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Federal Reserve raises rates by 25 basis points which saw US Dollar fall while stock indices rally

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Indian Indices: Asian indices opened in the green after a strong triple digit rally overnight on the Dow Jones as the Fed rate hike got discounted by the markets. US Dollar fell even as bond yields corrected with gold prices rising as the Fed indicated gradual rise in rates over the year.


Nifty will witness new highs on opening bell as foreign flows continue to be big buyers even as domestic mutual funds book profit. Rupee strength, improving longer term macros and local liquidity, all are seeing re-rating of Indian equities. For today expect mid-cap outperformance to continue even as foreign investors buy large cap heavy weights.


The BSE Sensex is currently trading at 29590.75, up by 192.64 points or 0.66% after trading in a range of 29482.83 and 29614.79. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 0.99%, while Small cap index was up by 0.91%.

The CNX Nifty is currently trading at 9145.95, up by 61.15 points or 0.67% after trading in a range of 9128.55 and 9152.90. There were 48 stocks advancing against 3 stocks declining on the index.

MARKET INDICATORS

·           

 

Group ATopGainers

 

 

Company

Price (Rs)

% chg

PCJeweller

402.10

4.32

Jindalstel

128.20

4.31

Adaniports

321.00

3.58

Balkrisind

1427.00

3.53

Group ATopLosers

 

 

Srtransfin

1047.20

-2.28

Concor

1232.00

-1.83

Cadilahc

443.40

-1.34

Unitdspr

2235.00

-1.46

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

29345

29550

Nifty

9055

9120

 

Technical view: Nifty finds strong support around 9050 while 9200 will act as resistance on the upside. Bank Nifty also finds strong support around 21000 while 21500 will act as resistance on the upside.


 

Trading ideas :Adani Enterprise (Buy above 101 for Target of 110 Stop Loss at 96.5): After being stuck in a narrow trading range for over 6 weeks, the stock is finally on the verge of a consolidation breakout. Volumes have already given a confirmation of the ongoing positive upswing. Other momentum oscillators also indicate strength in the current up move.


Derivative Snippets: In the yesterday’s trade, markets finally took a breather and ended the trade on a lackluster note. Nifty IT index was the biggest loser as Indian Rupee surpassed its June 2015 high. Short covering in Nifty 9000CE and short selling in 9000CE was witnessed.

FIIs were net buyers in cash market segment to the tune of Rs 1141 crore.

FII’s index future long/short ratio at 3x. Long positions were created in Index options in yesterday’s day.


Nifty Movers: The top gainers on Nifty were Adani Ports up by 3.24%, Tata Steel up by 2.61%, HCL Tech up by 1.81%, Hindalco up by 1.62% and Tata Motors - DVR was up by 1.52%. On the flip side, BhartiAirtel down by 0.80%, Hero MotoCorp down by 0.56% and Reliance Industries down by 0.38% were the few losers.

Top Sectoral& Stock Screening:  The top gaining sectoral indices on the BSE were Metal up by 1.67%, Capital Goods up by 1.32%, Industrials up by 1.31%, Basic Materials up by 1.18% and IT was up by 1.12%, while Telecom down by 0.07% was the lone losing index on BSE.The top gainers on the Sensex were Adani Ports up by 3.58%, Tata Steel up by 2.41%, Larsen & Toubro up by 1.66%, Infosys up by 1.27% and Wipro was up by 1.27%. On the flip side, BhartiAirtel down by 0.67%, Hero MotoCorp down by 0.50% and Reliance Industries down by 0.31% were the few losers.

 

 

On the global front: On the global front, Global cues too provided strength to domestic bourses with Asian markets rallying at this point of time after the US Federal Reserve hiked interest rates, as expected, but signalled ‘gradual’ rises. The US markets bounced back in last session; with all the major bourses posting gains of over half a percent.

 

Global Signals:Asian markets were trading in green; KOSPI Index increased 11.64 points or 0.55% to 2,144.64, FTSE Bursa Malaysia KLCI gained 15.42 points or 0.9% to 1,732.78, Nikkei 225 rose 19.12 points or 0.1% to 19,596.50, Shanghai Composite jumped 21.32 points or 0.66% to 3,263.08, Jakarta Composite surged 55.77 points or 1.03% to 5,488.15, Taiwan Weighted added 88.89 points or 0.91% to 9,829.20 and Hang Seng was up by 311.21 points or 1.31% to 24,104.06.

 

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Domestic Market View :

Markets to make a positive start reacting to assembly results and IIP data

The Indian markets before going for a long weekend made a flat closing with a positive bias. Today, the start is likely to be in green and the traders will be rejoicing the assembly election outcome, which was mostly on the expected lines. A strong election win in the largest state of Uttar Pradesh has raised the probability of the BJP winning the 2019 general elections as well, putting sense of stability among investors. Traders are also likely to get support from the economy front, where the industrial production bounced back into expansion in January, kicking off the financial year’s last quarter on a positive note. The index of industrial production (IIP) rose 2.7% in January from a year ago, the second fastest monthly growth this financial year. However, there will be some cautiousness too, with the RBI warning of a possible spike in inflation and stressing the need to make digital payments “safe and secure”, even as it felt that the adverse and transient impact on the economy has “by and large” dissipated already. Traders will be eyeing the inflation data to be released later in the day for further cues. The banking stocks will keep buzzing, as the Finance Minister Arun Jaitley has discussed options on resolution of bad loans with RBI Governor Urjit Patel and other top officials in finance ministry but creation of a 'bad bank' to hold such loans seemed not on top of alternatives.

Indian benchmarks end marginally higher ahead of assembly elections results

Indian benchmark indices give up most of their early gains to close marginally higher on Friday, amid profit taking in selective frontline stocks. Today’s session largely remained characterized by consolidation as the aimless indices moved only sideways in a tight band ahead of Assembly poll results of five states on Saturday. Sentiments got some support after various exit polls suggested the Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) may comfortably cross the majority mark of 202 in the 403-seat UP Assembly, or come close to it. As for other states, most exit polls said the BJP was likely to retain power in Goa and wrest power from the Congress in Uttarakhand. Further, investors got some comfort with the report that the government's revenue collection from indirect tax during April-February grew by an impressive 22.2%, while that of direct tax rose by 10.7%. Total direct and indirect tax collections at February end stood at Rs 13.89 lakh crore, 81.5% of the target of Rs 16.99 lakh crore, as per the revised estimate for 2016-17. 

