5 Points In The Union Budget To Decide The Course Of Market

Indian Market Outlook:

Five Important Points to watch out for in the Union Budget 2017-18 today:

India’s benchmark index Nifty yesterday fell by 80 points from the day high of 8632 and made low of 8552, and closed at 8561 almost near its day low. Bank Nifty also showed weakness throughout the day and fell by 70 points from its previous day close of 19585.

Small cap index saw selling pressure as the index lost 90 points from its previous day close of 6392 to close at 6302. Small Cap Index closed below its 3 day low thereby showing signs of further weakness.

FII’s have sold 532 crore in Cash Segment ahead of Budget on Tuesday after continuous buying of 3 days.

Important results to be announced today are apollo tyre, tata global, eicher motors, cummins india.

Nifty Future is opening at 8609 as per SGX Nifty at 8:50 am IST,almost 25 points above its previous close of 8584.

Important events to watch out

• Today Finance Minister Arun Jaitley to present Union Budget 2017-18 at 11 am.
• 1st Feb  12.30 midnight   Federal Reserve Monetory Policy (market will take impact of it on 2nd Feb)
• 8th Feb   RBI Monetory Policy
• 11th Feb to 15th Mar   UP Election

FII Activity for the year 2016-17

Month	FII Activity
January	-14356.01
February	-12513.1
March	24201.51
April	3056.28
May	-186.61
June	3957.95
July	10121.56
August	8778.01
September	3329.62
October	-5355.76
November	-19981.5
December	-11325.03
January 2017	-1582.16

Open Interest Index F&O and Cash Segment Activity

In cash segment, yesterday, FII have sold shares worth Rs. 532.88 Cr and DII bought shares worth Rs. 237.37 Cr. Combined sell of Rs.295.51 Cr. For Feb 2017 Expiry, FII and DII together are net buyer of worth Rs. 1046.18 Cr.

In Index Options, yesterday, FII have sold 74514 contracts and Pro have sold 17700 contracts. Combined there has been a net sell of 92214 contracts.

In Index Futures, last trading day, FII have sold 4322 contracts and Pro have bought 4553 contracts. Combined there has been a net sell of 231 contracts.

Important events to watch out

• 1st Feb Union Budget 2017-18
• 1st Feb 12.30 midnight Federal Reserve Monetory Policy (market will take impact of it on 2nd Feb)
• 8th Feb RBI Monetory Policy
• 11th Feb to 15th Mar UP Election

International Market Morning Update:

Fed will announce its monetary policy today at 12:30 mid night, expectations are to keep interest rate unchanged. However traders are likely to keep a close eye on the associated statement after rate decision.

S&P 500 yesterday made a low of 2262 and closed at 2274.50 and is currently trading at 2275.75.

German Index Dax is gradually approaching near its weekly support of 11506 below which next level is 11423 and yesterday closed at 11593. The Index has been trading in a negative zone from last 4 trading sessions.

MSCI Emerging market Index is trading at 909.86 and yesterday’s low was at 907. Recently the index made a high of 1919. Immediate support for the index is at 907 below which next target is 902.

Data as on 27th 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.

Bhel Share Price trading On the Greener Side

Bharat Heavy Electricals (BHEL share price) is currently trading at Rs. 138.10, up by 0.25 points or 0.18 per cent from its previous closing of Rs. 138.00 on the NSE. The scrip opened at Rs. 138 and has touched a high and low of Rs. 141.10 and Rs. 137.25 respectively. So far 40,73,229  shares are traded on the counter with a traded value of Rs. 5,659.75 lacs, as per NSE.

The stock has a face value Rs. 2 has touched a 52 week high of Rs. 162.90 on 8^thSep 2016 and a 52 week low of Rs. 90.15 on 29^th Feb 2016. Last one week high and low of the scrip stood at Rs. 142.00 and Rs. 129.00 respectively. The current market cap of the company is Rs. 33776.88crore.

The promoters holding in the company stood at 63.06%, while institutions and non-institutions held 31.89% and 5.05% respectively.

To Read More: https://www.dynamiclevels.com/en/current-news/bhel-share-price-170131092857 

Shriram City Dips on Reporting 9% Decline in Net Profit

Non banking finance company, Shriram City witnessed a decline of 9.3 % in net profit to Rs 157.74 crore for the third quarter ended December 31, as payments were delayed by borrowers due to demonetization. The company had reported a net profit of Rs 174 crore in the December quarter last fiscal.

