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Weekly Report21 July 2017

Passing week turned out to be a roller coaster ride for Indian equity markets, where frontline gauges managed to end slightly in green, helped by decent gains in final session on trade. Markets started the week on optimistic note with report that India’s trade deficit narrowed in June after swelling to a 30-month high in May even as exports grew slowly in the month. Exports were up 4.39%, a four-month low in the 10-months of continuous growth, to $23.5 billion. Trade deficit was $8.1 billion in the year ago period and $13.84 billion in May. Some support also came with report that foreign investors poured nearly Rs 11,000 crore in the capital markets in the first two weeks of July. However, markets witnessed sever cut of over a percent on the very next day, as traders remained concerned with the industry body Associated Chambers of Commerce & Industry of India’s (ASSOCHAM) latest report stating that the inflation outlook is expected to remain quite muted at least till festival season of Durga Puja and Diwali. Adding to the pessimism, a private report showed that India’s Current Account Deficit (CAD) is likely to widen to 1.3% of GDP in 2017 from 0.6% in 2016, largely owing to stronger domestic growth in the second half of this year. Some recovery was seen in later part of the week, as sentiments remained up-beat with NITI Aayog Vice Chairman Arvind Panagariya’s statement that India’s GDP could rise to about $8 trillion over the next 15 years if the country registers an economic growth of 8 percent annually and come very close to eliminating abject poverty entirely. But, it was final session of trade which mainly helped the markets to settle above their crucial 32,000 (Sensex) and 9,900 (Nifty) bastions, on the back of upbeat earnings from market heavyweight Reliance Industries, reporting a consolidated quarterly net profit increase of 28%, helped by higher-than-expected refining and petrochemicals margins and a one-time gain.

The Bombay Stock Exchange (BSE) Sensex gained 8.14 points or 0.03% to 32,028.89 during the week ended July 21, 2017. The BSE Mid-cap index was down by 1.88 points or 0.01% to 15,185.53, while the Small-cap index added 84.62 points or 0.53% to 15,992.63. On the sectoral front, S&P BSE TECK was up by 157.80 points or 2.77% to 5849, S&P BSE Information Technology was up by 270.56 points or 2.69% to 10322.16, S&P BSE Metal was up by 224.94 points or 1.88% to 12187.53, S&P BSE Bankex was up by 370.07 points or 1.36% to 27496.11 and S&P BSE Oil & Gas was up by 145.99 points or 1.05% to 14054.11 were the top gainers on the BSE sectoral front, while S&P BSE Fast Moving Consumer Goods was down by 709.57 points or 6.56% to 10102.5 was the top loser on the BSE sectoral space.

The Nifty was up by 28.90 points or 0.29% to 9,915.25. On the National Stock Exchange (NSE), Nifty IT rose by 380.90 points or 3.69% to 10,711.55, Bank Nifty gained 319.35 points or 1.33% to 24,257.05, Nifty Next 50 increased by 191.50 points or 0.70% to 27,605.40, while Nifty Mid 100 FREE was down by 16.65 points or 0.09% to 18,262.20.

Foreign Institutional Investors (FIIs) were net buyers in equity segment in the week with gross purchases of Rs 26415.49 crore and gross sales of Rs 23936.34 crore, leading to a net inflow of Rs 2479.15 crore. They stood as net buyers in the debt segment also with gross purchases of Rs 5562.83 crore against gross sales of Rs 3596.58 crore, resulting in a net inflow of Rs 1966.25 crore.

Hailing the several initiatives taken by the new government, the latest edition of the OECD’s economic outlook report on India has said that economic growth is projected to remain strong and India will remain the fastest growing G20 economy. It said that the acceleration of structural reforms in the Indian economy, with the efforts made by Prime Minister Narendra Modi led BJP government in the centre, is bringing a new growth impetus, which has won the confidence of the people by increasing public wages and pensions that will support consumption. The Organisation for Economic Co-operation and Development (OECD) in its June 2017 report said that, “The increase in public wages and pensions will support consumption. Private investment will recover gradually as excess capacity diminishes, and the landmark Goods and Services Tax and other measures to improve the ease of doing business are being implemented.” According to report, the newly implemented Goods and Services Tax (GST) has framed India into a single tax market and thus will spur productivity, investment, competitiveness, job creation and incomes.

