Stock Market Highlights: Indian equity indices, Sensex and Nifty ended higher Wednesday led by strong gains in IT and pharma stocks. Midcap and smallcap indices supported the upmove. Among sectors, buying was seen in IT, pharma and media indices, while auto, PSU Bank and realty sectors closed in the red.
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Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term trend of Nifty continues to be positive. But, the lack of strength in the upside momentum is ruling out any decisive upside breakout of 15,900 levels. There is a possibility of minor weakness emerging from the highs again in the next 1-2 sessions. Immediate support is placed at 15,750.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
Nifty Technology index had a marvellous run and erased the losses of the last 13 days by closing above the highest level of the previous up move. While the Nifty index logged gains, the Bank Nifty remained on the back foot and lost 200 points from the highs. It was the third attempt of the Bank Nifty to surpass the levels of 35,810, which failed on the day of the weekly expiry of index options. We would see the levels of 15,950 in the near term in case the Nifty survive above the levels of 15,800. On the other hand, below the levels of 15,800, Nifty would find support at 15,760 and at 15,740 levels. A close below the level of 15,760 would be negative for the market.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty outperformed its Asian peers, even as the advance-decline ratio turned back to even. This suggests a tendency to keep taking profits by traders/investors in broader markets. Nifty is once again near its earlier top of 15,915. On falls 15,745 could act as a support.
Sumeet Bagadia, Executive Director, Choice Broking
Nifty index has taken good support at around 15,630 levels in the prior trades and moved up towards the positive territory. A momentum indicator RSI (14) has turned upward from the 50 levels & stochastic suggested positive crossover on the daily timeframe, which indicates further upward momentum in the counter. At present, the nifty is finding resistance at 15,915 levels, crossing above the same can show 16,100-16,200 levels in the index while immediate support comes at 15,750.
Ajit Mishra, VP - Research, Religare Broking
The Indian markets opened on a flat note following subdued global cues. The IT index led the charge for the benchmark indices as it ended with gains of more than 2%. Further, recovery in the banking stocks in the second half led the Nifty to end higher by 0.3% at 15,854 levels. The broader markets too ended with decent gains of 0.2% each. The markets would first react to Infosys numbers in early trade on Thursday. Apart from that, weekly derivatives expiry tomorrow would add to the volatility. Market participants would also keep a close watch on results from other IT majors like Wipro, L&T Tech and Tata Elxsi.
Mohit Nigam, Head, PMS - Hem Securities
Benchmark Indices closed on a positive note. Strong buying is seen in the IT sector with Nifty IT gaining 3.16% while some selling pressure is seen in realty, banks, oil & gas and energy stocks. Mindtree gained more than 8% after posting very good Q1 results which also led rally in other mid-cap IT stocks such as Happiest Minds and Mphasis. The Zomato IPO opened today and the retail portion has been subscribed more than 2 times so far. WPI inflation eased slightly to 12.07% in June 2021 as compared to 12.94% in May 2021. This marginal ease is majorly due to softness seen in the prices of food products and crude oil compared to the previous month. Immediate support and resistance for Nifty 50 are 15,600 and 15,900 respectively.
S Hariharan, Head- Sales Trading, Emkay Global Financial Services
Dropping institutional participation rates have contributed in part to a 20 percent drop in daily market volumes – however, market breadth and retail participation in the futures segment continue to remain robust and underpinning strength in ongoing broad market rally. Very strong investor interest in new issuances like Zomato, Tatva Chintan, Clean Science etc have also contributed to some extent to reduced flows into the secondary segment, and a loaded pipeline of issues in the coming few months would be expected to play a similar role. July has seasonally been the lowest volatility month for headline indices in the last 15 years, and we expect similarly subdued index moves this year too.
The ongoing results season can be expected to see strong numbers from IT, Chemicals & Real Estate businesses, while numbers would be relatively weaker for Autos & Financials names. While the Metals universe would report another strong quarter of deleveraging, existing long positioning and headline risk from news on the global trade front would act as an offset against big upsides in these names.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investment
The index managed to get closer to the 15,900 levels but did not close above it. We are a tad away from that resistance patch and if we can get past it, we should target 16,100 as the next target. 15,400 is strong support for this market and until that does not break on a closing basis, the overall trend remains bullish and traders can adopt a "buy on dips" strategy and accumulate positions.
Rupee At Close | The Indian rupee ended 10 paise lower at 74.59 against the US dollar. The local currency opened at 74.57 against the previous close of 74.49 per US dollar.
Manish Shah, Founder, Niftytriggers.com
With Nifty-50 settling in the positive territory today, we have three green candles in a row. The trendline touchpoint seems to be working. The trendline that we are talking off is the one that is coming up from the lows of April 2021. We have been saying that the price action since June 2021 is corrective in nature and it is more of a time correction than price. Nifty needs to break above 15,900-15,950 for a push to become a shove. A successful break out should propel Nifty higher to 16,200-16,300. The zone at 15,900-15,950 has been tested three times. The rule is that the fourth time it should go through.