However, gains remained capped with CRISIL’s report that a revival in private sector investment cycle is likely to be deferred to fiscal 2019 as there is ample headroom in capacity utilization, stretched balance sheets and just a moderate pick-up in demand. In the next fiscal year ending March 2018, CRISIL predicts only a mild recovery due to an absence of fiscal and monetary stimuli and unsupportive global environment. Meanwhile, Telecom stocks gained traction on the report that the government is set to go for 5G spectrum auction this year -making an early move to initiate rollout of latest communications technologies. The government will also go for a fresh auction in 700 MHz band, which drew a blank last year as companies complained of high reserve price. Further, some auto stocks surged after the Vehicle sales across categories registered a marginal increase at 17,19,699 units in February 2017 from 17,03,736 in the same month last year. Domestic passenger vehicle sales rose by 9.01% y-o-y to 255,359 units in February, while Sales of commercial vehicles moved up 7.34% to 66,939 units in February. On the other hand, shares of gold loan companies like Manappuram Finance edged lower after the Reserve Bank of India (RBI) said NBFCs cannot lend more than Rs 20,000 in cash against gold. Earlier, NBFCs were allowed to disburse high value loans of Rs 1 lakh and above against gold only through cheque.

Global Market Overview 

Asian markets made a mixed closing on Thursday

The US markets closed mostly higher on Monday, as investors refrained from making sizable bets ahead of a Federal Reserve meeting that is widely expected to deliver an interest-rate increase. With no economic data, investors were instead focusing on the two-day Federal Open Market Committee meeting that kicks off Tuesday. Investors will be eager to glean signals about the timing and pace of future rate increases from the FOMC’s policy statement. The market is pricing in about three rate increases of a quarter of a percentage point each for 2017. The market sees an 88.6% probability that the policy-setting Federal Open Market Committee will vote for an interest-rate Wednesday, according to data from the CME Group. Expectations for a rate increase were cemented after solid February nonfarm-payroll data on Friday. According to a Federal Reserve Bank of New York survey released showed that a measure of US inflation expectations mostly flattened in February after having risen in the previous two months. The survey of consumer expectations, an increasingly influential gauge of prices for the US central bank, showed that year-ahead inflation expectations were flat at 3 percent last month. The three-year ahead reading edged up to 3 percent, from 2.9 percent in January.

The Nasdaq was up 14.05 points or 0.24 percent to 5,875.78, S&P 500 gained 0.87 points or 0.04 percent to 2,373.47, while the Dow Jones Industrial Average lost 21.5 points or 0.10 percent to 20,881.48.

Economic Overview 

January IIP surges to 2.7% against -0.4% in December

 

In a positive surprise, industrial output rose to 2.7% in January as compared to -0.4% in December. The cumulative growth for the period April-January 2016-17 over the corresponding period of the previous year stood at 0.6 percent.

Govt releases the draft rules for security of prepaid payment instruments

 

In a bid to make electronic payments more secure, the government has released the draft rules for transactions made through prepaid payment instruments (PPIs) like mobile wallets, smart cards and paper vouchers. The draft IT (Security of Prepaid Payment Instruments) Rules 2017, formulated by the Ministry of Electronics and Information Technology (MeitY) will ensure adequate integrity, security and confidentiality of electronic payments effected through PPIs. Till date, these instruments are not governed by norms or rules, as far as cyber security issues are concerned.

 

As per the draft rules, the PPIs need to ensure end-to-end encryption of the data exchanged. Besides, the e-PPI issuers should assist customers with regard to secure use of the prepaid payment instruments and should have a privacy policy posted on its website.

 

They will also have to appoint a chief grievance officer, whose contact details will have to be prominently displayed on the website and procedure by which customers or any other person who suffers as a result of violation of these rules can make complaints to the Grievance Officer.

 

Furthermore, the PPI issuer will also need to establish a mechanism for monitoring, handling and follow-up of any cyber incidents and breaches. The rules also specify that every wallet issuer should review its security measures at least once a year, and after any major security incident or breach, or before a major change to its infrastructure or procedures. The last date for submittingcomments on the draft is March 20.

 

Indian govt continue to engage with Trump administration on H1B visa issue

 

In order to ease the worries of Indian professionals over H1B visa, the government has said that the steps taken by the US were aimed at illegal immigration and added that they would continue to engage with both members of the US administration as well as members of the US Congress on their interests and concerns pertaining to not just H1B visa but other issues as well.

 

Talking on the discussions held between Foreign Secretary S. Jaishankar with his interlocutors in the US last week, External Affairs Ministry Spokesperson Gopal Baglay has said that there was a strong recognition as well as respect for Indian skills and contribution of the Indian technological manpower to the US economy. He also said it has been India's view that the presence of skilled Indian professionals is positive for the US economy as well, particularly when the US seeks to build a stronger economy. He pointed out that there are other advantages from the presence of Indian professionals in the US like backward linkages.

 

Calling the H1B visas a trade and business issue, Baglay further said that their views have been clearly conveyed to the concerned US interlocutors. He also said that the government believes that the plans of the US Administration for the US economy present an opportunity for the two countries to further consolidate their strong economic partnership.

Weekly Nifty Trading View for the Week March 13, 2017 – Mar 19, 2017

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Events to watch this week

  • US employment report beats expectations

  • ECB raises inflation forecasts

  • China lowers growth target

  • Potential second Scottish referendum?

