Indian Market Outlook:
Nifty continued the upward momentum to break the high of 8545 with strong participation from IT and Banking stocks. TCS results came in after market hours and the profits have beaten market expectations, which is a big positive as there were concerns regarding IT companies’ profitability going forward. Nifty has crossed and closed above the Dynamic Levels’ breakout level of 8560. The next important level is 8648. Today we have Infosys and Reliance results. Government talks with Congress over the GST would be keenly watched by the markets. Top 5 gainers for yesterday were GRASIM, ICICI BANK, MARUTI, ZEE ENTERTAINMENT AND POWERGRID.
SGX Nifty, at 8:30 am IST, is trading at 8612 which shows a gap up opening of 36 points.
Open Interest Futures & Options Index Update
On 14th of July, FII & Pro have bought 655650 shares combined which is below the average of 705075. The total for the July expiry from the 1st July to 14th July is 2691675 shares, which indicates that big players are building long positions in market.
On 14th of July, FII & Pro have sold 288225 shares combined, below average of 2920650, which is the second day of selling. The total for the July expiry from the 1st July to 14th July is 7656075 which indicate that a Buy position has been created for the clearing.
FII & DII Cash Buy/Sell Activity
Last trading day, FII have bought shares worth Rs. 870 Cr and DII have sold shares worth Rs. 874 Cr. Combined, net selling worth Rs. 4 cr was seen.
Since 1st July 2016, FII have bought Rs.2719 crores worth shares where as DII have sold shares worth Rs.1856 crores in the cash segment.
FII and DII combined have a net buy worth Rs. 864 Cr since 1st July 2016.
The combine FII and Pro have seen a increase in long position in Index future and a decline of short position in index options. In the cash segment FII and DII combined are net buyers of Rs. 684 Cr since 1st July 2016. This suggests bullish bets continue to be added in the markets. Moreover, Nifty Future has given a breakout above 8560 yesterday after making a high of 8584. Next target for Nifty is 8648 as per Dynamic Levels. Immediate support for Nifty is at 8509 which was its Thursday 14th July low.
International Market Outlook: International markets are resilient and sustaining the uptrend on the backdrop of stimulus expectations from the Bank of England and the Bank of Japan. Yesterday, Bank of England’s credit policy was announced and kept unchanged. However, there were hints dropped that in the August meeting, stimulus can be given by the Bank of England. S&P made a new high of 2168 and has been sustaining and closing above its all time high of 2134 for three consecutive days. This indicates that it is a right breakout and higher levels can be seen in the coming days.
European markets have also maintained the positive bias yesterday.
Today morning, Asian markets are mirroring their European counterparts with a positive opening where Nikkei has made a fresh high of 16581, which is above its last 2 day’s high of 16444. Most of the Asian markets are up by 0.25 to 1%.
|Sectoral Index Performance for last trading day and last 1 week|
|Symbol||1D (%)||1W (%)|
|NIFTY MEDIA INDEX||1.57||0.86|
|NIFTY FINANCE INDEX||0.89||4.57|
|NIFTY AUTO INDEX||0.5||2.76|
|NIFTY FMCG INDEX||0.4||0.75|
|NIFTY METAL INDEX||0.37||7.88|
|NIFTY IT INDEX||0.27||1.93|
|NIFTY ENERGY INDEX||0.26||2.70|
|NIFTY REALTY INDEX||-0.31||1.30|
|NIFTY PHARMA INDEX||-0.42||0.18|