeting by the US Federal Reserve, which is widely expected to raise interest rates. Japan’s Nikkei was trading flat in green, led by financial and energy stocks. The Bank of Japan quarterly tankan survey showed that sentiment among big manufacturers rose to plus 10 over the three months to December from plus 6 in the previous quarter.

 

Global Signals:    The Asian markets were trading mostly in green; KOSPI Index increased 0.48 points or 0.02% to 2,036.46, Shanghai Composite increased 0.57 points or 0.02% to 3,155.61, Nikkei 225 increased 22.97 points or 0.12% to 19,273.49 and Hang Seng increased 147.65 points or 0.66% to 22,594.35. On the other hand, Taiwan Weighted decreased 11.16 points or 0.12% to 9,370.98, Jakarta Composite decreased 8.4 points or 0.16% to 5,285.22 and FTSE Bursa Malaysia KLCI decreased 3.78 points or 0.23% to 1,641.50.

 

Oil rally triggers fresh weakness in emerging markets as US bond yields rise above 2.5%

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Major headlines:

·         Oil prices stable supported as output cuts hit market

·         Global and domestic cues subdue Indian equities

·         ADB trims India’s 2016 growth forecast to 7.0 percent

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

26180

26550

Nifty

8075

8195

 

Indian Indices:  Asian markets opened flat after a weak start to the week saw most indices close in the red on Monday. The sharp rally in crude combined with US 10 year bond yields crossing 2.5% saw weakness again creep up in the emerging markets basket. The Dow Jones continues its unprecedented rally as money chases US stocks, ETF"s & bonds.

Nifty could consolidate ahead of the Federal Policy tomorrow night as low volumes yesterday saw impact cost expand which accentuated the selloff. Fresh adventurous shorts were behind the selloff as foreign flows were muted which explains the low volume. The surprise Tata Motors open offer @ 10% premium will catch most shorts off guard which could see other Tata group stocks also rise in tandem. 

The BSE Sensex is currently trading at 26567.89, up by 52.65 points or 0.20% after trading in a range of 26494.23 and 26611.81. There were 19 stocks advancing against 11 stocks declining on the index. The broader indices were trading mixed; the BSE Mid cap index was down by 0.31%, while Small cap index was up by 0.08%. The CNX Nifty is currently trading at 8176.40, up by 5.60 points or 0.07% after trading in a range of 8155.80 and 8200.95. There were 25 stocks advancing against 26 stocks declining on the index.

 

MARKET INDICATORS

·           

 

Group ATop Gainers

 

 

Company

Price (Rs)

% chg

NCC

85.50

4.59

Intellect

172.00

4.31

Fortis

176.00

3.41

Fortise

176.00

3.41

Group ATop Losers

 

 

Vakrangee

268.00

-5.70

Bergerpaint

200.75

-3.60

Hindalco

176.15

-3.19

IBREALEsT

70.55

-2.76

Market Statistics

 

 

 

BSE

NSE

Advances

930

1092

Declines

1091

333

 

Technical view:    Nifty broke the 200 dma(day moving average) @ 8202 which will act as resistance while 8150 will act as support. Bank Nifty also broke below important supports & will find fresh support around 18250 while 18618 the 21 dma will act as resistance.

 

Market Sentiment:

The market breadth on BSE was negative in the ratio of 930:1091, while 113 scrips remained unchanged.

 

Trading ideas :      BPCL Dec Fut (Sell below Rs 615  for Target of Rs 595 , SL at Rs 625): The stock reversed from the declining trend line which also coincided with the 50 day moving average. The stock has further slipped below its 100-DMA too indicating weakness in the current move. Other momentum oscillators are also showing signs of down tick in prices. We expect BPCL to move lower towards potential target of Rs595.

 

Macroeconomic Front:    Hopes of meeting the Centre's targeted GST implementation deadline of April 1, 2017, receded further in a situation of political confrontation unleashed by its demonetisation measure after the two-day meeting of the GST Council scheduled to end on Monday being cut short half-way.

Corporate Snippets: Tata Motors said it will hike the prices of its passenger vehicles by up to Rs 25000 from next month in order to offset the increased input costs.

 

Natco Pharma has launched generic Tamiflu capsules, used for the treatment of influenza, in the Ameerica market after the final nod from the US health regulator in Aug 2016.