The Week ahead:

  • The United States and Canada turn their clocks ahead one hour for daylight saving time on Sunday, 12 March
  • China releases retail sales figures on Tuesday, 14 March
  • Eurozone industrial production is reported on Tuesday, 14 March
  • US retail sales for February are released on Wednesday, 15 March
  • The US Federal Reserve meets to set interest rates on Wednesday, 15 March
  • The Netherlands holds a general election on Wednesday, 15 March
  • The Bank of Japan holds a rate-setting meeting on Thursday, 16 March
  • The Bank of England meets to set interest rates on Thursday, 16 March
  • The US reports industrial production data on Friday, 17 March

For the week,Global equities were little changed on the week, consolidating recent gains. The yield on the US 10-year Treasury note continued to advance this week in anticipation of tighter monetary policy, rising to 2.58% from 2.49% a week ago. Rising US crude oil inventories sent prices tumbling this week. West Texas Intermediate crude fell to $49.25 per barrel from $53 a week ago, while global Brent crude slumped to $52.10 from $55.50. Volatility, as measured by the Chicago Board Options Exchange Volatility Index (VIX), was little changed at 11.7.

NIFTY- 8,934.55
CRUDE OIL-Rs 3,228barrel
GOLD-Rs 28,337 gram
Rs/$-Rs 66.61

MARKET ROUND UP 
The market ended with small gains last week as investors remained on the sidelines ahead of the key state election results. Investors remained wary ahead of state assembly election results of five states on Saturday, 11 March 2017. Investors were also cautious ahead of a US Federal Reserve meeting next week in which policy makers are widely expected to raise interest rates. 
Negative global cues also weighed on investors trading sentiment. Geopolitical tensions spooked investors after North Korea launched four missiles into the Sea of Japan. Also, China posting a rare trade deficit in February also added to global growth worries.

The Sensex settled a tad below the psychological 29,000 level after flirting with that level during the week.
In the week ended Friday, 10 March 2017, the Sensex rose 113.78 points, or 0.39% to settle at 28,946.23. The Nifty 50 index rose 37 points, or 0.42% to settle at 8,934.55. The BSE Mid-Cap index fell 43.45 points, or 0.32% to settle at 13,365.59. The BSE Small-Cap index fell 15.21 points, or 0.11% to settle at 13,604.96.

Macro Economic Front: 
On the Economic Front,On macroeconomic data front, the index of industrial production (IIP) data for January 2017, will be released after market hours on Friday, 10 March 2017. India's industrial production fell by 0.4% year-on-year in December 2016, following a downwardly revised 5.6% growth in the previous month.

On the political front,results of various exit polls released on Thursday, 9 March 2017, showed that ruling party at the Centre, BJP, doing well in Uttar Pradesh, Uttarakhand, Goa and even Manipur, with the Congress and the AamAadmi Party locked in a tough contest in Punjab. However, the numbers given by the exit polls varied widely, suggesting convergences only in broad trends.
The exit polls predicted a hung assembly in the key state of Uttar Pradesh where BJP would emerge as the largest single party. Most polls also forecast a close fight between the Congress, which is seeking to return to power in Punjab after a hiatus of 10 years. They have predicted victory for BJP in Uttarakhand, but the saffron party, though likely to lead the table in Goa, was projected to fall short of a majority in the tiny coastal state.

In Uttar Pradesh, where five polls India News MRC, Times Now VMR, ABP Lokniti CSDS, India TV-C Voter and India Today Axis showed the BJP as leading the race, the saffron party's projected tally varied from 155 to 279 seats in 202 seats required for simple majority. The SP-Congress tally varied from 88 to 169 seats, while the BSP was shown winning just between 28 and 93 seats.
The exit polls showed Punjab witnessing a tight contest between the AamAadmi Party and the Congress. In Uttarakhand, three polls News 24 Today's Chanakya, India Today Axis and India News MRC showed the BJP winning the State. India TV- CVoter showed both the parties tied at 29-35 seats.

Final results of the elections which were recently held in five states including Uttar Pradesh, Goa, Uttarakhand, Punjab and Manipur are due on Saturday, 11 March 2017. For the bulk of legislation to be signed into law, approval from both houses of parliament is required. The BJP and its allies account for 339 of the 545 seats in the lower house, called the LokSabha, but they only hold 73 of the 250 seats in the upper house, or RajyaSabha.

Major Action &Announcement:
State Bank of India (SBI) was the top Sensex gainer last week. The stock rose 2.60% to Rs 272.05. SBI announced after market hours on Thursday, 9 March 2017, that its board will meet on Wednesday, 15 March 2017, to consider inter raising of funds through equity capital by way of follow-on public offer (FPO)/rights lssue/employees share purchase scheme (ESPS) /employee stock option scheme (ESOS)/qualified institutional placement (QIP)/American depositary receipt (ADR)/global depository receipt (GDR) and any other mode or a combination of these at the appropriate time. 

Telecom major BhartiAirtel rose 2.59% to Rs 364.80. BhartiAirtel and Millicom International Cellular SA announced after market hours on Friday, 3 March 2017, that they have through their respective subsidiaries entered into an agreement for Tigo Ghana and Airtel Ghana to combine their operations in Ghana. As per the agreement, Airtel and Millicom would have equal ownership and governance rights in the combined entity.

Reliance Industries rose 1.82% to Rs 1,281.40. A massive bulk deal of 39.61 crore shares representing about 12.2% stake of the company was executed on the scrip at Rs 1,292.05 per share in opening trade on BSE on Thursday, 9 March 2017.

Tata Steel was biggest Sensex loser last week. The stock fell 5.49% to Rs 467.80. The company announced on Tuesday, 7 March 2017, that Tata Steel UK informed employees that it completed the consultation process on a proposal to close the British Steel Pension Scheme to future accrual. During the consultation process the company spoke to more than 4,000 employees at more than 90 face-to-face briefings across the UK. It also received feedback through trade union representatives.

ICICI Bank fell 1.92% to Rs 270.55. The bank announced after market hours on Thursday, 9 March 2017, that the committee of executive directors of the bank approved the proposal for fund raising by way of issuance of Basel III compliant unsecured subordinated perpetual Additional Tier 1 Bonds in single/multiple tranches in any currency through public/private placement on terms as may be decided at the time of issuance.

Global Front: 
In Overseas Markets,Asian markets closed mostly higher, as investors eyed US rate hike next week. China’s central bank governor told a news conference that making monetary policy neutral would help China’s supply-side reforms, reinforcing expectations that liquidity would be relatively tight. The People’s Bank of China (PBOC) said that China will not devalue its currency to stimulate exports. China’s exports for January and February combined rose 4.0 percent from the same period last year, while imports surged 26.4 percent, suggesting solid improvement in demand domestically and abroad. European markets were trading in green as comments by European Central Bank President Mario Draghi continued to support the markets. 

