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Sharetipsinfo-Reserch report-8-01-2017

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Topic :- Time:3.00 PM


Nifty spot if closes above 10600 level then expect some more upmove in coming trading sessions and if it closes below above mentioned level then some sluggish movement is expected in the market. Avoid open sell positions for tomorrow.


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Topic :- Time:2.30 PM


CRUDEOIL Trading View:

CRUDEOIL is trading at 3893. If it breaks and trade below 3980 level then some profit booking can be seen in it and if it manages to trade and sustain above 3915 level then some upmove can follow in CRUDEOIL.


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Topic :- Time:2.00 PM


Nifty turning from 10600 which is its immediate support level. Nifty spot once sustains above 10620 level then expect immediate upmove and only below 10600 some softness can be seen in the market.


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Topic :- Time:1.30 PM


GOLD Trading View:

GOLD is trading at 29175. If it breaks and trade below 29160 level then some profit booking can be seen in it and if it manages to trade and sustain above 29220 level then some upmove can follow in it.


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Topic :- Time:1.00 PM


Nifty is trading in a range. Nifty spot if manages to trade and sustain above 10620 level then upmove is expected and below 10600 level some softness can follow.


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Topic :- Time:12.00 PM


Nifty is trading quite flat now. Nifty spot if manages to trade and sustain above 10625 level then expect some upmove and if it breaks and trade below 10600 level then some softness can be seen in it.


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Topic :- Time:11.40 AM


News Wrap Up:

1. Sensex trades at record high, Nifty hits 10,600 for 1st time

2. Onions making you cry? Increased supply to cool down prices in 2 weeks

3. Domestic airfares get 9-15% cheaper on increase in flights and competition

4. Sobha hits fresh 52-week high post Q3 operational update

5. Goa Carbon hits the roof after turnaround Q3 result

6. Sebi should not discriminate between large and small rating agencies

7. Dream Gateway Hotels to take IPO route to expand Kolkata Holiday Inn

8. L&T Construction bags orders worth Rs 2,265 crore


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Topic :- Time:11.10 AM


After gap up opening nifty is still trading in greenzone at its life time high. Nifty spot if manages to trade and sustain above 10625 level then some upmpove can be seen in the market and if it breaks and trade below 10600 level then some softness can be seen.


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Topic :- Nifty Opening Note


Indian Stock Market Trading View For 08 Jan,2018:


More volume and participation is expected in the market. Nifty to turn volatile as the day progresses.


Nifty spot if manages to trade and sustain above 10590 level then expect some quick upmove and if it breaks and trade below 10540 level then some softness can be seen in the market. Please note this is just opening view and should not be considered as the view for the whole day.

Rural economy, monsoons to boost FMCG cos in 2018

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In the next 12 months, consumer goods companies would see a revival, both in volume and margin terms, with an anticipated revival in the rural sector, said a report.

With a few state elections and expected populist budget, the rural sector is anticipated to be prime beneficiary. This, coupled with improving macros and good monsoon after two consecutive droughts, also augur well, said the report on the consumer good sector brought by Edelweiss.

"After four quarters of muted growth, the consumer goods sector is likely to clock high single to low double digit volume growth in the October-December quarter of the current fiscal, the report said.

Volumes of consumer goods companies, which rebounded marginally from GST-related destocking in the July-September quarter of current fiscal, are likely to see near normalcy, it added.

Rural markets are recovering, albeit at a slower pace, the report noted.

Gross margin expansion will be soft since companies have hardly taken price hikes and have in fact cut prices due to reduced GST rates, it added.

"Partially, companies will start spending on advertising," the report noted. However, cost rationalisation should aid EBITDA margin expansion.

The report said the sector revenue growth will revive from the second half of the current financial year. "With GST pangs largely behind, volumes of most companies to clock high single to low double digit growth."

Paint companies are likely to clock high single digit to low double digit volume growth aided by demand levers as well as soft base, it said.

Prices of raw materials like copra, monomers and menthol, among others, have remained elevated. Prices of other raw materials like sugar, wheat flour and milk have remained flat to slightly declining, the report said.

"To offset rising raw material cost, companies have not been able to take required price hikes, resulting in some gross margin compression. With cost rationalisation, calibrated EBITDA margin expansion can be expected," it noted.

India probes cheap detergent chemical import from China

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India has initiated an anti- dumping probe into import of a Chinese chemical used in detergents following complaints from some domestic companies.

Gujarat Credo Mineral Industries and Chemicals India have filed an application before the Directorate General of Anti- dumping and Allied Duties (DGAD) for initiation of an investigation into import of 'Zeolite 4A (Detergent Grade)' from China.

In a notification, the DGAD said prima facie it has found sufficient evidence of dumping of the chemical.

The anti-dumping duty, if imposed, would help guard domestic players in the sector against cheap imports of the product.

"The authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry," it said.

In the probe, it would determine the existence and effect of the alleged dumping and recommend the amount of anti- dumping duty, which if levied, would be adequate to remove the injury to the domestic industry.

The period from April 2016 to June 2017 (15 months) will be taken for the probe.

Countries carry out anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in cheap imports.

As a counter measure, they impose duties under the multilateral regime of WTO.

The duty is aimed at ensuring fair trading practises and creating a level-playing field for domestic producers with regard to foreign producers and exporters.

India has already imposed anti-dumping duty on several products to tackle cheap imports, including from China.

The country has imposed the duty on as many as 98 products, as on December 27 last year, imported from China.

Market Mantra Report as on August 11,2017

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august 11th,2017

Market Mantra Report

 

Major Headlines:

Market Summary:

Microeconomic Front:

Corporate Front:

Trading Ideas:

Events for the day:

Global Signals:

Sectoral& Stock Screening:

 

US stocks witness correction with Nasdaq falling over 2%. Gold rises along with bonds as clamor for safety gathers momentum. North Korean geopolitical risk rise which gives reason for markets globally to see much needed correction.

 

 

                                                             

 

 

Major headlines:

·         RBI dividend to gobernment halves to Rs 30659 cr

·         Japanese firm to invest Rs 1000 cr in Andhra

·         IOC buys more U.S crude; First to purchase eagle Ford shale oil

 

 

Indian Indices:  Asian indices opened in the red for another day as fear saw stocks plummet with clamor for safety getting louder. Gold prices rose sharply with the asset hitting 3 month highs as defensive buying saw the price move up. With the Japanese markets shut the strength in the Yen trading at 109 would have seen further decline in export stocks.

Nifty breached 9800 briefly before closing above 9800 as the carnage on mid caps continue to weaken sentiment. Metals, IT and select Private Banks saw buying support while Pharma, PSU Banks and Auto's saw selling get stronger as weak results from Tata Motors and Eicher Motors hurt sentiment. For today expect weekend blues to play dampener as Rupee weakness, foreign selling and important bank results to keep sentiment weak.

The BSE Sensex is currently trading at 31312.09, down by 219.24 points or 0.70% after trading in a range of 31194.87 and 31355.92. There were 5 stocks advancing against 26 stocks declining on the index. The broader indices were trading in red; the BSE Mid cap index was down by 0.12%, while Small cap index was down by 0.41%.

The CNX Nifty is currently trading at 9745.40, down by 74.85 points or 0.76% after trading in a range of 9704.35 and 9757.55. There were 12 stocks advancing against 39 stocks declining on the index.