 

Alkem Laboratories said the US health regulator has issued three obervations after inspection of the company’s API facility at Ankleshwar in Gujrat.

Top Sectoral& Stock Screening:  The top gaining sectoral indices on the BSE were Consumer Durables up by 1.06%, Auto up by 0.85%, Oil & Gas up by 0.78%, FMCG up by 0.33% and PSU up by 0.14%, while Metal down by 1.07%, Realty down by 0.36%, Bankex down by 0.23%, TECK down by 0.19% and IT down by 0.14% were the losing indices on BSE.

Nifty Movers:   The top gainers on Nifty were Tata Motors up by 2.26%, BPCL up by 1.97%, Wipro up by 1.80%, Tata Motors - DVR up by 1.73% and Idea Cellular up by 1.39%.  On the flip side, Hindalco down by 2.86%, Zee Entertainment down by 2.69%, Grasim Industries down by 1.66%, Lupin down by 1.61% and Ultratech Cement down by 1.34% were the top losers.

 

 

 

On the global front:       On the global front, Asian shares were trading mostly in green, as investors awaited the looming outcome of the Federal Reserve’s rates review, with all eyes on how the Fed steers monetary policy in the wake of Republican Donald Trump's surprise election win last month. Chinese data showed factory output and retail sales grew faster than expected in November, while fixed-asset investment was in-line with forecasts, adding to growing signs of stabilization in the world’s second-biggest economy.

 

Global Signals:    The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 1.59 points or 0.1% to 1,643.01, KOSPI Index increased 2.85 points or 0.14% to 2,030.09, Taiwan Weighted increased 17.63 points or 0.19% to 9,367.57 and Nikkei 225 increased 50.08 points or 0.26% to 19,205.11. On the other hand, Hang Seng decreased 82.71 points or 0.36% to 22,350.31, Jakarta Composite decreased 42.98 points or 0.81% to 5,265.15 and Shanghai Composite decreased 20.33 points or 0.64% to 3,132.64.

 

All about MCX or Multi commodity exchange of India

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Commodity exchange

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The global equity 'party' continues as Dow, Nikkei hit fresh highs and fence sitters join in!!

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Major headlines:

·         JP Power posts Q2 net loss at Rs 161.67 cr

·         Key Indian equity indices open in red

·         Oil prices soar on global producer deal to cut crude output.

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

26180

26550

Nifty

8075

8195

 

Indian Indices:  Asian markets opened in the green after the Dow Jones ran up another fresh high with a stellar 140 point gain on Friday. The Dow rally from 19000 upwards has been very fast & furious & the Federal Reserve policy meet could be the speed breaker this week.Oil rallied above US$ 50 as speculation saw huge long build up with 60 being the target in the short term.

Nifty looks set to hit 8300 where it could pause for breath as the rally catches most of guard.PSU banks, energy & gas stocks continue to surge on expectations of good results. The strength in the Rupee coupled with foreign investors turning buyers could see the rally extend till 8500 albeit after a pause for the Federal Reserve policy on the 14th December.

The BSE Sensex is currently trading at 26606.87, down by 140.31 points or 0.52% after trading in a range of 26578.63 and 26725.31. There were 9 stocks advancing against 21 stocks declining on the index. The broader indices were trading in red; the BSE Mid cap index was down by 0.56%, while Small cap index was lower by 0.20%. The CNX Nifty is currently trading at 8210.45, down by 51.30 points or 0.62% after trading in a range of 8195.55 and 8230.65. There were 12 stocks advancing against 39 stocks declining on the index.

 

MARKET INDICATORS

·           

 

Group ATop Gainers

 

 

Company

Price (Rs)

% chg

Nationalum

69.25

6.46

ABAN

261.00

4.50

MMTC

52.95

3.42

NMDC

130.75

3.32

Group ATop Losers

 

 

Interllect

162.85

-5.62

Bergerpaint

211.00

-4.24

IFCI

26.45

-3.11

Shreecem

14700

-3.32

Market Statistics

 

 

 

BSE

NSE

Advances

930

1092

Declines

1091

333

 

Technical view:    Nifty will find resistance around 8350 while 8180 acts as strong support, while Bank nifty could face resistance around 19000 with 18500 acting as support.