Global Economic News:

US payrolls rise more than forecast
Nonfarm payrolls rose 235,000 in February, more than economists had forecast. The strong data, along with upward revisions to prior months, have prompted Fed watchers to begin to forecast a faster pace of tightening by the US Federal Reserve. In addition to the potential for more-frequent rate hikes, observers are discussing the prospect of the Fed beginning the process of reducing the size of its balance sheet late in 2017 or early in 2018. The unemployment rate dipped to 4.7%, while the labor participation rate rose to 63%.

ECB signals a lower sense of urgency
European Central Bank president Mario Draghi said this week that deflation risks in the eurozone have “largely disappeared,” as ECB inflation forecasts were raised to 1.7% from 1.3% for 2017 and 1.6% from 1.5% in 2018. In a sign of receding deflation concerns, the ECB dropped from its opening statement the phrase that it is prepared to use “all available instruments available within its mandate.” However, Draghi warned that downside risks remain, particularly around the geopolitical sphere.

China signals slightly lower growth ahead
At its annual meeting of the National People’s Congress, China announced it had trimmed its official economic growth target to 6.5% for 2017 from a range of 6.5%–7% in 2016. Actual growth in 2016 was 6.7%. Also this week, China reported a rare trade deficit. Analysts are wary of data from January and February given the variable timing of the Lunar New Year holiday.

US trade gap widens
The United States reported its largest monthly trade deficit in nearly five years this week. January’s deficit rose 9.6% from December, to $48.5 billion. US Commerce Secretary Wilbur Ross, calling for free and fair trade, said the latest data show that there is much work to be done on trade agreements.

GLOBAL CORPORATE NEWS

Scottish leader floats notion of second independence vote
Scottish first minister Nicola Sturgeon says late 2018 could be the best time for a second referendum on independence from the United Kingdom. The timing would coincide with the shape of the UK’s Brexit deal becoming clear, the minister said. Scotland voted in 2014 to remain a part of the UK, but Brexit has set off fresh calls for independence. Further related to Brexit, UK prime minister Theresa May continues to tussle with the House of Lords, with the upper chamber voting to amend the Article 50 bill to force Parliament to vote on the final outcome of the government’s negotiations with the European Union. The bill will now be sent back to the House of Commons, where it is expected to be overturned.

German factory orders hit air pocket
German factories started the year with a thud as new orders plummeted 7.4% in January, the largest drop since the depths of the financial crisis in 2009. Orders rose 5.4% in December and survey data have been strong, so economists warn not to read too much into one month’s data.

NEW 52-WEEK HIGH BSE (A):

BAJAJELEC

306.00

DCBBANK

163.90

ESCORTS

517.90

NEW 52-WEEK LOWS BSE (A):


RELIGARE

209.00

MAJOR WEEKLY GAINERS IN BSE A CATEGORY:


BAJAJ ELECTRICAL

14.58

DELTA CORP

11.88

BLUE DART

9.79

MAJOR WEEKLY LOSERS IN BSE A CATEGORY:


GAIL

-27.27

NATIONAL

-10.26

MANAPURAM

-9.18



Eyes will be set on the certain US economic data releases are:
Monday (13 Mar)
Labor Market Conditions 
Tuesday (14 Mar)
FOMC Meeting Begins & NFIB Small Business
Wednesday (15 Mar)
Consumer Price Index
Thursday (16 Mar)
Housing Starts& Jobless Claims 
Friday (17 Mar)
Consumer Sentiment


Fundamental Pick of the week:
STOCK IN FOCUS 
State Bank of India (SBI) closed 1.2% higher, outperforming benchmark NIFTY, which closed flat.SBI has been able to deliver relatively better operating performance compared to its peers despite elevated stress in balance sheet.
We believe that the Bank has been able to clean-up its loan book effectively, which reasonably assures us that it will continue to surprise positively on operating and asset quality fronts from FY18E onwards.
Further, we believe that demonetization drive will also have positive impact on SBI’s performance.
We reiterate our BUY recommendation on the stock with an SOTP-based Target Price of Rs320.

Indian Market Outlook:
NIFTY OUTLOOK:

Nifty traded with mix sentiments in last session due to profit booking at higher levels from traders. However, it recovered well from lower levels in second half of the session. Next important support seen at 8830 level.Nifty likely to trade with sideways sentiments in last session on profit booking at higher levels from traders. Nifty likely to trade with sideways sentiments and 8880 at lower side will be the trend deciding level for intraday session. Higher side resistance seen at 9000 levels. However, some profit booking at higher levels may limit the upside in NIFTY. Applying momentum Indicator RSI for 14-day period trading at level of 63.88 indicates that it is trading near over bought zone and may face resistance at higher levels. 

TECHNICAL VIEW:


S3

S2

S1

NIFTY

R1

R2

R3

8,760

8,860

8,900

8,934.55

8,975

9,020

9,100

Nifty Spot View 
Bullish above 8995 for a move towards 9033/9080 Exit Poll results will be came out. Low made today was 8899 and high made was 8946 so both bulls and bears were not able to break the range we mentioned. Plan remains the same short below 8890 gann angle support for a move towards 8850/8780/8720 and long above 8895 break gann angle for a move towards 9033/9080/9120. Nifty will open with huge gap on Monday and can hit a new life highs, but does it mean that we blindly go long, As a matter of fact on May 16 when BJP got majority in LokSabha we closed marginally in green after an upmove of more than 6%.

Conclusion:
Nifty hovered in a narrow range for the entire week and settled marginally in green, citing caution ahead of the states election results. Amid all, rotational buying in select index majors helped index to sustain at higher levels.
Next week, markets will initially react to the outcome of state election results and IIP data. Going ahead, the two-day US Fed meet will also remain on the participants’ radar.

