Blog for Stock tips, Equity tips, Commodity tips, Forex tips: Sharetipsinfo.com

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

Events to watch this week

• Hike anticipated at March FOMC meeting
• Global growth uptick continues
• Major indices set records
• House of Lords seeks Brexit bill amendments

The Week ahead:

• The People’s Bank of China meets to set interest rates on Monday, 6 March
• Q4 eurozone gross domestic product is released on Tuesday, 7 March
• Japan releases Q4 GDP figures on Wednesday, 8 March
• China reports its trade balance on Wednesday, 8 March
• The European Central Bank holds a rate-setting meeting on Thursday, 9 March
• The US February employment report is released on Friday, 10 March

For the week,Global equities extended gains this week, and strong global manufacturing data suggested that economic momentum continues to improve. Yields on the 10-year US Treasury note rose strongly — to 2.49% from 2.32% — as investors moved to price in an interest rate increase from the US Federal Reserve. Despite growing economic optimism, oil prices fell this week on increased US inventories. West Texas Intermediate crude fell $1 per barrel to $53.00 this week while global Brent fell to $55.50 from $56.50. Volatility remains subdued, with the Chicago Board Options Exchange Volatility Index at 11.50.

NIFTY- 8,897.55
CRUDE OIL-Rs 3,557barrel
GOLD-Rs 29,020 gram
Rs/$-Rs 66.81

MARKET ROUND UP

After logging gains in prior five weeks, key benchmark indices took a breather in the week ended Friday, 3 March 2017 as investors resorted to profit booking. Key indices edged lower in four out of five trading sessions during the week.

In the week ended Friday, 3 March 2017, the Sensex fell 60.52 or 0.21% to settle at 28,832.45. The Nifty 50 index fell 41.95 points or 0.47% to settle at 8,897.55. The BSE Mid-Cap index fell 123.07 points or 0.91% to settle at 13,409.04. The BSE Small-Cap index gained 32.39 points or 0.24% to settle at 13,620.17.

Trading for first day of the week began on a subdued note as the key benchmark indices dropped on Monday, 27 February 2017 due to selling pressure in bank stocks. The barometer index, the S&P BSE Sensex, fell 80.09 points or 0.28% to settle 28,812.88, its lowest closing level since 21 February 2017.

Macro Economic Front:

On the Economic Front,India's dominant services industry returned to growth in February for the first time in four months, a private business survey showed on Friday, 3 March 2017. The Nikkei Services Purchasing Managers' Index, or PMI, in India came in at 50.3 in February of 2017, up from 48.7 in January. It was the first expansion after three months contraction but the weakest since October 2016 as output increased while employment has shown only one noteworthy monthly increase in the past one-and-a-half years. A reading above 50 indicates that the services sector is generally expanding; below 50 indicates that it is generally declining.

The GDP growth is estimated to be 7% in Q3 December 2016, as per the second advance estimates of national income from Central Statistics Office (CSO) under Ministry of Statistics and Programme Implementation. The growth in GDP during 2016-2017 is estimated at 7.1% as compared to the growth rate of 7.9% in 2015-2016.

Major Action &Announcement:

Maruti Suzuki India fell 2.37% to Rs 5,891.80. The company said its total sales rose 10.9% to 1.30 lakh units in February 2017 over February 2016. The announcement was made during market hours on Wednesday, 1 March 2017. The company's total domestic sales rose 11.7% to 1.20 lakh units in February 2017 over February 2016. Exports grew by 2.2% to 9,545 units in February 2017 over February 2016.

Tata Motors fell 0.41% to Rs 460.10. The company's total sales rose 2% to 47,573 vehicles in February 2017 over February 2016. The company's domestic sales of Tata commercial and passenger vehicles rose 3% at 42,679 units in February 2017 over February 2016. The announcement was made after market hours on Wednesday, 1 March 2017.