 

Market Sentiment:

The market breadth on BSE was negative in the ratio of 930:1091, while 113 scrips remained unchanged.

 

Trading ideas :      Cairn India (Buy above Rs 265  for Target of Rs 274 , SL at Rs 260.5): The stock has broken out from a short term consolidation phase. Cairn saw see-saw movement between Rs260 and Rs223 in the past four weeks. However, the stock has broken out from this congestion. The price outburst is accompanied with credible trading volumes. Given the above evidence, we advise to Buy Cairn India for potential target of Rs274.

 

Macroeconomic Front:    Madhya Pradesh Government has said that it has settled and disbursed claims worth Rs 4,416 crore under the Prime Minister's Crop Insurance Scheme in the state. As per reports, Prime Minister Narendra Modi had launched the scheme at Sherpur in Sehore district of Madhya Pradesh during the Farmers' Convention held on February 18, 2016

Corporate Snippets:

JSW Energy is believed to have intiated talks for a possible acquisition of Monnet Power’s 1050 mw coal fired plant in Odisa at Angul, Close to the site of another Group company.

 

IL&FS Engineering and Construction co has emerged as the lowest bidder for rural electrification works of Jharkhand Biijli Vitran Nigam, Ranchi worth Rs 2.25 bn.

 

MIC Electonics Ltd has received a letter of award for supply of 20000 standalone off grid solar LED street lights with a contract price of Rs 329 mn.

Top Sectoral& Stock Screening:  The two gaining sectoral indices on the BSE were Metal up by 0.30% and PSU up by 0.24%, while Auto down by 1.17%, TECK down by 0.89%, IT down by 0.88%, FMCG down by 0.77% and Bankex down by 0.68% were the losing indices on BSE.

Nifty Movers:   The top gainers on Nifty were ONGC up by 1.66%, Reliance Industries up by 1.01%, Sun Pharma up by 0.82%, NTPC up by 0.58% and SBI up by 0.47%.  On the flip side, Asian Paints down by 2.29%, Idea Cellular down by 2.02%, Bajaj Auto down by 1.89%, Ambuja Cement down by 1.87% and Grasim Industries down by 1.80% were the top losers.

 

 

 

 

On the global front:       On the global front, Asian shares were trading mostly in red, ahead of a Federal Reserve meeting that is widely expected to raise US interest rates and as oil prices soared after producers agreed to reduce output. Japan’s Nikkei rose amid weakness in the Japanese Yen. Japan’s Core Machinery Orders rose to 4.1% in November, from -3.3% in the preceding month.

 

Global Signals:    The Asian markets were trading mostly in red; Hang Seng decreased 243 points or 1.07% to 22,517.98, Shanghai Composite decreased 60.93 points or 1.88% to 3,171.96 and Taiwan Weighted decreased 43.86 points or 0.47% to 9,348.82. On the other hand, KOSPI Index increased 2.46 points or 0.12% to 2,027.15 and Nikkei 225 increased 180.4 points or 0.95% to 19,176.77.Indonesia Stock Exchange and Malaysia Stock Exchange were closed for the day on account of ‘Celebration of the Prophet birthday’ holiday.

 

WEEKLY NIFTY TRADING VIEW FOR THE WEEK DEC12, 2016–DEC18, 2016

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Events to watch this week

  • US stocks reach new high
  • ECB extends quantitative easing another year
  • Renzi resigns in wake of Italy referendum
  • Austria elects establishment candidate
  • China's imports and exports on the rise

The Week ahead:

  • China's industrial production and retail sales data are released on Monday, 12 December 12
  • The Federal Open Market Committee meets on Tuesday and Wednesday, 14–15 December
  • The eurozone's industrial production figures are released on Wednesday, 14 December
  • US business inventory, retail sales and industrial production data are released on Wednesday, 14 December
  • US Consumer Price Index, NAHB housing market index and jobless claims data are released on Thursday, 15 December

For the week,Global equities recorded solid gains this week, as major US indices set fresh records and European stocks posted their best week since February. The S&P 500 Index gained 2.75% through Thursday and about 4.05% for the month, setting a new all-time high. Oil prices slid slightly this week, with West Texas Intermediate crude falling 58 cents a barrel to $51.10 and global Brent dropping 46 cents a barrel, to $54.01, as of early Friday morning. The yield on the 10-year US Treasury note increased 8 basis points week over week, trading at 2.46% Friday, and was about 55 basis points higher than it was on November 8, Election Day in the US.

