Nifty and Cash Segment remain Strong, Bank Nifty Struggling

Indian Market Outlook: Nifty to open strong on cues from international markets with S&P gaining momentum after the US FED released its minutes yesterday night. Small cap and midcap stocks are performing and Nifty is gradually heading towards its daily target of 8278, but Bank Nifty is struggling to go up. However, FII's are still not participating in this buy rally which is not triggering a buy breakout in the market. Markets may witness volatility as Bank Nifty's weekly contract will expire today. The index is trading in a narrow range of 300 points and not been able to give breakout of 18250. Nifty has to give a breakout of 8294 above which next weekly target is 8614, NSE small Cap has to sustain above 5950 to set a weekly target of 6208.

The Assembly elections in UP, Punjab, Uttarakhand, Goa and Manipur will be held between February 4 and March 27.

Nifty Future is opening at 8237 as per SGX Nifty at 8:50 am IST, 30 points above its previous close of 8207.

FII Activity for the year 2016-17

The net FII's figure in cash market has turned negative in Dec 16’ amounting to Rs. 11325.03 Cr, after heavy Nov 16’ 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.801 Cr and DII bought shares worth Rs.427.09 Cr. A combined sell of Rs.373.60 Cr. For this expiry, FII and DII together are net sell worth Rs. 412.20 Cr.

In Index Options, last trading day, FII have bought 5315 contracts, below its post Demonetization average of 8577 contracts. Pro have sold 20165 contracts, below its post Demonetization average of 26619 contracts. Combined there has been a net sell of 14850 contracts, below its post Demonetization average of 31662 contracts. For the current expiry, FII and Pro combined are net sellers of 30988 contracts.

In Index Futures, last trading day, FII have bought 2794 contracts, below its post Demonetization average of 3577 contracts. Pro have sold 3554 contracts, below its post Demonetization average of 4177 contracts. Combined there has been a net sell of 760 contracts below its post Demonetization average of 5200 contracts. For the current expiry, FII and Pro combined are net buyers of 2577 contracts.

International Market Morning Update:

The Morgan Stanley Emerging Markets Index is trading up by 0.63%, displaying a sustained strength in the emerging markets.

S&P 500 surged after Federal reserve released it's minutes which indicate, that if employment and growth in the economy picks up then interest rate may be increased faster to control inflation. US market has remained stronger on expectations that after US President elect Donald Trump joins office, he may announce tax cuts and increase infrastructure spending to stimulate US economy.

German Index Dax is displaying extraordinary strength where, after giving a breakout above its 1 year high is trading at 11588.

Index		Country	1D % Change
Developed Markets
America	S AND P 500 INDEX	US	0.53
	DJIA INDEX	US	0.33
Europe	DAX INDEX	Germany	-0.03
	EURO STOXX 50 INDEX	Eurozone	-0.09
	CAC 40 INDEX	Paris	-0.04
	FTSE 100 INDEX	London	0.2
Asia	NIKKEI 225 INDEX	Japan	2.51
	ASX 200 INDEX	Australia	0.056
Emerging Markets
America	BOVESPA INDEX	Brazil	-0.36
Asia
	JAKARTA COMPOSITE INDEX	Jakarta	0.478
	HANG SENG INDEX	China	-0.07
	SET INDEX	Thailand	1.34
	PHILIPPINE STOCK INDEX	Philippine	2.47
	KOSPI INDEX	Korea	0.06
	STRAITS TIMES INDEX	Singapore	0.77

Data as on 4th 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.