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Wednesday, October 5, 2016

First Rate Cut In Patel's Tenure Spurs The Markets

Indian Market Outlook: Nifty traded in a small range of 45 points before the RBI policy was announced yesterday. Urjit Patel in his first Monetary Policy decision announced a 25bps rate cut which was positively welcomed by the markets. Post policy announcement, Nifty made a low of 8767 to rise till 8813 before closing at 8802. The inherent strength in the Indian Markets, backed by strong fundamentals of the Indian companies, seems to continue with the next target of Nifty at 8994.

Top 5 performing sectors as per Dynamic Levels yesterday were - Paper, Energy, FMCG and Banks.

Nifty Futures is expected to open at 8808 as per SGX Nifty at 8:30 am IST, which is 6 points above its previous close of 8802.


Open Interest Index F&O and Cash Segment Activity



In cash segment, last trading day, FII have bought shares worth Rs. 344.13 Cr and DII sold shares worth Rs. 172 Cr. A combined buy of Rs. 172 Cr. For this expiry, FII and DII together are buyers worth Rs. 936 Cr.

In Index Options, last trading day, FII have bought 9124 contracts, below its 1 year average of 18280 contracts. Pro have bought 16461 contracts, below its 1 year average of 27670 contracts. Combined there has been a net buy of 18039 contracts, below its 1 year average of 39000 contracts. For the current expiry, FII and Pro combined are net buyers of 46983 contracts.

In Index Futures, last trading day, FII have bought 5038 contracts, below its 1 year average of 9706 contracts. Pro have sold 2338 contracts, below its 1 year average of 4903 contracts. Combined there has been a net sell of 2700 contracts below its 1 year average of 9401 contracts. For the current expiry, FII and Pro combined are net sellers of 29227 contracts.

International Market Morning Update: 

International markets continued to trade in a small range though it gave a correction of 23 points yesterday. S&P 500 Futures has been trading in a range of 2132 to 2172.Today Morning S&P is trading at 2145. American Markets keenly await the Nonfarm payrolls due on Friday this week. All eyes are on the FOMC meeting minutes due next week Wednesday where clarity about the timings of the rate hike could be expected.

Dax, in the European markets traded with strength yesterday. It broke its previous week high of 10568 to test its next weekly resistance at 10698 but ended 60 points short from that resistance.

Chinese markets are closed for the day on account of their National day.

Nikkei in Japan is trading 0.57% above its previous close displaying strength in the Asian markets.



DISCLAIMER

Research Team - Tel: 033-30010001, write to us at clientsupport@dynamiclevels.com to give feedback. Website:www.dynamiclevels.com

1. The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision
2. Past performance is not an indicator of future returns.

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