Stock Market Highlights: Indian benchmark equity indices, Sensex and Nifty erased day's gains to end flat Monday dragged by selling in IT and metal stocks. Broader indices outperformed the frontliners as the midcap and smallcap indices ended around half a percent higher each. Among sectors, buying was seen in realty, banks, auto and financial services indices, while Nifty IT, Nifty Metal and Nifty Media closed in the red.
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Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
On the first day of the week, the market opened higher on the back of positive sentiment in the global market, however, another round of booking brought the Nifty and Sensex back to the level of 15,650/52,200. Based on the daily chart, Nifty/Sensex is entering an interesting phase. For almost 27 days, the market has been consolidating within the trading range of 300 points, which is remarkable and indicates a make or break in the near term. Today, cyclical stocks performed well, while defensive and energy stocks ended weak. The positive thing is that the market survived above 15,600/52,100 levels. The Nifty/Sensex would go to the level of 15,500/15,450 (51,600) after dismissal. The 15,700/52,400 and 15,780/52,700 levels, on the other hand, would be the main levels of resistance.
Ajit Mishra, VP - Research, Religare Broking
Markets traded in a range and ended unchanged, extending the prevailing consolidation phase. Initially, the benchmark opened on firm tracking positive global cues however profit-taking at the latter half trimmed all the gains. Markets will react to the macroeconomic data viz. IIP and CPI inflation in early trade on Tuesday i.e. July 13. The tussle over the next directional move in the index is still on and the upcoming earnings announcement may result in the probable breakout. Meanwhile, we suggest continuing with a selective trading approach while keeping a check on leveraged positions.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The choppy trend continued in the market and there is no respite for bulls, after showing an upside bounce from the lower support (15,635) in the previous session. As long as the support holds, the odds of market bounce back remain alive for the next 1-2 sessions. A decisive move below the support is likely to extend weakness to 15,500 levels. On the upside bounce, the area of 15,800 could be a crucial resistance to be watched.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The index is struggling! It is unable to sustain at higher levels and hence makes a U-turn at any given instance. We are still stuck in a range which is between 15,400 and 15,900. Unless either level is not taken out, we will not see a meaningful move.
Manish Shah, Founder, www.Niftytriggers.com
Nifty closed the day almost unchanged. Nifty gapped up above the previous close but it was not able to sustain highs Nifty dropped during the day. Nifty is taking support at a rising trendline coming up from the lows of April and Nifty is just below the 20 period moving average. Despite several attempts, Nifty is not able to move above the resistance at 15,900-15,950. The action is happening in individual stocks. Bollinger bands are showing a squeeze that has not been seen in more than a year and Nifty cannot remain in such a low volatility period for a prolonged and protracted period. Sooner or later a direction has to be established. The range-bound action seems to be a time correction of the April to June rally. If this contention is true then we should see Nifty breaking on the upside. A break above 15,900-15,950 should take Nifty to 16,200-16,300. Support for Nifty is at 15,550.
Rupee At Close | The Indian rupee ended marginally higher at 74.57 per dollar, amid volatility in the domestic equity market. The local currency opened 15 paise higher at 74.48 per dollar against Friday’s close of 74.63 and traded in the range of 74.40-74.59.
