Indian Indices: Asian indices opened flat as overnight US indices closed in the red as most investors stayed on the sidelines ahead of an event heavy week. The RBI policy meet in India today coupled with UK elections, EU Meet and Comey testimony on Thursday all could be the drivers for markets’ direction going forward.

Nifty hit 9700 only to see selling dominate the session and closed near the low of the day. The bout of profit booking saw very weak advance/decline ratio and mid-caps fall more as broader market corrected sharply. IT, select private Banks witnessed buying while FMCG, PSU banks and Auto bore the brunt of the selloff. Today all eyes will be on the RBI Governor on rates as near term consensus seems no change in policy.

The BSE Sensex is currently trading at 31326.41, up by 135.85 points or 0.44% after trading in a range of 31229.25 and 31346.99. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.46%, while Small cap index was up by 0.87%.

The CNX Nifty is currently trading at 9671.50, up by 34.35 points or 0.36% after trading in a range of 9648.00 and 9678.55. There were 35 stocks advancing against 16 stocks declining on the index.

Technical view: Nifty now finds resistance around 9700 while 9580 will act as strong support. Bank Nifty also finds strong support around 23250 while 23700 will act as resistance on the upside.

Union Bank Jun FUT (Sell Below 155 with Stop Loss at 158 for Target of 149): The stock has rallied for the past five sessions and has finally shown signs of a reversal. Union bank found stiff resistance at its 50-DMA which is placed at Rs 160. Other oscillators also indicate that the momentum is fading away further accentuating our short term bearish stance on the stock.

Derivative Snippets    

Adani Power has approached Gujarat UrjaVikas Nigam (GUVNL) to bail out its Mundra power plant, which stares at financial unviability after the Supreme Court in April quashed the company's plea for tariffs that would have compensated escalations in Indonesian coal costs.

In the last trading session, markets traded in a narrow range awaiting the credit policy on June 7, 2017. Huge short covering to the tune of ~3.25 lakh shares was witnessed in Bank Nifty 23500 monthly call option strike along with fresh short build-up in ATM/OTM put option strikes, indicating of a big surge of ~200 points in the Banking index above the resistance level of 23500.

FIIs were net buyers in cash market segment to the tune of Rs 61 Cr.FIIs index future long short ratio at 6.2x vs 6.3x.

Nifty Movers: The top gainers on Nifty were Mahindra & Mahindra up by 2.30%, Vedanta up by 2.05%, ICICI Bank up by 1.63%, Hindustan Unilever up by 1.62% and GAIL India up by 1.62%.

On the flip side, BPCL down by 1.18%, TCS down by 0.98%, Yes Bank down by 0.92%, Wipro down by 0.89% and Indiabulls Housing Finance down by 0.70% were the top losers.

Top Sectoral& Stock Screening:The top gaining sectoral indices on the BSE were Healthcare up by 1.29%, Telecom up by 1.00%, FMCG up by 0.98%, Metal up by 0.82% and Consumer Disc up by 0.64%, while IT down by 0.18% and TECK down by 0.05% were the only losing indices on BSE.

On the global front: On the global front, Asian shares were trading mostly in green, as investors remained noticeably risk averse. The street cautiously awaited a trio of potential major risk events on Thursday, including the UK election, a European Central bank review and former FBI director James Comey’s testimony to the Senate stateside.

Global Signals:The Asian markets were trading mostly in green; Hang Seng increased 1.28 points or 0% to 25,998.42, Nikkei 225 increased 14.59 points or 0.07% to 19,994.49, Jakarta Composite increased 18.17 points or 0.32% to 5,726.01 and Shanghai Composite increased 34.42 points or 1.11% to 3,136.55.On the other hand, Taiwan Weighted decreased 5.62 points or 0.06% to 10,200.56, KOSPI Index decreased 2.96 points or 0.12% to 2,365.66 and FTSE Bursa Malaysia KLCI decreased 1.52 points or 0.08% to 1,789.49.