MARKET INDICATORS

·           

 

Group ATop Gainers

 

 

Company

Price (Rs)

% chg

Hathway

36.30

20.00

HDIL

59.40

5.88

Bajajfinanc

1717.50

4.83

Sintex

28.50

4.40

Group ATop Losers

 

 

Manapuram

85.85

-8.03

Adanitrans

107.90

-7.82

Centralbk

77.10

-6.03

SCI

82.50

-5.88

 

 

Technical view:  Nifty now finds support around 9700 which was the June resistance and faces strong resistance around 9850, while Bank Nifty looks set to breach 24200 and will find resistance around 23850 while 24500 will act as strong resistance. 

 

 

 

Ashok Leyland Aug Futs (Sell Below 103.50 with Stop Loss at 105 for Target of 98): The stock has constantly been under pressure for the past week and has finally broken down from a rising channel pattern on the daily chart. Other oscillators also indicate that current weakness is likely to extend. Ashok Leyland has also cracked below its 21-DMA support zone, which further accentuates our short term bearish stance on the stock.

Economy Snippets:

After the GST Council empowering the Centre to bring an amendment in the compensation law to increase ceiling on cess on the luxury cars, infuriating auto companies, the finance ministry ruled out lowering cess on hybrid luxury cars. (BS)

The government's capital expenditure will rise by 25 per cent to Rs 3.9 lakh crore by 2019-20, with defence outlay alone jumping 22%, according to the Mid-Year Review tabled in Parliament.

Varun Beverages board approved its intent to enter into a binding agreement to acquire PepsiCo India’s previously franchised territories of the State of Odisha and parts of Madhya Pradesh along with three manufacturing units at Cuttack, Bargarh and Bhopal (Mandideep).

 

Nifty Movers:      The top gainers on Nifty were Aurobindo Pharma up by 1.77%, Infosys up by 1.37%, GAIL India up by 1.23%, Tech Mahindra up by 1.23% and Wipro up by 0.61%. On the flip side, Vedanta down by 2.73%, Asian Paints down by 2.54%, Hindalco down by 2.44%, Larsen & Toubro down by 1.85% and ONGC down by 1.80% were the top losers.

 

Top Sectoral& Stock Screening:     The top gaining sectoral indices on the BSE were Realty up by 0.52%, IT up by 0.24%, Consumer Durables up by 0.14% and TECK up by 0.06%, while Capital Goods down by 1.18%, Metal down by 1.16%, Industrials down by 0.97%, Auto down by 0.94% and Consumer Disc down by 0.91% were the losing indices on BSE.

 

 

On the global front:         On the global front, Asian markets were trading in red, hit by tough language between North Korea and Washington that has sparked safe haven demand. China’s fiscal spending rose at a slower pace in July due mainly to larger expenditure earlier, but a government-led infrastructure push has kept spending brisk this year.

Global Signals:     The Asian markets were trading in red; Hang Seng decreased 559.01 points or 2.04% to 26,884.99, Jakarta Composite decreased 62.98 points or 1.08% to 5,762.97, Shanghai Composite decreased 45.96 points or 1.41% to 3,215.79, KOSPI Index decreased 41.59 points or 1.76% to 2,317.88, FTSE Bursa Malaysia KLCI decreased 8.6 points or 0.48% to 1,769.17 and Taiwan Weighted decreased 1.48 points or 0.01% to 10,328.26.

 

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Market Mantra Report

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august10th,2017

Market Mantra Report

 

Major Headlines:

Market Summary:

Microeconomic Front:

Corporate Front:

Trading Ideas:

Events for the day:

Global Signals:

Sectoral& Stock Screening:

 

US stocks recover in last hour to close with marginal losses as Trump rhetoric see 'war' threat fade away as better sense prevails. Bond yields hit 2.24% while Gold also sees rally easing as equities recover.

                                                             

 

 

Major headlines:

·         RBI may need to drain up to $22 billion as inflows add to excess liquidity

·         Wouldn’t have approved demonetization

·         Buayantbitcoinstriscryptobubble fears

 

 

Indian Indices:Asian indices opened in the green with Japanese 'Nikkei" seeing gains being sold into as caution prevail before important jobs data due on Friday. South Korean stocks also see some gains even as geopolitical risk emanates stronger than ever before.

Nifty breached 9900 before closing at 9908 with Bank Nifty being the main culprit hitting 24300 as financials lead the downside. Mid cap carnage and leveraged trade unwinding continues to see sentiment turn weak even as local mutual fund flows support the market. For today expect rallies in the morning session to see selling emerge closer to 9950.

The BSE Sensex is currently trading at 31653.32, down by 144.52 points or 0.45% after trading in a range of 31588.26 and 31756.27. There were 9 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.12%, while Small cap index was down by 1.37%.

The CNX Nifty is currently trading at 9856.85, down by 51.20 points or 0.52% after trading in a range of 9835.95 and 9879.20. There were 12 stocks advancing against 39 stocks declining on the index.

MARKET INDICATORS

·           

 

Group ATopGainers

 

 

Company

Price (Rs)

% chg

Techm

411.75

5.01

BBTC

908.45

3.50

Hdil

59.20

3.14

MMTC

58.90

2.88

Group ATopLosers

 

 

Natcophar

739.75

-10.94

Tatamotors

386.20

-7.33

Tatamtrdvr

224.60

-7.32

DBL

533.25

-5.07

 

 

Technical view: Nifty now finds support around 9845 while 9950 will act as resistance on the upside. Bank Nifty finds support around 24000 while 24650 will act as resistance on the upside.

 

 

 

Exide Industries (Sell Below 207 with SL at 211 for Target of 200): The stock has been consolidating from the past four weeks and has finally broken down from a Symmetrical Triangle Pattern on the daily chart. Exide has also cracked below its long term 200-DMA, which further accentuates our short term bearish stance on the stock. Other oscillators also indicate that current weakness is likely to extend.

Economy Snippets:

The government has notified the timeline for furnishing final tax returns for July and August under the Goods and Services Tax (GST) regime.

 

A war of words over foreign influence on Indian policymaking broke out on Tuesday after NITI Aayog vice-chairman-designate Rajiv Kumar suggested in a newspaper column that Indian-American economists were fading away as part of the ongoing policy transformation in the government. 

 

The government crackdown against 331 “suspected shell companies” has hit several investors, including mutual funds and small investors, who hold shares worth nearly Rs 9,000 crore in these

 

Nifty Movers: The top gainers on Nifty were Tech Mahindra up by 3.73%, AurobindoPharma up by 2.66%, Dr. Reddy’s Lab up by 1.31%, Lupin up by 1.15% and Infosys up by 1.10%. On the flip side, Tata Motors - DVR down by 7.35%, Tata Motors down by 6.65%, Eicher Motors down by 4.03%, BPCL down by 3.50% and Vedanta down by 2.07% were the top losers.

Top Sectoral& Stock Screening:The top gaining sectoral indices on the BSE were IT up by 0.40% and TECK up by 0.26%, while Industrials down by 2.01%, Auto down by 2.01%, Power down by 1.43%, Utilities down by 1.42% and Metal down by 1.40% were the losing indices on BSE.The top gainers on the Sensex were Dr. Reddy’s Lab up by 1.50%, Lupin up by 1.19%, Infosys up by 1.05%, HDFC up by 0.74% and Sun Pharma up by 0.68%.