Major Indices Performance

SYMBOL Last21 July 2017 High Low Last Week Close

14 July 2017 % Change

BANKNIFTY 24257.05 24299.60 23755.95 23937.70 1.33

NIFTY100 10258.10 10267.55 10138.10 10221.70 0.36

NIFTY500 8669.75 8680.35 8579.95 8640.70 0.34

NIFTYIT 10711.55 10726.10 10306.80 10330.65 3.69

NIFTYMIDCAP 18262.20 18383.20 18098.35 18278.85 -0.09

MIDCAP50 4707.90 4755.05 4654.25 4709.70 -0.04

NIFTY 9915.25 9928.20 9792.05 9886.35 0.29

NIFTYJR 27605.40 27695.25 27243.35 27413.90 0.70

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FIIs Movement ( Rs. Cr.)

DateGross Purchase Gross Sales Net Investment

Equity Debt Equity Debt Equity Debt

18-Jul-17 4567.92 1037.17 4192.13 414.37 375.79 622.80

19-Jul-17 6645.22 1445.59 6269.37 574.35 375.85 871.24

20-Jul-17 6580.42 1079.61 5563.54 244.05 1016.88 835.56

Market outlook for next week : In the passing week, Indian equity markets showed volatile trend but managed to end slightly in green on back of better-than-expected earnings from heavy weights Reliance Industries and Infosys. The coming week is also going to be very volatile with the expiry of July F&O series scheduled on July 27 and traders settling their positions from a heavy series. Traders will be eyeing rupee movement during the week for further cues. The finance ministry is working on the capital infusion strategy for public sector banks and market-men would be awaiting the announcement which can be made next week. Additionally, investors would also be eyeing the monsoon session of parliament which commenced from July 17, 2017 and will continue till August 11, 2017. The monsoon session will see a total of 19 sittings. Market participants will also be tracking monsoon update, as the India Meteorological Department (IMD) has indicated 10-day break in monsoon from July-end likely, the possibility of the monsoon entering a weak phase, followed by a break after July will result in subdued rainfall over most parts of the country. Traders will also be reacting to lots of important earnings during the week, Ambuja Cements, I G Petrochemicals, GIC Housing Finance, HDFC Bank, Indiabulls Real Estate, Indiabulls Housing Finance, Bharti Infratel, JM Financial, Just Dial, Larsen & Toubro Infotech, Glenmark Pharmaceuticals, HCL Technologies, ICICI Bank, Idea Cellular, IDFC, IDFC Bank, ITC, Maruti Suzuki, Tata Elxsi, Escorts, Larsen & Toubro (L&T), LIC Housing Finance etc. would report their earnings for June quarter. On the global front, traders will be eyeing important macro data from US, starting from PMI Composite Flash and Existing Home Sales on July 24, followed by S&P Corelogic Case-Shiller HPI, Redbook and Consumer Confidence on July 25, New Home Sales and FOMC Meeting Announcement on July 26, Durable Goods Orders, International Trade in Goods, Jobless Claims, Fed Balance Sheet and Money Supply on July 27 and finally GDP data Employment Cost Index, Consumer Sentiment and Baker-Hughes Rig Count on July 28.

Mutual Fund Movement ( Rs. Cr.)

DateGross Purchase Gross Sales Net Investment

Equity Debt Equity Debt Equity Debt

14-Jul-17 1747.83 5734.10 1584.42 3300.93 163.41 2433.17

17-Jul-17 1775.41 3969.93 1721.22 2327.70 54.19 1642.23

18-Jul-17 2184.90 7153.59 2371.83 5536.71 -186.93 1616.88

NSETOP GAINERS - NIFTY

Company Name Last Price (Rs.)21/07/17

Prev Price (Rs.)14/07/17

Chg (Rs.) Chg%

Wipro 286.05 264.05 22.00 8.33

Zee Entertainment 556.05 517.00 39.05 7.55

Aurobindo Pharma 748.25 705.15 43.10 6.11

Axis Bank 540.80 511.90 28.90 5.65

HCL Tech. 904.95 858.60 46.35 5.40

Weekly Top Gainers • Wipro up by 8.33% was the top gainer on Nifty for the week - Wipro reported higher-than-expected growth

in the first quarter of fiscal year 2017-18, with help of higher revenue from banking, financial services and insurance segment. The company posted 1.15% rise in its consolidated net profit at Rs 2,082.60 crore for the quarter ended June 30, 2017, as compared to Rs 2,059.00 crore for the corresponding quarter of previous year. Total consolidated income of the company increased marginally by 0.45% at Rs 14,281.40 crore for Q1FY18, as compared to Rs 14,217.70 crore for Q1FY17.