Collections for the quarter ended December 2016 is down by 9.9 % as compared to the collections for the September quarter. But  Shriram City Union said two wheeler disbursements in October has been record high with festive season and the first week of November also had an important portion of spill over business of previous month, which resulted in muted impact of demonetization when seen on a quarter as a whole.

Income of the company was at Rs 1,555.73 crore for the quarter, up 15.5 percent y-o-y. The company's asset under management (AUM) increased by 18.6 percent to Rs 22,544 crore. Subsidiary Shriram Housing Finance logged a growth of 69.4 percent in AUM at Rs 1,833.40 crore and registered net profit of Rs 23.70 crore, the company further added.

Shriram City share price is currently trading at Rs. 1932.05, down by 94 points or 4.68 per cent from its previous closing of Rs. 2027.00 on the NSE. The scrip opened at Rs. 1990 and has touched a high and low of Rs. 1999.85 and Rs. 1912.55 respectively. So far 18,536 shares were traded on the counter.

To Read More: https://www.dynamiclevels.com/en/current-news/shriram-city-share-price-170131082533

V-Guard Industries Rises on 2:5 Bonus Issue

V-Guard Industries has surged 8 per cent to Rs 208 on the NSE during the early morning trade in an otherwise weak market after the board recommended the issue of bonus shares in the ratio of 2:5 (two shares for every five shares held). The company is involved in consumer electrical and electronics business has registered 30 per cent year on year (Y-o-Y) jump in net profit at Rs 28 crore for the quarter ended December 2016 (Q3FY17). Net revenue rose 10 per cent at Rs 460 crore on Y-o-Y basis.

As per Mithun K.Chittilappilly, Managing Director, V-Guard Industries Ltd, the company would perform reasonably well in a market conditions which was impacted by different economic decisions. Demonetisation had some effect on some product segment and sales growth of some of the products had come down from the previous quarters.

But, the company has pro-actively incorporated different facilities including arranging finance through NBFC and installing card machines, cash discount facilities to channel partners. The sales in Tamil Nadu region was impacted because of the socio-economic situation prevalent in the State and because of cyclone affecting many parts of Chennai and suburban areas.

The business outlook, he said, stays positive considering the upcoming summer season. A new manufacturing unit at Sikkim is being initiated with an investment outlay of  Rs. 12.50 crore for increasing the capacity of stabilizer and the unit is expected to commence commercial production in March 2017. Besides, the manufacturing unit for electric water heater with an investment of  Rs. 25 crore would also commence commercial production at Sikkim next year.

At 09:32 am; V Guard share price was up 6 per cent at Rs 204 on the NSE as compared to 0.47 per cent decline in the S&P BSE Sensex. At 10.30am, the stock is trading above 5 per cent at Rs. 204.55. Till now around 10,45,754 shares are traded on the counter  with a traded value of Rs 2,140.14 lacs, as per NSE.

V Guard is one of the top 500 performing stocks for this quarter as identified by Dynamic Levels.For further details on the stock, refer to V Guard share price history.

Natco Pharma gains on correctable observations by USFDA

Natco Pharma’s formulation facility at Kothur, near Hyderabad, has received six observations, including one on the quality system after a recent inspection by the U.S. Food and Drug Administration (USFDA). In its observations, the regulator said that the responsibilities and procedures pertinent to the quality control unit are not fully followed. The written stability testing programme is not followed. Natco Pharma said the six observations, received after the inspection that was conducted between January 16 and 24 were, however, “correctable and procedural”.

On receiving the correctable and procedural observations from USFDA for its Kothur facility, Natco Pharma share price surged over 6% at Rs. 702 today at NSE.

The company believes that the observations are trivial in nature. The observations are associated to complaint and incident investigations, stability backlog and procedural SOPs. The company will make available due justifications and corrective action plan within the next 15 working days.

 In another observation, the U.S.FDA said that the laboratory controls do not comprise the establishment of scientifically and sound and appropriate specifications and test procedures designed to guarantee that components, labeling and drug products set to appropriate standards of identity, strength, quality and purity.

Meanwhile at 10:33 AM, Natco Pharma share price was trading at Rs. 688, up by 4.27%.

