Monday, June 16, 2014

Market Summary of the day : 16/06/2014

 Indian equity benchmarks recovered from day’s low but continue to trade in the red terrain in the late afternoon session taking cues from weak global counterparts. The sentiments were on pessimistic mood after the annual rate of inflation, based on monthly WPI, came in at highest level since December 2013, at 6.01% for month of May, 2014, as compared to 5.20% and 4.58% during corresponding month in the previous year. 

 Traders were seen piling up positions in IT, TECK and Realty, while selling was witnessed in Capital Goods, Auto and Bankex sector stocks. In scrip specific development, Idea Cellular was trading in green after RBI allowed an increase in FII limit for the company. Yes Bank was trading in green after the bank’s advance tax payment rose 20.19% to Rs 125 crore in Q1 June 2014 over Q1 June 2013. 

 On the global front, the Asian markets were trading on a mixed note, while the European markets traded on pessimistic note. 

 Meanwhile, the global rating agency Fitch, in its latest report, has highlighted that a strong government at the Centre and stability in macro economic factors are likely to keep country's public sector banks' outlook stable in the near term. 

 Indian banking industry is the most dominant segment of the country’s financial sector and plays an imperative role in the economic development of the country. Over the past two fiscal years, Indian economy has been struggling with slowdown and growth remained below 5 percent for the second time in a row at 4.7 percent during FY14. Industry, being highly correlated to economic scenario, is under pressure due to prevailing economic downturn leading to rise in NPAs of banks. The state-owned banks have been the most affected in terms of rise in their non-performing assets. The top 36 banks of India have reported gross NPAs of Rs 2,34,014 crore by March 2014, a 36 percent jump from Rs 1,71,853 crore on year-on-year basis. 

 The gaining sectoral indices on the BSE were IT up by 1.60%, TECK up by 1.25%, Realty up 1.15%, Consumer Durables up 0.72% and HealthCare up by 0.38% while, Capital Goods down by 1.83%, Auto down by 0.89%, Bankex down by 0.82%, Metal down by 0.33% and Power down by 0.27% were the top losing indices on BSE. 

 The top gainers on the Sensex were Gail India up by 2.69%, TCS up by 2.42%, Infosys up by 1.96%, Tata Power up by 1.74% and Bajaj Auto up by 1.74%. On the flip side, Axis Bank down by 3.24%, L&T down by 2.42%, Mahindra & Mahindra down by 2.32%, HDFC down by 1.78% and Tata Motors down by 1.60% were the top losers. 

TECHNICAL PARAMETERS OF NIFTY 
 Today, RSI was at 66, MACD positive below signal line; India VIX was at 18~. Nifty closed below its immediate short term moving averages like 5 DMA (7601) but still above 20 DMA (7427), 50 DMA (7064) & 200 DMA (6366) which all indicate that market may face some resistance at higher levels due to profit booking but overall trend is remains positive in the medium to long term. Investors may accumulate on dips and book profits in selected counters. 


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