Market At Close | Market Breadth Favours Advances; Advance-Decline Ratio At 3:2
Market At Close | UltraTech, Grasim, Shree Cement, JSW Steel Top Nifty Gainers
Market At Close | Market Ends Near Flatline After A Rangebound Trading Session
Market At Close | Here are the highlights of today’s trading session
- Market Ends Near Flatline After A Rangebound Trading Session
- HDFCs & IT Stocks Drag While RIL, ICICI & Axis Support Market
- Nifty Rises 3 Points To 15,693 While Sensex Slips 14 Points To 52,373
- Midcap Index Gains 121 Points To Close At A Record High Of 27,504
- Nifty Bank Rises 127 Points To 35,199, Led By ICICI & Kotak Bank
- UltraTech, Grasim, Shree Cement, JSW Steel Top Nifty Gainers
- AGM Fails To Boost Investor Sentiment; Adani Ports Down More Than 1%
- Federal Bank Rises More Than 4% After RBI’s Nod For 3-yr Term For MD & CEO
- Realty Stocks Continue The Gaining Momentum; Godrej Props & DLF Up 2-3%
- Page Ind, IRCTC, Ambuja, ACC, Muthoot Fin & Ramco Cem At 52-week Highs
- Metropolis Health Slips Over 4% On termination Of Ganesan Hitech Acqn
- Market Breadth Favours Advances; Advance-Decline Ratio At 3:2
Closing Bell | The Indian benchmark equity indices ended flat Monday dragged by selling in IT and metal stocks. The Sensex eased 13.50 points or 0.03 percent, to close at 52,372.69, while the Nifty settled 2.80 points, or 0.02 percent higher at 15,692.60. Broader indices outperformed the frontliners as the midcap and smallcap indices ended around half a per cent higher each.
Among sectors, buying was seen in realty, banks, auto and financial services indices, while Nifty IT, Nifty Metal and Nifty Media closed in the red. On the Nifty50 index, UltraTech Cement, Grasim Industries, Shree Cement, JSW Steel and SBI Life were the top gainers while Adani Ports & SEZ, BPCL, Bharti Airtel, Tata Steel and Infosys led the losses.
Market Watch: Nischal Maheshwari, CEO of Institutional Equities & Advisory at Centrum Broking
On Federal Bank | The bank has been doing pretty well for the last one to one and a half years for almost 20 percent plus kind of growth on the loan side. This is a good place where the bank is and with Shyam Srinivasan being there for another three years, it should lead the bank in the same direction and the underperformance should correct going ahead.
On Realty | Godrej Properties and Oberoi Realty are the two stocks that have performed. For five-six years, most of the sector per se had not gone anywhere as far as the stock market was concerned. From the business side, there has been a clear revival as far as real estate is concerned. This is sort of a revival, we have to see it in the context that 7-8 years nothing has happened in the stock, so they are catching up. If I look at these stocks from a five-seven year horizon, I don’t think they have outperformed the market.
NMDC | The company has cut Lump Ore price by Rs 200 to Rs 7,450 and fines to Rs 6,360 per tonne.
Zydus Cadila’s COVID-19 vaccine for 12-18 age groups likely to get approval this week
ZyCov-D, an indigenously developed vaccine by Zydus Cadila for children above 12 years, will be examined this week by the Subject Expert Committee of the Central Drugs Standard Control Organisation (CDSCO), the apex approval authority for new medicines in the country under the Directorate General of Health Services (DGHS). The SEC of the CDSCO will check the phase 3 trial data for the ZyCov-D vaccine shared by Zydus Cadila, assess the same and then could authorize the vaccine for emergency use, subject to satisfactory results. The Zydus Cadila teams will soon be called for a presentation for this. The emergency approval will take a few more days as per the sources, tweeted news agency ANI. Read here.
Carsten Menke, Head Next Generation Research, Julius Baer
Rangebound trading in the gold and silver markets persists, which suggests that safe-haven seekers are not concerned by the rapid spreading of the Covid-19 Delta variant. We share this view and instead believe that the markets’ focus has turned to the outlook for US monetary policy, with shifting expectations about interest-rate hikes causing short-term swings in prices. In the medium to longer-term, the economic outlook matters the most, calling for a further fading of safe-haven demand and leading prices somewhat lower.
Paytm EGM finalises primary raise of Rs 12,000 crore; Vijay Shekhar Sharma to continue as Chairman, MD and CEO
Paytm's shareholders have given crucial approval for the company’s mega IPO plan, approving the proposal for a Rs 12,000 crore primary raise. The company also plans a secondary raise of Rs 4,600 crore, bringing the total IPO size to Rs 16,600 crore. The shareholders also approved the proposal to declassify founder VIjay Shekhar Sharma as the promoter of the company. SEBI approval will be needed for declassifying Sharma as the promoter. Sharma will continue to be the Chairman, Managing Director and Chief Executive Officer of the company. Read here.