• Zee Entertainment up by 7.55% was another top gainer on Nifty for the week - Zee Entertainment Enterprises (ZEEL) acquired the remaining 51% stake in Fly By Wire (FBW). Consequent to the receipt of approval from Ministry of Civil Aviation and compliance of other requisite formalities, the company has acquired the balance 51% stake in FBW comprising of 10,20,000 equity shares of Rs 10 each. In March last year, the company announced that it will fully acquire charter plane services firm FBW for a total consideration of Rs 61.25 crore. In May, ZEEL acquired 49% stake in FBW.


Technical Viewpoint -

CNX Nifty

During the week, CNX Nifty touched the highest level of 9928.20 on July 17 and lowest level of 9792.05 on July 18. On the last trading day, the Nifty closed at 9915.25 with weekly gain of 28.90 points or 0.29 percent. For the coming week, 9828.80 followed by 9742.35 are likely to be good support levels for the Nifty, while the index may face resistance at 9964.95 and further at 10014.65 levels.

NSETOP LOSERS - NIFTY

Company Name Last Price (Rs.)21/07/17

Prev Price (Rs.)14/07/17

Chg (Rs.) Chg%

ITC 288.90 338.75 -49.85 -14.72

Tata Steel 553.25 563.95 -10.70 -1.90

Hero MotoCorp 3682.00 3750.95 -68.95 -1.84

Bosch 23971.45 24253.05 -281.60 -1.16

Bank Of Baroda 161.75 163.40 -1.65 -1.01

Weekly Top Losers• ITC down by 14.72% was the top loser of the week on Nifty - India’s largest cigarette maker ITC remained under

pressure after the Goods and Services Tax (GST) Council increased the cess on cigarettes in its first meeting after the rollout of the indirect tax regime on 1 July. According to finance minister Arun Jaitley, the council raised the cess on cigarettes to take away an estimated Rs 5,000 crore annual ‘windfall’ manufacturers could have reaped from lower GST rates. However, the increase in cess will not result in higher prices of the cigarettes.

• Tata Steel down by 1.90% was another top loser of the week on Nifty - Most of the steel sector stocks including Tata Steel witnessed selling pressure with report that steel ministry has expressed concerns that cost of steel manufacturing will increase as electricity, being one of the major inputs, has been kept out of the Goods and Service Tax (GST). It also expressed concerns that the Clean Energy Cess of Rs 400 per tonne which was being charged pre GST remains effectively non-cenvatable in the new regime. The ministry was of view that royalty is charged on iron ore at 15% of the base price and is yet not cenvatable.

