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RBI SHIFTS POLICY STANCE FROM ACCOMMODATIVE TO NEUTRAL ON FEAR OF INFLATION-Research Report-ShareTipsInfo

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RBI shifts policy stance from accommodative to neutral on fear of inflation

The Monetary Policy Committee in its first Bi-Monthly Monetary Policy review, held on 6 th April 2017, kept the borrowing rates unchanged at 6.25 percent. The committee however hiked reverse repo rate by 25 basis points to 6 percent in a bid to drain excess liquidity from the system. Speaking about liquidity, there was approximately Rs. 7,956 billion of excess cash in the banking system in January’17 which now stands close to Rs. 4,806 billion (March’17). This decline was majorly due to RBI’s tooling i.e. Market Stabilization Scheme which helped the central bank to absorb excess cash of around Rs. 3,141 billion by the end of March’17.

According to the RBI staff projections, the inflation rate which currently is at 3.65 percent is projected to rise at 4.5 percent in the first half of 2017-18 and thereafter at 5 percent. Reason behind this upsurge in consumer prices could be attributed to the rising probability of an El Niño event which could boost food inflation. Implementation of 7 th Pay Commission and GST bill along with global developments are other factors for the inflation uptick.

With respect to economic growth, gross value added growth is projected to strengthen to 7.4 percent in 2017-18 from 6.7 percent in 2016-17 primarily due to - rebound in consumer spending, credit growth, recent proposals in the Union Budget which could stimulate capital expenditure, roll-out of GST bill and the upsurge in IPO’s which augurs well for investment and growth.

Inflationary pressure to re-emerge along with higher growth

MPC clearly spells out higher upside risks to inflation. Average CPI is projected to be higher at 4.5% in H1FY18, currently at 3.7% in Feb’17, to 5.0% in H2FY18. Currently, demonetization spillovers has suppressed the headline inflation numbers. Headline inflation is likely to edge higher as the temporary impact of demonetization on perishable food items fades out and core inflation (4.8% YoY in Feb’17) inches up along with cyclical upswing in demand. The factors that are expected to reinforce inflationary pressure include

a) deficient south west monsoon & higher MSPs reinforcing food inflation,

b) increase in HRA as recommended by 7th pay commission is likely to push baseline inflation trajectory by 100-150bps,

c) initial effect from implementation of GST,

d) farm loan waivers by state governments,

e) policy focus to revive demand particularly from increase in budget allocation towards rural & affordable housing,

f) narrowing of output gap as remonetisation progresses,

g) spillover of improving global prospects on commodity prices,

h) rising inflation in advance economies due to reflationary policies,

i) currency impact arising from normalization of monetary policy in advance economies, especially US Fed and

j) protectionism policies adopted across the world.

On growth front (real GVA), the outlook is seen favorable at 7.4% vs 6.7% on the back of

a) gainingremonetisation,

b) reflationary fiscal policies, specially targeted towards rural demand and

c) cyclical upturn in global growth.

On global markets

According to the RBI governor, global trade volumes are finally improving which means that global demand is no more anaemic in nature. The world’s largest economy i.e. the United States of America is on growth path since all its important economic datasets on labour market, inflation and growth have come on a positive note. However, there is uncertainty surrounding the direction of US macro-economic policies with potential global spill over. The governor also feels that emerging markets are gradually improving on hardening commodity prices, easing recessionary pressures in Russia/Brazil and stabilized Chinese policy stimulus.

 Overview of Indian economy

The demonetization effect on the economy is finally easing. This can be observed from the rebound seen in manufacturing and service PMI data since demonetization. Both the PMI data lingered close to 49.6 and 46.8 in December’16 and has finally increased to 52.5 and 51.5 respectively in March’17 due to pickup seen in demand for new orders and output. This has benefitted the Index of industrial production (IIP) data which surged to 2.7 percent in January’17 from previous months -0.1 percent. Overall business sentiment is expected to improve in Q1 of 2017-18 on the back of a sharp pick up in both domestic and external demand y | June 7, 2016 www.angelcommodities.com Page 2 RBI Monetary Policy Update 06 April 2017 About the inflation rate, since the last two months the consumer prices have been increasing, all thanks to increase in the prices of sugar, fruits, meat, fish, milk and processed foods. Kerosene prices have also been increasing on the back of reduction in subsidies. With respect to balance of trade, India’s trade deficit narrowed to $8.9 billion in Feb-17 from previous month’s deficit of $9.8 billion due to lower crude oil prices. The above strong macro-economic datasets along with the resounding win of BJP party in Uttar Pradesh elections along with the clearance of GST bill in the LokSabha has led to a sudden surge in inflows which has acted as a positive factor both for Indian markets and its currency. The annual growth rate which was at 7.4 percent in September’16 quarter expanded by mere 7 percent owing to the demonetization move. The Monetary Policy Committee expects economic activities to recover in the second half of 2017-18.

Summing up

The no-change-in-policy was mainly undertaken to guard the Indian economy against any potential flare-up in inflation. Post this event, the Indian Rupee spot has been continuously appreciating and is currently trading at 64.51 levels while writing. USDINR spot is likely to appreciate even more in the near term as uncertainty with respect to Trump’s fiscal policies will keep the American currency pressurized in turn favouring the Indian currency

 

Outlook:

Liquidity to normalize by Q2FY18 RBI’s has reinforced its earlier outlook of re-emergence of inflationary pressure with a mild hawkish overtone. Hence, even the marginal market expectation of rate easing and softening of Gsec yields has been ruled out. The pace of remonetisation will provide reinforcement to domestic demand and growth outlook. Our projections indicate that complete normalization of demonetization, including reprinting of notes and meeting normalized demand will be achieved by end of Q1FY18, i.e. eight months post demonetization announcement. Expected upside risk to inflation can enhance the hawkish tenor of the RBI’s monetary policy stance. Additionally, prospects of rising global rates led by the Fed’s normalization will condition RBI’s policy outlook, in our view.

