Nifty surges on positive global cues, strong rupee

Indian equities markets surged today as positive global cues, appreciation in the rupee and firm crude oil prices lifted investor sentiments.

The key indices, which opened on a positive note in sync with their Asian peers, traded with substantial gains to close higher by around one per cent each.

“Markets surged higher today after three days of consolidation. The gains came on the back of positive Asian markets,” Deepak Jasani, Head – Retail Research, HDFC Securities, said.

“Technically, the Nifty has broken out of a narrow range seen in the previous three sessions and closed just below the previous intermediate high of 8,275.”

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 83.30 points or 1.02 per cent to 8,273.80 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 26,738.42 points, closed at 26,878.24 points — up 245.11 points or 0.92 per cent from the previous day’s close at 26,633.13 points.

The Sensex touched a high of 26,917.21 points and a low of 26,738.42 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bulls — with 1,962 advances and 887 declines.

On Wednesday, weak domestic services data and a lack of consensus at the GST Council meet pulled the benchmark indices lower, with the barometer index down 10.11 points or 0.04 per cent and the NSE Nifty down 1.75 points or 0.02 per cent to 8,190.50 points.

“In today’s trade, the Nifty regained the 8,200-mark in the opening trade and traded firm on the back of the gains in Asia after US Federal Reserve’s minutes suggested a less hawkish stance from policymakers,” SMC Global Securities said.

“Market participants are eagerly waiting for the announcements from the budget, expecting that government would keep spending under control and promote growth after its demonetisation scheme, which has paralysed large parts of the economy.”

Besides, the Indian rupee appreciated against the dollar in the day’s session. It strengthened by eight paise to 67.97 against a US dollar from its previous close of 68.05 to a greenback.

In terms of investments, provisional data with exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 86.88 crore, whereas the domestic institutional investors (DIIs) purchased scrip worth Rs 449.07 crore.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded with firm sentiments throughout the trading session tracking positive global cues, firm USD/INR futures prices and buying support.

“Almost all sector stocks managed to trade firm and hold gains at higher levels tracking over all firm sentiments in the domestic markets,” Desai said.

“However, IT stocks faced resistance at higher levels in the second half of the session and traded with mixed sentiments.”

Sector-wise, the S&P BSE automobile index surged by 379.79 points, followed by the metal index by 310.41 points, and the banking index by 276.17 points.

On the contrary, the S&P BSE IT index receded by 78.74 points, followed by the TECK (technology, media and entertainment) index by 18.33 points.

Major Sensex gainers today were: Adani Ports, up 4.88 per cent at Rs 287.75; Tata Steel, up 3.47 per cent at Rs 419.15; Tata Motors, up 3.18 per cent at Rs 501.95; ONGC, up 2.73 per cent at Rs 199.65; and Power Grid, up 2.50 per cent at Rs 190.80.

Major Sensex losers were: Tata Consultancy Services (TCS), down 1.85 per cent at Rs 2,334.55; HDFC Bank, down 0.22 per cent at Rs 1,183.45; Infosys, down 0.19 per cent at Rs 996.40; and NTPC, down 0.03 per cent at Rs 164.75.

Traded Value (Rs. In Crores)    19027.21
Traded Quantity (in Lakhs)    10518.44
Number of Trades    8469294
Total Market Capitalisation (Rs. Crores)    10679678

ADVANCES    1190
DECLINES    437
UNCHANGED    74

In the cash segment FIIs were net sellers to the tune of Rs 87 crores and DIIs net buyers to the tune of  Rs 449 crores.

Today FIIs bought net 26818 contracts of index futures, bought net 41149 contracts of index calls and sold net 33406 contracts of index puts.

Now FIIs are holding net long 85450 contracts of index futures, net long 41149 contracts of index calls and net long 240873  contracts of index puts.

Retailers sold net 20135 contracts of index futures, sold net 98423 contracts of index calls and bought net 42944 contracts of index puts.

Pros sold net 6045 contracts of index futures, bought net 57274 contracts of index calls and sold net 8926 contracts of index puts.

FII positions in Index puts, futures and calls.

Nifty Put Call Ratio (PCR) data shows support at 8200 and resistance at 8300

(With agency inputs)