Tuesday 28 June 2016

Nifty Settled Around 0.40% Higher Amid "Stable" Global Market And 7PC Liquidity , Good Monsoon & Better GDP Hopes

Nifty Fut (June) closed the day around 8135 after making an opening low of 8085 and high of 8159.

Looking ahead, technically NF need sustain above 8090-8165 area for an immediate target of 8200-8280 & 8310-8340 zone.

On the other side, sustaining below 8090-8075 area, NF may fall to 8010-7985 & 7925-7875 zone in the near term.

Global market was steady from the Asian morning session today after BOJ jawboning & pledge of more "QQE". One of the Fed member's comment that Fed should consider rate cut again as a fall out of "Brexit" and to avert a possible US recession also helped the "risk on" sentiment.

But the political drama regarding "Brexit" continues and that dragged the overall sentiment to some extent and there was some market talk that Italy will unleash a massive stimulus/loan restructuring package for its distressed banking sector, which has helped to curb the volatility of the global market by some extent, but that may be a pure "dead cat bounce" amid short covering rally.

Now, it seems that there are two opposite camps in EU led by Markel (Chancellor, Germany) who wants not to put pressure on UK for "Real Brexit" & wait and the other led by Juncker (EU Commissioner), who wants immediate exit process of UK from EU. 

But, one thing is clear that, unless Article-50 is invoked by UK, there will be no informal/formal talks with EU for this "Brexit". All these events and political leadership vacuum in UK may delay the actual "Brexit" process and that is helping the "risk on" sentiment by some extent at this moment. But the uncertainty about the "real exit" process will continue to be a roller coaster for the overall global market sentiment in the foreseeable future. 

Meanwhile, with China quietly devaluing its currency & exporting its deflation to the other parts of the global economy may be the prime concern along with its credit bubbles.
Domestically, all eyes will be on the 7pc announcement likely to be made tomorrow with a staggered nature of pay out for the arrears. Nifty also go some "booster" dose after Govt official comments that there are visible green shoots in the economy now and with good monsoon, India can achieve 8% GDP fr FY-17.

Some of the stocks/sector, which outperformed/underperformed today:

1. JSW steel rallied today after reports of its fund raising plan for $2 bln from FII.

2. Siemens rallied by around 2.85% after the company got an order from Power Grid for Rs.570 cr.

3. HCL Tech declined by around 2.90% after media reports that the company has lost rebid orders approx $1.5 bln over the past two years.

4. Maruti rallied by around 1% after reports of production ramp up for some of its SUV models.

5. Idea gained today after analyst call yesterday, in which the company assured business growth (data market) despite impending R-JIO launch. As par the co, R-JIO may have limited impact.

6. Tata Comm closed the day significantly by around 1.5% higher despite opened higher by around 8% after definitive SA telecom deal in a classic example of "buy the rumour and sell the news".




Article Courtesy:


No comments:

Post a Comment