Market Headstart: Nifty likely to open lower; Colgate Palmolive, UBL top buys

The Nifty50 is expected to open lower on Monday tracking Asian markets which were trading mixed as investors wagered on a less aggressive policy easing in the United States.

“U.S. stocks dipped on Friday, as the S&P 500 snapped a three-day streak of record closes, following an unexpectedly strong U.S. payrolls report that led investors to reassess how dovish a stance the Federal Reserve may take at its next meeting,” said a Reuters report.

The S&P BSE Sensex fell 394 points to 39,513 while the Nifty50 closed 135 points lower at 11,811 on Friday.

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 51 points or 0.43 percent. Nifty futures were trading around 11,766-level on the Singaporean Exchange.

Reversing their five-month buying streak, foreign investors withdrew a net sum of Rs 475 crore from the Indian capital markets in the first week of July amid global trade tensions and pre-Budget anticipation.

Stocks in news:

The lenders' consortium comprising of 31 banks has signed the Inter-Creditor Agreement (ICA) for resolution of Dewan Housing Finance Limited's (DHFL) liquidity crisis, multiple sources aware of the development told CNBC-TV18.

Public sector lender Punjab National Bank said on July 6 it has detected a fraud of more than Rs 3,800 crore by Bhushan Power & Steel Ltd (BPSL) and has reported it to the Reserve Bank of India (RBI).

The country's largest car maker Maruti Suzuki India has cut vehicle production for the fifth consecutive month in June, according to a regulatory filing.

Technical Recommendations:

We spoke to Angel Broking and here’s what they have to recommend:

Colgate Palmolive India Ltd: Buy| LTP: Rs 1178.20| Target: Rs 1250| Stop Loss: Rs 1137| Upside 6%

UBL Ltd: Buy| LTP: Rs 1380.80| Target: Rs 1450| Stop Loss: Rs 1338| Upside 5%

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.