TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )
NIFTY FIFTY : - The Market has kickstarted the week on a strong note supported by Index heavyweight. The Nifty is up 50 points or 0.7 per cent at 7784. Asian stocks open mixed, as oil prices rallied on supply outages in Canada. The Chinese economy is showing fresh sign of stability amid a broader slowdown. The Market is fluctuating in a band after the sharp run-up over the past 2-3 months. We are expecting the short-term trend will be dictated by the remaining quarterly numbers and further announcement on monsoon apart from global cues. What would determine the market movement for short-term is how global market react to the rebound ,that we are seeing because of the US data. Although the Volatility in the market will be continue Nifty may consolidate between 7600 to 8000 levels. With Nifty50 at 7900 on a closing basis. We are heading for the 8000-8150 levels. The open Interest on 7900-8000 are very high and they are still showing outstanding position it will be very difficult for Nifty to cross the level of 8000. The Strong Support for Nifty is 7800-7700 and Resistance is 8050-8160.

BANK NIFTY : - The Bank Nifty has opened positive on Monday at 16357 up by 61 points or 0.4 per cent. The Finance Ministry has said that the Fresh capital to Public Sector Banks will be linked to their Performance , especially Recovery done by them, official have conveyed to Banks in an Interaction. The Reserve Bank of India may face serious challenge from the softer interest rate regime when it come to managing cash or liquidity in the system.The Reserve Bank of India has cautioned Banks from lending more to power distribution companies or Discom in a recent letter to select state owned banks the Regulator has advised them to exercise caution in giving new loans to the utilities remind them that any additional exposure to Discom.The Nifty Trend seen bull side on technical basis. We could see the good rally in Public Sector Banks in upcoming week. The Crucial levels for Bank Nifty is 16690-16700 down side and 17150-17260 is up side.

NSE - WEEKLY NEWS LETTERS
TOP NEWS OF THE WEEK

Public sector banks wrote off over Rs 1.14 lakh crore in last 3 fiscals: Arun Jaitley - FM Arun Jaitley reportedly said that State-owned banks wrote off over Rs 1.14 lakh crore debt during the last three financial years."The public sector banks have written off Rs 1,14,181 crore of debt during financial years 2013, 2014 and 2015." Jaitley stated that in case of technical write-off, the recovery efforts continue as accounts remain the books of branches.

Union Budget 2016-17 is well aligned with PM’s‘Make in India ’ and ‘Startup India ‘ campaign - We believe the Union Budget 2016-17 is well aligned with Prime Minister’s ‘Make in India ’ and ‘Startup India ’ campaign. The budget focuses clearly on growth, development, job creation and creating a better environment for doing business in India. Besides a particular focus on startups by giving them exemption on their profits for the first three years is a welcome move. The relaxation in capital gain tax for investment in Funds of Funds and reducing the time frame to two years from three for availing long term capital gain tax benefit in the unlisted space will further boost the investment in startups. Also keeping the ‘Digital India ‘ momentum rolling during the budget, introduction of electronic auction platform for the private placement market in corporate bonds is a welcome move.

India Budget credit positive but uncertainties remain: Fitch - India's latest budget for the 2017 fiscal year contains a number of elements that could be positive from a sovereign rating perspective over the medium term, says Fitch Ratings. However, uncertainties regarding implementation of the reform agenda and meeting targeted revenue growth remain. Most notably, the budget for the fiscal year ending 31 March 2017. underscores the government's continued commitment to gradually broaden the ambitious reform agenda. Further reforms, such as those pertaining to the financial sector, agriculture and liberalisation of the FDI regime were announced in the latest budget, indicating that the government retains its vision of how to structurally improve the economy and create sustainable growth. Fitch maintains that improving the relatively weak business environment through structural reforms that would support investment and real GDP growth is a key factor that would be credit positive.