Indian Indices: Asian indices opened flat as overnight US indices closed in the red as most investors stayed on the sidelines ahead of an event heavy week. The RBI policy meet in India today coupled with UK elections, EU Meet and Comey testimony on Thursday all could be the drivers for markets’ direction going forward.

Nifty hit 9700 only to see selling dominate the session and closed near the low of the day. The bout of profit booking saw very weak advance/decline ratio and mid-caps fall more as broader market corrected sharply. IT, select private Banks witnessed buying while FMCG, PSU banks and Auto bore the brunt of the selloff. Today all eyes will be on the RBI Governor on rates as near term consensus seems no change in policy.

The BSE Sensex is currently trading at 31326.41, up by 135.85 points or 0.44% after trading in a range of 31229.25 and 31346.99. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.46%, while Small cap index was up by 0.87%.

The CNX Nifty is currently trading at 9671.50, up by 34.35 points or 0.36% after trading in a range of 9648.00 and 9678.55. There were 35 stocks advancing against 16 stocks declining on the index.

Technical view: Nifty now finds resistance around 9700 while 9580 will act as strong support. Bank Nifty also finds strong support around 23250 while 23700 will act as resistance on the upside.

Union Bank Jun FUT (Sell Below 155 with Stop Loss at 158 for Target of 149): The stock has rallied for the past five sessions and has finally shown signs of a reversal. Union bank found stiff resistance at its 50-DMA which is placed at Rs 160. Other oscillators also indicate that the momentum is fading away further accentuating our short term bearish stance on the stock.

Derivative Snippets    

Adani Power has approached Gujarat UrjaVikas Nigam (GUVNL) to bail out its Mundra power plant, which stares at financial unviability after the Supreme Court in April quashed the company's plea for tariffs that would have compensated escalations in Indonesian coal costs.

In the last trading session, markets traded in a narrow range awaiting the credit policy on June 7, 2017. Huge short covering to the tune of ~3.25 lakh shares was witnessed in Bank Nifty 23500 monthly call option strike along with fresh short build-up in ATM/OTM put option strikes, indicating of a big surge of ~200 points in the Banking index above the resistance level of 23500.

FIIs were net buyers in cash market segment to the tune of Rs 61 Cr.FIIs index future long short ratio at 6.2x vs 6.3x.

Nifty Movers: The top gainers on Nifty were Mahindra & Mahindra up by 2.30%, Vedanta up by 2.05%, ICICI Bank up by 1.63%, Hindustan Unilever up by 1.62% and GAIL India up by 1.62%.

On the flip side, BPCL down by 1.18%, TCS down by 0.98%, Yes Bank down by 0.92%, Wipro down by 0.89% and Indiabulls Housing Finance down by 0.70% were the top losers.

Top Sectoral& Stock Screening:The top gaining sectoral indices on the BSE were Healthcare up by 1.29%, Telecom up by 1.00%, FMCG up by 0.98%, Metal up by 0.82% and Consumer Disc up by 0.64%, while IT down by 0.18% and TECK down by 0.05% were the only losing indices on BSE.

On the global front: On the global front, Asian shares were trading mostly in green, as investors remained noticeably risk averse. The street cautiously awaited a trio of potential major risk events on Thursday, including the UK election, a European Central bank review and former FBI director James Comey’s testimony to the Senate stateside.

Global Signals:The Asian markets were trading mostly in green; Hang Seng increased 1.28 points or 0% to 25,998.42, Nikkei 225 increased 14.59 points or 0.07% to 19,994.49, Jakarta Composite increased 18.17 points or 0.32% to 5,726.01 and Shanghai Composite increased 34.42 points or 1.11% to 3,136.55.On the other hand, Taiwan Weighted decreased 5.62 points or 0.06% to 10,200.56, KOSPI Index decreased 2.96 points or 0.12% to 2,365.66 and FTSE Bursa Malaysia KLCI decreased 1.52 points or 0.08% to 1,789.49.

Indian Indices: Asian indices opened flat as after last week's stellar rally most indices consolidate. The 'yen" weakness saw the Japanese 'Nikkei" hold over 20000 as the new fresh highs see more ETF flows chase returns. Gold prices also saw buying as fresh geopolitical risk in London saw defensive buying emerge.