 

 

 

 

On the global front:On the global front, Asian markets were trading in red, as investors fretted on lingering North Korea tensions, sending Seoul shares skidding to two-month lows even as the previous day’s rush into safe-haven assets appeared to slow. Japan’s core machinery orders unexpectedly fell for a third consecutive month in June, underscoring companies’ reluctance to boost spending and conflicting with recent signs that the economic recovery is gathering momentum.

 

Global Signals:The Asian markets were trading in red; Hang Seng decreased 343.96 points or 1.24% to 27,413.13, Taiwan Weighted decreased 150.43 points or 1.44% to 10,319.95, Shanghai Composite decreased 31.12 points or 0.95% to 3,244.46, Nikkei 225 decreased 20.57 points or 0.1% to 19,718.14, KOSPI Index decreased 7.65 points or 0.32% to 2,360.74, Jakarta Composite decreased 3.61 points or 0.06% to 5,820.39 and FTSE Bursa Malaysia KLCI decreased 1.17 points or 0.07% to 1,776.77.

 

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Market Mantra Report

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august08th,2017

Market Mantra Report

 

Major Headlines:

Market Summary:

Microeconomic Front:

Corporate Front:

Trading Ideas:

Events for the day:

Global Signals:

Sectoral& Stock Screening:

 

Technology stocks drive US indices to a new high as light volumes keeps the unstoppable bull charge going. Oil, Gold and Bond yields remain range bound as ETF flows continue to see money chase equities.

                                                             

 

 

Major headlines:

·         India’s major ports see rise in cargo traffic by 4.13%

·         China’s July exports, imports weaker than expected cloud global outlook

·         BhartiAirtel subsidiary selling stake in BhartiInfratel for up to $400 million

 

 

Indian Indices:Asian indices opened on a quiet note as profit booking was the call in early trade. With China to release trade data later today most would focus on growth numbers to further validate investment buying as valuations reach stretched levels. 

Nifty saw a strong opening get sold into as last hour selling further dragged the index into the red. Buying in Metals and PSU Banks was evident while selling emerged in IT, Media and Pharma stocks. For today expect another day of sector/stock specific action as the index remains range bound.  

The BSE Sensex is currently trading at 32045.79, down by 227.88 points or 0.71% after trading in a range of 31915.20 and 32354.77. There were 6 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.02%, while Small cap index was down by 1.11%.

The CNX Nifty is currently trading at 9989.00, down by 68.40 points or 0.68% after trading in a range of 9947.00 and 10083.80. There were 11 stocks advancing against 40 stocks declining on the index.

MARKET INDICATORS

·           

 

Group ATopGainers

 

 

Company

Price (Rs)

% chg

DBL

578.55

7.55

Edelweiss

243.70

6.23

Hindalco

239.00

4.99

MRPL

137.85

4.51

Group ATopLosers

 

 

Hdil

64.75

-6.70

Unitech

8.30

-6.21

JPassociat

27.25

-6.03

Sparc

367.80

-3.98

 

 

 

Technical view: Nifty finds support around 10000 while 10100 will act as resistance on the upside. Bank Nifty also faces resistance around 25100 while 24750 will act as support on the downside.

 

 

RadicoKhaitan (Buy Above 152 with SL at 149 for Target of 159): After consolidating for past three trading sessions, the stock has broken out from a Flag Pattern on the lower time frame charts. The price has rallied smartly backed by sharp rise in traded volumes. Other momentum oscillators also indicate that the current upswing is likely to extend.    

Economy Snippets:

The Finance Ministry has turned down the Commerce Ministry’s pitch for a reduction in import duty on gold, citing improved data in respect of the current account deficit (CAD), official sources said.

India may impose anti—dumping duty of up to $ 452.33 per tonne on a certain variety of Chinese pneumatic radial tyres to guard domestic players from cheap imports. (HBL)

SUVs, mid-sized, large and luxury cars that had become cheaper after GST rollout on July 1 will cost more as the GST Council has approved a proposal to hike cess on them to 25%, from 15% now.

The country's 12 major ports saw their cargo traffic go up by 4.13% to 221.95 MT in April-July period of the ongoing fiscal, riding on the back of surge in demand, according to data from ports' body IPA.

 

Nifty Movers: The top gainers on Nifty were Hindalco up by 4.28%, Vedanta up by 3.89%, Tata Steel up by 3.52%, Hindustan Unilever up by 1.07% and Bajaj Auto up by 0.72%. On the flip side, BhartiInfratel down by 3.62%, BPCL down by 3.34%, Indian Oil down by 3.21%, SBI down by 2.17% and ONGC down by 1.90% were the top losers.

Top Sectoral& Stock Screening:The top gaining sectoral indices on the BSE were Metal up by 2.17% and Basic Materials up by 0.49%, while Realty down by 2.33%, Oil & Gas down by 2.03%, PSU down by 1.78%, Energy down by 1.64% and Power down by 1.50% were the losing indices on BSE.

 

 

 

On the global front:On the global front, Asian markets were trading mostly in green, while Shanghai Composite was down as disappointing Chinese trade data clouded the otherwise upbeat outlook on global growth. China’s exports and imports grew more slowly than expected in July, raising concerns over whether global demand is starting to cool even as major Western central banks consider scaling back their massive stimulus programs.

 

Global Signals:The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 0.25 points or 0.01% to 1,778.16, KOSPI Index increased 1.84 points or 0.08% to 2,400.59, Jakarta Composite increased 29.69 points or 0.52% to 5,778.98 and Hang Seng increased 43.03 points or 0.16% to 27,733.39.On the other hand, Nikkei 225 decreased 66.64 points or 0.33% to 19,989.25, Taiwan Weighted decreased 9.12 points or 0.09% to 10,570.26 and Shanghai Composite decreased 5.07 points or 0.15% to 3,274.39.

.

 

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Weekly Nifty Trading View for the Week July 31, 2017- August 06, 2017

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Events to watch this week

  • US growth sees modest Q2 bounce-back

  • Fed: Balance sheet run off to commence “relatively soon”

  • IMF lowers US growth outlook, raises others'

  • US Senate debates Obamacare changes

  • Abe’s support slides as scandals mount

  • Trump backs corporate, middle-class tax cuts

The Week ahead:

Date

Country/Area

Release/Event

Mon, 31 Jul

Japan

Industrial production

Mon, 31 Jul

China

Non-manufacturing purchasing managers' index

Mon, 31 Jul

eurozone

Unemployment report, consumer price index

Tue, 1 Aug

Global

Manufacturing purchasing managers’ indices

Tue, 1 Aug

eurozone

Q2 preliminary gross domestic product

Tue, 1 Aug

United States

Personal income, spending, personal consumption expenditures

 Thu, 3 Aug

Global

Non-manufacturing purchasing managers indices

For the week,Global equities rose a touch this week, with major US indices once again setting new highs. The yield on the US 10-year note rose six basis points to 2.30% on the week while the price of West Texas Intermediate crude oil rose over $3 a barrel to $49.65. Volatility, as measured by the Chicago Board Options Exchange Volatility Index (VIX), rose to 11.00 from 9.9 a week ago.

