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A morning walk down Dalal Street | Refrain from creating directional bets on Nifty

As long as this index trades below 11,297, the possibility of retesting the lows of 11,108 registered on May 14, from where this entire upmove unfolded, remains high, experts said.

July 25, 2019 / 08:22 AM IST
 
 
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Benchmark indices hit a fresh 2-month as markets fell for 5th consecutive day in a row on Wednesday. The S&P BSE Sensex saw a cut of more than 100 points while the Nifty50 closed below its 200-days EMA ahead of F&O expiry on Thursday.

The broader market underperformed as the S&P BSE Smallcap index and the Midcap index plunged more than 1 percent each.

Experts feel that slowdown concerns have dampened the sentiment and persistent selling by foreign investors has capped the upside along with muted corporate results. FIIs have pulled out more than Rs 11,000 crore from the cash segment of Indian equity markets in July.

Nearly 500 stocks on the BSE hit a fresh 52-week low which include names like Page Industries, Eicher Motors, Bosch, Force Motors, CARE Ratings, IFB Industries, Godrej Consumer, M&M, Aurobindo Pharma etc.a mong others.

The Indian rupee furthered its weakening trend for a third session in a row on July 24, edging lower by 4 paise to 68.98 against the US dollar as foreign fund outflows and higher crude oil prices weighed on sentiment.

On the institutional front, FPIs were net sellers in Indian markets for Rs 1393 cr while the DIIs were net buyers to the tune of Rs 2140 cr, provisional data showed.

Big News:

As many as 51 companies will declare their results for June quarter on Thursday which include names like Bajaj Finserv, Bajaj Finance, Bank of Baroda, Gruh Finance, IFB Industries, PVR, South Indian Bank, Tata Motors, Tata Steel, and Jubilant Industries etc. among others.

Bajaj Finance: PAT likely to grow by 42% YoY

Bank of Baroda: PAT likely to grow by 31% YoY

Tata Motors: Likely to report a net loss of Rs 1183 cr

(All the estimates are from Motilal Oswal)

Technical View:

Nifty formed a bearish candle ahead of F&O expiry

The index has finally broken 200-day exponential moving average, which is placed at 11,297 and formed bearish candle on the daily scale, ahead of expiry of July derivative contracts.

As long as this index trades below 11,297, the possibility of retesting the lows of 11,108 registered on May 14, from where this entire upmove unfolded, remains high, experts said.

Some relief for bulls can be expected on a close above 11,360. For time being, it looks prudent on the part of traders to refrain from creating directional bets on the index, they say.

Three levels: 11,130, 11229, 11359-11400

Max Call OI:  11400, 11300

Max Put OI: 11300, 11200

Stocks in news:

ICRA has downgraded Basel III Compliant Tier I and Tier II Bonds of Yes Bank Limited (YBL) with a negative outlook.

State-run Syndicate Bank on July 24 reported narrowing down of its net loss to Rs 980.46 crore in the quarter ended June 2019 due to a fall in provisioning for bad assets.

Contract research and manufacturing firm Syngene International on July 24 reported a 9 per cent rise in its consolidated net profit to Rs 72 crore for the first quarter ended June 30

Technical Recommendations:

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

JK Cement: Buy| CMP: Rs.971.95 | Target: Rs 1040|Stop Loss: Rs 933|Upside 7%

Navin Fluorine International: Buy| CMP: Rs 596.55 | Target: Rs 644|Stop Loss: Rs 570| Upside 8%

Canara Bank: Sell| LTP: Rs 248.10| Target: Rs 228| Stop Loss: Rs 260| Downside 8%

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.  

Moneycontrol News
first published: Jul 25, 2019 07:51 am

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