20 October 2016


The stock market closed with handsome gains on Thursday amid a choppy session. Indices managed to clock in marginal gains tracking positive global cues.  Indian equity benchmarks continued their firm trade in the late morning session on account of buying in frontline blue chip counters. The sentiments were on optimistic note with Prime Minister Narendra Modi’s statement that India was the fastest growing economy and that it can play a major role in providing strength to global economy that is facing slowdown. Investors are maintaining a cautious approach as the GST Council meet to reach a consensus on the GST rate structure ended without a decision on Wednesday. Most states objected to a proposal to levy an additional cess on demerit goods. The council would now meet on November 3 and 4. India’s finance minister Arun Jaitley however sounded confident about rolling out the proposed goods and services tax from next April even after a meeting between him and state finance ministers failed to break a deadlock on rates. The street may witness a lot of action as many companies are scheduled to announce their quarterly results today. Reliance Industries, YES Bank, Biocon and LIC Housing Finance would be among the 32 companies scheduled to report quarterly earnings during the day. Traders were seen piling up positions in Bankex, Realty and Metal stocks, while selling was witnessed in Oil & Gas, FMCG and Capital Goods sector stocks. In scrip specific development, RBL Bank was trading firm after reporting 34% rise in net profit for the quarter ended September 2016 to Rs 89.89 crore against net profit of Rs 64 crore for the same quarter in the previous year on the back of improved interest income.
The Sensex and Nifty climbed nearly 0.50 % on Thursday following positive cues from the global markets, as strong US earnings and rally in oil prices helped spur global risk appetite. The Sensex closed 145 points up at 28129, while Nifty settled 40 points up at 8699. The market is trading higher amid positive global cues along with strong buying among financials and index heavyweight RIL. The BSE Sensex ended with a gain of 145 points at 28130. The BSE Sensex opened at 28032 touched an intra-day high of 28213 and low of 28031. The NSE Nifty closed with a gain of 40 points at 8699. The NSE Nifty opened at 8693 hitting a high of 8727 and low of 8678.
On the upside, the Nifty has significant resistances at 8750 and 8800 levels. A conclusive rally above the second resistance is needed to strengthen the bullish momentum and take the contract up to 8830 and 8850 in the same period. Therefore, traders with a short-term perspective should desist from trading in the index futures contract as long as it trades in the sideways band between 8650 and 8600.
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Supports: 8650 and 8600
Resistances: 8750 and 8800

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