Stock Market Highlights: Indian equity indices, Sensex and Nifty ended at record closing highs Thursday boosted by strong gains in IT and realty stocks. Broader markets supported the rally with midcap and smallcap indices closing higher each. Among sectors, Nifty Realty jumped over 4 percent followed by Nifty IT which rose over a percent. Nifty Auto, Nity PSU Bank and Nifty Pharma indices ended lower.
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Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term trend of Nifty continues to be positive with range bound action. The lack of strength in the upside momentum at the hurdle and poor market breadth of Thursday could raise doubt on a decisive upside breakout of a larger consolidation band at 15,920-15,950 levels. The emergence of strong upside momentum above 15,950 is expected to open next higher levels of 16,100 in the short term.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
Another lackluster day of trading in USDINR as spot closed 4 paise lower by at 74.54 and July futures is trading 5 paise lower, as weaker US Dollar Index and FPI flows into the ongoing IPOs kept the USDINR capped under 74.60 on spot but relentless buying of $ from RBI kept the pair above 74.50. Tomorrow, we expect USDINR to come under selling pressure as the last day of Zomato IPO may see lumpy inflows. However, RBI intervention may prevent any sharp appreciation. We expect a range of 74.30-74.65 on spot.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty has closed at its all-time high on July 15 after making a fresh intraday high at 15,952. However advance-decline ratio has turned negative after 4 sessions of a positive number. Focus is now shifting towards the large caps, after being neglected for quite some time. This is apparent from the higher volumes and successive rises in the Nifty. The momentum in the market remains up. On upmoves, the Nifty could face resistance at 15,987, while 15,855 could be a support for the next session.
Mohit Nigam, Head- PMS, Hem Securities
Nifty 50 broke an important resistance level of 15,900 today and we believe this momentum should continue. 15600 remains a crucial support on the downside and we think markets may move towards 16,400 levels gradually after closing over 15,900 today.
Ajit Mishra, VP - Research, Religare Broking
Markets traded with a positive bias for the third successive day and gained nearly half a percent. Favourable global cues combined with supportive domestic factors are helping the index to inch higher. Though Nifty has surpassed the hurdle of 15,900 today, it lacked decisiveness. Nevertheless, we feel the recent resilience in banking would help the index to gradually inch higher from hereon. Participants should continue with bullish bias and focus on identifying the right opportunities on dips.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
Nifty logged fresh lifetime highs at 15,952.35 on strong buying support in technology, financials and real estate stocks. The extended upsurge helped key indices move past the trading range on the upward boundary at 15,915. The development is positive as this might push the market towards 16,100 levels. Despite the weekly expiry pressure, the market remained firm even after hitting new highs. Our strategy should be to buy on dips. The earlier resistance of 15,900-15,870 levels would act as major support and buying is advisable if Nifty drops to these levels. Investors should keep a final stop loss at 15,770 for the same. On the higher side, 16,000 and 16,100 levels would be the main obstacles.
Sumeet Bagadia, Executive Director, Choice Broking
On the technical chart, the Nifty has given the breakout of its previous resistance level, which suggests strength for the next day. The index has given the closing above 21*50 DMA with a positive crossover which adds further strength in the index. A momentum indicator RSI (14) has turned upward from the 50 levels & stochastic suggested positive crossovers on the daily timeframe, which indicates further upward momentum in the counter. At present, the Nifty has support at 15,800 level while sustaining above 15,900 level can show 16,100-16,200 levels in upcoming days.
Rupee At Close | The Indian rupee ended 5 paise higher at 74.54 against the US dollar on Thursday amid strong buying in domestic equities. The local unit opened at 74.48 against the greenback and traded in the range of 74.47-74.55 during the session. On Wednesday, the rupee had settled at 74.59 against the US dollar.
Manish Shah, Founder, Niftytriggers.com
Nifty saw a long green candle after a prolonged phase of range bound action between 15,900-15,950. This was the active range for the last several weeks. Nifty has had a normal range candle that opened at the low and closed at the highest level for the day. We have not seen a larger than normal range expansion. If Nifty breaks and holds above the resistance at 15,930-15,950 or closes above this zone for 2-3 consecutive days the breakout is confirmed. If we try to enclose within the trendlines, the range from June 2021 till date we see Nifty breaking out of an ascending triangle pattern. This could be a trend continuation pattern. Nifty now needs to maintain its momentum and remain at elevated levels for a few more days. On the upside, the potential is 16,200-16,300. Nifty should not snap back into the range and in case Nifty drops below 15,840 we will have to rethink if there is a failure of the breakout. As things stand out, Nifty should continue its up move over the next few weeks.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed some strong trends and after overcoming the resistance level around the Nifty 50 Index level of 15,900. While sustaining above 15,900 is the key factor from a short-term perspective, the market suggests maintaining above this level is important for the market to gain momentum and extend the rally until 16,200. the momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.