Nifty gave up most gains of morning trade as profit booking above 9650 was the dominant theme for Friday. The Nifty large cap stocks saw profit booking while the midcaps saw value buying with sectoral outperformance continuing. For today expect another bout of profit booking above 9650 as both foreign & local mutual funds sell while Nifty consolidates.

The BSE Sensex is currently trading at 31271.41, down by 1.88 points or 0.01% after trading in a range of 31198.22 and 31275.35. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.53%, while Small cap index was up by 0.70%.

The CNX Nifty is currently trading at 9665.60, up by 12.10 points or 0.13% after trading in a range of 9640.70 and 9665.70. There were 35 stocks advancing against 16 stocks declining on the index.

Technical view: Nifty now finds strong support around 9550 while 9700 will act as resistance on the upside. Bank Nifty also finds resistance around 23500 while 23250 will act as support.

Godrej Properties (BUY Above 521 with Stop Loss at 512.5 for Target of 538): After correcting ~20% in past five weeks, the stock has finally shown signs of a recovery and has broken out from a declining trend-line breakout on the daily charts. The upthrust has also been accompanied with smart uptick in volumes. Other oscillators are also indicating the recovery is likely to extend further.

Derivative Snippets:    

Adani Ports and Special Economic Zone Ltd (APSEZ), has started construction of the first berth at the country's international transhipment project of deep-water multi-cargo port at Vizhinjam in Kerala.

In the last trading session, Nifty ended on a positive note. Huge short covering to the tune of ~5 lakh shares was witnessed in Nifty 9500 call strike, making 9500 as the new floor for Nifty during the June F&O expiry series. Bank Nifty OTM put option strikes continue to remain the selling pressure, indicating of a continued uptrend.

FIIs were net sellers in cash market segment to the tune of Rs 59 Cr.FIIs index future long short ratio at 5.8x vs 6x.

Nifty Movers: The top gainers on Nifty were Bajaj Auto up by 2.17%, Indiabulls Housing up by 1.50%, BhartiInfratel up by 1.47%, BPCL up by 1.45% and Yes Bank up by 1.36%. On the flip side, ITC down by 1.07%, Lupin down by 0.87%, Coal India down by 0.73%, Infosys down by 0.38% and HDFC down by 0.32% were the top losers.

Top Sectoral& Stock Screening:The top gainers on the Sensex were Bajaj Auto up by 2.25%, Cipla up by 1.19%, Tata Steel up by 1.04%, Sun Pharma up by 0.82% and Axis Bank up by 0.77%. On the flip side, ITC down by 1.07%, Coal India down by 0.73%, Lupin down by 0.70%, HDFC down by 0.63% and Infosys down by 0.37% were the top losers.

On the global front: On the global front, Asian counters were exhibiting mixed trend at this point of time with some indices trading in red, as the most recent US data is testing bets on improving global growth that has helped drive the value of equities worldwide. The US markets extended their gains in last session, overlooking a weaker than expected jobs data, as the World Bank forecasted a modest pickup in growth despite uncertainty about monetary policy and concern among bond traders that inflation is waning.

Global Signals: Asian markets were trading mixed; KOSPI Index rose 2.18 points or 0.09% to 2,373.90, FTSE Bursa Malaysia KLCI increased 8.19 points or 0.46% to 1,785.14, Jakarta Composite gained 15.7 points or 0.27% to 5,758.15 and Taiwan Weighted was up by 39.39 points or 0.39% to 10,197.54.

On the flip side, Hang Seng decreased 85.84 points or 0.33% to 25,838.21, Shanghai Composite shed 14.53 points or 0.47% to 3,091.01 and Nikkei 225 was down by 6.39 points or 0.03% to 20,170.89.

Indian Indices: Asian indices opened in the green led by the Japanese ‘Nikkei’, which crossed 20000 for the first time as the 'Yen' weakness saw stocks rally. With the global rally in equities getting more pronounced higher risk taking seems the present norm as bond yields fall with oil and gold prices.

