Markets wash-off two days losses, Nifty closes near 8300 levels

Indian benchmark indices snapped two days losing streak and closed at two months high.
 
Post the sideways movement till the afternoon session Indian markets broke out in the concluding half an hour where Niftyand Sensex closed 0.65% up at 8289 and 26900 levels respectively.
 
Broader markets maintained outperformance where midcap and small cap indices closed 0.8% and 0.7% higher. Market bias remained positive with 1662 advances and 1151 declines.
 
BSE Metal and BSE Industrials were the top performers with the indices gaining by 1.42% and 1.57%.
 
PSU Bank Index gained impressively even as all sectoral indices close in green indicating a broad-based rally in markets today
 
BSE consumer durables and BSE Auto were the other sectoral index that gained more than 1% on Tuesday.
 
Tata motors, Adani Ports, Tata Steel, Asian Paints, HDFC Bank, GAIL, ICICI Bank and Hero moto Corps were the stocks that gained more than 1% in today’s session. Tata Motors and Adani Ports were the top performers clocking more than 3% gains each.
 
Nifty traded near 8294 levels and closed just below the crucial level at 8289. Nifty has managed to close above its 200 days EMA at 8242.
 
Going forward the immediate resistance at 8298-8300 levels remain intact which is also its 100 days EMA level. On the downside 8260 followed by 8228 will act as the immediate supports for now.

Buzzing Stocks:
 
IndusInd bank: The stock traded volatile owing to the results declared on Tuesday. The other income was up by 21% at Rs 1,017 crore, Net profit is up by 29% and NII is up at 34% The Gross NPAs were up at 0.94% vs 0.90% (YoY)
 
MRF/ CEAT/ Apollo Tyres/ JK Tyres: Tyres stocks sizzled on bourses in the second half of the day closer to the market closing hour. The stocks gained in the range of 3.8% to 6%.

Tata Motors: The stock was the highest gainer in Sensex today.

BEL: The stock gained momentum once the reports came out of the stocks going to be split on January 27.

ABB: The stock was in news today as the company is expected to team up with Power grid for a project worth over 4350 Crore.

Sensex gains 100 points; BPCL and ONGC up

With the finance minister waxing eloquently about rising tax mop-ups of any anecdotal evidence of slow growth should be laid to rest for now. Direct tax collections rose 12% while indirect tax revenue grew was up 25%. Tax buoyancy, which slumped to 0.71 under the earlier government, has improved to 1.23 in FY15 and 1.35 in FY16, a report stated. Prime Minister Narendra Modi will inaugurate the biennial Vibrant Gujarat Global Summit 2017 today. The earnings season kicks off with IndusInd Bank announcing its numbers.

Asian indices opened flat with further consolidation as US stocks lost ground on fresh brexit worries over UK's trading role with Europe. This saw safe haven buying in US$, gold and bonds while oil prices dropped sharply. With 20000 being the near term target on the Dow Jones profit booking around these pivot levels could see some more consolidation before the Trump swearing in later this month.

At 9:45 AM, the S&P BSE Sensex is trading at 26841 up 115 points, while NSE Nifty is trading at 8268 up 33 points. A total of 21 stocks registered a fresh 52-week high in trade today, while 3 stocks touched a new 52-week low on the NSE.

Out of 1896 stocks traded on the NSE, 426 declined, 1033 advanced and 437 remained unchanged today.

The BSE Mid-cap Index is trading up 0.47% at 12408, whereas BSE Small-cap Index is trading up 0.46% at 12553.

Some buying activity is observed in Oil & Gas, Metal, Auto, while Telecom, Realty, Telecommunications are showing weakness on BSE.

BPCL, ONGC, Hindalco, Tata Steel, Tata Motors, Tata Motors DVR, GAIL, Reliance, M&M, Adain Ports are among the gainers, whereas Axis Bank, Tech Mahindra, Sun Pharma, IndusInd bank, Bank of Baroda, TCS, Asian Paints, Ambuja Cement, ACC, Yes Bank are losing sheen on NSE.

The INDIA VIX is down 1.43% at 15.25.

Buzzing Stocks:

Tata Elxsi shares up 1.7% on order win from China.

Madras Fertilisers shares up 2.5% as the company resumed operations of its manufacturing plant.

Ajanta Pharma shares up 2% on USFDA approves Cymbalta generic.

Engineers India shares up 4% on Rs 2500 crore order from HPCL.

Jaiprakash Power Ventures has sought its shareholders' nod, through postal and electronic ballot, to convert part of its outstanding debt of Rs 30.58 bn into 3.06bn equity shares. 

Divis Laboratories has filed a detailed response within the permitted time to the observations made by the US health regulator after inspection of the drug firm’s manufacturing plant at Visakhapatnam in Andhra Pradesh.

Oil and Natural Gas Corporation (ONGC) is close to finalising ways to complete its USD800mn projects stuck midway after the contractor, Singapore’s Swiber Holdings Ltd, collapsed last year following an oil slump.

A set of critical observations issued by Portuguese drug regulator on Granules India's Gagillapur unit near Hyderabad that manufactures pharmaceutical formulation intermediates (PFIs) and finished dosages (FDs).

The Centre is seeking a higher dividend on the back of IOC, HPCL and BPCL reporting much higher profits in the first half of this fiscal, as well as improved earnings per share.

Markets may open flat to negative; may witness recovery later

The Indian benchmark indices kicked off the week on a very sluggish note and closed the rangebound session on a marginally lower note. Nifty and Sensex ended 0.09% and 0.12% lower, respectivley, sans immediate triggers for the markets. Now all eyes are on the December quarter earnings and macro economic data. Pharma’s Dr. Reddy's dragged the sector and thereby the markets, while IT witnessed short covering and closed higher.

US markets witnessed profit booking from their all time high levels, wherein Dow failed to cross its 20000 mark and closed down at 19887 as investors remained worried over the earnings season. S&P 500 too slipped 0.4%, weighed by a decline in oil and financial stocks. However, the Nasdaq rose 0.2% hitting an intraday record high, driven by healthcare stocks and recovery in the IT stocks.

Most of the European bourses closed lower in the wake of disappointing earnings report from heavyweights like Deutsche Lufthansa and William Hill and a retract in oil prices. Moreover, the Pound devaluated after UK president cued hardships for UK ahead, after parting from the EU. France's CAC 40 remained down 0.45%; and Germany's DAX was 0.3% down. However, FTSE 100 remained up 0.38%.

Asian equities started off  theweek on a mixed note where Shanghai Composite and Nikkei 225 remained marginally down while Hang Seng remained up. Going forward Asian markets may remain subdued owing to a decline in oil prices due to a supply glut, and Pound depreciation on worries about a  tough life post Brexit.

We have IndusInd Bank's results to be released today which may drive the markets. Moreover, SGX Nifty is trading a bit higher at 8264 with 0.2% gains. However, the global bourses have somewhat failed to cheer the sentiments in the last trading session. On the domestic front, the government has also cued towards extending the capital gains  tax exemption upto 3 years from the present 1 year, keeping tax relief as it is for long term gains. Markets may start on a flat to negative note but may recover in case of positive intraday triggers.