Weekly Nifty Trading View for the Week April 10, 2017–April 16, 2017

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Events to watch this week

  • US March nonfarm payrolls rise 98,000

  • US launches missile attack against Syria

  • Trump, Xi hold summit

  • Fed to begin shrinking balance sheet

  • European manufacturing speeds up

  • South Africa suffers credit downgrade

The Week ahead:

  • Fed chair Janet Yellen participates in a discussion at the University of Michigan on Monday, 10 April
  • The UK consumer price index is released on Tuesday, 11 April
  • UK unemployment data are reported on Wednesday, 12 April
  • The Bank of Canada’s interest rate decision is announced on Wednesday, 12 April
  • China reports its trade balance on Thursday, 13 April
  • The United States releases retail sales and consumer price data on Friday, April 14

For the week,Global equities were little changed this week despite an uptick in geopolitical jitters following the US missile strike on a Syrian airbase and a potential shift in tactics by the US Federal Reserve later this year. The lackluster employment report, coupled with the attack against Syria, helped push US 10-year Treasury notes to 2.28%, their lowest intraday yield of 2017, on Friday morning. Oil prices firmed after the attack, with West Texas Intermediate crude rising to $51.94, up from $50 a week ago. Volatility, as measured by the Chicago Board Options Exchange Volatility Index (VIX), remained subdued, at 12.8 on Friday versus 12 a week ago.


NIFTY- 9,198.30
CRUDE OIL-Rs 3,362barrel
GOLD-Rs 28,665 gram
Rs/$-Rs 68.08

MARKET ROUND UP 
The market rose last week in line with overall positive sentiment in the market which has been riding on the passage of Goods and Services Tax (GST) Bill and the strengthened position of government after the assembly elections. The improved macroeconomic numbers, such as sharp reduction in current account deficit, resulted in a lot of funds flowing into Indian equities - both from domestic and global institutions. The buying interest was not only in large-caps, but in mid and small-caps as well. 
In the week ended Friday, 7 April 2017, the Sensex rose 86.11 points, or 0.29% to settle at 29,706.61. The Nifty 50 index rose 24.55 points, or 0.27% to settle at 9,198.30. The BSE Mid-Cap index rose 136.51 points, or 0.97% to settle at 14,233.16. The BSE Small-Cap index rose 350.17 points, or 2.44% to settle at 14,681.42.

Trading for the week began on a positive note. Market registered modest gains in the first trading session of the week on Monday, 3 April 2017. The Sensex had risen 289.72 points or 0.98% to settle at 29,910.22. Domestic bourses were closed on Tuesday, 4 April 2017 on account of Ram Navami.

Market registered decent gains in a volatile trade on Wednesday, 5 April 2017. The Sensex had risen 64.02 points or 0.21% to settle at 29,974.24, its record closing high. 

Key benchmark indices registered small losses on weak global cues on Thursday, 6 April 2017. The Sensex fell 46.90 points or 0.16% to settle at 29,927.34, its lowest closing level since 3 April 2017.

Macro Economic Front: 
On the Economic Front,The Reserve Bank of India (RBI) on Thursday, 6 April 2017, kept the policy repo under the liquidity adjustment facility (LAF) unchanged at 6.25%. On the basis of an assessment of the current and evolving macroeconomic situation at its meeting on Thursday, 6 April 2017, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the LAF unchanged at 6.25%.

Consequent upon the narrowing of the LAF corridor as elaborated in the accompanying Statement on Developmental and Regulatory Policies, the reverse repo rate under the LAF is at 6% per cent, and the marginal standing facility (MSF) rate and the Bank Rate are at 6.5%. The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of plus/minus 2%, while supporting growth, the RBI said.

Meanwhile, data released by Markit Economics during market hours on Thursday, 6 April 2017 showed that the Indian service sector moved further away from the demonetisation-related contractions seen towards the end of 2016 and beginning of 2017. The seasonally adjusted Nikkei India composite PMI output index increased to 52.3 in March, from 50.7 in February, signalling a quicker rise in private sector activity across the country.

Major Action &Announcement:
L&T said that the first 150 megawatts (MW) gas turbine for Bangladesh Power Development Board (BPDB)'s 225 MW combined cycle (dual fuel) power plant at Sikalbaha in Chittagong district was synchronised with the national grid on 25 March 2017. The second 280 MW gas turbine for North West Power Generation Co (NWPGCL) combined cycle power plant of 360 MW capacity development project at Bheramara in Kushtia district was synchronised with the grid on 31 March 2017. Both these power plants are being executed by gas based power projects business unit of L&T Power based in Baroda, India. L&T Power is also executing an engineering, procurement and construction subcontract for another 400 MW gas based power plant at Bibiyana in Sylhet district, Bangladesh. It will be ready for commissioning in 2018-19.

Index pivotal Reliance Industries (RIL) rose 6.55% to Rs 1,405.55. RIL said that the Telecom Regulatory Authority of India (TRAI) has advised its telecom unit Reliance JioInfocomm (Jio) to withdraw the 3 months complementary benefits of Jio Summer Surprise. Jio accepted this decision. It is in the process of fully complying with the regulator's advice, and will be withdrawing the 3 months complimentary benefits of Jio Summer Surprise as soon as operationally feasible, over the next few days. 

Car major Maruti Suzuki India rose 3.98% to Rs 6,263.95 after the company announced 8.1% rise in total sales to 1.39 lakh units in March 2017 over March 2016. Total domestic sales rose 7.7% to 1.27 lakh units in March 2017 over March 2016. Exports grew by 12.6% to 11,764 units in March 2017 over March 2016. The announcement was made on Saturday, 1 April 2017.

Sate-run NTPC rose 1.05% to Rs 167.70. The company announced that Unit#1 of 660 megawatts (MW) of Solapur Super Thermal Power Project has been commissioned. With this, the commissioned capacity of NTPC and NTPC Group has become 44,194 MW and 51,410 MW respectively. The announcement was made during market hours on Friday, 7 April 2017.

Global Front: 
In Overseas Markets,Overseas, geopolitical tensions intensified after the US military struck a Syrian airfield near Homs. US President Donald Trump said he ordered the missile strikes following the deadly chemical attack that took place earlier in the week.

Meanwhile, the Federal Reserve policy minutes, which were released on Wednesday, 5 April 2017. The minutes had a slightly hawkish tone, as policymakers noted upside risk to the US economy. However, policymakers remain divided on whether inflation will rise to the Fed target of 2.0%. The minutes also stated FOMC members were in favor of taking steps to trim the $4.5 trillion balance sheet, which has ballooned since the Fed implemented its aggressive quantitative easing program back in 2008. 