Market At Close| Market Ends At A Record Closing High, Led By IT & Financial Heavyweights
Market At Close | Here are the highlights of today’s trading session
- Market Ends At A Record Closing High, Led By IT & Financial Heavyweights
- Sensex Ends At A Life High Of 53,159 After Hitting Intra-day Record Of 53,266
- Nifty Posts Record Close Of 15,924 & Midcap Index Of 27,755
- Sensex Gains 255 Points, Nifty 70 Points & Midcap Index 131 Points Respectively
- Nifty Bank Rises 239 Points To 35,908, Led By ICICI Bank & HDCF Bank
- Market Breadth Mildly In Favour Of Declines; Advance-Decline Ratio At 4:5
- HCL Tech, Tech Mahindra, L&T, Wipro & Hindalco Top Nifty Gainers
- L&T Gains As IT Subsidiaries Move Higher After A Strong Set Of Earnings
- L&T Tech Surges 19% After A Strong Q4; Infosys Up 0.2% After Earnings
- L&T Info Closes Nearly 5% Higher Ahead Of Its Earnings
- Realty Stocks Continues The Gaining Momentum; Nifty Realty Up Over 4%
- AU SFB, HDFC AMC, Ambuja Cem, Nippon Life Amongst Top Midcap Gainers
- Upstream Stocks Like ONGC & GAIL Under Pressure As Crude Falls
Closing Bell | The Indian equity benchmark indices ended at record closing highs Thursday afternoon boosted by strong gains in IT and realty stocks. The Sensex jumped 254.80 points, or 0.48 percent, to 53,158.85, while the Nifty closed 70.25 points, or 0.44 percent, higher at 15,924.20. Broader markets supported the rally with midcap and smallcap indices closing 0.48 percent and 0.95 percent higher, respectively.
Among sectors, Nifty Realty jumped over 4 percent followed by Nifty IT which rose over a percent. Nifty Auto, Nity PSU Bank and Nifty Pharma indices ended lower. On the Nifty50, HCL Technologies, L&T, Wipro, Tech Mahindra and Hindalco Industries were the top gainers, ONGC, Eicher Motors, Bharti Airtel, Grasim Industries and Coal India led the losses.
Oil prices extend losses on expected supply increase
Oil prices fell on Thursday, extending losses as investors braced for increased supplies after a compromise deal between leading OPEC producers and as US fuel stocks rose, raising concerns over demand in the world's largest consumer, said a Reuters report. Brent crude dropped 52 cents, or 0.7 percent, to $74.24 a barrel and US West Texas Intermediate (WTI) crude was down 72 cents, or 1 percent at $72.41.
CLSA positive on large corporate banks, reduces weight on IT
Foreign institutional investors (FIIs) had raised weight on IT in June by almost 90 basis points (bps) and moved out of banking by nearly 75 bps, said Vikash Kumar Jain, investment analyst at CLSA in an interview with CNBC-TV18. He believes the market is at the cusp of reversing this shift. “The flow in June was in IT, but we believe that we might be at the cusp when all of this reverses in the coming months in favour of banks. We like banking a lot more, we have reduced our weight on IT last month. As confidence in playing the core economic growth rises, with vaccination picking up, continued relaxation of state lockdown on a gradual basis and the banking results coming in this time, may allay the worst fears – and may also trigger a shift back into banking and from IT as well,” he explained. Read here.
Zomato story to stay for decades, could be a solid investment opportunity: Envision’s Nilesh Shah
The Indian startup unicorn Zomato can be a great investment opportunity for a long time as it has an immense scope of business, believes Nilesh Shah, MD & CEO of Envision Capital. Speaking to CNBC-TV18, Shah said that the Zomato story will stay here for decades. “To me, Zomato is a phenomenon which is here to stay for next several years, it’s a story for a decade. This is one of those solid platform opportunities which basically is coming in for public markets,” Shah said. Shah is of the view that investors should put their money in Zomato’s IPO with a long term perspective, even though its valuations look “frothy” in the short term. Read here.