Sustained growth: India Feb Manufacturing PMI at 51.1 - The February Manufacturing PMI At 51.1 , unchanged from January reading, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers Index–a composite single-figure indicator of manufacturing performance–pointed to a second consecutive monthly improvement in business conditions across the sector. Reflecting sustained growth of new work, Indian manufacturers raised their production volumes in February. That said, the rate of expansion eased since January and was marginal overall. Incoming new work increased for the second straight month and at the quickest rate since last September. According to survey members, underlying demand continued to improve. New business from abroad also rose, although February saw a loss of growth momentum. Manufacturing business conditions in India continued to improve.

Fiscal deficit of 3.5% is very credible step for the financial markets - The Union Budget 2016, presented today by the Union Finance Minister Mr. Arun Jaitley is a pragmatic and balanced act in the backdrop of global uncertainty. Maintaining a fiscal deficit of 3.5% is a very credible step for the financial markets, robust outlays for infrastructure, agriculture, rural and socio-economic schemes are also welcome moves, however, one can argue that more could have been provided for recapitalization of banks which are currently facing issues of mounting NPAs. Mr Jaitley once again relaxed the FDI policy in several sectors, including insurance and pension and asset reconstruction companies, to attract more overseas investments. The budget shows a lot of focus on rural areas and Infrastructure - arguably two important growth drivers for the economy.

Fund allocation of Rs. 2.31 lakh crore to enhance infrastructure base - The Union Budget 2016-17 is a step forward for the welfare of the people and growth in the country. For the infrastructure development the government has announced fund allocation of at Rs. 2.31 lakh crore that would aim to enhance the infrastructure base of the country. Guideline for renegotiation of PPP contracts is a long standing demand from international investors and will make the investment environment much more risk neutral. It is a big step towards overseas funding comfort for PPP in infrastructure. 228% higher grants to gram Panchayats & urban local bodies in accordance with FFC recommendations will augment development process significantly in terms of providing basic facilities like clean healthy water, sanitation, and other basic amenities leading to smart towns of future . This budget restores balance in Rural Bharat and India Inc. The approach of the Finance Minister is one of quantum jump rather than tinkering, which would accelerate the development process and put the Indian economy on a sustainable growth trajectory, while further expediting the “Make in India” programme and ‘Swaach Bharat Mission.

RBI may require tight monetary stance for longer: IMF - International Monetary Fund reportedly said the central bank may require a “tight monetary stance for longer”. IMF added that the monetary stance remains appropriately tight for achieving near-term inflation objectives, says report. Favourable inflation dynamics gave the RBI room to cut the policy rate, while maintaining positive real interest rates broadly consistent with the ‘glide path ’ towards the medium-term inflation target,” IMF said.

Sluggish economies and china troubles are key risk for Asia pacific Banks : S&P - Sluggish economic growth in Asia-Pacific in 2016 is a key risk for banks in the region. Moreover, high-impact stress from China, while a low-probability occurrence, could hurt many Asia-Pacific banking systems through their direct and indirect exposures. That's according to a report, titled "Even As China Risk Looms Large, Economic Sluggishness Is A More Real Challenge For Asia-Pacific Banks In 2016," that Standard & Poor's Ratings Services published.

Call drops: telcos to challenge Delhi HC order in SC - Telecom industry associations - Cellular Operators Association of India and Association of Unified Service Providers of India - will appeal the order in the Supreme Court, “The initial drafts are ready for submission to the court,” a senior executive with one of the major telcos has been quoted as saying. “The lawyers are giving them final look overs and deciding on the senior lawyers that will represent them in the case.


TOP ECONOMY NEWS
The government hiked import tariff value on gold and silver to USD 399 per 10 grams and USD 495 per kg, respectively, taking cues from global market.

Government said it has identified over 150 projects under its ambitious 'Sagarmala' initiative that will mobilise more than Rs 4 trillion investment and create 100 million new jobs.
India is engaging with EU to sort out regulatory issues and strengthen manufacturing practices following the 28-nation block's ban on around 700 pharma products.


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