Global Economic News:

US nonfarm payrolls up less than expected
US payrolls expanded by 98,000 in March, well below the 180,000 consensus forecast. In addition, both January and February payrolls were downwardly revised. However, the unemployment rate dipped 0.2% to 4.5%, the lowest level since May 2007, while average hourly earnings rose 2.7% versus a year ago, down from 2.8% in February.

US attacks Syrian airbase 
In response to a chemical weapons attack in Syria by the regime of Bashar al-Assad, the United States launched nearly five dozen Tomahawk cruise missiles targeted at the airfield from which the attack is believed to have been launched. The missiles struck infrastructure at the airfield, according to the administration, but did not target chemical weapons storage facilities because of the potential for civilian casualties.

Trade, North Korea top Trump–Xi agenda
US president Donald Trump and Xi Jinping, China’s president, held talks at Trump’s Mar-a-Lago Club in Palm Beach, Florida, late this week. The leaders discussed trade relations between the world’s two largest economies as well as security concerns, particularly over North Korea.

European manufacturing hits highest reading in nearly six years
Theeurozone purchasing managers’ index in March rose to its highest level in nearly six years, reaching 56.2 from 55.4. That’s the highest since April of 2011. European retail sales rose solidly for the second month in a row in February, rising 0.7%. In the United States, the Institute for Supply Management’s manufacturing index eased to 57.2 in March from February’s 57.7.

GLOBAL CORPORATE NEWS

Fed eyes balance sheet, stock valuations
The minutes of Federal Open Market Committee meetings rarely make much news, but the summary of the March meeting did so on several fronts. The committee discussed shrinking the Fed’s mammoth $4.5 trillion balance sheet beginning late this year by allowing some of the assets it acquired in the wake of the financial crisis to mature. However, the committee did not outline specifically how it will change its reinvestment policy. Those specifics are expected later in 2017. Also newsworthy was that members of the committee opined on asset valuations more directly than usual: “Some participants viewed equity prices as quite high relative to standard valuation measures. It was observed that prices of other risk assets, such as emerging market stocks, high-yield corporate bonds, and commercial real estate, had also risen significantly in recent months.”

South Africa’s rating cut after Gordhan ousted
Credit rating agencies Standard and Poor’s and Fitch each downgraded South Africa’s sovereign credit rating one notch to BB+ in the wake of the sacking of former finance minister PravinGordhan. Weakening standards of governance and public finances were to blame.

NEW 52-WEEK HIGH BSE (A):

ADANIENT

119.35

ADANIPORTS

83.25

BAJAJFINSV

4288.00

NEW 52-WEEK LOWS BSE (A):


NOT YET IN (A) CAT

-------

MAJOR WEEKLY GAINERS IN BSE A CATEGORY:


 ADANI TRANSMISSION

26.42

SOBHA

21.43

NAVKAR

19.27

MAJOR WEEKLY LOSERS IN BSE A CATEGORY:


CONTAINER

-11.87

GSFC

-8.41

COX & KINGS

-8.08



Eyes will be set on the certain US economic data releases are: 
Monday (10 Mar)
Labor Market Conditions 
Tuesday (11 Mar)
NFIB Small Business
Wednesday (12 Mar)
MBA Mortgage Applications
Thursday (13 Mar)
Consumer Sentiment &Natural Gas Report 
Friday (14 Mar)
Consumer Price Index & Retail Sales

Fundamental Pick of the week:
Derivative Ambuja Cements Ltd For Target Rs.254.00 

Derivative Ideas
AMBUJACEM added around 7.2% of open interest as fresh long positions along with some delivery based buying in previous sessions. On charts, it has witness upside breakout from Inverted Head & Shoulder pattern on daily charts. We suggest buying AMBUJACEM as per levels given below.

Strategy:
BUY AMBUJACEM APR FUTS BETWEEN 240-242, SL 237, TARGET 254.

Indian Market Outlook:
Nifty inched marginally higher in the holiday shortened week and settled closer to 9200, tracking mixed cues from domestic and global front.

* The coming week is also a holiday shortened one and we expect some decisive moves in stocks ahead of Q4FY17 corporate earnings. Besides, recent geo-political issue between the US and Syria will also remain on participants’ radar.
* Technically, we expect Nifty to consolidate further but the overall bias would remain on positive side. We suggest traders to use further profit taking to add quality stocks while keeping the leveraged positions hedged.

TECHNICAL VIEW:


S3

S2

S1

NIFTY

R1

R2

R3

9,000

9,080

9,130

9,198.30

9,225

9,270

9,340

High made was 9268 again near the gann angles, and low made was 9218 so we made an INSIDE Bar candle today, Now plan remains the same buy above 9268 for a move towards 9312/9360/9410. Bearish below 9200 for a move towards 9130/9030. Nifty continue to trade below the gann angle as high made today was also 9250 so we are unable to close above the gann level of 9268, and we closed below 9200 so we are heading towards 9130/9070/9020 range. Bullish only on close above 9268. 

Conclusion:

The Nifty witnessed a minor setback, closing the week on a flat note. Since the last couple of sessions, the Index was taking support near the previous swing high of 9218. However, today, it has broken below 9218 and has fallen back below 9200. Structurally, the fall seems to be a retracement of the previous rise and is unlikely to develop into a larger fall. 9180-9150 is a crucial support zone from where the Nifty can start the next leg up. The overall trend continues to be positive from a short-term as well as medium-term perspective. 9340 and 9500 are short-term and medium-term targets, respectively. On the flip side, 9000-8980 is the major support area.

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SENSEX LOSES 221 PTS, NIFTY ENDS BELOW 9200 AFTER US STRIKES SYRIA

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Major headlines

·         Jio complementary offer not in sync with regulations

·         India topped domestic aviation market growth in Feb

·         CCI nod for jabil India Ericssson India pact, 2 other deals

Indian Indices: Indian equity benchmarks extended their losses in late afternoon session on the back of heavy selling pressure in Healthcare, IT and Consumer Durables stocks. However, the broader markets showed some fervor and traded with notable gains, performing better than their larger peers. Weak opening in European markets and expectations of no further rate cuts by Reserve Bank of India (RBI) this year also impacted the sentiments. Even a strong rupee against dollar and healthy macro-economic data failed to uplift investors' sentiments. 

