Market Headstart: Nifty likely to open flat; JSPL & UBL top buy ideas

The Nifty50 is likely to open flat on Monday following Asian markets which were trading mixed as China GDP growth slows to 6.2 percent in the second quarter.

On Friday, all three major US indexes posted record closing highs as firm expectations for an interest-rate cut from the Federal Reserve continued to propel shares while investors awaited next week’s kickoff of the corporate earnings season, said a Reuters report.

The S&P BSE Sensex fell 86 points to 38,736 while the Nifty50 closed 30 points lower at 11,552 on Friday.

Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a fall of 7.5 points or 0.06 percent. Nifty futures were trading around 11,539-level on the Singaporean Exchange.

The rupee depreciated 25 paise to close at 68.69 against the US dollar July 12 amid rising crude oil prices and unabated foreign fund outflows.

On the institutional front, FPIs were net sellers in India markets for Rs 850 cr while the DIIs were net buyers to the tune of Rs 940 cr, provisional data showed. For the week, FIIs pulled out more than Rs 3000 cr from Indian equity markets in the cash segment.

Stocks in news:

Dewan Housing Finance Corporation (DHFL) has posted a big loss of Rs 2,224 crore for the quarter ended March 2019, which was dented by additional provisioning.

Allahabad Bank has reported fraud of Rs 1774.82 crore by Bhushan Power & Steel to the Reserve Bank of India (RBI), the Kolkata-based state-owned lender said in an exchange filing on July 13.

Software services provider Infosys' June quarter profit fell 6.8 percent sequentially but raised its full-year constant currency revenue guidance to 8.5-10 percent. Reacting to the results, CLSA maintained its buy rating with a target of Rs 900 while Nomura maintained reduce rating with a target price of Rs 680.

Technical Recommendations:

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

Jindal Steel & Power: Buy| LTP: Rs 139.05| Target: Rs 150| Stop Loss: Rs 134| Upside 8%

UBL: Buy| LTP: Rs 1386| Target: Rs 1445| Stop Loss: Rs 1345| Upside 7%

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