A morning walk down Dalal Street | Overall bias could remain positive to range-bound

Bulls managed to push the index in green towards despite wild intraday volatility

The index bounced back after retesting 11900 levels which suggests that there is plenty of firepower at lower levels for Nifty50

The sectoral indices exhibited a mixed trend. While Auto, IT and Consumer Durables remained the top losers, the other sectors like FMCG, Capital Goods, and Realty were the top gainers.

Markets are likely to remain volatile ahead of the Budget on July 5 and profit taking at higher levels could be seen towards 11,950-12,000. Investors would also track developments around US and Iran tensions and crude oil prices.

Market participants would also monitor the monsoon progress, movement of crude oil prices and currency.

The Indian rupee July 3 saw a marginal 6 paise gain at 68.89 against the US dollar in line with a steady trend in domestic equities in the run-up to the Union Budget due on July 5

On the institutional front, FPIs were net sellers in Indian markets for Rs 390 cr while DIIs were net buyers to the tune of Rs 287 cr, provisional data showed.

Big News:

All eyes will be on Economic Survey 2019, a day ahead of Budget

Economic Survey in Parliament will be tabled by Krishnamurthy Subramanian, chief economic advisor (CEA).

Economic Survey is nothing but the annual report of the Indian Economy fir the year 2018-2019

Data on economic growth, agri distress, infra, fiscal development, employment as well as outlook will be something which will be watched by market participants

Technical View:

Nifty formed a Doji kind of pattern on daily charts|

The index closed above 11,900 for a second consecutive session after consolidating in a narrow trading band of 11,888 to 11,950 for the most part of the day.

The index formed a small body and long lower shadow candle on the daily scale as buying interest is seen at lower levels and supports are slightly shifting higher that indicates overall bias could remain positive to rangebound, experts said.

One interesting thing which was visible on the charts was a buy signal triggered by MACD indicator on the daily charts for the third straight session. MACD stands for Moving Average Convergence/Divergence.

India VIX fell 3.89 percent to 13.69 . Decline in VIX levels provides short term stability in the market.

Three levels: 11887, 11945, 12000

Max Call OI: 12000, 12500

Max Put OI: 11700, 11900

Stocks in news:

The US Food and Drug Administration (FDA) has pulled up Aurobindo Pharma for 'repeated' violations in current good manufacturing practice (CGMP) at three of its plants in manufacturing certain active pharmaceutical ingredients (API) and intermediates.

Mortgage lender HDFC Ltd plans to raise up to Rs 45,000 crore by issuing bonds in various tranches on a private placement basis, the company said on July 3.

The second largest pureplay mortgage lender Indiabulls Housing Finance on July 3 said it will buyback debt worth Rs 2,705 crore from the investors before their maturity.

Technical Recommendations:

We spoke to Bonanza Portfolio and here’s what they have to recommend:

State Bank of India: Buy| LTP: Rs 366.15 | Target: Rs 400| Stop Loss: Rs 348| Upside 9%

Amara Raja Batteries: Buy| LTP: Rs 631.25 | Target Rs 682| Stop Loss Rs.600| Upside 8%

Tech Mahindra: Sell| LTP: Rs 701.10| Target: Rs 648| Stop Loss: Rs 730| Upside 7.5%