NIFTY- 8,261.75
CRUDE OIL-Rs 3,471barrel
GOLD-Rs 27,585/10 gram
Rs/$-Rs 67.42

MARKET ROUND UP

Indian equity markets registered strong gains in the week ended Friday, 9 December 2016, inline with the sentiments in global markets. Barring a single trading session on Wednesday, 7 December 2016, the two key benchmark indices viz. the S&P BSE Sensex and the Nifty 50 index, landed in green in four out of five trading sessions. The indices bucked positive trend in the post-noon session on Wednesday on the heels of the Reserve Bank of India's (RBI) decision to keep key interest rates steady.

The Sensex surged 516.52 points or 1.96% to settle at 26,747.18. The Nifty jumped 174.95 points or 2.16% to settle at 8,261.75. The BSE Mid-Cap index rose 2.75%. It outperformed the Sensex. The BSE Small-Cap index advanced 1.96%, matching the Sensex's gains in percentage terms.

Macro Economic Front:

On the Economic Front,Data released by Markit Economics during the week showed that India's services sector activity declined sharply last month as cash shortages hit the sector in the wake of the government's move to demonetise higher denomination notes. The seasonally adjusted headline Nikkei India Services Business Activity Index dropped to 46.70 in November, from 54.50 in October, registering contraction for the first time since June 2015 and pointed to the sharpest reduction in output for almost three years.

Major Action &Announcement:

Mahindra & Mahindra (M&M) was up 3.96%. The company announced that IT will be undertaking scheduled maintenance shutdown at some of its automotive and tractor plants in December 2016. The announcement was made after market hours on Thursday, 8 December 2016.

Tata Motors surged 7.16%. The company said that Jaguar Land Rover (JLR), the UK's leading manufacturer of premium luxury vehicles, reported its best ever November retail sales. JLR reported 2% rise in total sales to 47,588 vehicles in November 2016 over November 2015. The announcement was made during market hours on Thursday, 8 December 2016.

Cipla advanced 1.38%. The company said it received final approval for its abbreviated new drug application (ANDA) for Entecavir Tablets USP 0.5 mg and 1 mg, from the United States Food and Drug Administration (USFDA). The announcement was made during market hours on Thursday, 8 December 2016.

Dr Reddy's Laboratories (DRL) rose 0.21%. The company during market hours on Monday, 5 December 2016, announced that it has launched Nystatin and Triamcinolone Acetonide Cream, USP in the US market, approved by the US drug regulator, US Food & Drug Administration (USFDA).

Lupin advanced 1.81%. The company announced that Lupin Somerset also known as Novel Laboratories, Inc received final approval for its Hydrocodone Bitartrate and Acetaminophen Tablets, USP, 5mg/325mg, 7.5 mg/325 mg and 10 mg/325 mg from the United States Food and Drug Administration (FDA) to market a generic equivalent of Allergan Sales LLC's Norco Tablets 5 mg/325 mg, 7.5 mg/325 mg and 10 mg/325 mg. The announcement was made after market hours on Monday, 5 December 2016.

Tata Steel jumped 5.88%. Tata Steel UK on Wednesday, 7 December 2016, reached an agreement with trade unions on a number of proposals that would structurally reduce risks and help secure a more sustainable future for its UK business.

Separately, Tata Steel also announced that its subsidiary, TM International Logistics (TMILL) has divested entire stake in its wholly owned step down subsidiary TM Harbour Services (TMHSPL) to Adani Ports and Special Economic Zone (APSEZ) for a total consideration of Rs 106 crore in an all cash deal.

BhartiAirtel rose 3.22%. The company on Thursday, 8 December 2016, launched two new bundled packs for its prepaid customers with free voice calling and substantial data benefits. These two packs add to Airtel's wide bouquet of innovative packs and plans for customers, offering them more flexibility. The announcement was made during market hours on Thursday, 8 December 2016.

Power Grid Corporation of India (PGCIL) was up 0.38%. The company announced that a meeting of committee of directors for bonds is planned to be held on 14 December 2016 to consider issue of secured, redeemable, non-convertible, non-cumulative, taxable bonds (debenture) under private placement. The announcement was made after market hours on Thursday, 8 December 2016.