Mahindra & Mahindra (M&M) rose 0.84%. The company reported a 11% growth in its total tractor sales to 15,007 units in February 2017 over February 2016. The company's domestic tractor sales grew by 9% to 13,834 units in February 2017 over February 2016. Exports surged 35% to 1,173 units in February 2017 over February 2016. M&M's total auto sales declined 3% to 42,714 units in February 2017 over February 2016. Total domestic sales fell 2% to 40,414 units in February 2017 over February 2016. Exports dropped 13% to 2,300 units in February 2017 over February 2016. The company announced the monthly sales volume data during market hours on Wednesday, 1 March 2017.

Lupin rose 1.23%. The company announced during trading hours on Thursday, 2 March 2017, the launch of generic Prstiq (Desvenlafaxine Succinate) Extended-Release Tablets, 50 mg and 100 mg having received an approval from the United States Food and Drug Administration (FDA) earlier. Lupin'sDesvenlafaxine Succinate Extended-Release Tablets, 50 mg and 100 mg is the AB rated generic equivalent of Wyeth Pharmaceuticals' Pristiq Tablets. It is indicated for the treatment of major depressive disorder (MDD). Pristiq Tablets had annual US sales of approximately $859.9 million (IMS MAT December 2016).

State-run Coal India lost 2.09%. The company said that production of the company and its subsidiary companies was 96% of targeted production at 54.30 million tonnes in February 2017. Offtake was 94% of target at 47.73 million tonnes in February 2017. The announcement was made after market hours on Wednesday, 1 March 2017.

Wipro rose 1.41%. The company announced that it has completed the sale of its EcoEnergy division on 1 March 2017. Wipro said that the impact of sale of EcoEnergy division is expected to reflect in the financials of Wipro for the Q4 March 2017 and year ending 31 March 2017 (FY 2017). The announcement was made before market hours on Thursday, 2 March 2017.

Global Front:

In Overseas Markets,the Labor Department said on Thursday, 2 February 2017 that initial jobless claims fell to their lowest level in over 40 years in the week ended 25 February 2017, potentially adding to rate hike expectations.

US President Donald Trump promised to provide tax cuts for companies and middle-class citizens, invest $1 trillion in infrastructure, and increase defence spending in his maiden speech to Congress on Wednesday, 1 March 2017. Trump made no suggestions on how he would pay for his plans.

Global Economic News:

Market prices in March Fed move
The week began with markets pricing in about a 50% chance of a hike in the federal funds rate at the Federal Open Market Committee meeting this month but ended with markets almost fully pricing in a quarter-percent hike. Hawkish comments from the troika of Fed chair Janet Yellen, Vice Chair Stanley Fischer and New York Fed president William Dudley helped seal expectations of a March hike.

Fresh records for major indices
More records were broken this week as the reflation rally extended further. The Dow Jones Industrial Average closed above 21,000 for the first time on Wednesday, while the S&P 500 Index brushed 2,400. London’s FTSE 100 also closed at a record high on Wednesday, boosted in part by a weak pound.

Brexit process hits speed bump
Despite suffering a defeat in the House of Lords over the Brexit bill, UK prime minister Theresa May insists her timetable for triggering Article 50 will not be delayed. The Lords voted to amend the Brexit bill in order to force the government to guarantee the rights of citizens of the European Union living in the UK. The bill will now be referred back to the House of Commons, where May is expected push to reject the amendment.

Earnings season draws to a close
With 98% of companies reporting for the fourth quarter of 2016, the earnings growth rate for the S&P 500 is 4.9%. According to FactSet Research, the fourth quarter will mark the first time the index has seen year-over-year growth in earnings for two consecutive quarters since Q4 2014 and Q1 2015. Sales growth for Q4 is running at a 4.9% rate, according to FactSet. The 12-month forward P/E ratio is now 17.9%, which is above the 5- and 10-year average.