Nifty closed unchanged for another session due to weak macro data, however, intraday weakness got quickly bought into. The sentiment for higher return in equities is evident as all bad news is getting bought into without any correction. For today expect buying in mid-caps as they have corrected more than the market and a rebound is on the cards. 

The BSE Sensex is currently trading at 31252.40, up by 114.81 points or 0.37% after trading in a range of 31190.40 and 31332.56. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.62%, while Small cap index was up by 0.36%.

The CNX Nifty is currently trading at 9646.35, up by 30.25 points or 0.31% after trading in a range of 9637.45 and 9673.50. There were 32 stocks advancing against 19 stocks declining on the index.

Technical view: Nifty finds strong support around 9570 while 9700 will be the target on the upside. Bank Nifty also finds support around 23100 while 23700 will act as major resistance on the upside.

CEAT Limited (Buy Above 1791 with Stop Loss at 1766.5 for Target of 1840): After consolidating for over 10 trading sessions and correcting from highs of Rs 1897 to Rs 1635 the stock has finally broken out from a continuation Flag pattern. This indicates that a fresh up move is on the cards. The breakout is accompanied with credible volumes. The stock has also bounced back from its short term moving average, which further accentuates our bullish stance on the stock.

Derivative Snippets    

Pharma Sector: Attractive Valuations

L&T Technology Services (LTTS)has completed the acquisition of Esencia. With this, EsenciaTechnologies will become a subsidiary of L&T Technology. 

In the last trading session, Nifty ended on a flat note for the fourth trading day in a row. Nifty and Bank ATM/OTM put option strikes witnessed marginal short selling, indicating a continued uptrend for the markets.

FIIs were net sellers in cash market segment to the tune of Rs 517 Cr.FIIs index future long short ratio at 6x.

Nifty Movers: The top gainers on Nifty were BhartiAirtel up by 3.42%, Cipla up by 2.18%, Adani Ports & Special Economic Zone up by 1.85%, Hero MotoCorp up by 1.77% and Tata Motors - DVR up by 1.65%. On the flip side, Tata Steel down by 1.49%, Power Grid down by 1.06%, GAIL India down by 0.93%, Vedanta down by 0.89% and Hindustan Unilever down by 0.86% were the top losers.

Top Sectoral& Stock Screening: The top gaining sectoral indices on the BSE were Healthcare up by 2.00%, FMCG up by 1.15%, Consumer Disc up by 0.74%, Auto up by 0.66% and Realty up by 0.47%, while Oil & Gas down by 1.21%, Energy down by 0.97%, Metal down by 0.94%, Bankex down by 0.43% and PSU down by 0.38% were the losing indices on BSE.

On the global front: On the global front, Asian shares were trading mostly in green, with Shanghai bucking the trend. The offshore Chinese yuan hit its highest level since October on Thursday, a move traders believe was engineered by Chinese authorities as a show of strength to scare off yuan sellers after Moody’s downgraded China last week. South Korea’s benchmark Kospi index was higher as markets digested the release of revised Q1 GDP, which reflected the economy grew 2.9% on year compared to the 2.7%.

Global Signals:The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 9.65 points or 0.55% to 1,772.76, KOSPI Index increased 24.93 points or 1.06% to 2,369.54, Taiwan Weighted increased 33.83 points or 0.34% to 10,121.25, Hang Seng increased 93.04 points or 0.36% to 25,902.26 and Nikkei 225 increased 319.14 points or 1.61% to 20,179.17.On the other hand, Shanghai Composite decreased 9.83 points or 0.32% to 3,092.80 and Jakarta Composite decreased 6.49 points or 0.11% to 5,731.66.

Indian Indices: Asian indices opened flat as overnight US cues turned negative with bond yields rising indicate Fed rate hike in June now a certainty. Consolidation could be the key this week as markets digest the gains of the previous 6 weeks. Positive manufacturing data from China could see sentiment improve as growth slowly picks up. 