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Getting all the right updates of the stock market and then making the best choice of investment can both help you to remain profitable in the market. You would be able to make the right choice of stocks when you are ready to take the risks and so you have to try your best to remain confident in the market so that you get the right amount of profits. If you are not at all willing to take the risks of your investment then it would be quite difficult to win in the stocks. It is also to be noted that you have to get enough time to get a good understanding of the market by getting some good research done. You would find that the more efforts you try to make the study of the market situation, the safer you would feel in the market. You have to know how the condition of the market is if you really wish to get the maximum gains from it. It is also important to get the best website or any other source of information where you can make good benefits and you would be able to make good judgment of the stocks. If you try to predict the market then you would be nowhere in the market as it is very impossible to make any assumption of what would happen to your invested stocks. Experts try to go for fundamental analysis of the market but in this case too you cannot deny the fact that their studies do not always give the right information which might lead you to lose your income. Unless you are a knowledgeable person and you know how to deal in the stock market you would never be able to make any good profits from the stocks. Simply trying to make your stock investment would not give you any good profits unless you are able to take your best foot forward in the market. Determining the budget can also help you to get good income from your stocks and you would feel some positive energy in your body that is very important for you. Everybody has different concepts of the market and so you need to know the right investment plan for you looking at the market conditions. You also need to know how to find the best investment category for you?

 

Try to make investment online

You should be able to know how to deal in the market and understand about the concept of online stock market. If you are not really sure of the current conditions that are prevailing in the market then you would not get the best income. This would also make your confidence go low thereby making you to lose all your trust in the market. This is very wrong that might lead you to become a person who cannot take any thing in the market positively. So in keeping view of the stock market risks you should try to invest in the market very carefully. If you concentrate on the ups and downs of the stock market carefully then you might feel that it is a matter of luck that plays an important role and for this you have to make all things clear to you.

 

Never try to invest blindly in the stocks

If you try to invest your money in the stock market then you have to know that you have to keep your eyes open and look for better time so that you can get the best stocks without any difficulties or worries. You would be glad after reaping good and maximum profits from the market which would also make you experienced. You have to know whether day trading is useful for you in case you invest your money in it. So, different investors might try to choose different investment plans from the market in order to make good profits. You should also try to focus on your goals when you invest in it. Hence you have known how to find the best investment category for you?

Sensex, Nifty close flat ahead of poll results; ICICI Bank down

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Indian Indices: Indian equity indices pared their initial gains to trade flat in late afternoon session as investors eagerly awaited results of assembly elections in five states due tomorrow and Federal Reserve policy meeting next week. Moreover, industrial production (IIP) data for January, scheduled to be released after market hours today, also influenced sentiments. Some concerns came with the ICRA’s report that higher oil and gold imports are likely to widen the current account deficit (CAD) to $30 billion or 1.2 percent of GDP in the fiscal 2017-18 from $20 billion or 0.9 percent of GDP in 2017, arresting the trend of moderation recorded for four consecutive years since fiscal 2014. 

 However, market participants got some comfort with the report that the government's revenue collection from indirect tax during April-February grew by an impressive 22.2 percent, while that of direct tax rose by 10.7 percent. Total direct and indirect tax collections at February end stood at Rs 13.89 lakh crore, 81.5 percent of the target of Rs 16.99 lakh crore, as per the revised estimate for 2016-17.

The BSE Sensex is currently closed at 28946.23, up by 17.10 points or 0.06% after trading in a range of 28937.07 and 29076.63. There were 13 stocks advancing against 17 stocks declining on the index.The broader indices were trading mixed; the BSE Mid cap index was down by 0.12%, while Small cap index was up by 0.14%.

The CNX Nifty is currently shut up at 8934.55, up by 7.55 points or 0.08% after trading in a range of 8927.05 and 8975.70. There were 24 stocks advancing against 27 stocks declining on the index.

MARKET INDICATORS

·           

 

Top Movers (Group A)

 

 

Company

Cmp

% chg

Gainers

 

 

Centralbk

97.70

9.47

IIFL

388.55

6.42

PVR

1424.00

5.67

Jindalstel

125.50

6.13

Losers

 

 

Manappura

90.50

-4.54

Muthootfin

337.95

-3.85

Religare

215.00

-2.93

Techm

475.65

-2.74

INDEX PERFORMANCE

 

 

Index

Close

% Chg

Sensex

28,946.23

0.06

Nifty

8,934.55

0.08

 

Crporate Front: Cab-hailing app Uber will stop using its "Greyball" tool to evade law enforcement regulators, the company announced, just days after it defended the controversial programme as necessary to protect its drivers from harm."We have started a review of the different ways this technology has been used to date," The Guardian reported, citing Uber's Chief Security Officer Joe Sullivan as saying in a blog post on Wednesday. 


 

Macroeconomic front: India's current account deficit is expected to increase by $10 billion to $30 billion in the 2017-18 fiscal due to higher oil and gold imports, credit rating agency ICRA said on Thursday. However, the pressure related to the financing of a larger current account deficit would abate with the resumption of Non-Resident Indian (NRI) deposits in 2018.

 

On the global front:

On the global front, European markets were trading in green as investors awaited the all-important U.S. non-farm payrolls report due later in the day for clues into the timing of any further rate increases. Investors digested the European Central Bank's decision to keep interest rates unchanged on Thursday. President Mario Draghi also signaled that there was no longer a sense of urgency to take further monetary action. Asian markets were trading mixed.


Commodity Updates:

Commodity Prices (MCX):

Commodity

Rs

% Chang

Gold

28278.00

-0.59

Silver

40520.00

-0.77

Crude oil

3298.00

0.83

Natural Gas

200.10

1.83

Alluminium

26.20

1.2

Copper

383.45

0.46

Top Sectoral& Stock Screening:The top gaining sectoral indices on the BSE were Telecom up by 1.19%, TECK up by 0.62%, Capital Goods up by 0.61%, IT up by 0.51% and Industrials up by 0.37%, while Metal down by 0.60%, Oil & Gas down by 0.54%, Energy down by 0.53%, Power down by 0.33% and PSU down by 0.32% were the top losing indices on BSE.