GLOBAL CORPORATE NEWS

Economic optimism continues to build
A sizable uptick in the closely watched ISM manufacturing purchasing managers’ index and a jump to a 15-year high in the Conference Board’s consumer confidence measure were two standout data points in the United States this week, keeping the reflation trade firmly on track. China’s PMI showed strength as well, though the eurozone’s and United Kingdom’s PMIs were less robust. However, economic sentiment in the eurozone reached a six-year high. Also notable in the eurozone this week was an energy-driven rise in inflation to near the European Central Bank’s 2% target. This is the first time consumer price inflation has reached the target in four years.

NEW 52-WEEK HIGH BSE (A):

NEW 52-WEEK LOWS BSE (ALL):

MAJOR WEEKLY GAINERS IN BSE A CATEGORY:

MAJOR WEEKLY LOSERS IN BSE A CATEGORY:

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

Monday (06 Mar)
Factory Orders

Tuesday (07 Mar)
Consumer Credit

Wednesday (08 Mar)
Wholesale Trade

Thursday (09 Mar)
Jobless Claims & Natural Gas Report

Friday (10 Mar)
Employment Situation

Fundamental Pick of the week:

Buy GlaxoSmithKline Consumer Healthcare Ltd For Target Rs.5,910.

Strategy:

GlaxoSmithKline Consumer Healthcare closed 0.6% up in trade today at Rs5,108 vs. 0.5% fall in benchmark Nifty.

GSK Consumer is the market leader in health food drinks industry with market share of 70%. With its flagship brands Horlicks and Boost, it has successfully fend off competition from likes of Heinz and Mondelez.

The company would substantially benefit from lower tax rates in the GST regime as its current tax structure is quite high compared to other players.

Based on expected EPS of Rs181, the stock trades at attractive valuation of 28.2x FY18E earnings. We have a BUY rating on the stock with price target of Rs5,910.

Indian Market Outlook:

NIFTY OUTLOOK:

Supported by the firm global cues and better than expected GDP numbers, Nifty made a new 52-week high but finally settled with cut of nearly half a percent.

Markets are still overbought and we might see further consolidation in index ahead. However, the overall trend is bullish and hence we sug-gest traders to use any decline during this phase to accumulate quality stocks from the preferred list of sectors.

NIFTY FMCG OUTLOOK

* Nifty FMCG Index witnessed marginal profit taking in the passing week and closed slightly lower in line with the benchmark.

* Technically, it is wisely placed above its important moving averages (50,100 & 200 EMA) on daily chart and looks upbeat for an up move .

* Traders can consider fresh buying in select counters like   JUBLFOOD, HINDUNILVR, BRITANNIA from this space.

NIFTY MEDIA OUTLOOK

* Nifty Media Index also settled marginally lower after consolidating in a narrow range.

* It tested its important support zone placed around 2945 level and bounced back thereafter.

* Considering its overall chart formation, we expect strong surge in the near fu-ture.

* ZEEL, SUNTV are some of the better placed stocks in this space.

TECHNICAL VIEW:

Nifty Spot View

Nifty traded with volatile sentiments in last session due to profit booking at higher levels from traders. Next important support seen at 8800 level.Nifty likely to trade with sideways sentiments in thatsessio on profit booking at higher levels from traders. Nifty likely to trade with sideways sentiments and 8850 at lower side will be the trend deciding level. Higher side resistance seen at 8970 levels. However, some buying support at lower levels may limit the downside in NIFTY. Applying momentum Indicator RSI for 14-day period trading at level of 63.97 indicates that it is trading near over bought zone and may face resistance at higher levels.

Conclusion:

Now Bulls need a close above 9000 for a move towards 9050/9120/9200, Bears will get active below 8850 for a move towards 8800/8720.

Nifty did high of 8892 and low of 8850 so traded in the range, but in process broke the channel on downside. Break of 8850 shorts can be taken as fall can be seen till 8773 and bullish above 8900 for a move towards 8960/9000. Breakout above 8995 for a move towards 9083/9150.