Global Front:

In Overseas Markets,the European Central Bank (ECB) on Thursday, 8 December 2016, pledged to continue with its programme of money printing to shore up the euro zone recovery but surprised financial markets by reducing the amount of stimulus it expects to provide each month.

ECB left interest rates unchanged and said it would continue its programme of quantitative easing (QE) to next December or beyond if necessary. But the central bank said it would reduce its monthly asset buys to 60 billion euros as of April, from the current 80 billion euros. It, however, said it reserved the right to increase the size of purchases again.

Global Economic News:

Global stocks continued to post strong gains this week as investors moved out of defensive asset classes, taking on more risk. The strongest pockets of the US market since the election have been materials, industrials, energy, financials and technology. Meanwhile, high-yield bond sector spreads remained compressed, with most sectors sitting at 52-week lows, indicating that investors are still seeking yield opportunities. Emerging market bond spreads also shrank this week, while US investment-grade bond spreads narrowed as well, albeit slightly. Yields on municipal bonds also fell this week, indicating a reversal of a recent selloff in the asset class.

ECB will continue QE through 2017
The European Central Bank announced that it would extend its quantitative easing program until December 2017, although it reduced its monthly purchases to €60 billion from €80 billion. The ECB tweaked its rules to allow the purchase of bonds yielding less than its -0.4% deposit rate. Markets were mixed on the news. Longer-dated German government bond yields increased, while shorter-term German yields fell. The euro declined about 1.39% against the US dollar.

Italians reject constitutional reform
Italian voters rejected a referendum on constitutional reform early last week, prompting Prime Minister MatteoRenzi to resign. The  result continues the anti-establishment trend in the United States and Europe. Renzi agreed to remain in office until the Italian Senate passes a 2017 budget. Moody's cut Italy's sovereign rating outlook to negative from stable after the vote. The outlook change means the credit rating agency could downgrade Italian debt if current conditions remain the same. The country's debt is currently rated two notches above junk status. Shares of Italian banks fell after the vote. The Italian government is preparing to take a €2 billion controlling stake in the bank Monte deiPaschi, whose shares fell 15% on the week.

Austrian voters buck anti-establishment trend
Austrian voters elected pro-European candidate Alexander Van der Bellen as president this week, bucking the anti-establishment mood in the European Union. Van der Bellen won a close contest in May, but voting irregularities forced the week's runoff election.

China's exports rise
China's trade data surprised analysts to the upside this week as imports and exports both increased sharply in November. Exports rose 0.1 % year over year, reversing a 7.3% decline recorded in October, while imports grew 6.7%, the fastest pace since 2014. The growth in imports suggests stronger domestic demand while the rise in exports indicates that global demand has also strengthened. Despite these increases, however, China's imports and exports remained negative for the year through November. The yuan has fallen about 3% versus the US dollar since October, while China's foreign exchange reserves fell to their lowest level since March 2011. China's reserves fell $69 billion in November, which was its fifth straight monthly decline.

NEW 52-WEEK HIGH BSE (A):

 

BEL

1540.00

BHARATFORG

984.00

CAIRN

266.20

NEW 52-WEEK LOWS BSE (B):

DBSTOCKBRO

14.30

KSK

19.10

SEQUENT

102.00

MAJOR WEEKLY GAINERS IN BSE A CATEGORY:

NATIONAL ALUMINI

20.02

IFCI

20.00

INTELLECT DESIGN

18.92

MAJOR WEEKLY LOSERS IN BSE A CATEGORY:

CROMPTON GREAV

-17.08

BHARTI INFRATEL

-7.23

SUN PHARMA

-6.46


Eyes will be set on the certain US economic data releases are:

Monday (12 Dec)
Treasury Budget
Tuesday(13 Dec)
FOMC Meeting Begins & NFIB Small Business

Wednesday(14 Dec)
Retail Sales & FOMC Forecasts
Thursday(15 Dec)
Consumer Price Index &Jobless Claims
Friday(16 Dec)
Housing Sarts

Fundamental Pick of the week:

Buy biocon Ltd For Target Rs. 28.00

Strategy:-

BIOCON added around 11% of open interest as long positions along with some delivery based buying in previous session. It has also witnessed breakout from ‘Inverted Head & Shoulder’ pattern on daily charts. We recommend doing a bull spread as per levels given below.