NSE Weekly Chart

9750.009800.00

9850.00

9900.00

9950.00

17/7/201718/7/2017

19/7/201720/7/2017

21/7/2017

9915.95

9827.15 9899.609873.30 9915.25


Derivatives Snapshot

Highest In OI (Stock Futures, Stock Option)Type Symbol Expiry

DateType Strike

PriceLTP Price

ChangeVol Change

in VolValue

(Rs. Lakhs)Changein Price

OpenInterest

O IChange

FUTSTK INFY 27-Jul-17 - - 979.45 0.82 12213.00 3368.00 597.62 8.00 52008.00 -1261.00

FUTSTK HDFCBANK 27-Jul-17 - - 1699.25 -0.74 14086.00 1226.00 1201.89 -13.00 43113.00 -2648.00

FUTSTK SUNPHARMA 27-Jul-17 - - 576.85 -1.05 6279.00 1626.00 291.41 -6.00 34605.00 -838.00

OPTSTK RELIANCE 27-Jul-17 CE 1600.00 14.00 120.47 55639.00 48932.00 4486.78 8.00 5317.00 705.00

OPTSTK INFY 27-Jul-17 CE 1000.00 4.80 7.87 3667.00 -640.00 184.20 0.00 5093.00 -612.00

OPTSTK RELIANCE 27-Jul-17 PE 1540.00 4.70 -82.23 25286.00 22230.00 1959.02 -22.00 3600.00 2534.00

US MarketThe US markets were relieved during the passing week despite concerns that the collapse of the health-care bill could unhinge the market after the Republican leaders in the Senate ditched their effort to repeal and simultaneously replace Obamacare, also known as the Affordable Care Act. Senate lawmakers will instead vote in the coming days on a bill to unravel most of the ACA, popularly known as Obamacare, and they look likely to leave any replacement to a later date. The failure of the health care plan is seen as raising doubts about President Donald Trump’s ability to push his agenda through Congress. The Atlanta Federal Reserve raised its second-quarter GDP estimate by one-tenth of a percentage point to a 2.5 percent annualized rate. The economy grew at a 1.4 percent pace in the first quarter.There were mixed reports on the economic front. The number of Americans who applied for unemployment benefits sank in mid-July and hovered near a 44-year low, reflecting the healthiest jobs market in more than a decade. Initial jobless claims in the period running from July 9 to July 15 fell by 15,000 to a seasonally adjusted 233,000. The four-week average slipped by 2,250 and stood at 243,750. Some 1.98 million people, meanwhile, have been collecting unemployment checks for more than one week. That represents an increase of 28,000. The leading economic index jumped 0.6% last month after a revised 0.4% increase in May. The improvement in the index was spearheaded by strong housing permits after several months of weakness.On the other hand, the Philadelphia Federal Reserve said its manufacturing survey in July fell to 19.5 from 27.6 in June. The indexes for activity, new orders, shipments, employment and work hours were all positive but fell from June levels. The new-orders index in particular plummeted, to a reading of 2.1 from 25.9 in June. The New York Fed’s Empire State manufacturing index fell to a seasonally adjusted reading of 9.8 from 19.8 in June. Readings in July for new orders, shipments, inventories, delivery times and number of employees all decelerated. Separately, the monthly confidence gauge from the National Association of Home Builders fell two points to a reading of 64. June’s reading, initially reported as 67, was revised down one point.

Index_name Last Close 20/07/17

Prev Close14/07/17 High Low % Change

Dow Jones 21611.78 21637.74 21681.53 21471.14 -0.12

Nasdaq 6390.00 6312.47 6398.26 6278.70 1.23

S&P 500 2473.45 2459.27 2477.62 2446.69 0.58

Highest In OI (Index Futures, Index Option)Type Symbol Expiry

DateType Strike

PriceLTP Price

ChangeVolume Change

in VolumeValue

(Rs. Lakhs)Changein Price

OpenInterest

O IChange

FUTIDX NIFTY 27-Jul-17 - - 9910.55 0.23 130311.00 43259.00 9663.28 23.00 240154.00 -2569.00

FUTIDX BANKNIFTY 27-Jul-17 - - 24247.60 0.05 70090.00 5305.00 6782.14 12.00 62939.00 -5431.00

FUTIDX NIFTY 31-Aug-17 - - 9946.80 0.22 19670.00 10893.00 1464.82 22.00 54571.00 7968.00

OPTIDX NIFTY 27-Jul-17 CE 10000.0 15.45 1.31 408676.00 141699.00 30690.55 0.00 90463.00 -4040.00

OPTIDX NIFTY 27-Jul-17 PE 9800.00 13.75 -37.50 434397.00 171660.00 31997.70 -8.00 86178.00 -455.00

OPTIDX NIFTY 27-Jul-17 PE 9500.00 2.05 -35.94 72837.00 28499.00 5191.03 -1.00 64545.00 2555.00


Disclaimer : This document has been prepared by Imperial Investment Consultancy Services Pvt Ltd and Accord Fintech Pvt. Ltd. and is being distributed in India by Imperial Investment Consultancy Services Pvt Ltd ,

a registered broker dealer. This information in the document has been complied by the research department. Due care has been taken in preparing the above document. However, this document is not, and should not be construed,

as an offer to sell or solicitation to buy any securities. Any act of buying, selling or otherwise dealing in any securities referred to in this document shall be at investor’s sole risk and responsibility.

