US markets ended flat to positive. European markets ended positive by 0.56% to 1.57%. Most of the Asian markets are also trading in green. SGX Nifty is trading up by 45 points. Commentary: · Post much awaited passage of GST bill in Rajya Sabha; markets took a breather and consolidated at current levels. Nifty closed marginally in green at 8551, up 6 points. Markets were supported by Auto and Healthcare index while consumer durable was a laggard. BSE midcap and Smallcap indices closed gaining 0.4% each. · Much talked GST got a clearance in upper house of the parliament. The government has set April 1, 2017 as target for roll out of GST. Once implemented, GST will rule out various other taxes such as excise, service tax, octroi and other levies and the proceeds will be shared between state and central government. · Arvind reported a 33% YoY jump in consolidated net profit to Rs. 73.4 Cr in Q1FY2017. The revenue grew by 17.8% to Rs. 2,104 Cr, as against Rs. 1,787 Cr for corresponding quarter in the previous fiscal. EBITDA grew by 16% to Rs. 241 Cr on a YoY basis. · To protect the domestic mills, the government has recommended provisional anti-dumping duty on cold rolled steel products. A tax upto USD 594 a tonne on steel products from China, Japan, South Korea and Ukraine has been recommended. This will benefit the steel majors SAIL, JSW steel, Tata steel etc. · Bank of England reduced its key rates by 25 bps to 0.25% as a move to boost its economy. It has also increased its asset buying program by £60 Bn thereby extending its QE program to £435 Bn. The bank has stated that the overall economic situation has weakened due to global financial situation and Brexit. At home, we expect our market to consolidate further before taking a leap. Further direction of market, in near term, will be decided by results of major companies which are lined up in this month and the upcoming RBI policy on August 09. We advise traders to keep cautious stance and investors to accumulate good fundamental stocks. Derivative Updates: Banknifty futures shed 9.2% of open interest as short covering while Nifty futures added 0.4% of open interest as fresh long positions. The volume weighted average price for Nifty August futures is at 8645 and Banknifty August futures is at 18900. In options, highest positions is still at 9000 CE and 8500 PE. Vix is still in the same range and likely to remain in 14%-18% levels in the short term. Technical Updates: We expect Nifty to spend some time here prior to further up move and focus will now again shift to the earning season. So, stock specific trading approach is advisable to the traders. For investors, we suggest using consolidation to accumulate quality stocks but keep the portfolio balanced. We still feel that select counters from auto, private bank and NBFCs space have potential to outperform while upside seems capped in PSU banking and metal space. | 
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