Traders remained pessimistic with the report that RBI projected retail inflation to increase to 5% in the second half of the current fiscal citing risks of El Nino impacting the monsoon and one-off effects of the Goods and Services Tax. The central bank also said that a prominent risk could emanate from managing the implementation of the allowances recommended by the 7th Central Pay Commission (CPC).

The BSE Sensex is currently trading at 29788.99, down by 138.35 points or 0.46% after trading in a range of 29763.02 and 29886.12. There were 10 stocks advancing against 20 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 0.29%.

The CNX Nifty is currently trading at 9227.80, down by 34.15 points or 0.37% after trading in a range of 9212.60 and 9250.50. There were 17 stocks advancing against 34 stocks declining on the index.

MARKET INDICATORS

·           

 

Top Movers (Group A)

 

 

Company

Cmp

% chg

Gainers

 

 

Adanitrans

81.35

7.04

Concor

1120.15

6.50

ABB

1380.55

6.14

Edelweiss

181.55

5.98

Losers

 

 

JPassociat

12.93

-7.58

Unitech

5.68

-5.96

Religare

218.35

-5.17

Cox & King

212.0

-4.13

INDEX PERFORANCE

 

 

Index

Close

% Chg

Sensex

29,706.61

-0.74

Nifty

9,198.30

-0.69

Crporate Front: India topped the global charts in domestic air passenger growth for the 23rd straight month in February, helped by strong demand and increased load factor, IATA said as per the PTI report. In February, the country's growth in revenue passenger kilometres (RPK) stood at 17 per cent. Globally, RPK -- an indicator of passenger growth -- declined to 4.8 per cent during the same period. Load factor refers to occupancy level in a flight. "India topped the domestic growth chart for the 23rd month in a row in February.


 

Macroeconomic front: State Bank of India's bad loans have ballooned approximately 50 per cent in the span of a year and those of its five associate banks by 170 per cent.The bank will likely have to increase its provisioning for bad loans -- setting aside money to partly cover the non-performing assets (NPAs) following its merger with five subsidiaries.

On the global front:

On the global front, European markets were trading in red following indications by the U.S. Federal Reserve that it wants to pare back its balance sheet. Asian markets were trading in red. Back home, in scrip specific development, Force Motors edged higher after the company reported the production, sales and export of the products manufactured during the month of March 2017. The company’s production of Small Commercial Vehicles (SCV) & Light Commercial Vehicles (LCV) stood at 1,822 units and Utility Vehicles (UV), Sports Utility Vehicles (SUV) & Tractors stood at 1,387 units.

Commodity Updates:

Commodity Prices (MCX):

Commodity

Rs

% Chang

Gold

28864.00

0.5

Silver

42286.00

0.46

Crude oil

3369.00

0.54

Natural Gas

212.80

-0.88

Alluminium

124.45

-1.03

Copper

374.35

-1.66

Top Sectoral& Stock Screening:The top gaining sectoral indices on the BSE were Telecom up by 1.23%, Oil & Gas up by 0.92%, PSU up by 0.47%, Capital Goods up by 0.40% and Industrials up by 0.15%, while Healthcare down by 0.93%, IT down by 0.63%, Consumer Durables down by 0.55%, Metal down by 0.51% and Bankex down by 0.50% were the top losing indices on BSE.

Top Nifty Movers:The top gainers on Nifty were Reliance Industries up by 2.09%, Bajaj Auto up by 1.30%, IndusInd Bank up by 1.22%, Indian Oil Corp. up by 0.92% and Zee Entertainment up by 0.91%. On the flip side, Hindalco down by 2.57%, ITC down by 1.77%, Coal India down by 1.31%, AurobindoPharma down by 1.30% and Adani Ports & SEZ down by 1.28% were the top losers.

 

Global Signals:

sian markets were trading mostly in red; Jakarta Composite decreased 29.79 points or 0.52% to 5,650.45, Taiwan Weighted decreased 24.43 points or 0.25% to 9,873.37, Hang Seng decreased 6.42 points or 0.03% to 24,267.30, FTSE Bursa Malaysia KLCI decreased 1.57 points or 0.09% to 1,737.99 and KOSPI Index decreased 1.02 points or 0.05% to 2,151.73. On the flip side, Shanghai Composite increased 5.61 points or 0.17% to 3,286.62 and Nikkei 225 increased 67.57 points or 0.36% to 18,664.63.

All European markets were trading in red; Germany’s DAX decreased 58.05 points or 0.47% to 12,172.84, France’s CAC decreased 12.89 points or 0.25% to 5,108.55 and UK’s FTSE 100 decreased 0.22 points or 0% to 7,302.98.

 

 

Oil prices hit 1 month high as Syria tension sees rise in geopolitical risk. US Dollar stabilizes even as stocks give up most gains.

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Major headlines:

·         Assocham seeks lower rental on PoS machines

·         Israel eases visa policy for Indian businessmen

·         Reliance Jio to withdraw 3 months complimentary Summer Surprise offer

 

Indian Indices:Asian indices are set to open flat as overnight the US indices gave up most gains with Energy stocks leading the winners. However sell off in Banks and Financials saw the indices close flat as risk in Syria kept the market participants edgy. Bond yields edged up even as oil prices hit fresh 1 month highs.


The Central bank as per consensus left rates unchanged, which saw markets close with marginal losses. The banks being awash with liquidity is seeing positive reaction both on the bond and the currency markets with the Rupee hitting 64.5 a nearly 20 month high. The liquidity gush due to strong foreign buying is seeing strong inflows with bullishness in both stocks and the currency.


The BSE Sensex is currently trading at 29844.88, down by 82.46 points or 0.28% after trading in a range of 29763.02 and 29863.74. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.13%, while Small cap index was up by 0.21%.

The CNX Nifty is currently trading at 9235.50, down by 26.45 points or 0.29% after trading in a range of 9212.60 and 9240.15. There were 16 stocks advancing against 35 stocks declining on the index.

