Sunday, August 27, 2017

Weekly Review - 28th August, 2017

Dear All,

Q1 GDP numbers:- GDP figures for April-June quarter is slated to release on August 31, Thursday, post market hours. The data holds colossal significance for Prime Minister Narendra Modi government, which introduced two landmark reforms in the country, in a span of seven months, viz demonetisation and GST. It would be interesting to watch how the GST (goods and services tax) impacted the economy after two months of its rollout.

The economy clocked 6.1 per cent of growth rate in the January-March period, its lowest pace of growth in last nine quarters, mainly due to demonetisation. While analysts predict growth will rebound to 6.9 per cent in April to June, Morgan Stanley says the headline number will be flattered by the GDP deflator as inflation slowed, according to a Bloomberg report.

F&O expiry of August series:- The market may remain volatile as traders roll over positions in futures & options (F&O) segment from the near month August 2017 series to September 2017 series. The near month July 2017 derivatives contract expire on Thursday, August 31.

On the options front, maximum Put open interest was seen at strike price 9,800 followed by 9,500 and 9,700 while maximum Call OI stood at 10,000 followed by 10,100 and 9,900. Fresh Put writing was seen at all strike prices from 9,500 to 9,900 while Call writing was witnessed at 9,850 and 10,000 levels.

Auto stocks to hog limelight:- Auto stocks will remain on investors' radar as these companies will start reporting sales data for August, starting from Friday. The automakers posted a robust sales data for August.

Manufacturing PMI for August:- India's manufacturing PMI for August will be released on September 1 after market hours. The manufacturing industry suffered a contraction in July due to disruption in demand and production caused by the rollout of the good and services tax (GST).

The Nikkei India Manufacturing Purchasing Manager's Index (PMI) - an indicator of the economic health of the manufacturing sector derived from monthly survey of companies - stood at 47.9 in July, its lowest mark since February 2009. A reading below 50 indicates contraction and above 50 on the index indicates expansion. The index reading was 50.9 in June.

Brexit talks:- The third round of Brexit talks between the UK and the EU's chief negotiators is expected to begin in Brussels on Monday. A government source to Reuters said Britain would point to the papers it has published over the past two weeks on both the future relationship and the divorce to show how officials have been working "diligently to inform the negotiations".

According to a report by the Financial Times, the release of official papers by Whitehall over the past two weeks has signalled that the UK is becoming more realistic about what it can achieve, as Theresa May's government hopes to persuade the EU to move from phase one of the talks (the Brexit divorce) to phase two (the EU-UK trade relationship) at the October meeting.

Global cues:- Heightening tensions once again, North Korea fired three short-range missiles into the sea on Saturday amid US-South Korea military drills. Any development on this front is capable to influence markets the world over. This apart, US GDP data for Q2 and jobs data for August will be keenly watched by the investors across the globe. According to reports, the US economy is expected to see QoQ growth of 2.7%, an upgrade from the 2.6% estimate a month earlier. On jobs front, 185K jobs expected to have been created, from 209K a month earlier. Jobless rate forecast to remain at 4.3%, while average hourly earnings expected to be 0.3%, in line with a month earlier.

>>> Nifty Daily Chart <<<

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Price managed to hold 9685 & 9740 as Higher low shows Bulls may gain upper hand on coming days.

>>> Nifty Hourly Chart <<<

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Price faces resistance at 9885 - 9920 - 9950 if breaks above may give more rally.

>>> BankNifty Daily Chart <<<

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23820 & 23880 Key Support.

>>> Bank Nifty Hourly Chart <<<

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Price must cross above the channel top.

>>> CNX-Pharma - Daily - Posted Last Weekly Review <<<

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Wrote More rally ahead.

>>> CNXPHarma - Hourly Chart <<<

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Price may rally More till 9070 & 9230. Watch all Pharma Stocks.

>>> CNXPSU-Banks-Hourly Chart <<<

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All PSU Banks may rally.

>>> N4A & Services <<<

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