Top Nifty Movers:The top gainers on Nifty were Idea Cellular up by 2.07%, BhartiInfratel up by 1.47%, BhartiAirtel up by 1.26%, Infosys up by 1.21% and Larsen & Toubro up by 1.05%. On the flip side, Tech Mahindra down by 2.15%, BPCL down by 1.34%, ICICI Bank down by 1.13%, Power Grid down by 1.00% and Hindalco down by 0.90% were the top losers.

 

Global Signals:

Asian markets were trading mixed; KOSPI Index increased 6.29 points or 0.3% to 2,097.35, Hang Seng increased 67.11 points or 0.29% to 23,568.67 and Nikkei 225 increased 286.03 points or 1.48% to 19,604.61. On the flip side, Taiwan Weighted decreased 30.72 points or 0.32% to 9,627.89, Jakarta Composite decreased 25.19 points or 0.47% to 5,377.20, Shanghai Composite decreased 3.99 points or 0.12% to 3,212.76 and FTSE Bursa Malaysia KLCI decreased 0.64 points or 0.04% to 1,716.78.

All European Markets were trading in red; France’s CAC increased 13.12 points or 0.26% to 4,994.63, UK’s FTSE 100 increased 29.62 points or 0.4% to 7,344.58 and Germany’s DAX increased 41.5 points or 0.35% to 12,019.89.

 

 

Japanese ‘Nikkei’ leads Asian stocks higher as US indices close flat with all eyes on the Fed policy meet next week

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Indian Indices: Asian indices opened in the green as US Dollar’s weakness saw Japanese stocks rally with the Nikkei up over 200 points on opening bell. The week has seen profit booking globally as investors price in a rate hike expected by the Federal Reserve on the March 15. Oil prices closed below US $ 50 for the 1st time in 2017 and the trend looks weak going ahead with supply overhang hurting prices.


Nifty closed flat on Thursday as the investors awaited the exit polls later in the evening. With the exit polls indicating a clear BJP victory in UP and at least 3 other states, expect short covering to see the Nifty hit 9000. Also, as results are due on Saturday will see bears scramble for cover when markets reopen on Tuesday after the holiday for ‘Holi’ on Monday. For today expect Banks, IT and Auto stocks witness fresh buying as investors join the rally.


The BSE Sensex is currently trading at 28977.31, up by 48.18 points or 0.17% after trading in a range of 28968.27 and 29076.63. 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 0.07%, while Small cap index was up by 0.37%.

The CNX Nifty is currently trading at 8941.85, up by 14.85 points or 0.17% after trading in a range of 8935.80 and 8975.70. There were 32 stocks advancing against 19 stocks declining on the index.

MARKET INDICATORS

·           

 

Group ATopGainers

 

 

Company

Price (Rs)

% chg

Jindalstel

124.20

5.03

IIFL

381.50

4.49

Escorts

512.00

2.97

GodrejInd

494.25

3.43

Group ATopLosers

 

 

Muthootfin

340.20

-3.21

Hathway

37.25

-1.84

Religare

218.00

-1.58

Manappura

91.80

-3.16

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

28830

29010

Nifty

8890

8950

 


Technical view: Nifty finds strong support around 8880-8920 while 9000 which was the resistance on the upside looks set to be breached. Bank Nifty also saw 20450 act as strong support while 21000 will act as initial resistance on the upside.


 

Trading ideas: GlaxoSmithKline Consumer (Buy above Rs 5300 for Target of Rs 5450 and SL at Rs 5225): After consolidating for over 5 weeks, the stock has broken out from a rectangle pattern. The price outburst has been accompanied with impressive surge in volumes. GlaxoSmith has also convincingly closed above the 100-DMA. Other momentum oscillators too are suggesting that the current up move is likely to build further.


Derivative Snippets: Nifty ATM/OTM call and put strikes saw some buying interest for 3 rd day in a row, as the implied volatility and open interest continue to rise. Markets will remain volatile ahead of the state election results.  

FIIs were net buyers in cash market segment to the tune of Rs 487 crore.


FII’s index future long/short ratio at 3x vs 3.3x. From the start of this F&O series, the long short ratio of Index options stands below 1x as they continue to maintain short positions.


Nifty Movers: The top gainers on Nifty were Ultratech Cement up by 1.23%, Hero MotoCorp up by 1.05%, Infosys up by 0.94%, Tata Power up by 0.79% and HCL Technologies up by 0.79%. On the flip side, Power Grid down by 1.67%, Tech Mahindra down by 1.35%, BPCL down by 1.15%, Grasim Industries down by 1.04% and Hindalco down by 0.87% were the top losers.

Top Sectoral& Stock Screening:  The top gaining sectoral indices on the BSE were Capital Goods up by 0.59%, IT up by 0.56%, TECK up by 0.48%, Industrials up by 0.36% and Realty up by 0.34%, while Oil & Gas down by 0.56%, Energy down by 0.37%, Utilities down by 0.25%, PSU down by 0.16% and Power down by 0.13% were the losing indices on BSE.

 

On the global front: On the global front, Asian shares were trading mostly in green, and the dollar rose to 1-1/2-month highs versus the yen ahead of the US non-farm payrolls report due later in the day. The People’s Bank of China (PBOC) said that China will not devalue its currency to stimulate exports. China’s exports for January and February combined rose 4.0 percent from the same period last year, while imports surged 26.4 percent, suggesting solid improvement in demand domestically and abroad.

 

Global Signals:The Asian markets were trading mostly in green; Shanghai Composite increased 0.38 points or 0.01% to 3,217.13, KOSPI Index increased 6.41 points or 0.31% to 2,097.47, Hang Seng increased 9.86 points or 0.04% to 23,511.42 and Nikkei 225 increased 275.07 points or 1.42% to 19,593.65.

On the other hand, Taiwan Weighted decreased 30.77 points or 0.32% to 9,627.84, Jakarta Composite decreased 18.19 points or 0.34% to 5,384.20 and FTSE Bursa Malaysia KLCI decreased 1.99 points or 0.12% to 1,715.43.

 

Why you should Learn Forex Trading?

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Trading Forex is not as easy as many people will tell you. A simple instance will help you to understand the complex nature of Forex trading. In stock market traders find it difficult to keep track of individual companies then it is quite easily understandable how difficult it will be to keep track of the economy of a country. In Forex trading you have to have to do exactly that. You have to keep track of the economy of the countries whose currencies you are trading. So it is evident that you need to learn Forex trading as it is all together a different ball game. Here we are presenting some of the most prominent reasons that stress on the effectiveness of learning Forex trading.