Recommendation

BUY BIOCON 940 CE AT 27-28 & SELL 980 CE AT 12-13, SPREAD AT 15, SL 9, TARGET 28.

Indian Market Outlook:

This week markets witnessed one of the historic events in the Indian Economy where after the Demonetization, markets were keenly expecting a minimum of 25 bps rate cut. But, to surprise all, Mr. Urjit Patel kept the RBI's stance unchanged shocking the markets on Wednesday. Nifty made a low of 8095 post RBI policy, just 20 points short of its Monday's low of 8075.

Monday through Wednesday, Nifty rose by 142 points and fell sharply by 122 points post RBI. However, markets have regained their strength and rose by 200 points from its Wednesday's low of 8095 to make a high 8295. This upside rally was contributed by strong fundamentals of the Indian economy accompanied with strong International markets.

TECHNICAL VIEW:

 

S3

S2

S1

NIFTY

R1

R2

R3

7,925

7,995

8,225

8,261.75

8,310

8,355

8,425

 

Nifty gave multiple Long entry on Monday and Wednesday  and did the 3 target on upside our 3 target was 8280, High made was 8275  so disciplined Chopad Followers were rewarded again by Market.  Lets analyze how to trade nifty in coming week as we have Fed policy  outcome  on 14 Dec. Now for coming week 8091 will play crucial role above which again a move towards 8175/8250.  Bearish below 8031 for 7900.

Conclusion:


Tomorrow will be very crucial as mostly we should see a trending move, Bulls above 8130 again will move towards 8200/8250, Bears below 8100 will see move towards 8056/8011. Nifty opened above 8130 made low of 8150 and did both target of 8200/8250 High made was 8256 . Thats the beauty of gann price and time analysis it gives you an extra edge, As I have been discussing Bulls need a close above 8250, as we have weekly closing tomorrow close above 8250 will be big booster for Bulls.Close above 8250 target 8330/8370/8444. Unable to close above it another move towards 8200/8153. Bulls finally were able to close above 8250 and sustaining above it nifty should move towards 8330/8370/8444. Any close below 8250 bears will get upper hand and push nifty towards 8181/8150/8097. Expect good trending move in next 2 trading days.

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Major headlines

·         China premiums near 3-year high, Indian gold demand remains subduced

·         Business leaders urge G20 to resist protectionism

·         India seen facing tight wheat supply as Ukrainian shipments delayed

 

INDEX PERFORMANCE

 

 

Index

Close

% Chg

Sensex

26,747.18

0.20

Nifty

8,261.75

0.18

Indian Indices: Indian equity benchmarks traded in a narrow range for most part of the day and closed in green. The traders were in a cautious mode ahead of the US Federal Reserve’s Monetary Policy meeting. The industry is hoping that there will be a rate hike by the US Fed in the coming week. The market traded flat after making a higher opening in early deals with CBEC Chairman Najib Shah’s statement that the GST Council may in future decide to reduce the tax slabs under the Goods and Services Tax (GST) regime after analyzing the revenue garnered and the compensation payouts to states. He said that any change in tax slab is possible after assessing the revenues and the effect of exemptions and deductions given in the new tax regime and analyzing it with the expenditure. Some buying crept in with Prime Minister Narendra Modi’s statement that demonetization triggered an unprecedented cash crunch in the country, but defended his decision saying it will lead to long-term gains. Modi added that the government’s measure will bring a degree of inconvenience but this short-term pain will pave way for long-term gains.

The BSE Sensex ended at 26721.13, up by 26.85 points or 0.10% after trading in a range of 26707.81 and 26803.76. There were 12 stocks advancing against 18 stocks declining on the index. The broader indices ended in green; the BSE Mid cap index was up by 0.21%, while Small cap index was up by 0.53%. The CNX Nifty ended at 8255.35, up by 8.50 points or 0.10% after trading in a range of 8241.95 and 8274.95. There were 25 stocks advancing against 26 stocks declining on the index.

