Weak domestic cues pull Nifty lower

Weak domestic cues pulled the Indian equities markets lower Today.

Investors’ sentiments were subdued on the back of weak domestic services data for December — the Nikkei Services Purchasing Managers’ Index (PMI) which stuck almost unchanged at 46.8, coupled with a lack of consensus at the GST Council meet.

In addition, caution ahead of the minutes of the US Federal Open Market Committee (FOMC) due for release later in the evening and substantial amount of foreign funds outflow arrested the upward trend of the indices.

The key indices, which opened on a positive note buoyed by firmer Asian and European markets, traded range-bound throughout the day to finally close on a flat note — marginally in the red.

“Markets ended on a flat note on Wednesday as the Nifty continued to trade in a narrow range. Technically, the Nifty remains in consolidation mode after the recent run-up,” Deepak Jasani, Head – Retail Research, HDFC Securities, said.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) inched down by 1.75 points or 0.02 per cent to 8,190.50 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 26,677.22 points, closed at 26,633.13 points — down 10.11 points or 0.04 per cent from the previous day’s close at 26,643.24 points.

The Sensex touched a high of 26,723.37 points and a low of 26,606.06 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bulls — with 1,597 advances and 1,192 declines.

On Tuesday, positive global indices, along with value buying and short covering, buoyed the benchmark indices, with the barometer index up 47.79 points or 0.18 per cent, while the NSE Nifty was up by 12.75 points or 0.16 per cent.

“The domestic markets continued to remain sideways tracking their US and Asian counterparts on upbeat global economic data, but the gains were tampered by the services PMI data and outcome from the second day of the GST Council Meet,” SMC Global Securities said.

“Market participants are equally waiting for the corporate results, which are scheduled to start next week and the government’s budget, which is due on February 1.”

However, the Indian rupee appreciated against the dollar in the day’s session on the back of higher opening in the local equities. It strengthened by 28 paise to 68.05 against a US dollar from its previous close of 68.33 to a greenback.

“The Indian rupee took positive cues from Asian currencies market which remained firm against the greenback, as traders were seen cautious just before the US Federal Reserve meeting minutes due today (later in the evening),” the stock brokerage firm added.

In terms of investments, provisional data with exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 800.71 crore, whereas the domestic institutional investors (DIIs) purchased scrip worth Rs 427.09 crore.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty witnessed a range trading in the intra-day session and traded with sideways sentiments.

“Banking, pharma, oil-gas and FMCG stocks traded with bearish sentiments due to selling pressure at higher levels,” Desai said.

Sector-wise, the S&P BSE banking index receded by 169.91 points, followed by the oil and gas index by 68.22 points, and the energy index by 26.25 points.

On the contrary, the S&P BSE consumer durables stocks surged by 142.26 points, followed by the capital goods index by 91.62 points, and IT index by 90.79 points.

Major Sensex gainers Today were: Bharti Airtel, up 3.47 per cent at Rs 314.20; Bajaj Auto, up 2.59 per cent at Rs 2,688; Wipro, up 1.76 per cent at Rs 475.75; Tata Motors, up 1.09 per cent at Rs 486.50; and Hero MotoCorp, up 0.90 per cent at Rs 3,014.25.

Major Sensex losers were: Reliance Industries, down 1.99 per cent at Rs 1,068.95; ICICI Bank, down 1.26 per cent at Rs 251.10; Cipla, down 1.05 per cent at Rs 568.10; Hindustan Unilever, down 1.04 per cent at Rs 821; and Power Grid, down 0.98 per cent at Rs 186.15.

Traded Value (Rs. In Crores)    17475.43
Traded Quantity (in Lakhs)    9985.45
Number of Trades    8100545
Total Market Capitalisation (Rs. Crores)    10563005

ADVANCES    944
DECLINES    659
UNCHANGED    81

In the cash segment FIIs were net sellers to the tune of Rs 801 crores and DIIs net buyers to the tune of  Rs 427 crores.

Today FIIs sold  net 2794 contracts of index futures, bought net 9019 contracts of index calls and bought net 3704  contracts of index puts.

Now FIIs are holding net long 58632 contracts of index futures, net long 14645 contracts of index calls and net long 274729 contracts of index puts.

Retailers bought net 824 contracts of index futures,  bought net 17487 contracts of index calls and bought net 2637 contracts of index puts.

Pros sold net 3554 contracts of index futures, sold net 26506  contracts of index calls and sold net 6341 contracts of index puts.

FII positions in Index puts, futures and calls.

Nifty Put Call Ratio (PCR) data shows support at 8100 and resistance at 8200

(with agency inputs)