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Learning the basics of Forex – If you are new to world of Forex trading you need to start learning from the scratch. You need to begin with the basics of Forex trading unless you can not have a primary idea of Forex trading. You need to know the process of Forex trading – how to read the Forex quotes, how to execute the trades and how profit and loss is determined at the Forex market and so on. Without this preliminary idea of the Forex trading you can not start investing in the Forex trading.

 

Deciding of Forex trading plan – When you are trading at the Forex market you need to have a Forex trading strategy and for deciding that trading plan you need to have comprehensive idea of the Forex trading process and the current market trends. Without a well defined trading plan you will have no clue what to do at the Forex market. An effective learning process will help you to have an idea of the Forex trading and that is very much necessary for deciding on your trading plan.

 

Getting accustomed with Forex Trading – While you learn Forex trading you will get gradually accustomed with the Forex trading. This is will help you start with Forex trading and eventually become an experienced trader. It is true that until you start investing in the Forex market and have a first hand experience of the Forex market, you can not have complete conception of what Forex trading actually the learning process will help you to initially get accustomed with the Forex trading.

 

Analyzing Forex market trends – Once you have the basic idea of the Forex market, you should start learning about the advanced techniques of Forex trading. This will include the fundamental as well as technical analysis of the global currency market. To predict the future trends in the Forex market it is important that you have the skills to fundamentally and technically analyze the present market trends and these two techniques required specialized knowledge. So it is essential that you learn these methods properly to flawlessly predict the future of the currency pairs and make profit from Forex trading.

 

Using Forex robots – Forex robot is a vital part of Forex trading. These robots are basically software programs that are designed to keep track of the market trends and execute trades independently. You need to learn the techniques to customize the trading indicators on the basis of which the robot will do the trading on your behalf.

 

All said and done you must always remember that you can not learn everything in one day of in a short span of time. To learn Forex trading you have to spend considerable amount of time and have patience to learn the complete process. In fact a good trader is always a good leaner and the learning process is never ending and that is why as you keep trading, you get more knowledge of Forex trading. 

 

As a trader you must always remember that learning of the Forex trading is just the beginning and until and unless you apply your knowledge in the Forex trading, all your learning is a waste. So in every step that you take in your Forex market journey should be judged with the knowledge and experience that you have gained from the learning process. That will be the success of all the effort that you have put in while learning Forex trading.

Oil falls to low point of 2017 as global markets consolidate with commodity weakness seeing profit booking.

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Indian Indices: Asian markets opened flat with the Japanese index seeing gains after 3 days of losses. Oil price fall saw exporting countries get hit as stocks corrected sharply. Commodities correction also saw US Dollar fall while bond yields hardened.


Nifty saw another day of range bound trade with falls being bought by foreign investors as markets will await exit poll results on the state elections due this evening. Metals, IT and Realty stocks got hit while Auto, Banks and Airline stocks saw buying, which saw the Nifty close almost flat. For today, expect oil weakness to see gains for Airline, OMC and Paint stocks as Nifty attempts pullback.    


The BSE Sensex is currently trading at 28855.93, down by 46.01 points or 0.16% after trading in a range of 28815.02 and 28911.54. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were showing mixed trade; the BSE Mid cap index was down by 0.09%, while Small cap index was up by 0.07%.

The CNX Nifty is currently trading at 8909.75, down by 14.55 points or 0.16% after trading in a range of 8899.50 and 8918.50. There were 21 stocks advancing against 30 stocks declining on the index.

MARKET INDICATORS

·           

 

Group ATopGainers

 

 

Company

Price (Rs)

% chg

Dishtv

105.15

5.68

HDIL

72.10

4.04

Edelweiss

138.90

2.97

MRPL

105.75

2.52

Group ATopLosers

 

 

Idea

104.10

-1.98

GVKpil

6.18

-1.59

Gail

380.80

-1.91

Raymond

640.00

-1.53

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

28805

29010

Nifty

8890

8955

 

Technical view: Nifty finds strong support around 8880 with 8980 acting as stiff resistance on the upside. Bank Nifty finds strong support around 20450 with 20800 acting as resistance on the upside.


 

Trading ideas: YESBANK (Buy above Rs 1475, for Target of Rs 1510, SL at Rs 1458): The stock has broken out from an ascending triangle formation on daily charts along with a confirmation of breakout on hourly charts. Yes Bank's price rise is accompanied with impressive rise in volumes. Other momentum oscillators are also indicating strength in the current up move. We advise to Buy Yes Bank above Rs 1475, Stop Loss at Rs 1458 and Target of Rs 1510.


Derivative Snippets: Nifty call and put options witnessed some buying interest, as the implied volatility of ATM/OTM options started to move up. Markets will remain volatile ahead of the state election results.   

FIIs were net buyers in cash market segment to the tune of Rs 3573 crore.


FII’s index future long/short ratio stands at 3.3x vs3.5x. Significant long and short positions to the tune of ~11k and ~7k contracts were added in index future for the second day in a row, indicating a volatile trading session.


Nifty Movers: The top gainers on Nifty were Asian Paints up by 1.38%, ACC up by 1.08%, Zee Entertainment up by 0.67%, Tata Motors up by 0.57% and Axis Bank up by 0.55%. On the flip side, Dr. Reddy’s Lab down by 4.14%, GAIL India down by 3.94%, Wipro down by 1.55%, BhartiInfratel down by 1.39% and Power Grid down by 1.30% were the top losers.

Top Sectoral& Stock Screening:  The top gaining sectoral indices on the BSE were Realty up by 0.49%, Consumer Durables up by 0.40%, Auto up by 0.27%, Consumer Disc up by 0.25% and Industrials up by 0.05%, while Utilities down by 0.98%, Telecom down by 0.63%, Power down by 0.60%, Metal down by 0.58% and Healthcare down by 0.47% were the top losing indices on BSE.