MARKET INDICATORS

·           

 

Top Movers (Group A)

 

 

Company

Cmp

% chg

Gainers

 

 

Intellect

172.55

19.00

IFCI

27.30

16.42

Polaris

157.45

9.91

Suntv

517.60

7.80

 Losers

 

 

MMTC

51.20

-6.40

Infratel

358.10

-3.37

Nationalum

65.05

-3.27

Piind

825.00

-2.56

Market Statistics

 

 

 

BSE

NSE

Advances

1190

648

Declines

1397

811

 

Market Sentiment:  

The market breadth on BSE was positive in the ratio of 1190: 1397, while 159 scrips remained unchanged.

Crporate Front:

Chairman of the Central Board of Excise and Customs Najeeb Shah asked the industry to prepare itself to implement the Goods and Services Tax (GST) with effective from April 1 at an ASSOCHAM event on Thursday. There will be GST readiness on part of the government and urged the industry to be ready.

Macroeconomic front:

As a step towards fulfilment of the Government of India’s target for installation of 40 GW rooftop solar power plants by the year 2022, Solar Energy Corporation of India (SECI) on Friday launched a tender of 1000 MW capacity for development of grid-connected rooftop solar capacity for central government ministries.

 

On the global front:

On the global front, Asian markets ended mixed, while Japanese stocks rose to their highest level in a year supported by Wall Street gains and solid buying of exporters on the back of a weaker yen. Malaysian Industrial Production rose to a seasonally adjusted annual rate of 4.2% in November, from 3.2% in the preceding month. European stocks were mixed as markets digested the European Central Bank’s latest policy decision and investors began to turn their attention to the Federal Reserve’s meeting next week.

Commodity Updates:

Commodity Prices (MCX):

Commodity

Rs

% Chang

Gold

27742.00

-0.13

Silver

41595.00

0.17

Crude oil

3456.00

0.58

Natural Gas

251.70

2.03

Alluminium

117.45

0.69

Copper

395.70

0.82

 

Top Sectoral & Stock Screening:    The top gaining sectoral indices on the BSE were Realty up by 1.61%, Bankex up by 1.02%, PSU up by 0.52%, Power up by 0.42% and IT up by 0.37%, while Auto down by 0.33%, Metal down by 0.29% and Capital Goods down by 0.13% were the losing indices on BSE.

Top Nifty Movers:     The top gainers on the Sensex were SBI up by 2.37%, ICICI Bank up by 2.19%, ONGC up by 1.80%, Axis Bank up by 1.33% and Tata Motors up by 0.90%. On the flip side, Bajaj Auto down by 2.05%, Coal India down by 1.59%, HDFC down by 1.32%, Mahindra & Mahindra down by 1.27% and Hero MotoCorp down by 1.08% were the top losers.

 

Global Signals:

Asian markets were trading mostly in red; Hang Seng declined 100.86 points or 0.44% to 22,760.98, Jakarta Composite slipped 16.36 points or 0.31% to 5,287.38, KOSPI Index decreased 6.38 points or 0.31% to 2,024.69 and FTSE Bursa Malaysia KLCI was down by 4.47 points or 0.27% to 1,639.28. On the other hand, Taiwan Weighted rose 16.82 points or 0.18% to 9,392.68, Shanghai Composite increased 17.52 points or 0.54% to 3,232.88 and Nikkei 225 was up by 230.9 points or 1.23% to 18,996.37.

All the European markets were trading in green; Germany’s DAX rose 4.85 points or 0.04% to 11,184.27, France’s CAC increased 9.13 points or 0.19% to 4,744.61 and UK’s FTSE 100 was up by 13.24 points or 0.19% to 6,944.79.

 

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Major headlines:

·         Japan’s big manufacturers mood improves as companies cut capex

·         China November producer prices rise at fastest pace in 5 years as commodities climb.

·         Gold extend losses on stronger dollar, possible Fed rate hike

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

26180

26550

Nifty

8075

8195

 

Indian Indices:  Asian markets opened flat after a super week which has seen gains across the board for most Asian indices. The developed markets are leading the winners with US, Japan & German indices seeing fresh new highs. Base Metals, Commodities & Bonds all three rising indicating the expectations of rising growth being the driver for equities in 2017.

Nifty scaled 8250 with ease as foreign buying coupled with short covering saw gains across the board. Rupee strength along with bond yields stabilising also saw sentiment get a boost as foreign buying resumed in December after the big selloff in November. For today expect mid caps to lead the gains as participation gathers momentum. 

