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Major headlines:

·         RBI may need to drain up to $22 billion as inflows add to excess liquidity

·         Wouldn’t have approved demonetization

·         Buayantbitcoinstriscryptobubble fears

Indian Indices:Asian indices opened in the green with Japanese 'Nikkei" seeing gains being sold into as caution prevail before important jobs data due on Friday. South Korean stocks also see some gains even as geopolitical risk emanates stronger than ever before.

Nifty breached 9900 before closing at 9908 with Bank Nifty being the main culprit hitting 24300 as financials lead the downside. Mid cap carnage and leveraged trade unwinding continues to see sentiment turn weak even as local mutual fund flows support the market. For today expect rallies in the morning session to see selling emerge closer to 9950.

The BSE Sensex is currently trading at 31653.32, down by 144.52 points or 0.45% after trading in a range of 31588.26 and 31756.27. There were 9 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.12%, while Small cap index was down by 1.37%.

The CNX Nifty is currently trading at 9856.85, down by 51.20 points or 0.52% after trading in a range of 9835.95 and 9879.20. There were 12 stocks advancing against 39 stocks declining on the index.

Technical view: Nifty now finds support around 9845 while 9950 will act as resistance on the upside. Bank Nifty finds support around 24000 while 24650 will act as resistance on the upside.

Exide Industries (Sell Below 207 with SL at 211 for Target of 200): The stock has been consolidating from the past four weeks and has finally broken down from a Symmetrical Triangle Pattern on the daily chart. Exide has also cracked below its long term 200-DMA, which further accentuates our short term bearish stance on the stock. Other oscillators also indicate that current weakness is likely to extend.

Economy Snippets:

The government has notified the timeline for furnishing final tax returns for July and August under the Goods and Services Tax (GST) regime.

A war of words over foreign influence on Indian policymaking broke out on Tuesday after NITI Aayog vice-chairman-designate Rajiv Kumar suggested in a newspaper column that Indian-American economists were fading away as part of the ongoing policy transformation in the government. 

The government crackdown against 331 “suspected shell companies” has hit several investors, including mutual funds and small investors, who hold shares worth nearly Rs 9,000 crore in these

Nifty Movers: The top gainers on Nifty were Tech Mahindra up by 3.73%, AurobindoPharma up by 2.66%, Dr. Reddy’s Lab up by 1.31%, Lupin up by 1.15% and Infosys up by 1.10%. On the flip side, Tata Motors - DVR down by 7.35%, Tata Motors down by 6.65%, Eicher Motors down by 4.03%, BPCL down by 3.50% and Vedanta down by 2.07% were the top losers.

Top Sectoral& Stock Screening:The top gaining sectoral indices on the BSE were IT up by 0.40% and TECK up by 0.26%, while Industrials down by 2.01%, Auto down by 2.01%, Power down by 1.43%, Utilities down by 1.42% and Metal down by 1.40% were the losing indices on BSE.The top gainers on the Sensex were Dr. Reddy’s Lab up by 1.50%, Lupin up by 1.19%, Infosys up by 1.05%, HDFC up by 0.74% and Sun Pharma up by 0.68%.

On the global front:On the global front, Asian markets were trading in red, as investors fretted on lingering North Korea tensions, sending Seoul shares skidding to two-month lows even as the previous day’s rush into safe-haven assets appeared to slow. Japan’s core machinery orders unexpectedly fell for a third consecutive month in June, underscoring companies’ reluctance to boost spending and conflicting with recent signs that the economic recovery is gathering momentum.

Global Signals:The Asian markets were trading in red; Hang Seng decreased 343.96 points or 1.24% to 27,413.13, Taiwan Weighted decreased 150.43 points or 1.44% to 10,319.95, Shanghai Composite decreased 31.12 points or 0.95% to 3,244.46, Nikkei 225 decreased 20.57 points or 0.1% to 19,718.14, KOSPI Index decreased 7.65 points or 0.32% to 2,360.74, Jakarta Composite decreased 3.61 points or 0.06% to 5,820.39 and FTSE Bursa Malaysia KLCI decreased 1.17 points or 0.07% to 1,776.77.