NIFTY- 10,014.50
CRUDE OIL-Rs 3192barrel
GOLD-Rs 28,580gram
Rs/$-Rs 64.15

MARKET ROUND UP 
Market registered modest gains on positive global cues. The Nifty breached the psychologically important 10,000-mark for the first time. Both the Sensex, and the Nifty, attained record high levels. A bout of volatility was witnessed as traders rolled over positions in the futures & options (F&O) segment from July 2017 series to August 2017 series. The July 2017 derivatives contract expired on Thursday, 27 July 2017. 

Overseas, US Federal Reserve kept its benchmark interest rate unchanged after the conclusion of a two-day policy meeting on Wednesday, 26 July 2017. The Fed gave no clear signal about the chances for another increase this year or about any concerns about low inflation. But the central bank did confirm that it plans to begin to reduce its massive bond holdings relatively soon. The Fed had raised the target range for its federal funds rate by 25 basis points to 1% to 1.25% during its June 2017 meeting. 
Back home, the Sensex rose 280.99 points or 0.88% to settle at 32,309.88 in the week ended 28 July 2017. The Nifty 50 index advanced 99.25 points or 1% to settle at 10,014.50. Broader market trailed large caps. The S&P BSE Mid-Cap index jumped 0.95%. The S&P BSE Small-Cap index rose 0.49%. Both these indices underperformed the Sensex. 

Macro Economic Front: 
On the Economic Front,the International Monetary Fund (IMF) in its latest World Economic Outlook (WEO) report on Monday, 24 July 2017, said that growth in India is expected to pick up further in 2017 and 2018 with global economic recovery remaining on track on the back of better performing emerging economies. IMF projects India to grow at 7.7% in 2018, estimating a significant increase against the backdrop of ongoing economic reforms. The IMF estimates a global growth rate of 3.5% this year, which is projected to increase to 3.6% in 2018. 

In a key political development, Nitish Kumar formed new government in Bihar with the BharatiyaJanata Party (BJP). He took oath as Chief Minister of Bihar at 10:00 IST on Thursday, 27 July 2017. With oath Nitish Kumar ended his party, JDU's mahagathbandhan or Grand Alliance with LaluYadav's RJD and the Congress last evening and joined hands with his former partner BJP. 

Major Action &Announcement:
HDFC's net profit fell 16.84% to Rs 1555.74 crore on 3% fall in total income to Rs 8141.76 crore in Q1 June 2017 over Q1 June 2016. The company announced its Q1 results during market hours on Wednesday, 26 July 2017. HDFC's board of directors at its meeting held on 26 July 2017, approved issue of secured, redeemable, non convertible debentures aggregating Rs 35000 crore on private placement basis. 

HDFC Bank rose 4.26% to Rs 1,775.90 after net profit rose 20.22% to Rs 3893.84 crore on 14.81% growth in total income to Rs 22185.4 crore in Q1 June 2017 over Q1 June 2016. The result was announced during market hours on Monday, 24 July 2017. 

State Bank of India gained 3.05% to Rs 299.20. The bank announced on Wednesday, 26 July 2017, that its executive committee of the central board approved extension of validity period to raise the remaining additional tier I capital to the tune of Rs 2000 crore till 31 March 2018 and accordingly authorized bank to raise uptoRs 2000 crore additional tier I capital, by way of issue of Basel III compliant perpetual debt instruments in dollar and/or rupee, at par, through private placement to overseas and/or Indian investors. 

ICICI Bank lost 1.73% to Rs 296 after net profit fell 8.21% to Rs 2049 crore on 0.52% growth in total income to Rs 16847.04 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours on Thursday, 27 July 2017. 

Axis Bank lost 4.66% to Rs 515. The bank's net profit fell 16.07% to Rs 1305.60 crore on 1.44% growth in total income to Rs 14052.30 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours on Tuesday, 25 July 2017. 

Axis Bank's gross non-performing assets (NPAs) stood at Rs 22030.87 crore as on 30 June 2017 as against Rs 21280.48 crore as on 31 March 2017 and Rs 9553.17 crore as on 30 June 2016. The ratio of gross NPAs to gross advances stood at 5.03% as on 30 June 2017 as against 5.04% as on 31 March 2017 and 2.54% as on 30 June 2016. 

Maruti Suzuki India's operating EBITDA (earnings before interest, taxes, depreciation and amortization) rose 5.3% to Rs 2331.20crore in Q1 June 2017 over Q1 June 2016. Sales volume rose 13.2% to 3.94 lakh vehicles in Q1 June 2017 over Q1 June 2016. 

Cigarette major ITC rose 0.95% to Rs 291.25 after net profit rose 7.4% to Rs 2561 crore on 4.3% growth in gross revenue to Rs 13722 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours on Thursday, 27 July 2017. 

Global Front: 
In Overseas Markets,China will unveil manufacturing PMI data for July on Sunday, 30 July 2017. Eurozone consumer price index (CPI) data for July will be unveiled on Monday, 31 July 2017. US pending home sales data for June will be unveiled on Monday, 31 July 2017. US ADP non-farm employment change data for July will be unveiled on Wednesday, 2 August 2017. US ISM non-manufacturing PMI data for July will be unveiled on Thursday, 3 August 2017. US Non-farm Payrolls data for May will be unveiled on Friday, 4 August 2017. US Unemployment Rate data for July will be unveiled on Friday, 4 August 2017. 

Global Economic News:

US GDP rebounds from sluggish start to year
US economic growth accelerated in the second quarter, rising 2.6%, up from the first quarter’s 1.2% pace. Economists had expected a slightly stronger rebound, and the bounce is well short of expectations from earlier in the quarter. Wage pressures remain muted as hopes for sustained faster growth fade, given that pro-growth policies from Washington are looking less likely by the day. Modest growth averaging around 2% looks to be in the cards again in 2017. This should keep the US Federal Reserve on a gradual rate-hiking path.

Fed signals it’s ready to cut balance sheet soon
In a statement released after Wednesday’s Federal Open Market Committee meeting, the Fed indicated it is ready to begin trimming its balance sheet, which mushroomed in the wake of the global financial crisis. In a statement, the Fed said it expects to begin allowing some of its bond holdings to mature “relatively soon.” This is a shift from earlier language, released after the June FOMC meeting, that indicated a move by the end of the year. Many expect an announcement to come at the September FOMC meeting. The Fed held rates steady while acknowledging that inflation is running below its 2% target.

US health care push fizzles
Despite their effort being pronounced dead on several occasions, US Senate Republicans took up health care reform again this week after a dramatic return to the Capitol by Senator John McCain, who was recently diagnosed with brain cancer. Vice President Mike Pence broke a 50–50 tie to allow the Senate to begin debate on several Republican-sponsored legislative options. Ironically, McCain helped scuttle the final alternative, a “skinny repeal” bill that would have ended Obamacare’s individual mandate, among other provisions. Now that the health care bill has been defeated, Senate leaders hope to move on to tax reform and to passing a spending bill in order to avoid a government shutdown at the end of September.

Trump talks taxes
Amid a swirl of controversy, US president Donald Trump, in an interview with the Wall Street Journal this week, reiterated his desire to slash the US corporate tax rate to 15% from 35% while lowering the tax burden on the middle class. Additionally, Trump kept open the option of raising taxes on upper-income earners. The president did not rule out reappointing Fed chair Janet Yellen, but said that economic advisor Gary Cohn, former president of Goldman Sachs, is also under consideration for the post. In a press release on tax reform on Thursday, congressional leaders and administration officials agreed to table the border-adjustment tax that would have taxed US imports.  