MARKET INDICATORS

·           

 

Group ATopGainers

 

 

Company

Price (Rs)

% chg

Adanitrans

82.50

8.55

KEC

229.50

5.32

Denabank

40.25

4.27

DEN

94.00

3.98

Group ATopLosers

 

 

Jetairways

508.00

-2.46

Unitech

5.91

-2.15

Sunpharma

672.00

-2.11

Jublfood

1043.00

-1.72

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

29845

30035

Nifty

9235

9300

 

Technical view: Nifty finds strong support @ 9218, which was yesterday's low while 9330 will act as strong resistance. Bank Nifty also finds strong support @ 21350 while 21850 will act as resistance on the upside.


 

Titan (Buy above 488, for Target of 505, Stop Loss at 480): The stock has broken out from a rising channel pattern on the daily chart and has also sustained above the same in yesterday's trade. On hourly basis the breakout is confirmed as the stock recovered to close near days high with increase in volumes. Momentum oscillators suggest the upward thrust to continue. We advise to Buy Titan above Rs 488, Stop Loss at Rs 480 and Target of Rs 505.


Derivative Snippets

In the last trading session, markets ended on a flat note after witnessing a volatile swing. Long unwinding was observed in Nifty futures along with some minor short selling in OTM call and put option strikes.


FIIs were net buyers in cash market segment to the tune of Rs 143 Cr.


FII’s index future long/short ratio at 3.2x vs 3.6x.

 

Nifty Movers: The top gainers on Nifty were Indian Oil Corporation up by 2.66%, BPCL up by 1.90%, Larsen & Toubro up by 1.60%, BhartiAirtel up by 1.39% and Tech Mahindra was up by 1.12%. On the flip side, Sun Pharma down by 2.54%, Adani Ports & SEZ down by 2.26%, Zee Entertainment down by 1.83%, Bank of Baroda down by 1.32% and Tata Motors - DVR down was by 1.29% were the top losers.

 

Top Sectoral& Stock Screening: The top gaining sectoral indices on the BSE were Telecom up by 1.20%, Realty up by 1.05%, Capital Goods up by 0.92%, Oil & Gas up by 0.71% and Industrials up by 0.23%, while Healthcare down by 0.78%, FMCG down by 0.33%, Power down by 0.32%, Metal down by 0.29% and Utilities was down by 0.20% were the top losing indices on BSE.

 

 


On the global front: On the global front, stocks slumped and safe haven bonds and the yen jumped in Asia on Friday after the United States launched cruise missiles against an air base in Syria, potentially escalating the conflict and spooking investors globally. The US markets closed modestly higher in last session but were off the highs of the day, as traders looked ahead to the release of the Labour Department’s closely watched monthly jobs report on Friday.

 

 

Global Signals:Asian markets were trading mostly in red; Hang Seng decreased 136.61 points or 0.56% to 24,137.11, Taiwan Weighted shed 44.45 points or 0.45% to 9,853.35, Jakarta Composite fell 30.03 points or 0.53% to 5,650.21, KOSPI Index slipped 2.03 points or 0.09% to 2,150.72 and FTSE Bursa Malaysia KLCI was down by 1.52 points or 0.09% to 1,738.04.

On the flip side, Shanghai Composite increased 8.09 points or 0.25% to 3,289.09 and Nikkei 225 was up by 95 points or 0.51% to 18,692.06.

 

SENSEX OFF DAY’S LOW POST RBI POLICY, NIFTY ENDS ABOVE 9250; ITC, SBI FALL

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Indian Indices:  Indian equity benchmarks pared some of their early losses in late afternoon session but continued to trade in negative territory. The markets trimmed losses with the report that Reserve Bank of India (RBI) kept policy interest rates unchanged at 6.25% for a third straight meeting today, shifting focus to ways to mop up excess cash in the banking system that threatens to stoke inflation. It however raised the reverse repo rate from 5.75% to 6%. Some support also came in with the report that services sector in India registered second straight month of growth in March, driven by strong rise in new work orders amid softer inflationary pressures. The Nikkei India Services Purchasing Managers' Index (PMI) rose to 51.5 in March from 50.3 in February. However, traders remained cautions with global credit rating agency Crisil’s report that CPI inflation is likely to average higher at 5 percent in the current fiscal on expectations of increasing pressure on food prices as well as uptick in global oil and commodity rates.

The BSE Sensex is currently closed at 29927.34, down by 46.90 points or 0.16% after trading in a range of 29817.59 and 29949.60. There were 12 stocks advancing against 18 stocks declining on the index.The broader indices were trading mixed; the BSE Mid cap index was up by 0.11%, while Small cap index down by 0.13%.

The CNX Nifty is currently shut down at 9261.95, down by -3.20 points or 0.03% after trading in a range of 9215.40 and 9264.95. There were 31 stocks advancing against 20 stocks declining on the index.

MARKET INDICATORS

·           

 

Top Movers (Group A)

 

 

Company

Cmp

% chg

Gainers

 

 

Navkarcorp

208.40

15.07

MCleodrus

179.85

7.44

Jindalstel

132.70

6.76

Adaniports

44.25

5.23

Losers

 

 

Justdial

533.70

-3.89

Deltacorp

184.95

-8.71

Muthootfin

380.95

-3.80

GSFC

121.85

-3.45

INDEX PERFORMANCE

 

 

Index

Close

% Chg

Sensex

29,927.34

-0.16

Nifty

9,261.95

-0.03

Crporate Front: Ministry of communications & information technology has said that Department of Telecommunications (DoT) has been taking various initiatives to address the problem of call drops in mobile networks. The Telecom Service Providers (TSPs) have installed about 2,12,917 additional BTSs (Base Transceiver Stations) across the country during the period from June 2016 to February 2017. “From the feedback it has been observed that the problem of call drops is more severe indoors, said Ministry of communications & information technology in a statement.

 

Macroeconomic front: The Reserve Bank of India (RBI) will focus on draining excess liquidity from the system in the new fiscal year, Governor Urjit Patel said after the monetary policy meeting on Thursday.The RBI kept its repo rate unchanged at 6.25 percent for a third consecutive policy meeting on Thursday as it continues to guard against a potential flare-up in inflation and an uncertain global economic environment.

