The sentiments are likely to remain weak in the near term especially in the midcap and smallcap space. In terms of technicals, the Nifty could take support from 11,400-11,500 range and consolidate around the current levels.
Bulls bounced back on Monday thanks to positive global cues, Infosys Q1 results and ease in WPI inflation to a 2-year low also helped the sentiment.
The index reclaimed 11,600 in intraday trade but selling pressure at higher levels pulled the index lower.
The benchmark index was also largely supported by a handful of heavyweight stocks like Infosys along with other tech stocks and Sun Pharma.
In terms of sectors, the S&P BSE IT index rose 3.5 percent thanks to 7 percent rally in Infosys, followed by the S&P BSE Healthcare index that was up 0.7 percent, and the S&P BSE Auto index that rose 0.29 percent.
The sentiments are likely to remain weak in the near term especially in the midcap and smallcap space. In terms of technicals, the Nifty could take support from 11,400-11,500 range and consolidate around the current levels.
The rupee gained by 15 paise to close at 68.54 against the US dollar, thanks to the rise came due to gains in domestic equities and weakness in the greenback overseas.
On the institutional front, FPIs were net sellers in Indian markets for Rs 216 cr while DIIs were net buyers to the tune of Rs 591 cr, provisional data showed.
Big News:
As many as 14 companies will declare their results for the quarter ended June which include names like DCB Bank, Federal Bank, HDFC AMC, MCX etc. among others.
DCB Bank: PAT likely to rise by 40% YoY to Rs 97 crore
Federal Bank: PAT likely to grow by 32% YoY to Rs 347 cr
MCX: PAT likely to grow 537% YoY to Rs 39 crore
(All estimates are from Motilal Oswal)
Technical View:
Nifty forms a bearish candle on daily charts| Had a touch and go moment with 11600 for the second day in a row
The index took support at 100-days EMA and witnessed selling pressure around 5-days EMA
For time being traders are advised to initiate longs for an initial target of 11,690 with a stop below 11,500 on a closing basis.
Three levels: 11532, 11618, 11700
Max Call OI: 12000, 11800
Max Put OI: 11300, 11500
Stocks in news:
Tata Metaliks Limited (TML), a subsidiary of Tata Steel, has reported 36.45 per cent year-on-year decline in net profit at Rs 19.42 crore for the first quarter ended June 30, 2019.
Aditya Birla Fashion and Retail Ltd (ABFRL) on July 15 said it will acquire a 51 percent stake in Indian fashion designers duo Shantanu & Nikhil's apparel firm Finesse International Design.
Commercial vehicle maker Ashok Leyland on Monday said that owing to the "weak demand and outlook for the industry", it will close its Pantnagar plant in Uttarakhand for 9 days., according to a report.
Technical Recommendations:
We spoke to HDFC Securities and here’s what they have to recommend:
Biocon: Buy| LTP: Rs 253| Target: Rs 275| Stop-Loss: Rs 240|Upside 9%
UltraTech Cement: Buy| LTP: Rs 4597|Target: Rs 4920|Stop-Loss: Rs 4344| Upside 10%
CESC: Buy| LTP: Rs 785| Target: Rs 850| Stop-Loss: Rs 760| Upside 8%
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