Moody’s sees less China bank risk
Credit rating agency Moody’s has upgraded its outlook on the Chinese banking system to stable from negative. Moody's sees receding concerns over China’s massive shadow banking sector following action from regulators to curb systemic imbalances. It also expects nonperforming loans to stabilize near current levels.

GLOBAL CORPORATE NEWS

According to Thomson Reuters I/E/B/S, with 48% of the members of the S&P 500 Index reporting, second-quarter earnings are expected to rise 10.7% versus Q2 2016. Excluding the energy sector, the rise is 8%. Revenues are expected to climb 4.9%. Excluding energy, a 4.1% earnings rise is expected.


Greece returns to bond market after three-year hiatus
Having recently secured another bailout tranche from European creditors, Greece returned to the bond markets with a €3 billion five-year offering, which was more than two times oversubscribed. Greece is the rare sovereign that issues sovereign debt at a higher yield than some Greek corporates. The new issue yields 4.65% versus some recently issued corporate debt with a 3.1% yield. The extra yield reflects the political risk posed by Greece’s relatively market-unfriendly Syriza government.

NEW 52-WEEK HIGH BSE (A):

ADANIPORTS

398.40

ASHOKLEY

109.85

BRITANNIA

3925.00

NEW 52-WEEK LOWS BSE (A):


AJANTAPHARM

1393.75

MAJOR WEEKLY GAINERS IN BSE A CATEGORY(%):


GET&D INDIA

21.04

YES BANK

16.80

SUN PHARMA

13.71

MAJOR WEEKLY LOSERS IN BSE A CATEGORY:


SREI INFRA

-13.23

LAKSHMI VILAS

-11.95

DR. REDDY

-10.79


Eyes will be set on the certain US economic data releases are:
Monday (31July)
Pending Home Sales Index 
Tuesday (01 August)
PMI Manufacturing Index 
Wednesday (02 August)
MBA Mortagage Applications
Thursday (03 August)
Jobless Claims & Factory Orders
Friday (04 August)
Employment Situation

TechnicalPick of the week:

Buy ACC Ltd For Target Rs.1,810.00

STOCK IN FOCUS 
* ACC Ltd is in the strong up-trend as the stock price reversed after taking support of 38.2% Fibonacci Retracement level of prior upmove (Rs1531-1597) and rose to seven day closing high.
* Rise in Stochastic post positive cross-over and reversal in RSI from sub-60 mark is also signaling strength in the stock.
* As per the current daily set-up, we believe that ACC Ltd will keep moving higher and soon record new life-time-high.
* In case of any negative surprise, the stock will find support around Rs1680, which is coinciding with the prior swing low and its shortterm moving average 20-day EMA.
* Thus, long position can be initiated at Rs1715 for the target of Rs1810 and with a strict stop loss of Rs1680.

MARKET OUTLOOK
The market does appear to get a dizzy at heights and the late sell-off had a lot to do with the F&O expiry. While market-wide rollovers were in line with three-month average, Nifty rollovers were relatively lower than the previous three series. Nifty Open Interest is also at a calendar-year low as foreign investors The outlook is a subdued start. Global cues are mixed. While the Dow gained, the S&P and Nasdaq settled lower. Quarterly results are bringing in some swings and for the day numbers of Larsen & Toubro, Escorts and India Cements are scheduled. Investors will prefer to wait and watch before taking the plunge as the RBI policy meet takes place next week. The mid-cap segment, which has been defying gravity continues to soar higher.  

Other technical observations 
Nifty did gave long entry to Chopad Followers as we made high of 9919 and did 2 target on upside and close above 10000.  Lets see How to trade Nifty in coming week as we approach the Monthly/RBI Policy and volatile time cycle from 31 Jul to 07 Aug.All target done on upside, for coming week above 10025 we can see fast move towards 10115/10157. Bearish below 9930 for a move towards 9877/9792.

Conclusion: 
Yet another chartbuster week for the Indian equity markets as Nifty scaled past the 10000 milestone while Bank Nifty zoomed past the 25000 mark for the first time ever. Various government reforms, strengthening economy, chasing liquidity and cues from the US markets hitting fresh life-time highs have all fuelled the ongoing rally. Highlight of the week was sharp rally in HDFC, HDFC Bank, Yes Bank which gained 4-16% on decent set of results. From June lows of 9448, Nifty has rallied consecutively for the past four weeks gaining over 650 points or 7%. For the week, NSE Nifty and BSE Sensex gained by 1% each. 
Besides, ongoing results season continued its impact on the market sentiment. Reliance Industries started off the week with a bang followed by decent numbers by Yes Bank and Hero MotoCorp. On the other hand, Dr Reddy’s Labs came out with dismal earnings; ONGC and ICICI Bank were a mixed bag. Furthermore, market-wide rollovers into August were just a little below average.

Weekly Nifty Trading View for the Week July 17, 2017- July 23, 2017

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Events to watch this week

  • Fed chair briefs Congress on monetary policy

  • China inflation running low

  • G-20 summit concludes

  • Bank of Canada hikes rates

  • US retail sales miss

The Week ahead:

Date

Country/Area

Release/Event

Mon, 17 Jul

eurozone

Consumer price index

Wed, 19 Jul

Japan

Japan Policy rate

Wed, 19 Jul

United States

Housing starts

Thu, 20 Jul

United States

Continuing jobless claims

Thu, 20 Jul

eurozone

Flash consumer confidence indicator

Thu, 22 Jul

United Kingdom

Retail sales

 Fri, 21 Jul

Canada

Consumer price index

Date

Country/Area

Release/Event

Mon, 17 Jul

eurozone

Consumer price index

For the week,Global equities moved up this week with solid gains. The yield on the US 10-year Treasury note faded seven basis points on the week, to 2.32%, while the price of West Texas Intermediate crude oil moved up to $46.35 a barrel from $44.50 a week ago. Volatility, as measured by the Chicago Board Options Exchange Volatility Index (VIX), dropped to 9.89 from 11.75 last week.

NIFTY- 9,886.35
CRUDE OIL-Rs 2990barrel
GOLD-Rs 27,996gram
Rs/$-Rs 64.44

MARKET ROUND UP 
Key benchmark indices hit record high with the BSE Sensex conquering the psychologically significant 32,000-level as a drop in June retail inflation data sparked hopes of a rate cut by the Reserve Bank of India. Global stock markets also provided some tailwind after US Federal Reserve chair Janet Yellen, in a House testimony, signalled that the approach to higher rates will be steady, prompting investors to buy more in risky emerging markets. 

The government data released after market hours on Wednesday, 12 July 2017, showed that retail inflation has eased to a record in June and factory output growth slowed sharply in May. Inflation as measured by the Consumer Price Index (CPI) slowed to 1.54% in June from 2.18% in May. The Index of Industrial Production (IIP) rose 1.7% in May compared with 3.1% in April. 
During the week, the Sensex surged 660.12 points or 2.10% to settle at 32,020.75. The Nifty 50 index advanced 220.55 points or 2.28% to settle at 9,886.35. 