Nifty closed over 9600 for another day led by Pharma and PSU banks while FMCG stocks witnessed profit booking. The breadth is getting more skewed in favor of declines as markets punish under performers. For today expect Nifty to see range bound trade while the broader market sees stock/sector rotation.      

The BSE Sensex is currently trading at 31162.70, up by 3.30 points or 0.01% after trading in a range of 31107.48 and 31233.68. There were 14 stocks advancing against 16 stocks declining on the index. The broader indices were trading in green; the BSE Mid cap index was up by 0.64%, while Small cap index was up by 0.83%.

The CNX Nifty is currently trading at 9619.15, down by 5.40 points or 0.06% after trading in a range of 9610.80 and 9638.70.  There were 21 stocks advancing against 30 stocks declining on the index.

Technical view: Nifty witnessed strong support around 9548 which was the last few days low while 9640/9650 act as resistance on the upside, any break either side will trigger rise or fall. Bank Nifty also finds strong support around 23094 which was yesterday's low while 23450 will act as resistance on the upside.

The South Indian Bank (Buy Above 28 with Stop Loss at 27 for Target of 30): Our daily chart analysis indicates that South Indian Bank after consolidating for over a week has finally broken out from a Flag pattern. The stock found strong support at its 15-DMA and bounced back to break out convincingly. Other momentum oscillators also indicate that the current upswing is likely to prolong.

Derivative Snippets   

Pharma Sector: Attractive Valuations

Structurally Pharma is a sector which has high ROCE and has a significant stable demand in addition to growth opportunities. The recent fall in the stock prices by 25 to 35% in last three months provides a decent entry point from a risk reward perspective. Most of the stocks are trading at a relative discount of 40% to the index for the first time in the past two decades. Hence, we suggest doing Systematic Investment Plans (SIP) in some select Pharma stocks or in Pharma focused mutual funds.

In the last trading session, Nifty ended on a flat note. Nifty ATM/OTM put option strikes continued to see short selling, while Bank Nifty OTM call strike of 23500 saw fresh long build up, indicating a continued uptrend.FIIs were net sellers in cash market segment to the tune of Rs 217 Cr.FIIs index future long short ratio at 5.5x vs 5.7x.

Nifty Movers: The top gainers on Nifty were Mahindra & Mahindra up by 5.93%, Ultratech Cement up by 2.89%, Power Grid up by 2.01%, Lupin up by 1.84% and Indian Oil Corporation up by 1.64%. On the flip side, Vedanta down by 2.27%, BhartiInfratel down by 2.24%, AurobindoPharma down by 1.60%, ONGC down by 1.48% and Yes Bank down by 1.34% were the top losers.

Top Sectoral& Stock Screening: The top gaining sectoral indices on the BSE were Realty up by 1.46%, Auto up by 1.15%, Consumer Disc up by 1.05%, Utilities up by 1.02% and Power up by 0.69%, while Metal down by 0.85%, FMCG down by 0.23%, IT down by 0.21%, TECK down by 0.20% and Telecom down by 0.13% were the losing indices on BSE.

On the global front:On the global front, Asian shares were trading mostly in red, even as China re-opened after a two-day break and brought along some upbeat news. China’s manufacturing sector expended faster than expected in May, highlighting continued steady growth.  The National Bureau of Statistic’s official Purchasing Managers’ Index (PMI) came in at 51.2 higher than the 51.0 expected and even with 51.2 in April.

Global Signals:The Asian markets were trading mostly in red; Taiwan Weighted decreased 58.99 points or 0.58% to 10,042.96, Nikkei 225 decreased 50.46 points or 0.26% to 19,627.39, Hang Seng decreased 35.6 points or 0.14% to 25,666.03 and FTSE Bursa Malaysia KLCI decreased 0.37 points or 0.02% to 1,764.97.On the other hand, KOSPI Index increased 1.09 points or 0.05% to 2,344.77, Shanghai Composite increased 5.51 points or 0.18% to 3,115.57 and Jakarta Composite increased 10.92 points or 0.19% to 5,704.31.