Market At Close | 4 Of 5 Top Nifty Gainers Are IT Stocks (Wipro, Tech Mahindra, HCL TECH & Infy). Market Breadth Neutral With Advance-Decline Ratio At 1:1
Market At Close | Market Recovers From Opening Lows To Close With Minor Gains
Market At Close | Here are the highlights of today’s trading session
- Market Recovers From Opening Lows To Close With Minor Gains
- Midcap Index Continues To Post Record Close, Up 0.2% Today
- IT Stocks Move Higher Today After Better-than-expected Q4 From Mindtree
- Sensex Rises 134 Points To 52,904 & Nifty 42 Points To 15,854
- Nifty Bank Slips 5 Points To 35,668 While Midcap Index Gains 63 Pts To 27,623
- 4 Of 5 Top Nifty Gainers Are IT Stocks (Wipro, Tech Mahindra, HCL TECH & Infy)
- Reliance Along With HDFC, HUL & Maruti Drag The Market
- Mphasis, Mindtree, L&T Infotech, Coforge & Biocon Top Midcap Gainers
- Mahanagar Gas Slips Despite Taking A Price Hike For CNG & PNG
- Textile Stocks Move Higher On Govt’s Extension To Tax Rebate On Exports
- Market Breadth Neutral With Advance-Decline Ratio At 1:1
Closing Bell | The Indian equity benchmark indices ended higher Wednesday led by gains in IT and pharma stocks. The Sensex gained 134.32 points, or 0.25 percent, to end at 52,904.05, while the Nifty closed 41.60 points, or 0.26 percent higher at 15,853.95. Broader markets supported the upmove with the midcap and smallcap indices rising 0.23 percent and 0.45 percent, respectively.
Among sectors, buying was seen in IT, pharma and media indices, while auto, PSU Bank and realty sectors closed in the red. Wipro, Tech Mahindra, Infosys, HCL Technologies and Larsen & Toubro led the gains among Nifty50 constituents, while Maruti Suzuki, Adani Ports & SEZ, Hindustan Unilever, Nestle India and Titan Company were the top index losers.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed some strong trends after breaching the level of 15,800. While sustaining above 15,800 is the key factor from a short-term perspective, maintaining above this level is important for the market to gain momentum and extend the rally to till 15,900-15,950. the market observed the momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening the short-term bullish outlook.
Nearly 55% of employees inoculated, 1 lakh vaccine doses procured: Wipro
Nearly 55 percent of Wipro’s employees have been vaccinated against COVID-19, the company’s chairman Rishad Premji said at its annual general meeting (AGM) on Wednesday. “We have vaccinated over 35,000 people at our campuses, while over 55 percent of our employees have already been vaccinated in total,” said Rishad. While the number of Wipro employees vaccinated totals to 87,000 and counting, the company said this tally includes those employees vaccinated on campus and outside. Read here.
Zomato IPO: Issue subscribed 59% so far on Day 1
The initial public offering (IPO) of online food delivery platform Zomato is subscribed 59 percent so far today, the first day of bidding. The offer has received bids for 40.36 crore equity shares against the IPO size of 71.92 crore equity shares. The issue has received huge interest from retail investors as the portion reserved for them has been subscribed 2.36 times, while non-institutional investors have put in bids for 9 percent against their reserved portion, as per the subscription data available on the exchanges. The portion set aside for employees is subscribed 8 percent, while that of qualified institutional buyers have seen 20 percent subscription.
Parliament monsoon session: Government lists DICGC, PFRDA amendment bills
The government has listed Deposit Insurance and Credit Guarantee Corporation (DICGC) and Pension Fund Regulatory and Development Authority (PFRDA) amendment bills for the Monsoon Session of Parliament that begins on July 19. There were expectations that the banking and the insurance amendment bills with respect to the privatisation exercise would be part of the list for the monsoon session. However, the confirmed list that includes the DICGC and PFRDA bills could be a preliminary one. As part of the process, both the amendment bills are yet to get the cabinet nod. The Central government would like to make the DICGC bill time-bound to access the deposits of banks on suspension of business via DICGC. The time limit could be around 90 days. Read here.
Market Watch: Prakash Diwan, Market Expert
On Zomato IPO | I am not subscribing. I will continue ordering but not the IPO.
On IT Sector | Anybody who has got good talent management in place, is going to emerge a winner. So people will keep on adding capital to it. So my sense is IT will get those premium valuations that it has been getting, no blips post the Tata Consultancy Services (TCS) disappointment of sorts.
Mindtree set for wage hike in Q2; attrition manageable, says CEO
Mid-sized IT firm Mindtree on July 13 delivered a record performance in the first quarter ended June 30, 2021, with an order book of over half a billion dollars, the highest-ever in the company's history. The firm also reiterated the FY22 guidance of "industry-leading double-digit growth" and earnings before interest, taxes, depreciation, and amortization (EBITDA) margins of above 20%, though the CEO and MD Debashis Chatterjee pointed to certain headwinds. Read here.
PVR | Foreign Portfolio Investors (FPIs) reduce their holding by 4.4 percent in Q1FY22 to 38.19 percent from 42.60 percent in Q4FY21, while mutual fund houses (MFs) increased their stake in the stock in the June quarter of FY22.
Zomato IPO: Issue subscribed 45% so far on Day 1
The initial public offering (IPO) of online food delivery platform Zomato is subscribed 45 percent so far today, the first day of bidding. The offer has received bids for 32.10 crore equity shares against the IPO size of 71.92 crore equity shares. The issue has received huge interest from retail investors as the portion reserved for them has been subscribed 2.06 times, while non-institutional investors have put in bids for 7 percent against their reserved portion, as per the subscription data available on the exchanges. The portion set aside for employees is subscribed 6 percent, while that of qualified institutional buyers have seen 10 percent subscription.
Dollar hits 3-month high vs euro, stocks slip on inflation fears
The dollar hit three-month highs against the euro and world stocks slipped on Wednesday after a jump in US inflation fuelled expectations of a quicker end to Federal Reserve stimulus, while a drop in China’s crude imports dampened oil, said a Reuters report. The US consumer price index rose 0.9 percent in June, data showed on Tuesday, above market expectations and the largest gain since June 2008.