 

On the global front: On the global front, European markets were trading in red following indications by the U.S. Federal Reserve that it wants to pare back its balance sheet. Asian markets were trading in red. Back home, in scrip specific development, Force Motors edged higher after the company reported the production, sales and export of the products manufactured during the month of March 2017. The company’s production of Small Commercial Vehicles (SCV) & Light Commercial Vehicles (LCV) stood at 1,822 units and Utility Vehicles (UV), Sports Utility Vehicles (SUV) & Tractors stood at 1,387 units.

Commodity Updates:

Commodity Prices (MCX):

Commodity

Rs

% Chang

Gold

28850.00

0.16

Silver

42273.00

0.04

Crude oil

3324.00

-0.24

Natural Gas

211.70

-0.66

Alluminium

127.30

-0.16

Copper

383.60

-0.66

Top Sectoral& Stock Screening:The top gaining sectoral indices on the BSE were Realty up by 2.46%, Energy up by 1.00%, Oil & Gas up by 0.78%, Power up by 0.34% and PSU up by 0.31%, while Consumer Durables down by 0.97%, FMCG down by 0.80%, Healthcare down by 0.66%, Telecom down by 0.55% and Metal down by 0.54% were the top losing indices on BSE.

Top Nifty Movers:The top gainers on Nifty were Reliance Industries up by 2.09%, Bajaj Auto up by 1.30%, IndusInd Bank up by 1.22%, Indian Oil Corp. up by 0.92% and Zee Entertainment up by 0.91%. On the flip side, Hindalco down by 2.57%, ITC down by 1.77%, Coal India down by 1.31%, AurobindoPharma down by 1.30% and Adani Ports & SEZ down by 1.28% were the top losers.

 

Global Signals:

Asian markets were trading mostly in red; Nikkei 225 decreased 264.21 points or 1.4% to 18,597.06, Hang Seng decreased 127.08 points or 0.52% to 24,273.72, Taiwan Weighted decreased 51.68 points or 0.52% to 9,897.80, KOSPI Index decreased 8.1 points or 0.37% to 2,152.75 and FTSE Bursa Malaysia KLCI decreased 5.11 points or 0.29% to 1,739.56. On the flip side, Jakarta Composite increased 3.26 points or 0.06% to 5,680.24 and Shanghai Composite increased 10.7 points or 0.33% to 3,281.01.All European markets were in red; Germany’s DAX decreased 50.26 points or 0.41% to 12,167.28, UK’s FTSE 100 decreased 40.92 points or 0.56% to 7,290.76 and France’s CAC decreased 9.25 points or 0.18% to 5,082.60.

 

 

US indices flattered to deceive, giving up over 180 point rise to close in the red.

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Indian Indices: Asian indices opened weak after overnight Dow Jones reversed early gains to close in the red. The fall in bond yields coupled with delay in implementation of reforms promised by the Trump administration is seeing sell on rallies emerge in US indices.


Nifty continued its upward journey with overbought indices now continuing their winning streaks. The flow of money from both foreign and domestic investors is keeping the bulls in fine fettle as new highs see new money chase absolute returns. With RBI monetary policy due today consensus has built up no change in policy rates, which could see profit booking after the event.


The BSE Sensex is currently trading at 29859.37, down by 114.87 points or 0.38% after trading in a range of 29833.45 and 29948.44. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.23%, while Small cap index was down by 0.37%.

The CNX Nifty is currently trading at 9226.40, down by 38.75 points or 0.42% after trading in a range of 9220.00 and 9245.80. There were 14 stocks advancing against 37 stocks declining on the index.

MARKET INDICATORS

·           

 

Group ATopGainers

 

 

Company

Price (Rs)

% chg

Navkarcorp

204.00

12.64

Concor

1053.90

4.13

Jindalstel

129.25

3.98

Unitech

6.06

3.59

Group ATopLosers

 

 

Deltacorp

186.90

-7.75

SCI

75.90

-3.68

Bharatfin

768.55

-3.58

Justdial

537.55

-3.20

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

29550

29780

Nifty

9150

9220

 

Technical view: Nifty now finds support around 9200 with 9330 acting as resistance while Bank Nifty finds support around 21350 with 21750 acting as resistance.

 

 

SPARC (Buy above 352, for Target of 375.5, Stop Loss at 339):Stock has been trading in a tight range of Rs 340 and Rs 300 since first week of Dec 2016. Multiple attempts to close above Rs 340 went futile earlier. In yesterday's trade stock broke out of the range successfully giving a close above Rs 340, sustaining above all its medium term 100-200 DMA. The breakout has been accompanied with decent volume expansion on daily charts. We advise to Buy SPARC above Rs 352, Stop Loss at Rs 339 and Target of Rs 375.5.

Derivative Snippets

In the last trading session, markets continue to trade higher as the mid-cap stocks shimmered. Nifty and Bank Nifty OTM put option strikes continued to remain under the selling pressure, limiting the downside risk for the indices.


FIIs were net buyers in cash market segment to the tune of Rs 340 Cr.


FII’s index future long/short ratio at 3.6x vs 3.3x.

 

Nifty Movers: The top gainers on Nifty were Bajaj Auto up by 1.44%, Axis Bank up by 0.73%, Reliance Industries up by 0.67%, Indian Oil Corporation up by 0.64% and Bank of Baroda up by 0.52%. On the flip side, Hindalco down by 2.70%, Adani Ports & Special Economic Zone down by 1.73%, ITC down by 1.60%, Tata Steel down by 1.48% and Hindustan Unilever down by 1.47% were the top losers.

 

Top Sectoral& Stock Screening: The top gaining sectoral indices on the BSE were Realty up by 2.46%, Consumer Durables up by 1.87%, Metal up by 1.01%, Telecom up by 0.84% and Basic Materials was up by 0.83%, while IT down by 0.33%, TECK down by 0.17%, FMCG down by 0.15% and Bankex was down by 0.11% were the few losing indices on BSE.

 

 

On the global front: On the global front, Asian shares were trading mostly in red, with risk appetite soured by signs the Fed might start paring its king-sized balance sheet later this year just as the chances of an early US fiscal stimulus faded further. Investors were also wary ahead of a potentially tense meeting between US President Donald Trump and his Chinese counterpart Xi Jinping, the first between the world’s two most powerful leaders

 

Global Signals:The Asian markets were trading mostly in red; Nikkei 225 decreased 289.64 points or 1.54% to 18,571.63, Hang Seng decreased 141.92 points or 0.58% to 24,258.88, Taiwan Weighted decreased 59.19 points or 0.59% to 9,890.29, Jakarta Composite decreased 26.1 points or 0.46% to 5,650.88, KOSPI Index decreased 14.53 points or 0.67% to 2,146.32 and FTSE Bursa Malaysia KLCI decreased 4.74 points or 0.27% to 1,739.93.On the other hand, Shanghai Composite increased 6.5 points or 0.2% to 3,276.80.