This document may not be reproduced, distributed or published , in whole or in part, without prior permission from the company.© Copyright - 2017 - Accord Fintech Pvt. Ltd. and Imperial Investment Consultancy Services Pvt Ltd.

Source : ACE Equity

European MarketThe European markets were mostly under pressure during the passing week after European Central Bank (ECB) president Mario Draghi reiterated concern that inflation remains low, pouring water over hopes that policymakers would soon scale back the bloc’s huge money-printing programme. Draghi underlined the euro area monetary authority’s dovish stance stressing the need for very substantial accommodation, while indicating that future discussions about quantitative easing (QE) should take place in the fall. The ECB kept monetary policy unchanged with the main refinancing rate left unchanged at 0%, the rate on bank overnight deposits kept at -0.40%, while the rate on the marginal lending facility, or emergency overnight borrowing rate for banks, stayed at 0.25%. The International Monetary Fund’s board approved a $1.8 billion loan to Greece but will only release the money if the country gets debt relief from its European creditors. The IMF has praised Greece for taking steps to reduce its budget deficits, including expanding its tax base and cutting spending on pensions. But the lending agency is pressuring Greece’s euro zone lenders to provide enough relief to ensure the battered country can pay its bills. If an agreement on debt relief is reached, the IMF will join the euro zone lenders in an ongoing bailout. Consumer prices in the euro area increased by 1.3 percent year-on-year in June 2017, matching the flash estimate and easing from a 1.4 percent rise in May. It was the lowest inflation rate since December last year, as cost of energy and unprocessed food rose at a slower pace. Annual core inflation, which excludes volatile prices of energy and unprocessed food and tobacco and at which the ECB looks in its policy decisions, rose to 1.1 percent from 0.9 percent in May.



DAX 12447.25 12631.72 12662.01 12384.61 -1.46

FTSE 100 7487.87 7378.39 7502.73 7357.77 1.48

Asian MarketAll the Asian equity benchmarks, barring Japanese Nikkei ended in the green terrain during the passing week, as weak US retail sales and inflation data served to cool Fed rate hike speculation and data showed the Chinese economy grew more than expected in the second quarter. However, there was some cautiousness too with the European Central Bank dropping no hints at tapering in September and media reports suggested that U.S. special counsel Robert Mueller is expanding the Russia probe to include President Donald Trump’s business dealings.

Chinese Shanghai edged higher by around half a percent, as investors piled into banking, consumer and resources shares after robust economic growth data and on expectations that Beijing is stepping up efforts to reform lumbering and inefficient state companies. China’s GDP grew 6.9 percent year-on-year in the second quarter of 2017, setting the country on course to comfortably meet its 2017 growth target and giving policymakers room to tackle big economic challenges ahead of key leadership changes later this year. Besides, retail sales jumped an annual 11.0 percent in June, beating forecasts for 10.6 percent and up from 10.7 percent in May, while industrial output climbed 7.6 percent from last year, topping expectations for an increase of 6.5 percent.

Japanese Nikkei edged marginally lower during the week, as exporters took a hit amid yen strength on lingering concerns over U.S. President Donald Trump’s economic agenda. However, gains were muted with the data showing that Japanese exports rose 9.7% in June from a year ago, led by shipments of cars and electronics, an indication external demand continues to support a gradual economic recovery and backing the central bank’s upbeat economic view. Meanwhile, the Bank of Japan kept monetary policy steady and pushed back again the timing for achieving its 2 percent inflation target, reinforcing expectations it will lag well behind major global central banks in dialing back its massive stimulus programme.



Hang Seng 26740.21 26389.23 26794.18 26295.99 1.33

KLSE 1755.63 1755.00 1760.82 1751.69 0.04

Nikkei 225 20144.59 20118.86 20163.67 19943.14 0.13

Straits Times 3293.13 3287.43 3331.13 3236.32 0.17

Seoul 2441.84 2414.63 2443.69 2411.34 1.13

Shanghai 3244.86 3222.42 3246.24 3150.13 0.70

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