 

On the global front: On the global front, Asian shares were trading mostly in green, as strong China trade data bolstered bets of a recovering global economy, though gains were capped by caution ahead of a widely expected US interest rate hike next week. Japan’s economy grew more than earlier estimated in the fourth quarter as capital expenditure grew at its fastest in almost three years, welcome news for policymakers as they begin to discuss how to wind down years of massive stimulus.

 

Global Signals:The Asian markets barring Japanese Nikkei 225 which was trading up by 26.38 points or 0.14% to 19,280.41, were trading in red.

On the other hand, Hang Seng slumped by 233.16 points or 0.98% to 23,549.11, Taiwan Weighted decreased 83.58 points or 0.86% to 9,669.87, Shanghai Composite decreased by 27.51 points or 0.85% to 3,213.16, FTSE Bursa Malaysia KLCI was down by 3.91 points or 0.23% to 1,721.63, KOSPI Index declined by 1.74 points or 0.08% to 2,093.67 and Jakarta Composite was tad lower by 0.82 points or 0.02% to 5,392.94.

 

Sensex, Nifty end lower: Reliance, Infosys, Ongc drag

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Indian Indices: Indian equity benchmarks traded on a weak note for most part of the day and ended the session in red. Investors maintained a cautious approach ahead of state elections results, including that of Uttar Pradesh. Uttar Pradesh election is the world’s largest this year and will have a key influence on Prime Minister NarendraModi’s chances of clinching a second term in 2019. Concerns have also grown over a hike in interest rates by the US Federal Reserve next week. 

The market made a soft start in early deals as traders took cautious approach with the Organization for Economic Cooperation and Development (OECD) in its Interim Economic Outlook report highlighted that India, where the government implemented a drastic measure of currency demonetization in November, was the only one to see its growth forecast for the year reduced. India’s growth projection for the financial year ending on March 31 was lowered to 7.3 percent. The outlook for the fiscal year 2018 was retained at 7.7 percent.

The BSE Sensex ended at 28904.41, down by 95.15 points or 0.33% after trading in a range of 28815.48 and 29022.32. There were 10 stocks advancing against 20 stocks declining on the index.  The broader indices ended in red; the BSE Mid cap index was down by 0.60%, while Small cap index was down by 0.34%.

The CNX Nifty ended at 8926.30, down by 20.60 points or 0.23% after trading in a range of 8891.95 and 8957.05. There were 19 stocks advancing against 32 stocks declining on the index.

MARKET INDICATORS

·           

 

Top Movers (Group A)

 

 

Company

Cmp

% chg

Gainers

 

 

Hathway

38.20

5.82

Jubilant

735.05

4.33

Bhartifin

851.75

4.32

Marksans

49.75

3.75

Losers

 

 

Nationalum

74.10

-4.76

RCOM

34.55

-4.43

NMDC

141.00

-4.28

Adanipowe

38.50

-4.70

INDEX PERFORMANCE

 

 

Index

Close

% Chg

Sensex

28901.94

-0.34

Nifty

8,924.30

-0.25

 

Crporate Front:

Consumer price inflation is likely to rise in February for the first time since demonetisation and this could prompt the RBI to hike rates much sooner than most expect, says a report. According to a report by Capital Economics, consumer price inflation dropped in January to 3.2 per cent from 3.4 per cent in December, but is likely to rise in February.


 

Macroeconomic front: Empowering women to achieve economic equality would "exponentially" increase global gross domestic product (GDP) by at least $12 trillion by 2025, according to Assistant Secretary General Lakshmi Puri.With women's equal participation in the economy, world GDP has the potential to even go up to $28 trillion, she said Tuesday citing a study done by the consulting company, McKinsey, in association with UN Women, the international organisation's outfit for women's empowerment and equality.

 

On the global front:

On the global front, Asian markets closed mixed, as strong China trade data bolstered bets of a recovering global economy, though gains were capped by caution ahead of a widely expected US interest rate hike next week. Japan’s economy grew more than earlier estimated in the fourth quarter as capital expenditure grew at its fastest in almost three years, welcome news for policymakers as they begin to discuss how to wind down years of massive stimulus. European stocks were trading in green as investors eyed the UK annual budget release due later in the day, as well as a batch of fresh earnings reports.


Commodity Updates:

Commodity Prices (MCX):

Commodity

Rs

% Chang

Gold

28696.00

-0.19

Silver

41776.00

-0.4

Crude oil

3529.00

-0.82

Natural Gas

194.50

2.75

Alluminium

125.50

0.2

Copper

388.20

0.36

Top Sectoral& Stock Screening:he few gaining sectoral indices on the BSE were Bankex up by 0.28%, Healthcare up by 0.10% and Consumer Durables up by 0.02%, while Metal down by 2.03%, Realty down by 1.58%, Energy down by 1.44%, Oil & Gas down by 1.35% and Basic Materials down by 0.96% were the losing indices on BSE. (Provisional)

Top Nifty Movers:The top gainers on Nifty were Bosch up by 2.81%, Yes Bank up by 1.99%, Zee Entertainment up by 1.65%, Eicher Motors up by 1.42% and Kotak Mahindra Bank up by 0.92%. On the flip side, Tata Steel down by 2.07%, Idea Cellular down by 2.07%, ONGC down by 1.96%, Tech Mahindra down by 1.71% and BHEL down by 1.34% were the top losers.

 

Global Signals:

Asian markets were trading mixed; KOSPI Index increased 1.36 points or 0.06% to 2,095.41, Taiwan Weighted increased 15.38 points or 0.16% to 9,753.45 and Hang Seng increased 101.2 points or 0.43% to 23,782.27. On the flip side, Nikkei 225 decreased 90.12 points or 0.47% to 19,254.03, Jakarta Composite decreased 6.24 points or 0.12% to 5,396.37, FTSE Bursa Malaysia KLCI decreased 1.8 points or 0.1% to 1,726.86 and Shanghai Composite decreased 1.74 points or 0.05% to 3,240.67.

All European markets were trading in red; France’s CAC decreased 8.82 points or 0.18% to 4,946.18, UK’s FTSE 100 decreased 1.7 points or 0.02% to 7,337.29 and Germany’s DAX decreased 0.2 points or 0% to 11,965.94.

 

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