Mastercard ban: RBL Bank, Bajaj Finserv, Yes Bank most impacted; Kotak least
Reserve Bank of India’s (RBI) move to bar global payment giant Mastercard from onboarding any new customers in the country could significantly impact card additions by lenders over the short term. According to Nomura, RBL Bank, Bajaj Finserv and Yes Bank will be the three most impacted lenders as their entire credit card schemes are aligned with Mastercard. HDFC Bank has 60 percent of its card schemes tied to Mastercard, Amex and Diners, while for Axis Bank and ICICI Bank, this is about 35-36 percent, said Nomura. HDFC Bank is already restricted from issuing new cards, and hence is not incrementally impacted. Read here.
Prabhudas Lilladher prefers Wipro and TCS over Infosys
Aniket Pande of Prabhudas Lilladher believes that earnings surprises in the IT sector will continue and valuations for the sector will remain high. "Among largecaps, we like TCS compared to Infosys right now, the rationale being when you compare to the size, TCS is 1.6 times of Infosys and both are growing at the same revenue and EPS CAGR. Similarly, the valuation discount had narrowed down just 2-3 percent," he said in an interview with CNBC-TV18. When compared to Infosys, TCS looks more prepared to handle the supply-side issues, according to him. Read here.
Zomato IPO quite expensive, bullish on textile: Dron Capital
Zomato's initial public offering (IPO) is quite expensive, said Pathik Gandotra, Partner at Dron Capital in an interview with CNBC-TV18. “The initial pop has been taken by the IPO pricing itself. I would recommend that one needs to see it for 5-6 months as to how it would behave before venturing out to buy it,” he added. He further said that he has been bullish on the textile sector for quite some time. He believes the moment has come now for the textile sector. Read here.
Bharat Dynamics gets Akash missile order from IAF; expects total FY22 order book at 12,000 crore
Bharat Dynamics expects Rs 12,000 crore worth of orders in FY22, Siddharth Mishra, chairman and managing director, told CNBC-TV18. The company, manufacturers of ammunitions and missile systems, has won a new Rs 500 crore order to manufacture and supply Akash missiles to the Indian Air Force (IAF). “In FY22, I am expecting an orderbook of Rs 12,000 crore and by FY23, we are expecting more than Rs 15,000 crore. The new order of Rs 500 crore was expected late last year and right now, orderbook level is at Rs 8,600 crore out of which, we received Rs 2,800 crore last year. Therefore, this is the first order we have got this year and apart from this, we are expecting a few emergency orders and I am hopeful that we will be able to execute a major portion this year,” said Mishra. Watch here.
Zomato IPO: Issue subscribed 1.33 times so far on Day 2
The initial public offering (IPO) of the online food delivery platform Zomato has been subscribed 1.33 times so far on July 15, the second day of bidding. The offer has received bids for 95.86 crore equity shares against the IPO size of 71.92 crore equity shares. The portion reserved for retail investors has been subscribed 3.99 times, while non-institutional investors have put in bids for 27 percent against their reserved portion, as per the subscription data available on the exchanges. The portion set aside for employees is subscribed 22 percent, while that of qualified institutional buyers have been fully subscribed.
US FDA puts Jubilant Pharmova Roorkee facility under import alert
Jubilant Pharmova said that the US FDA has put its dosage formulations facility at Roorkee under import alert. Earlier, the Roorkee facility received an OAI in December 2018 and then a Warning Letter in March 2019. The products that get impacted due to the import alert contributed to less than 3 percent of FY21 total revenues for the company.
Market Watch: Himanshu Gupta, Globe Capital
- Buy ACC with a stop loss of Rs 2,085 and a target of Rs 2,140-2,150.
- Buy Muthoot Finance with a stop loss of Rs 1,560 and a target of Rs 1,620.
- Buy DLF with a stop loss of Rs 310 and a target of Rs 322.
Yash Gupta Equity Research Associate, Angel Broking
Today Nifty has broken the all-time high of 15,904 and made a new high of 15,945 on the back of positive global sentiments and better than expected results from IT sector. We expect the market to remain in momentum and we may see some consolidation in the Pharma sector. We suggest retail investors stick to quality midcap and large-cap stocks as we expect them to outperform the market.