 

SENSEX ENDS AT RECORD HIGH, NIFTY ABOVE 9250; RIL, ADANI PORTS GAIN

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Indian Indices: Indian equity benchmarks added some gains in late afternoon session, continued their northward journey on the back of positive opening in the European markets and healthy buying in Realty, Consumer Durables and Telecom stocks. Sentiments remained upbeat with the report that Tax revenue to the central government rose 18% to Rs 17.1 trillion in the year ended 31 March, aided by steady growth in direct taxes and a sharp jump in excise and service tax receipts. 

Some support also came with the report that Federation of Indian Export Organisations (FIEO) expects the merchandise exports from India to witness double-digit growth at around $315 billion and services exports to be about $185 billion in the financial year (FY) 2017-18. Besides, foreign investors pumped in a little over Rs 49,000 crore in the Indian capital markets in 2016-17 after pulling out a hefty sum in the preceding fiscal. However, gains remained limited ahead of the outcome of Reserve Bank of India's policy meet due tomorrow.

The BSE Sensex is currently trading at 29964.45, up by 54.23 points or 0.18% after trading in a range of 29817.69 and 30007.48. There were 17 stocks advancing against 13 stocks declining on the index. The broader indices were trading in green; the BSE Mid cap index was up by 0.37%, while Small cap index was up by 1.14%.

The CNX Nifty is currently trading at 9260.85, up by 23.00 points or 0.25% after trading in a range of 9215.40 and 9264.95. There were 31 stocks advancing against 20 stocks declining on the index.

MARKET INDICATORS

·           

 

Top Movers (Group A)

 

 

Company

Cmp

% chg

Gainers

 

 

Sobha

399.00

16.24

Unitech

5.85

15.38

DEN

91.50

8.22

VRLLOG

342.60

8.23

Losers

 

 

BajajElec

348.05

-6.63

Deltacorp

202.60

-5.17

HDFC

1490.05

-2.78

GSPL

160.50

-2.67

INDEX PERFORMANCE

 

 

Index

Close

% Chg

Sensex

29,974.24

0.21

Nifty

9,265.15

0.30

Crporate Front: Five countries, including India and Bangladesh, lead the world in solar home lighting systems and the two south Asian nations together account for 97 per cent of the renewable energy market in the region, says an international body report.The other three leading countries are Kenya, Tanzania and Ethiopia -- all in Africa.

 

Macroeconomic front: Tractor maker Sonalika ITL today reported its best ever annual sales at 81,531 units, registering a growth of 19.6 per cent in 2016-17, reported PTI. During the year, the company sold 69,290 units in the domestic market, clocking an increase of 18 per cent from the previous fiscal, Sonalika ITL said in a statement.

 

On the global front:

On the global front, European markets were trading in green as investors eyed on fresh economic data and renewed promises on financial regulation from U.S. President Donald Trump. Asian markets were trading mostly in green. Back home, in scrip specific development, Bharat Forge traded higher with the company planning to raise $500 million in an overseas bond sale. The company will use the money to restructure debt and finance expansion.

Commodity Updates:

Commodity Prices (MCX):

Commodity

Rs

% Chang

Gold

28924.00

-0.32

Silver

42437.00

-0.31

Crude oil

3354.00

0.87

Natural Gas

213.70

0.42

Alluminium

127.00

0.91

Copper

380.40

1.00

Top Sectoral& Stock Screening:The top gaining sectoral indices on the BSE were Realty up by 4.43%, Consumer Durables up by 2.67%, Telecom up by 1.65%, Industrials up by 1.32% and Capital Goods up by 1.31%, while IT down by 0.86%, TECK down by 0.31% and FMCG down by 0.09% were the losing indices on BSE.

Top Nifty Movers:The top gainers on Nifty were Maruti Suzuki up by 4.12%, Adani Ports & SEZ up by 4.12%, BhartiInfratel up by 2.72%, Hindalco up by 2.40% and Reliance Industries up by 2.40%. On the flip side, HDFC down by 2.61%, Infosys down by 1.41%, Coal India down by 1.36%, HCL Tech. down by 1.28% and Tech Mahindra down by 1.05% were the top losers.

 

Global Signals:

Asian markets were trading mostly in green; Jakarta Composite increased 1.78 points or 0.03% to 5,653.60, Shanghai Composite increased 47.79 points or 1.48% to 3,270.31, Nikkei 225 increased 51.02 points or 0.27% to 18,861.27, Taiwan Weighted increased 137.96 points or 1.41% to 9,949.48 and Hang Seng increased 139.32 points or 0.57% to 24,400.80. On the flip side, FTSE Bursa Malaysia KLCI decreased 4.89 points or 0.28% to 1,742.30 and KOSPI Index decreased 0.25 points or 0.01% to 2,160.85.

European Markets were trading mostly in green; France’s CAC increased 4.59 points or 0.09% to 5,105.72 and UK’s FTSE 100 increased 25.31 points or 0.35% to 7,347.13. On the flip side, Germany’s DAX decreased 22.53 points or 0.18% to 12,259.81.

 

 

US indices close flat as oil and dollar rally with energy stocks seeing value buying. Going ahead, corporate results to set the trend for April as indices continue to look bottom heavy.

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Indian Indices: Asian markets opened flat to mildly positive as the US indices closed flat after 2 days of intraday volatility. The results season ahead should set the trend for the month of April as markets consolidate. Oil prices rallied along with the US Dollar while bond yields fell further to near 2.35% on the US 10 year treasury paper.


Nifty saw another burst above 9250 on strong foreign flows as old favorites like Reliance and L&T led from the front. With foreign investors buying heavily in March and the markets now @ new highs they will see pressure from corporate results to be announced next week onwards. With most good news being priced in, time to be cautious as any disappointment on results can see healthy correction in Nifty in second half of April.

