Nifty To Open Gap Down On PM Modi Tax Comments

Indian Market Outlook: The Indian Benchmark Index Nifty is opening gap down as Prime Minister Modi gave ample hints of raising taxes in the capital markets, this will dent the sentiments as the market tries to recover from the demonetization set back. Today SGX NIFTY is trading at 7962 which is showing a gap down opening of 35 points. The important support level for Nifty is at 7915 to 7925, if its unable to hold this level, the next support level would be 7722. Bank Nifty has broken its major support level of 18000 and has traded below it for consecutively for 2 sessions. The next support for Bank Nifty is at 17340 as per Dynamic Levels. FIIs have continued to be sellers in the cash market and this trend of selling if not reversed can take the markets down to test the lower levels.

Nifty Future is opening at 7965 as per SGX Nifty at 8:30 am IST, 35 points below its previous close of 8000.

FII Activity for the year 2016

The net FII's figure in cash market has turned negative amounting to Rs.-7742 Cr, after heavy Nov Selling figure, which was Rs. 19981.5 Cr

Open Interest Index F&O and Cash Segment Activity

In Cash segment, last trading day, FII have sold shares worth Rs.1463 Cr and DII bought shares worth Rs.1614 Cr. A combined buy of Rs. 152 Cr. For this expiry, FII and DII together are net sell worth Rs. 3199 Cr.

In Index Options, last trading day, FII have bought 8586 contracts, above its post Demonetization average of 8577 contracts. Pro have sold 32741 contracts, above its post Demonetization average of 26619 contracts. Combined there has been a net sell of 24155 contracts, below its post Demonetization average of 31662 contracts. For the current expiry, FII and Pro combined are net sellers of 125071 contracts.

In Index Futures, last trading day, FII have sold 10539 contracts, above its post Demonetization average of 3577 contracts. Pro have bought 6785 contracts, above its post Demonetization average of 4177 contracts. Combined there has been a net sell of 3754 contracts below its post Demonetization average of 5200 contracts. For the current expiry, FII and Pro combined are net buyers of 13806 contracts.

International Market Morning Update:

International markets have already entered the holiday season with S&P futures trading at 2260, near its all time high of 2273. This is in high contrast to the emerging markets where MSCI Emerging Markets Index which is trading at 842 near its 3 month low of 837. This Divergence is expected to continue as US president Elect Donald Trump is of the Opinion to favor companies in Mainland America with Tax Cuts and is against emerging market countries that export goods to America namely- Brazil, China, India and Mexico.

Data as on 23rd December 2016. The % change is taken from previous day's close.

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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 

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