The BSE Sensex is currently trading at 26765.17, up by 70.89 points or 0.27% after trading in a range of 26707.81 and 26803.26. There were 17 stocks advancing against 13 stocks declining on the index. The broader indices were trading in green; the BSE Mid cap index was up by 0.20%, while Small cap index was up by 0.60%. The CNX Nifty is currently trading at 8260.10, up by 13.25 points or 0.16% after trading in a range of 8241.95 and 8271.90. There were 28 stocks advancing against 23 stocks declining on the index.

 

MARKET INDICATORS

·           

 

Group ATop Gainers

 

 

Company

Price (Rs)

% chg

Intellect

165.95

14.45

Polaris

156.05

8.94

Suntv

521.25

8.56

FSL

40.05

4.84

Group ATop Losers

 

 

NMDC

51.45

-5.94

Nationalum

65.45

-2.68

DBCORP

348.00

-2.25

NLCINDIA

78.80

-1.87

Market Statistics

 

 

 

BSE

NSE

Advances

1223

1092

Declines

852

333

 

Technical view:   Nifty will attempt 8300 with 8330 being a strong resistance while 8180 acts as strong support. Bank Nifty also finds support around 18350 while 18750 will act as resistance.

 

Market Sentiment:

The market breadth on BSE was positive in the ratio of 1470:603, while 103 scrips remained unchanged.

 

Trading ideas :     Coromandel Intl (Buy above Rs 272  for Target of Rs 285 , SL at Rs 266): The stock has been consolidating for over a month, during this phase Coromandel formed a cup and handle pattern which is bullish in nature. The stock rallied over 4% on Wednesday and is finally on the verge of breaking past the neckline of the bullish pattern. Trading volume has also shown credible uptick indicating strenght in the current up move. The projection of the structure suggests a conservative potential target of Rs285.

 

Macroeconomic Front:   The Indian Government has said that it has already infused funds to the tune of Rs 23,993 crore in the National flag carrier Air India from 2011-12 till November this year. As per reports, Air India is surviving on a Rs 30,231 crore bailout package extended by the previous UPA government in 2012 for a 10-year period and also equity support for payment of principal/interest of the non-convertible debentures.

Corporate Snippets:

Oil and Natural Gas Corporation is seeking a 15- year extention of its licence to operate an oil block in Sudan after the intial contract expired last month.

 

Cipla has received final approval from the American health regular to market Entecavir tablets used for treatment of Hepatitis B infection.

 

Bharti Airtel unveiled unlimited voice calls and more 4G data under a new plan, to take on rival Reliance Jio that recently extended its free services.

Top Sectoral& Stock Screening:  The top gaining sectoral indices on the BSE were IT up by 1.12%, TECK up by 0.89%, Consumer Durables up by 0.80%, FMCG up by 0.61% and PSU up by 0.40%, while Metal down by 0.21% and Auto down by 0.08% were the losing indices on BSE.

Nifty Movers:   The top gainers on Nifty were Zee Entertainment up by 2.20%, Bank of Baroda up by 1.86%, Tech Mahindra up by 1.74%, SBI up by 1.56% and Infosys up by 1.50%.  On the flip side, Bharti Infratel down by 2.26%, Bajaj Auto down by 1.93%, Coal India down by 1.39%, HDFC down by 1.29% and Bosch down by 1.18% were the top losers.

 

 

 

 

On the global front:       On the global front, Asian shares were trading mostly in red, while Japanese stocks rose to their highest level in a year supported by Wall Street gains and solid buying of exporters on the back of a weaker yen.

 

Global Signals:    The Asian markets were trading mostly in red; Hang Seng decreased 91.21 points or 0.4% to 22,770.63, Jakarta Composite decreased 14.58 points or 0.27% to 5,289.16, KOSPI Index decreased 6.15 points or 0.3% to 2,024.92 and FTSE Bursa Malaysia KLCI decreased 4.24 points or 0.26% to 1,639.51. On the other hand, Taiwan Weighted increased 5.94 points or 0.06% to 9,381.80, Shanghai Composite increased 25.12 points or 0.78% to 3,240.49 and Nikkei 225 increased 212.93 points or 1.13% to 18,978.40.

 

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