Major headlines:
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Asset deterioration a challenge for Indian banks.
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Money has lost secrecy post demonetization
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Key Indian equity indices open in green
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INDEX
PERFORMANCE
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Indices
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Support
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Resistanes
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Sensex
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26454
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26725
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Nifty
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8138
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8215
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Indian Indices: Asian markets opened flat to positive
as US$ volatility versus Chinese yuan saw currency moves dominate recent
market behaviour. The US$ is witnessing profit booking at every rally while
the Chinese yuan had a very strong rally from oversold levels. The Dow Jones
also hit 19999.63 as positive jobs report saw the US$ strengthen with
equities jumping.
Nifty failed to cross the 200 DMA @ first attempt & late hour
profit booking saw Nifty retreat to close below 8250. Bank Nifty however saw
huge short covering & closed above its 200 DMA on value buying. For today
expect another day of consolidation even as bulls make another attempt to
cross 8280-8300 for Nifty to resume further uptrend. Weakness in IT stocks
was the main culprit for Nifty under performance which saw banks being the
best performing sector in rotation.
The BSE
Sensex is currently trading at 26737.88, down by 21.35 points or 0.08% after
trading in a range of 26720.09 and 26860.88. There were 12 stocks advancing
against 18 stocks declining on the index.The broader indices were trading in
green; the BSE Mid cap index was up by 0.24%, while Small cap index was up by
0.43%.The CNX Nifty
is currently trading at 8237.15, down by 6.65 points or 0.08% after trading
in a range of 8233.45 and 8263.00. There were 23 stocks advancing against 28
stocks declining on the index.
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MARKET
INDICATORS
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Group ATopGainers
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Company
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Price (Rs)
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% chg
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BEML
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1135.15
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14.7
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MMTC
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68.30
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9.72
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Fortis
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203.10
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5.62
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KPIT
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140.70
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4.45
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Group ATopLosers
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Cadila
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367.55
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-3.10
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DRreddy
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3072.05
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-2.80
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HCC
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40.90
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-1.68
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PIIND
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827.10
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-1.50
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Market
Statistics
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BSE
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NSE
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Advances
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1131
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1168
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Declines
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1047
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307
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Technical view: Nifty will find
support around 8181 which was the low for last 3 days while 8280 will act as
first resistance. Bank Nifty now finds strong support @ 18000 while 18350
will act as resistance.
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Market Sentiment:
The market breadth on BSE was positive in the ratio
of 1354:828, while 98 scrips remained unchanged.
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Trading ideas :YESBANK (Buy above
Rs 1250 for target of Rs 1300, SL at Rs 1224): Stock has witnessed a double
bottom breakout on daily charts post the two days smart rally. Near term
trend turned positive for the stock on close above both its 50 and 100 DMA in
last weeks trade. Price volume breakout would lead to sustained momentum for
the stock in coming sessions. We advise to Buy YESBANK above Rs 1250, stop
loss at Rs 1224 and Target of Rs 1300.
MacroeconomicFront: Finance Minister ArunJaitley has said that the colour of funds has not
changed by merely depositing them in banks as the money has now lost its
'anonymity' and can be identified with the owner. Commenting on the issue,
Finance Minister ArunJaitley told the media, "When 86 per cent of a
country's currency, constituting 12.2 per cent of its GDP, is squeezed out of
the market and sought to be replaced by a new currency.
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Corporate Snippets:SpiceJet is expected to order at
least 92 Boeing Co 737 jetliners, as it looks to bolster its
presence in the world's fastest growing aerospace market.
SBIwill take the lead among state-run
lenders to launch branch less banking. The latest launch from the lender -
SBI Digi Bank will have a financial superstore, a market place and end to end
digitisation for all products and services.
Pokarna Ltd has announced Pokarna Engineered Stone Ltd, its
wholly-owned subsidiary, has partnered Swedish home furnishing products
retailer IKEA in India, to serve as its exclusive quartz surfaces supplier
and installation partner.
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Top
Sectoral& Stock Screening: The top gaining
sectoral indices on the BSE were FMCG up by 0.65%, Realty up by 0.33%,
Capital Goods up by 0.22%, Bankex up by 0.21% and Metal up by 0.14%, while
Oil & Gas down by 0.52%, Power down by 0.45%, Consumer Durables down by
0.35%, PSU down by 0.19% and Auto down by 0.17% were the losing indices on
BSE.
Nifty
Movers:The top gainers on Nifty were AurobindoPharma up by 1.65%, HCL Tech up
by 1.56%, Eicher Motors up by 1.51%, Idea Cellular up by 1.51% and ITC up by
1.17%. On the flip side, Dr. Reddy’s Lab down by 2.22%, BPCL down by 1.56%,
Mahindra & Mahindra down by 1.37%, Coal India down by 1.31% and ACC down
by 1.26% were the top losers.
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On the global front: On the global front, Asian shares were trading
mixed, as investors focused on policymaker remarks later this week for
direction. Chinese Vice Finance Minister Zhu Guangyao said that the country
is confident to have reached an economic growth of 6.7 percent in 2016,
within a targeted range set earlier in the year. China, which had been aiming
for a 6.5-7 percent economic growth for 2016, boosted government spending,
saw a housing rally and record high levels of bank lending last year.
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Global
Signals:The Asian markets were trading mixed; KOSPI Index
increased 3.22 points or 0.16% to 2,052.34, Shanghai Composite increased
14.96 points or 0.47% to 3,169.28 and Hang Seng increased 39.55 points or
0.18% to 22,542.56. On the other hand, Taiwan Weighted decreased 34.71 points
or 0.37% to 9,337.51, Jakarta Composite decreased 22.68 points or 0.42% to
5,324.34 and FTSE Bursa Malaysia KLCI decreased 4.36 points or 0.26% to
1,671.13.
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