The BSE Sensex is currently trading at 29867.85, down by 42.37 points or 0.14% after trading in a range of 29817.69 and 30007.48. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.34%, while Small cap index was up by 0.71%.

The CNX Nifty is currently trading at 9231.70, down by 6.15 points or 0.07% after trading in a range of 9215.40 and 9264.95. There were 30 stocks advancing against 21 stocks declining on the index.

MARKET INDICATORS

·           

 

Group ATopGainers

 

 

Company

Price (Rs)

% chg

Unitech

5.39

6.31

Sobha

364.40

6.16

Intellect

124.55

5.19

Edelweiss

169.35

5.19

Group ATopLosers

 

 

HDFC

1500.75

-2.08

Jetairways

521.75

-1.88

Hathway

35.95

-1.78

Bhartiartl

806.95

-1.39

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

29550

29780

Nifty

9150

9220

 

 

Technical view: Nifty now faces resistance around 9330 on the upside with 9218 now acting as strong support. Bank Nifty faces resistance around 21750 while 21250 will act as strong support.

 

 

 

JISLJALEQS (Buy above 99, for Target of 108.5, Stop Loss at 95.5): Jain Irrigation Systems has given a fantastic triangle pattern breakout on daily as well as weekly charts. This comes after the stock consolidated with previous uptrend in place, hence, can be termed as a continuation of the previous trend. Breakout is accompanied by sharp surge in trading volumes. We advise to Buy JISLJALEQS above Rs 99, Stop Loss at Rs 95.5 and Target of Rs 108.5.

Derivative Snippets

In the last trading session, Nifty closed above 9200 for the first time ever. Nifty OTM call option strikes witnessed long build up while OTM put option strikes saw huge short selling. Short build up was seen in Bank Nifty weekly 06APR 21500PE strike, indicating 21500 levels as a new floor for Bank Nifty in this weekly series.

Amidst lowest expectation from the RBI credit policy in recent times, implied volatility of Index options tumbled in the last trading session.

FIIs were net buyers in cash market segment to the tune of Rs 534 cr. FII’s index future long/short ratio at 3.3x. Fresh long position in Index call options to the tune of ~24k contracts were created in the last trading session.

 

 

Nifty Movers: The top gainers on Nifty were BhartiInfratel up by 2.82%,Hindalco up by 2.17%, Adani Ports up by 1.91%, Maruti Suzuki up by 1.61% and Grasim Industries was up by 1.58%. On the flip side, HDFC down by 1.89%, ICICI Bank down by 1.15%, GAIL India down by 1.09%, Asian Paints down by 1.03% and SBI was down by 0.89% were the top losers..

 

Top Sectoral& Stock Screening: The top gaining sectoral indices on the BSE were Realty up by 2.46%, Consumer Durables up by 1.87%, Metal up by 1.01%, Telecom up by 0.84% and Basic Materials was up by 0.83%, while IT down by 0.33%, TECK down by 0.17%, FMCG down by 0.15% and Bankex was down by 0.11% were the few losing indices on BSE.

 

 

 

 

On the global front: On the global front, Asian markets were trading mostly in red at this point of time, as investors move to the sidelines before a potentially tense meeting between Donald Trump and Chinese President Xi Jinping later this week. The US markets closed modestly in green in the last session, though the trade remained lackluster and the major averages spent the day bouncing back and forth across the unchanged line, ahead of some key events later this week.

 

 

Global Signals:Asian markets were trading mostly in red; Hang Seng decreased 45.51 points or 0.19% to 24,215.97, Nikkei 225 slipped 19.45 points or 0.1% to 18,790.80, KOSPI Index shed 7.16 points or 0.33% to 2,153.94, Jakarta Composite dipped 5.44 points or 0.1% to 5,646.38 and FTSE Bursa Malaysia KLCI was down by 5.08 points or 0.29% to 1,742.11.On the flip side, Shanghai Composite increased 34.16 points or 1.06% to 3,256.67 and Taiwan Weighted was up by 87.72 points or 0.89% to 9,899.24.

 



How to be responsible while investing in the market?

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You need to understand the market situation very well when you try to make stock investment in the market. If you try to make any investment in the market without any clear knowledge of the market then you would not be able to make any profit from the market. There are stocks that have shown good profit in the market and you can then try to invest in it but you should always keep in mind that there are always some risks in the market and you cannot avoid the risks. If you try to make your investment in the market and that too without any proper study then you would have to face a huge loss of money.  Making the right and profitable investment in the market is not difficult if you really try your best to make good study or research. There are concepts that make you feel that it is not important but you should know that all concepts are very important in the market. 


If you are able to get the right information of the stocks then it would not be at all difficult for you to make good money. You should take care when you try to go for online stock market because you have to find the right and genuine website because this would only help you to get the correct information of the market. When you get all the updated information of the market you would not have to worry for your investment. This is because you can get all the latest happenings in the market that would help you to make the right income. Getting the right income from the stocks is possible but it might take some time for which you need to have good patience in the market.  To be a successful trader you need to identify the profitable stocks that would help you get the maximum benefit. If you are able to take the right decision yourself then you would not have to worry but you should know that you have to know how NSE, BSE….etc functions in the market. You should also try to know the insights of the market and this would make you more knowledgeable in the market. It is important for you to know how to be responsible while investing in the market?

 

Do not dare to predict

There are some investors who try to predict the stock market because they think that they are able to know what would happen to the market. If you also think the same then it is important to clear this misconception because this would only make you a loser and you would also feel less confident in the market. It is to be noted no matter how much you try to get rod of risks, the risk factor would always be there and you would not be able to get away from it. You also need to assure yourself that you are quite patient and you have the ability to bear the risks in the market while investing in the different stocks. You can also make good income from day trading but for this you have to get the right knowledge on how you are going to invest in it.

 

Make the perfect planning for your investment

You have to make the perfect plan for your stock investment in the market and this can be done by avoiding the decision made by your friends. In other words you need to make sure that you do not take any advice from your friends as they might provide you all the wrong information and you would have to lose your cash in the market. Investing for short term can also help you gain good amount of money but you need to know the risks in it. You would be glad of your own decision when you get the best profit from your stock investment. You should make sure of the stocks that it would bring good profits to you. Thus you should try to understand how to be responsible while investing in the market?

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