Broader market trailed large caps. The S&P BSE Mid-Cap index jumped 1.64%. The S&P BSE Small-Cap index surged 0.49%. Both these indices underperformed the Sensex. 

Macro Economic Front: 
On the Economic Front,The government data released after market hours on Wednesday, 12 July 2017, showed that retail inflation has eased to a record in June and factory output growth slowed sharply in May. Inflation as measured by the Consumer Price Index (CPI) slowed to 1.54% in June from 2.18% in May. The Index of Industrial Production (IIP) rose 1.7% in May compared with 3.1% in April.

Major Action &Announcement:
Telecom major BhartiAirtel was the major Sensex gainer last week. It rose 5.45% to Rs 405.60. Last week certain media reports indicated that the Tata group and Bharti Enterprises are in discussions to form an alliance across telecom and direct-to-home television businesses. Both the groups have held exploratory talks to evaluate a mega alliance involving their telecom, overseas cable & enterprise services, and direct-to-home TV businesses. Discussions between both sides have revolved around a possible merger between Tata Teleservices, Tata Sky and Tata Communications with the Sunil Mittal-owned BhartiAirtel, which includes its wholly-owned DTH arm, reports added. 

IT major Infosys 3.85% to Rs 972.05.The company increased its revenue growth guidance in both dollar and rupee terms for FY 2018 at the time of announcing Q1 June 2017 results. Infosys' consolidated net profit fell 3.3% to Rs 3483 crore on 0.2% decline in revenue to Rs 17078 crore in Q1 June 2017 over Q4 March 2017. The results are as per International Financial Reporting Standards (IFRS) and was announced before market hours on Friday, 14 July 2017. 

Bank shares were in demand. State Bank of India rose 4.07% to Rs 291.60 after the bank's executive committee gave final approval for divestment of 8 crore shares in SBI Life through an initial public offering (IPO). The shares being offered for sale by SBI will be available at a price that would be fixed and determined by SBI Life, SBI, and BNP Paribas Cardiff, in consultation with the book-running lead managers, SBI said. 

Reliance Industries (RIL) rose 2.70% to Rs 1,531.05. RIL's telecom subsidiary Reliance JioInfocomm (Jio) announced on 11 July 2017 that Jio Prime Members can enjoy unlimited services for 3 months with Rs 399 plan. The earlier launched Rs 309 plan will provide 2 months of unlimited Jio services. 

Tata Motors rose 3.46% to Rs 451.90 after the company's British luxury unit Jaguar Land Rover (JLR) reporting good sales growth in June 2017. JLR reported a 11% growth in sales at 51,591 units in June 2017 over June 2016, driven by healthy China market. Shares of Tata Motors advanced 2.28% to settle at Rs 446.75 yesterday, 10 July 2017. Jaguar sales grew by 16.4% to 15,343 units in June 2017 over June 2016. Land Rover sales rose 8.9% to 36,248 units in June 2017 over June 2016. 

Drug major Sun Pharmaceutical Industries gained 0.20% to Rs 570.50 after the company said it has entered into settlements with certain plaintiffs in re Modafinil Antitrust Litigation matter currently pending in the United States District Court for the Eastern District of Pennsylvania. The settlements extend to all claims brought by Apotex Corporation and the Retailer Purchaser Plaintiffs. The settlements remain are confidential. 

Global Front: 
In Overseas Markets,China will unveil GDP data for second quarter on Sunday, 16 July 2017. China's industrial production data for June 2017 will be unveiled on Sunday, 16 July 2017. Eurozone Consumer Price Index (CPI) data for June will be declared on Monday, 17 July 2017. 

Eurozone interest rate decision will be held on Thursday, 20 July 2017. The six members of the European Central Bank (ECB) Executive Board and the 16 governors of the euro area central banks vote on where to set the rate. 

Global Economic News:

Yellen testifies on Capitol Hill
US Federal Reserve chair Janet Yellen testified on monetary policy before the House Financial Services Committee this week as markets continued to digest the Fed's recently announced balance sheet reduction plans. Chair Yellen reiterated that the Fed expects a tightening labor market to lead to increased inflation, despite recent weak inflation data. She added, however, that the Fed may change course from its policy plans if needed. Last month, the central bank raised rates for the third time since December 2016.

China inflation running Low
The United States is not the only region experiencing low inflation. China's consumer price index was reported at 1.5%, missing a 3% target. Its producer price index was reported at 5.5%, which was in line with expectations. It is worth noting that the slowdown in inflation is consistent with the slowdown in inflation in the US and many other countries. It is occurring as policymakers in the US, Canada and eurozone are all moving, or signaling that they will move, away from the low-interest-rate environment of recent years.

Bank of Canada raises rates
The Bank of Canada raised rates by a quarter of a percentage point to .75% while suggesting that monetary policy will remain accommodative for the foreseeable future. Of concern is the stability of the housing market, where prices have risen rapidly in recent years, particularly in areas such as Toronto and Vancouver, where prices have doubled since 2009.

GLOBAL CORPORATE NEWS

G-20 summit concludes
The G-20 summit of leaders of major economies concluded in Hamburg, Germany this week after discussions on a broad range of topics, including trade, climate change and immigration policy. Many leaders attending the summit appeared at odds with US president Donald Trump, particularly over trade policy and climate change. On the trade front, Japan and the European Union signed the Japan–EU Economic Partnership Agreement after several years of negotiation.

US retail sales off
Headline retail sales were down .2% month over month, with six of the 16 categories falling into negative territory. Department stores in particular were hurt, falling .7% after a similar drop in May. The recent drop in sales and subsequent selloff in retail stocks have attracted the interest of professional investors in search of a bargain.

NEW 52-WEEK HIGH BSE (A):

ACC

1766.50

ADANIPORTS

378.35

BAJAJFINANCE

1510.00

NEW 52-WEEK LOWS BSE (A):


NOT YET IN (A)

------

MAJOR WEEKLY GAINERS IN BSE A CATEGORY(%):


SINTEX INDS

25.10

BIOCON

18.44

VIDEOCON

15.37

MAJOR WEEKLY LOSERS IN BSE A CATEGORY:


L&T

-31.28

BPCL

-30.52

HPCL

-22.52



Eyes will be set on the certain US economic data releases are:
Monday (17July)
Week Bill Announcement 
Tuesday (18 July)
Housing Market Index 
Wednesday (19 July)
Housing Starts
Thursday (20 July)
Jobless Claims &Natural Gas Report
Friday (21 July)
Note Major Event

FundamantelPick of the week:

Derivative Ideas Dewan Housing Finance Corporation Ltd For Target Rs.465.00

Derivative Ideas 
DHFL added around 3% of open interest as fresh long positions. On charts, it has breached past 10 sessions’ congestion zone on the higher side with noticeable rise in volumes. It is also trading in higher highs-higher lows formation on charts. Hence, we suggest buying DHFL July futures as per levels given below.

Strategy: 
BUY DHFL JULY FUTS BETWEEN 442-444, SL 432, TARGET 465.