To Read More: https://www.dynamiclevels.com/en/current-news/natco-pharma-share-price-170131071609

Vedanta Resources Raises $1 bn by Selling Bonds

Vedanta India share price touched a new 52 week high of Rs 261.80 today.

Vedanta Resources, the London-based mining and Metals Company led by billionaire Anil Agarwal, has raised US$ 1 billion by selling bonds to refinance its near-term debt obligations.

The new bonds were sold at a coupon of 6.375 per cent and will mature in the year 2022, said two people familiar with the development.

The company has used these proceeds to buy back through a tender offer part of two series of bonds maturing in 2018 and 2019. It has bought back close to US$ 800 million worth of these bonds.

This exercise will help the company reduce interest cost as well as replace near-term debt obligations with longer tenor paper. The 2018 and 2019 bonds carried annual coupon rates of 9.5 per cent and 6 per cent, respectively.

The company started the book running process for the new bonds on 16^thJanuary 2017 and commenced tender offers alongside to purchase for cash any and all of its outstanding bonds.

The company has redeemed US$ 370.87 million of the 2018 bonds and US$ 425.03 million of the 2019 series bonds, it said in a statement on Monday.

To Read More: https://www.dynamiclevels.com/en/current-news/vedanta-share-price-170131053946

Market May Remain Under Pressure On Weak Global Cues And Union Budget

Indian Market Outlook:

India’s benchmark index Nifty opened on a flat note on Monday and traded in a narrow range of 45 points throughout the day and finally closed at 8633,which was 8 points below its Friday’s close of 8641. Bank Nifty also showed signs of weakness and closed at 19585, 123 points below its previous close of 19708.

Small cap index stayed in range for the entire trading session yesterday. The benchmark index of cash market, Small Cap closed at 6392, almost flat from Friday’s close of 6395. Small Cap Index made a high of 6429 and a low of 6384.

FII’s continue to buy in cash segment in last three trading sessions.

Important results to be announced today are ONGC, IOC,ICICI Bank, Bajaj-Auto.

Nifty Future is opening at 8615 as per SGX Nifty at 8:50 am IST,almost 44 points below its previous close of 8659.

Important events to watch out

• 1st Feb     Union Budget 2017-18
• 1st Feb  12.30 midnight   Federal Reserve Monetory Policy (market will take impact of it on 2nd Feb)
• 8th Feb   RBI Monetory Policy
• 11th Feb to 15th Mar   UP Election

FII Activity for the year 2016-17

Month	FII Activity
January	-14356.01
February	-12513.1
March	24201.51
April	3056.28
May	-186.61
June	3957.95
July	10121.56
August	8778.01
September	3329.62
October	-5355.76
November	-19981.5
December	-11325.03
January 2017	-1049.24

Open Interest Index F&O and Cash Segment Activity

In cash segment, yesterday, FII have bought shares worth Rs. 607.40 Cr and DII bought shares worth Rs. 40.04 Cr. A combined buy of Rs.647.40 Cr. For Feb 2017 Expiry, FII and DII together are net buyer of worth Rs. 1341.69 Cr.

In Index Options, yesterday, FII have sold 35165 contracts. Pro have bought 5785 contracts on last day. Combined there has been a net sell of 5913 contracts.

In Index Futures, last trading day, FII have sold 4927 contracts. Pro have bought 261 contracts. Combined there has been a net sell of 2139 contracts.

Important events to watch out

• 1st Feb Union Budget 2017-18
• 1st Feb 12.30 midnight Federal Reserve Monetory Policy (market will take impact of it on 2nd Feb)
• 8th Feb RBI Monetory Policy
• 11th Feb to 15th Mar UP Election

International Market Morning Update:

With Trump’s order on refugees, S&P500 has shown a sign of weakness and the index is currently trading at 2269, recent high of the index was 2299. Fed to announce its monetary policy on 1st Feb 2017 Mid night at 12:30 which will have bigger impact on the international markets.

German Index Dax has also shown profit booking and has yesterday closed at 11659, recent high of the index was at 11895.

MSCI Emerging market Index is trading at 911.19, recently the index made a high of 1919. Immediate support for the index is at 907 below which next target is 902.

Most Asian markets are trading negative today as U.S. President Donald Trump's new refugee policy has created a fearfull environment in all the emerging Countries.

The focus also remains on the BoJ, FOMC and BoE meetings due this week.

Data as on 27th 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.