Markets Positive, Despite Bank Nifty Struggling to give upside breakout

Indian Market Outlook: After all negative news Nifty closed yesterday with a positive bias. India PMI data contracted as data came to its one year low of 49.60. Cash market showed good buying, with most of the stocks up by more than 10%. Some stocks even hit the upper circuit of 20%. The major performing sectors were Realty, cements and NBFC as PM Narendra Modi has taken his first step toward his pilot project to provide home for all by lowering interest rate and making home loan cheaper and affordable.

However after all positive outlook, Bank Nifty is struggling to trade with positive momentum. SBI yesterday cut its lending rate by 90 basis points after which the stock closed near it's monthly low of 243. Major support for Bank Nifty is at 17606. The merger of five associate banks with will be pushed to the next quarter as Govt approval is pending, according to SBI Chairman.

Nifty Future is opening at 8203 as per SGX Nifty at 8:40 am IST, 10 points above its previous close of 8187.

FII Activity for the year 2016

The net FII's figure in Cash market for January 2017 has turned negative amounting to Rs. 261 Cr, after heavy December Selling figure, which was Rs. 11325.03 Cr.

Open Interest Index F&O and Cash Segment Activity

In Cash segment, last trading day, FII have sold shares worth Rs.261 Cr and DII bought shares worth Rs. 20.66 Cr. A combined sell of Rs.240 Cr. For this expiry, FII and DII together are net sell worth Rs. 100.40 Cr.

In Index Options, last trading day, FII have sold 20987 contracts, above its post Demonetization average of 8577 contracts. Pro have sold 20519 contracts, below its post Demonetization average of 26619 contracts. Combined there has been a net sell of 41506 contracts, above its post Demonetization average of 31662 contracts. For the current expiry, FII and Pro combined are net sellers of 26189 contracts.

In Index Futures, last trading day, FII have sold 6942 contracts, above its post Demonetization average of 3577 contracts. Pro have bought 5001 contracts, above its post Demonetization average of 4177 contracts. Combined there has been a net sell of 1941 contracts above its post Demonetization average of 5200 contracts. For the current expiry, FII and Pro combined are net buyers of 5943 contracts.

International Market Morning Update:

S&P opened at 2241 today morning. At the end of 2016, the index corrected 45 points from its all time high of 2278 and was trading in a range of 100 points for the month of December. Traders expect good volatility in January as US elected Donald trump President will take charge of white house on the 20th of January.

The German Index Dax gave breakout of its one year high of 11433 and went on to make a high of 11622.

Emerging markets trading flat after opening marginally gap down.

Most of the markets were closed yesterday for New Year Replacement Holiday.

Index		Country	1D % Change
Developed Markets
America	S AND P 500 INDEX	US	Closed
	DJIA INDEX	US	Closed
Europe	DAX INDEX	Germany	1.26
	EURO STOXX 50 INDEX	Eurozone	0.64
	CAC 40 INDEX	Paris	0.57
	FTSE 100 INDEX	London	-0.11
Asia	NIKKEI 225 INDEX	Japan	Closed
	ASX 200 INDEX	Australia	Closed
Emerging Markets
America	BOVESPA INDEX	Brazil	-1.06
Asia
	JAKARTA COMPOSITE INDEX	Jakarta	Closed
	HANG SENG INDEX	China	Closed
	SET INDEX	Thailand	Closed
	PHILIPPINE STOCK INDEX	Philippine	Closed
	KOSPI INDEX	Korea	Closed
	STRAITS TIMES INDEX	Singapore	Closed

Data as on 2nd January 2017. The % change is taken from previous day's close.

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.