Since the short-term trend is bullish, buy on dips shall be the preferred strategy for the short-term target of 10,450.
Moneycontrol News
It was another day of fresh record highs for the Sensex and Nifty. The S&P BSE Sensex hit Mount 37K to hit a fresh record high of 37061 while the Nifty hit a record high of 11185 for the first time after 123 trading sessions.
The July series closed on a strong note with Nifty gaining nearly 600 points. Nifty future rollovers stood at 74 percent which is higher than the 3-month average of 66 percent
Once the index closes above 11,172, the bulls are likely to take charge. On the way down, 11,113 – 11,078 will be a crucial support zone in the near term.
Any minor pullback towards the support zone shall be considered as buying opportunity.
Since the short-term trend is bullish, buy on dips shall be the preferred strategy for the short-term target of 10450.
The short-term outlook remains positive as long as it does not close below 10,850.
Big News:
The big news will come from the earnings front. Many Nifty heavyweights are scheduled to report their results for the quarter ended June later today.
As many as 55 companies will declare their results for June quarter later today which include names like Bank of Baroda, Excel Corp, HCL Technologies, ICICI Bank, M&M Financial Services, and Reliance Industries.
Bank of Baroda: PAT likely to fall 32 percent YoY to Rs 137 crore
HCL Technologies: PAT likely to grow by 24.9 percent to Rs 2.5 crore
ICICI Bank: PAT likely to grow by 10 percent to Rs 0.68 crore
RIL: PAT likely to grow by 3.9 percent to Rs 9436 crore
(Note: All estimates from Motilal Oswal)
Technical View:
Nifty forms a small bullish candle on daily charts
If the index sustains above 11,113 levels Nifty50 can initially target 11,241 and then eventually it should head towards 11,500 levels
Three levels: 11100, 11185, 11250
Max Call OI: 11200, 11300
Max Put OI: 11000, 11100
Stocks in news:
ITC Q1 net profit up 10 percent on year at Rs 2,819 crore; meets estimates
Bharti Airtel Q1 profit grows 17 percent to Rs 97 cr, EBITDA margin contracts 180 bps QoQ
Hindalco subsidiary Novelis acquires US-based Aleris for $2.6 bn| The transaction is expected to close in 9-15 months
Technical Recommendations:
We spoke to IIFL and here’s what they have to recommend:
SBI: Buy| Target: Rs 315| Stop Loss: Rs 276| Returns 8.6 percent
Motherson Sumi Ltd: Buy| Target: Rs 342| Stop Loss: Rs 294| Returns 10.3 percent
Pfizer: Buy| Target: Rs 2880| Stop Loss: Rs 2577| Returns 7.5 percent
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