Indian Indices: Asian indices saw profit booking on opening bell as after a heady rally for last 6 weeks, markets turn cautious. Weakness in Euro against the US Dollar also saw profit booking in currencies along with equities also coming under selling pressure.

Nifty scaled 9600 with ITC, HUL, Maruti and Reliance end as top gainers while the broader markets saw deep correction led by Pharma and ADAG stocks. With breadth getting skewed heavily and losers far outnumbering gainers caution to be the buzzword as indices looking overbought. For today expect mid-cap weakness to continue and select large cap buying to be the theme as foreign investors turn big sellers. 

The BSE Sensex is currently trading at 31132.28, up by 23.00 points or 0.07% after trading in a range of 31064.04 and 31220.38. There were 19 stocks advancing against 11 stocks declining on the index. The broader indices were trading mixed; the BSE Mid cap index was up by 0.02%, while Small cap index was down by 0.32%.

The CNX Nifty is currently trading at 9606.25, up by 1.35 points or 0.01% after trading in a range of 9581.20 and 9631.60. There were 28 stocks advancing against 23 stocks declining on the index.

Technical view: Nifty will see resistance around 9650 while 9550 will act as first support on the downside. Bank Nifty also sees strong resistance around 23500, while 23000 will be first support which if broken can see 22800 being tested.

Hero Motocorp (Buy Above 3668 with Stop Loss at 3647 for Target of 3710): After consolidating for over two weeks, the stock has broken out from a Flag Pattern on the daily charts indicating that a speedy up move is on the cards. Hero Motocorp has reversed from its 15-DMA convincingly and has also seen credible uptick in traded volumes. Other oscillators also indicate that the current momentum is here to stay.

Derivative Snippets    

The Health Products Regulatory Authority of Ireland has granted certificate of good manufacturing practices (GMP) compliance to Wockhardt's Aurangabad facility after an inspection.

In the last trading session, Nifty ended on a lacklustre note amidst huge sell-off in Pharma heavy weights. Nifty ATM call option strike continues to see short covering along with fresh long build up in the futures contract, indicating a continued uptrend up to the resistance level of 9700.

FIIs were net sellers in cash market segment to the tune of Rs 710 Cr.

FIIs index future long short ratio at 5.7x with an addition of fresh long positions to the tune of ~21k contracts

Nifty Movers: The top gainers on Nifty were AurobindoPharma up by 8.72%, Dr. Reddy’s Lab up by 2.72%, NTPC up by 2.65%, Lupin up by 2.23% and ICICI Bank up by 2.18%. On the flip side, BPCL down by 2.64%, Power Grid down by 2.58%, BhartiInfratel down by 2.10%, Zee Entertainment down by 1.74% and Coal India down by 1.70% were the top losers.

Top Sectoral& Stock Screening: The top gaining sectoral indices on the BSE were Healthcare up by 1.63%, Bankex up by 0.32%, IT up by 0.22%, Auto up by 0.17% and Utilities up by 0.10%, while Realty down by 1.37%, Capital Goods down by 1.15%, Power down by 0.92%, FMCG down by 0.83% and Consumer Durables down by 0.80% were the losing indices on BSE.

On the global front: On the global front, Asian shares were trading mostly in red. Stocks in Japan retreated as the yen strengthened. In economic news, Japan household spending dipped 1.4% for the month of April, weaker than the 0.7% forecast. Meanwhile, April retail sales rose 3.2% on year, compared to a forecast of a 2.3% rise.

Global Signals:The Asian markets were trading mostly in red; Nikkei 225 decreased 19.63 points or 0.1% to 19,662.94, KOSPI Index decreased 10.83 points or 0.46% to 2,342.14 and FTSE Bursa Malaysia KLCI decreased 0.67 points or 0.04% to 1,764.22. On the other hand, Jakarta Composite increased 11.48 points or 0.2% to 5,723.82. Shanghai Stock Exchange, Hong Kong Stock Exchange and Taiwan Stock Exchange were closed on account of national holiday.