MARKET OUTLOOK
Due to yesterday's move, we are now at a touching distance from 9900. We must accept the fact that we were unable to catch last 140 points on the index as we generally avoid chasing extended moves in the market. We would still continue with this strategy and would keep advising booking index specific longs in this rally. The main reason behind not participating in such kind of extended moves is we have historically seen how market surprises in the last leg of the euphoric moves. But, at the same time, one can look to find potential trades in individual stocks. Now, since the index is an uncharted territory, it becomes very difficult to give upside levels; but, 9900 - 9920 should be the levels to watch out for on a closing basis. On the other hand, 9850 - 9800 would be seen as an immediate support zone.

Other technical observations 
Bearish below 9610 only. As per time cycle till 9787 is held bulls can push nifty towards the scarocant figure of 10000 by 30 July.  Low made today was 9853 so nifty opened gap up above 9830 and rallied all the way till 9897, now bulls are holding 9830 we can move towards 9936/9961/10000. Bearish below 9792 for a move towards 9700/9610. Time cycle turn date of 12 July again helped in capturing good move in market. Till 9820 is held bulls are in control, bulls are in control and can push nifty towards 9936/9961/10000. Bearish below 9792 for a move towards 9700/9610 

Conclusion: 
Normal rainfall in most parts of India, retail inflation falling to eight months low, hopes of rate cut in the upcoming RBI policy meet in August and dovish statements from Federal Reserve Chair Janet Yellen lifted the Indian equity market to scale fresh all time high. Markets even chose to ignore the worst outage (technical glitch) witnessed on the National Stock Exchange, which kept the biggest exchange of the country halted nearly for three hours on July 10. AU Small Finance Bank saw a successful listing and gained over 51% on debut although the stock slipped significantly on Friday. For the week, NSE Nifty and BSE Sensex surged by 2.2% each. Nifty had crossed 9900 while Sensex hit 32000 for the first time ever.


Results season which kicked off was a mixed bag as IndusInd Bank reported decent numbers for the first quarter of FY18. Although Net NPAs as a percentage of net advances, came in at 0.44% as against 0.38% YoY. TCS reported lower than expected June quarter results while Infosys fared much better as it managed to beat markets estimates. It reported 1.3% growth in consolidated net profit at Rs 3,483 crore for the quarter ended June 2017.

WEEKLY NIFTY TRADING VIEW FOR THE WEEK JULY03, 2017-JULY 08, 2017

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Events to watch this week

  • Central bankers sing more hawkish tune
  • US Q1 GDP revised up
  • Eurozone economic sentiment soars
  • Brazil’s president faces corruption charges
  • Venezuelan crisis intensifies

The Week ahead:

Date

Country/Area

Release/Event

Mon, 3 Jul

Japan

Tankan survey, manufacturing purchasing managers' index

Mon, 3 Jul

Canada

Canada Day (observed)

Mon, 3 Jul

China

Caixin manufacturing PMI

Mon, 3 Jul

eurozone

Manufacturing PMI, unemployment report

Mon, 3 Jul

United States

Markit manufacturing PMI, ISM report

Tue, 4 Jul

United States

Independence Day

 Wed, 5 Jul

eurozone

 Retail sales, Markit services PMI

 Wed, 5 Jul

 United States

 FOMC minutes

 Thu, 6 Jul

 eurozone

 ECB minutes

For the week,Global equities fell modestly this week amid central bank chatter concerning scaling back monetary stimulus. Yields rose on the talk, with the 10-year Treasury note ending the week at 2.29%, up from 2.15% a week ago. Oil prices recovered some of their recent losses, rising to $45.40 from $42.65 last Friday. Volatility, as measured by the Chicago Board Options Exchange Volatility Index, ticked up to 10.9 from 10.6.

NIFTY- 9,520.90
CRUDE OIL-Rs 2968barrel
GOLD-Rs 28,439gram
Rs/$-Rs 64.57.50

MARKET ROUND UP

Market declined last week amid negative global cues. The Sensex failed to hold the psychological 31,000 level, which it had surpassed during the month. Trading was volatile during the week as the June 2017 derivative contracts expired on Thursday, 29 June 2017. The week was truncated as domestic stock markets was closed on Monday, 26 June 2017, on account of Id-Ul-Fitr (Ramzan Id).

In the week ended Friday, 30 June 2017, the Sensex fell 216.60 points or 0.70% to settle at 30,921.61. The Nifty 50 index fell 54.05 points or 0.56% to settle at 9,520.90.

The S&P BSE Mid-Cap index rose 60.67 points or 0.42% to settle at 14,644.48. The S&P BSE Small-Cap index rose 28.62 points or 0.19% to settle at 15,410.52. Both these indices underperformed the Sensex.

Macro Economic Front:

On the Economic Front,the implementation of landmark tax reform GST will be closely watched. There will be a special function in the Central Hall of Parliament House tonight wherein a number of programs will be witness to the change in tax structure and implementation of GST across the country between the night of June 30 and July 1. The government expects GST to revolutionize India's taxing system and is being marketed as one nation one tax.

Major Action &Announcement:

Axis Bank rose 2.28% to Rs 516.10 after the bank announced after market hours on Wednesday, 28 June 2017, that it successfully issued Rs 3500 crore Basel III compliant additional tier 1 debentures through private placement to augment the tier 1 capital base. The perpetual debentures with a 5 year call are priced at a fine coupon rate of 8.75%.

The board of directors of the bank had yesterday, 28 June 2017, approved the allotment of 35,000 unsecured subordinated perpetual additional tier 1 Basel III compliant non-convertible debentures of the face value of Rs 10 lakh each for cash at par aggregating to Rs 3500 crore, on a private placement basis.

Mahindra & Mahindra (M&M) fell 2.06% to Rs 1,347.65. The company announced incorporating two new subsidiary companies with effect from 25 June 2017. The announcement was made on Monday, 26 June 2017, when the stock markets remained closed on account of holiday.

Mahindra & Mahindra (M&M) said that Mahindra Waste Energy Solutions is incorporated as its new subsidiary company with effect from 25 June 2017. The new company shall carry on the activities connected with renewable energy/non renewable energy. M&M has subscribed to 10,000 shares of Rs 10 each aggregating Rs 1 lakh.

Engineering and contructon major Larsen & Toubro (L&T) fell 2.05% to Rs 1,687.80. L&T said that the transportation, infrastructure and water effluent treatment business has jointly bagged an EPC order worth Rs 1223 crore from Aurangabad Industrial Township. The water and Effluent Treatment Business also won an EPC order worth Rs 1329 crore from the Mumbai Metropolitan Region Development Authority (MMRDA). The announcement was made during market hours on Tuesday, 27 June 2017.

Care major Maruti Suzuki India fell 0.27% to Rs 7217.90. A foreign brokerage house reportedly retained its buy call on Maruti Suzuki India and raised target price on the stock to Rs 8,824 from Rs 7,412 earlier. The stock will continue to trade at premium valuations due to high growth visibility and consistently improving free cash flow due to limited capex requirements, the brokerage house said.

Global Front:

In Overseas Markets,Germany Manufacturing Purchasing Managers Index (PMI) data and UK Manufacturing PMI data for June 2017 will be unveiled on Monday, 3 July 2017.

US ISM Manufacturing PMI data for June 2017 will also be unveiled on Monday, 3 July 2017. US ISM non-manufacturing PMI data for June 2017 will be unveiled on Thursday, 6 July 2017. US ADP nonfarm employment change data for June 2017 will be unveiled on Thursday, 6 July 2017. It measures the monthly change in non-farm, private employment, based on the payroll data of approximately 400,000 US business clients. US nonfarm payrolls data for June 2017 will be unveiled on Friday, 7 July 2017. US unemployment rate data for June 2017 will also be unveiled on Friday, 7 July 2017.

