It was a volatile day as but bulls, as well as bears, tried to take control of D-Street on the July expiry day. The last one selling pressure dragged the Nifty50 in red for the sixth consecutive day in a row on Thursday.
Nifty fell about 5 percent in July series, its worst since October 2018. Nifty Midcap and Nifty Bank's fall in July series was also the biggest in 10 months.
The Nifty failed to hold on to 11,300 which it reclaimed in intraday trade while the S&P BSE Sensex took a U-turn after surpassing 38,000 in trade.
Markets remain volatile as traders rolled over bets from July series to August series while muted results from top Nifty names weighed on sentiment.
Nearly 500 stocks on the BSE hit their fresh 52-week low which includes names like Either Motors, Maruti Suzuki, Venkys, Bosch, Force Motors, Ajanta Pharma, CARE Ratings, IFB Industries, etc. among others.
The rupee depreciated by 6 paise to close at 69.04 against the US dollar on Thursday amid sustained foreign fund outflows and firm crude oil prices.
On the institutional front, FPIs were net sellers in the Indian markets for Rs 126 cr while the DIIs were net buyers to the tune of Rs 398 cr, provisional data showed.
Big News:
As many as 55 companies will declare their results for the quarter ended June which include names like ABB India, Bajaj Auto, Force Motors, Vodafone Idea, JSW Steel, KPIT Tech, Maruti Suzuki India, Punjab National Bank, Usha Martin, Vedanta, and VST Industries etc. among others.
Bajaj Auto: PAT likely to fall by nearly 3% YoY
Maruti Suzuki: PAT likely to fall by 30% YoY
PNB: Likely to report a loss of Rs 196 cr YoY
(All estimates are from Motilal Oswal)
Technical View:
Nifty50 formed a Hammer like pattern on daily charts
Experts feel 11,229 could be crucial level for Nifty, if that breaks then there could be selling pressure but as index looks oversold, the bounce back can't be ruled out which can sustain if it holds 11,361 level.
The index appears to be getting more pronounced as Nifty closed for the second session below its 200-day exponential moving average (11,296), suggest experts.
If the index slips below 11,229, then it can come under renewed selling pressure with targets placed around 11,100
Three levels: 11,130, 11239, 11361-11400
Max Call OI: 12000, 11500
Max Put OI: 11000, 11200
Stocks in news:
Tata Motors, on July 25, posted a big loss of Rs 3,698 crore in June quarter on weakness in domestic as well as Jaguar Land Rover volumes.
Multiplex chain operator PVR Ltd on July 25 reported a consolidated net profit of Rs 16.18 crore for the first quarter ended June 30. The company had posted a net profit of Rs 52.15 crore for the same quarter a year ago.
Bajaj Finserv on July 25 reported a 2 percent rise in its consolidated net profit to Rs 845.30 crore in the first quarter ended June 30. The company had registered Rs 825.80 crore net profit in the April-June quarter of previous fiscal.
Technical Recommendations:
We spoke to IIFL and here’s what they have to recommend:
Power Grid: Buy| Target: Rs228| Stop Loss: Rs 205.5| Upside 7%
Sun Pharma Advanced: Buy| Target: Rs 176| Stop Loss: Rs 157| Upside 8%
HPCL Aug Futs| Sell| Target: Rs 252| Stop Loss: Rs 276| Downside 6%
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