Indian equity markets registered small gains in a truncated trading week ended Friday, 11 March 2016. The stock market was closed on Monday, 7 March 2016, for Mahashivratri holiday. The market registered gains in three out of the four trading sessions during the week.The Sensex rose 71.51 points or 0.29% to settle at 24,717.99. The Nifty rose 24.85 points or 0.33% to settle at 7,510.20. Macroeconomic data, trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses in the near term.
On The F&O Front: -Weekly data shows in the past trading sessions, we have seen strong Put writing at 7200/ 7300/7400 strikes & major Call build up at 7600/7500/7400 strike indicating a positive session for market, in the near term.
On Technical Front: – On Nifty weekly chart strong resistance is seen at 7540. If it breaks with high volume, more bullishness is expected.
Nifty Directional: – Buy Nifty Future above 7550 Target 7600, 7650 Stop Loss 7450. Time Frame: – 1 Week
Chana prices gain on lower production estimate of Gujarat
During yesterday’s trading session NCDEX Chana April opened positive and traded within a range during first half of the session but during second half it resumed uptrend and closed positive only. NCDEX Chana April futures ended the day at Rs 4411 per quintal which is 0.55% up against the previous day. NCDEX Chana futures are expected to trade positive during today’s trading session.
RM seed prices gain on increase in the domestic demand
RM Seed April futures at NCDEX platform yesterday opened positively however it traded on a mixed note with positive bias. The prices closed higher on moderate pick up in domestic demand by oil millers. RM seed trade ended the day at RS. 3986 per quintal which is approx 1.87% up against its previous close. However, the arrivals have started increasing in some of the major physical markets around the country which may limit gains in prices for the near term.
Guar seed and Gum prices gain on decline in the supply in mandies
AT NCDEX platform we saw in last trading session Guar seeds and Guar gum futures traded on positive note and ended at Rs. 3126/quintal and Rs. 5580/quintal with posting a gain of 1.26% and 1.09% respectively. Taking cues from spot market where during the day arrivals has decreased in major mandies of Gujarat. Expectations of decline in acreage under guar cultivation in the state for the upcoming kharif season supported the prices for some extent.
India exported 8494.36 T Castor oil during the week ended 6th March-2016 at an average price of $1062.91 per tonne.It is lower by 54.88% from previous week. Price realization too decreased by 6.82 % from last week. The minimum and maximum prices were registered at $1618 and 837.80 per tonne. Castor oil export would continue to grow as prices are lower and availability is higher. Even before arrival pressure.
Market fundamentals and recent developments hint that the year will remain favorable for Castor oil consumers as upside potential is very limited in the short to medium term. Speculators have burnt their fingers and would prefer to remain sidelined in futures if futures contracts are re-launched. Under current condition Castor, business may revert to fundamental good demand -supply equations.
Sensex snapped six days of gains, amid weakness in their Asian and European peers, as investors booked profits at higher levels. On the flip side, metal and mining shares bucked the trend and shown across the board after the Cabinet today cleared an amendment in the new mining law. The Sensex shed 171 points to end at 24,623 and the Nifty lost 46 points to end at 7,486. Oil explorers closed mixed after the government today announced a new Hydrocarbon Exploration & Licensing Policy in an effort to boost production and also streamline several hurdles faced by oil exploration companies. European stocks edged lower as participants wait to find out whether the ECB will add more stimulus to the eurozone economy.