Global Economic News:

Easy money epoch at an end?
Markets turned turbulent this week after a series of hawkish comments from developed-market central bankers suggested the era of ultra-loose monetary policy may be nearing its end. European Central Bank president Mario Draghi’s speech on Tuesday to a gathering of central bankers in Portugal was read as suggesting that the ECB is considering curbing its asset-buying program. The ECB pushed back on that interpretation, but the market refused to be spun. European bond yields rose sharply, as did the euro on foreign exchange markets. Bank of England governor Mark Carney, after saying only a week ago that now is not the time to raise interest rates, reversed course and said the Monetary Policy Committee will debate a rate move in the next few months. Not to be outdone, US Federal Reserve chair Janet Yellen and Vice Chair Stanley Fischer both voiced concerns that equity and other asset valuations are on the rich side, which suggests that financial stability worries could keep the Fed on a tightening path, despite easing US inflation pressures.

Despite the somewhat more hawkish tone, inflation pressures remain extremely muted, except in the United Kingdom, where currency pass-through is boosting prices. To illustrate this point, the eurozone reported on Friday that consumer prices rose only 1.3% in June versus a year ago, down from 1.4% in May. That’s well below the ECB’s near-2% target.

US growth revised higher to start year
US economic growth in the hard-to-measure first quarter of the year was revised higher for a second time on Thursday. Gross domestic product expanded at a 1.4% annual rate, the US Bureau of Economic Analysis reported. That’s up from the 1.2% reading in the last revision. Improved consumer spending was the main driver of the revision, the BEA said. The initial Q1 reading, released in April, was a particularly anemic 0.7%.

Eurozone confidence near a 10-year high
Theeurozone economic sentiment indicator (ESI) jumped to a nearly 10-year high of 111.1 in June from 109.2 in May, with optimism on display in all sectors of the economy, according to a report by the European Commission. The ESI reached 111.8 in August 2007, just before the global financial crisis began to intensify.

GLOBAL CORPORATE NEWS

Temer charged with corruption
Brazilian president Michel Temer was formally charged this week with receiving bribes totaling $152,000. The charges come less than a year after he took office, in the wake of the impeachment of DilmaRousseff. Temer is the first sitting president of the country to be charged with a crime. In addition to the bribery count, the president may also face obstruction of justice charges, according to press reports.

Venezuelan crisis takes bizarre turn
A stolen police helicopter strafed and dropped grenades on Venezuela’s Supreme Court and Interior Ministry headquarters this week as protests against President Nicolas Maduro intensified. Some categorize the attack as an attempted coup against Maduro’s government, while others say the incident was staged by his supporters. The political tumult comes against the backdrop of a deepening economic crisis fueled by runaway inflation, food shortages and falling government revenues stemming from weak oil prices.

 

NEW 52-WEEK HIGH BSE (A):

 

ABIRLANUVO

1893.00

GRASIM

1266.75

GVKPIL

8.61

ITC

324.80

NEW 52-WEEK LOWS BSE (A):

IDBI

53.00

OIL

258.45

RELIGARE

169.00

MAJOR WEEKLY GAINERS IN BSE A CATEGORY(%):

JAIPRAKASH ASSO

16.40

UNITECH

18.18

VIDEOCON

20.93

GVK pOWER

29.86

MAJOR WEEKLY LOSERS IN BSE A CATEGORY:

GMR INFRA

-7.75

pvr ltd

-6.70

religare

-6.03


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

Monday (03July)

PMI Manufaturing Index

Tuesday (04 July)

Market Closed

Wednesday (05 July)

MBA Mortagage Applications&  Factory Orders

Thursday (06 July)

Jobless Claims & PMI Services Index

Friday (07 July)

Natural Gas Report

FundamantelPick of the week:

Accumulate DaburIndia Ltd For Target Rs. 320.00

Investment Rationale

* Dabur India Ltd (DIL) is the second largest FMCG company in India, in terms of Product portfolio. It has a strong portfolio of brands (DaburChyawanprash, Real, Hajmola, Vatika, Amla, Fem, Honey, Meswak, Dabur Red) with the focus largely on ayurvedic& healthcare offerings.The company’s diverse product portfolio (hair care, oral care, skin care, home care, health supplements, digestives, OTC &ethicals) and presence in niche categories has aided revenue growth at a robust ~12% CAGR in FY10-17.

* After retesting lower band of its consolidation range in May 2017, it has rebounded swiftly in last one month and now reached closer to the breakout area. The prolong consolidation phase combined with indications from the chart pattern is pointing towards possibility of strong surge in near future. Thus we advise traders to accumulate in the given range of 290-293 with close below stop loss of 276 for the target of 320

Recommendation

Accumulate Dabur India Ltd @ 290-293 Stoploss 276 Target 320

MARKET OUTLOOK:

The NIFTY balance is clearly favoring the BEARS, while the EXPIRY compulsions pointed to a temporary BOUNCE-BACK. On the daily chart, Index broke its last two weeks low @ 9560 and has formed a real black body candle over the week. In addition, momentum oscillator i.e. RSI has broken 50 levels for the first time this year. All in all, Index is expected to stay under pressure and could lead to retest 9450 levels which is a confluence zone formed by (i) 50DMA, (ii) Rising trend line and (iii) 61.8 retracement level of near-term rise (9341 - 9709). A clear break below 9450 level would indicate that Index has moved into medium term bearish phase (with an immediate downside of 9280 levels).On the flip side, previous support zone around 9560 will now act as a resistance zone, as is clearly demarcated in the EXPIRY supply zone. 

Other technical observations

In continuation to its sideways trend, the domestic benchmark index, Nifty slipped nearly half percent amid volatility.Participants are focusing on GST roll out and will react to the cues next week. Besides, indications from the global front, movement on currency front and further monsoon update will dictate the market trend.

* Technically, Nifty has crucial support at 9400 and any breakdown will trigger further selling pressure ahead. Having said that, the overall trend is still positive and we advise investors to utilise this corrective phase to accumulate quality index majors.

* Broadly , we expect Nifty to trade in a range of 9300-9700 in the up coming week.

Conclusion:

The Indian equity market extended its losing streak to the third consecutive week as traders and investors continued to trade cautiously ahead of the GST rollout. Outflows by foreign funds and weak global cues further added to concerns. CDSL saw a bumper debut and closed near 75% higher on the street while AU Small Finance Bank IPO was oversubscribed by over 50x times. Eris Lifesciences got listed 2% over issue price on the bourses this week, however, it closed slightly lower. Tejas Networks witnessed a tepid listing; however, the stock picked up momentum as the week progressed. Rashtriya Chemicals & Fertilizers’ (RCF) offer-for-sale was subscribed 791%. Monsoon has touched majority of Indian subcontinent and is just 1% below estimates. Government of India has in principle given an approval for sale of Air India.

Overall, volatility ruled the roost throughout the week on account of a historic F&O expiry which saw highest turnover ever. Banking stocks remained in focus following reports of an RBI order seeking hefty provisions for accounts referred to bankruptcy courts.

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