Labour availability improving gradually, says HG Infra
Harendra Singh, CMD of HG Infra Engineering, on Monday said that labour availability is improving gradually. The company won Rs 1,650 crore worth of orders with regards to the six-lane urban extension road in Delhi. Speaking in an interview with CNBC-TV18, Singh said, “Because of the second wave of COVID-19 in April-May, it was drastically lowered down but now things have been improved and they (labour) are coming back at work and labour availability is improving day by day.” Read here
Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services
RBI’s fourth tranche of the Sovereign Gold Bond (SGB) is starting from today for five days. The issue price for SGB Scheme 2021-22 is fixed at Rs 4,807 per unit, and a discount of Rs 50 per gram, less than the nominal value has been decided for the investors applying online. It is advised to invest in SGB or any other platform available like ETF or Digital gold based on one’s risk appetite. The broader range on COMEX could be between $1,786- 1,820 and on the domestic front, prices could hover in the range of Rs 47,550- 48,150.
Kamath Committee approves recasts of 9 companies with over Rs 58,800 cr loans; to submit findings to RBI soon
Banks referred only nine large corporate loan restructuring proposals to the KV Kamath-led Expert Committee under RBI’s resolution framework of August 2020, three people aware of the matter told CNBC-TV18. All of these nine corporate loan recast proposals were subsequently cleared by the committee ahead of its dissolution on June 30, 2021, CNBC-TV18 has learnt. According to people in the know, the expert committee will soon submit its final report on corporate loan restructuring to the Reserve Bank of India. As per the committee’s report, these nine accounts that were cleared by it had Rs 58,888 crores of loans outstanding, CNBC-Tv18 has learnt. These nine accounts included three Future Group companies- Future Retail, Future Enterprises, and Future Lifestyle. Read here.
Motilal Oswal on Zomato IPO
Zomato with first-mover advantage is placed in a sweet spot as the online food delivery market is at the cusp of evolution. It enjoys a couple of moats and with the economics of scale started playing out, the losses have reduced substantially. However, predicting the growth trajectory at this juncture is a little tricky for the next few years.
The valuation also appears expensive at 25x FY21 EV/Sales compared to an average of 9.6x for global peers and 11.6x for Indian QSRs. Though, valuing such early-stage businesses on a plain vanilla financial matrix might not give the right picture and may look distorted. Investors with a high-risk appetite can Subscribe for listing gains given fancy for unique and first of its kind listing in the food delivery business.
Bad Bank or NARCL Incorporated; to seek RBI nod for ARC licence soon
India has finally got its very own “bad bank”, with the National Asset Reconstruction Company Limited (NARCL) being officially incorporated, data from the Ministry of Corporate Affairs’s Registrar of Companies showed. CNBC-TV18 had earlier reported that the Indian Banks Association (IBA) had filed an application with the Ministry of Corporate Affairs (MCA) to incorporate both the asset reconstruction company and its debt management company a few weeks back. While the NARCL was incorporated as of July 7, 2021, the India Debt Management Company Ltd (IDMCL) which will manage these bad loans is yet to become a legal entity. Read here.
Market Watch: Ruchit Jain of Angel Broking
- Buy Havells with a stop loss of Rs 1,010 and a target price of Rs 1,090
- Buy Tata Metaliks with a stop loss of Rs 1,170 and a target price of Rs 1,300
Gold slips as dollar gains some ground, equities firm
Gold prices fell on Monday, set for its biggest drop in nearly two weeks, as a bounce in dollar and buoyant equities dimmed the safe-haven metal's appeal. Spot gold fell 0.4 percent to $1,800.96 per ounce. US gold futures dropped 0.6 percent to $1,799.30 per ounce.
Oil prices slip as economic worries offset tightening supplies
Crude futures slipped on Monday as concerns over slowing global growth outweighed the prospect of tightening supply after talks among key producers to raise output in coming months stalled. Brent crude for September fell 35 cents, or 0.5 percent, to $75.20 a barrel while US West Texas Intermediate crude for August was at $74.23 a barrel, down 33 cents, or 0.4 percent.