Analysts expect Midcaps and Small caps to continue to do well during the fag end of the earning season. Investors are advised to stay cautious and use dips to buy on declines as long as Nifty holds above 11,435 levels.
Indian market closed off record highs as investors preferred to book profits at higher levels. The S&P BSE Sensex closed above its crucial level of 38000 for the first time to hit a record high of 38,076.23 while Nifty came under the striking distance of hitting 11,500 levels.
Banks led the rally for equity benchmarks, with major gains coming in from PSU banks. ICICI Bank and Axis Bank helped the market climb to new highs on Thursday.
Investors are advised to stay cautious and use dips to buy on declines as long as Nifty holds above 11,435 levels.
The Sensex completed its journey from 37,000 to 38,000 in a matter of just 10 sessions and there are lot of small & midcap stocks which outperformed in the rally.
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Stocks which led the rally include names like Kwality, 8K Miles, Reliance Naval, Venky’s, Manpasand Beverages, ICRA etc. among others.
Support for Nifty is seen at 11350 while resistance is placed around 10600 levels.
Analysts expect Midcaps and Small caps to continue to do well during the fag end of the earning season.
However in the short term key concerns with regards to trade and currency wars coupled with US sanctions on Iran have kept equity investors on the edge.
Big News:
As many as 377 companies will report their results for quarter ended June which include names like Alkem Laboratories, Andhra Bank, Apollo Hospitals, BOSCH, DLF, GAIL India, Hindalco Industries, Dr Lal Pathlabs, NHPC, State Bank of India, Sun TV, United Breweries, UCO Bank and Voltas among others.
State Bank of India: PAT likely to fall by 16% to Rs 1682 crore
Sun TV: PAT likely to rise by 39% on YoY basis to Rs 350 crore
Alkem Lab: PAT likely to rise by 228% to Rs 235 crore
Hindalco: PAT likely to grow by 23% YoY to Rs 1233 crore
Technical View:
Nifty formed a bearish candle on intraday basis as closing level was less than the opening levels.
Market is slowly moving into overbought position, traders are advised to trade with caution.
Three levels: 11250, 11435, 11600
Max Call OI: 11500, 11600
Max Put OI: 11000, 11300
Stocks in news:
Eicher Motors Q1 profit grows 25% to Rs 576 crore, misses estimates
MRF Q1 profit grows 145% to Rs 260.74 crore, but misses estimates
Aurobindo Pharma Q1 profit drops 12% to Rs 456 crore
Technical View:
We spoke to IIFL and here’s what they have to recommend:
Kansai Nerolac: Buy | Target: Rs 561 | Stop loss: Rs 492 | Return: 9%
ACC: Buy | Target: Rs 1709 | Stop loss: Rs 1508 | Return: 8.5%
Infibeam Incorporation: Buy | Target: Rs 211 | Stop loss: Rs 181 | Return: 10.2%
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