After witnessing a fall from a high of 11,982 on July 5, the index is trading near key support levels and should ideally see a technical bounce back, suggest experts.
Monday blues to start the week!
Well, it was the third consecutive day of decline which pushed the index below 11400 levels on an intraday basis. The index found support near 200-days exponential moving average (EMA).
The fall in the benchmark indices was largely due to muted global cues, mixed earnings from India Inc. that reflected signs of a slowdown in the economy, persistent selling by foreign investors, and fall in key heavyweight stocks in the banking pack.
The market is likely to remain volatile ahead of the F&O expiry on July 25 The next big support for the index is placed at 200-day exponential moving average placed at 11,294, and below that 200-day moving average level (DMA) placed at 11,127.
In terms of sectoral losers, the S&P BSE Finance index fell 2.2 percent, followed by the S&P BSE FMCG index that was down 1.4 percent, and the S&P BSE Bankex that was down 1.4 percent.
The rupee depreciated by 12 paise to close at 68.92 against the US dollar on July 22 tracking heavy losses in the domestic equity market and a spike in crude oil prices following Iran's seizure of a British tanker.
On the institutional front, FPIs were net sellers in Indian markets for Rs 1916 cr while DIIs were net buyers in Indian markets for Rs 1829 cr, provisional data showed.
Big News:
As many as 34 companies will declare their results for the quarter ended June later today which include names like CRISIL, HDFC Life Insurance, HUL, L&T, M&M Financial Services, NIIT Tech, and ZEE Entertainment.
HUL: PAT likely to grow by 10.9% YoY
L&T: PAT likely to grow by 17% YoY
ZEE Entertainment: PAT likely to grow by 18% YoY
(All estimates are from Motilal Oswal)
Technical View:
Nifty formed a "hammer' like candle on daily charts which suggests a rebound
After witnessing a fall from a high of 11,982 on July 5, the index is trading near key support levels and should ideally see a technical bounce back, suggest experts.
The market sentiments are still in favour of bears, so if the index breaks 200-DEMA decisively then there could be sharp selling pressure, experts feel.
In case a pullback rally materialises then a modest target of 11,450–11,490 can be expected in next couple of trading sessions, suggest experts.
Contrary to this, on a decisive close below 11,297, this corrective swing shall initially get extended further towards 11,108, they say.
Three levels: 11297, 11398, 11500
Max Call OI: 11600, 11500
Max Put OI: 11300, 11200
Stocks in news:
Kotak Mahindra Bank on July 22 said its standalone profit in the April-June period grew 32.7 percent year-on-year to Rs 1,360.2 crore.
Chennai-based TVS Motor Co July 22 reported a 5.5 percent decline in consolidated net profit at Rs 151.24 crore for the first quarter ended June 30.
United Spirits on July 22 reported a 25.66 percent jump in consolidated net profit to Rs 181.7 crore in the first quarter of 2019-20. The company had posted a consolidated net profit of Rs 144.6 crore in the year-ago quarter, United Spirits said in a regulatory filing.
Technical Recommendations:
We spoke to HDFC Securities and here’s what they have to recommend:
MCX India: Buy| LTP: 877| Target: Rs. 940| Stop-Loss: Rs 840| Upside 7%
State Bank of India: Sell| LTP: 351| Target: Rs 330| Stop-loss Rs 363 | Downside 6%
Bata India: Sell| LTP: Rs 1280| Target: Rs 1200| Stop-Loss: Rs 1325| Downside 6%
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