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Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term trend has shifted again into choppy, post upside breakout of the small narrow range movement. There is a possibility of Nifty showing consolidation or minor weakness in the next 1-2 sessions, before showing further upside in the near term. The next upside target remains intact at 16,800 levels and immediate support is placed at 16,480 levels.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
Despite weak global market conditions, Indian markets maintained bullish momentum amid sharp intraday volatility. On daily charts, benchmark index Nifty has formed a breakout continuation formation. The texture of the chart suggests the 16,450-16,400 level would act as a key support level for the day traders. As long as the index is trading above the same, the uptrend texture is likely to continue up to 16,600-16,640 levels. In the near future, the market may consolidate near the 16,600 resistance levels.
Ajit Mishra, VP - Research, Religare Broking
Markets traded lacklustre and ended marginally higher, in absence of any major trigger. The tone was muted in the beginning however healthy buying in select heavyweights like Reliance combined with stocks from the metal and financials space aided the index to inch higher as the session progressed. The broader market indices continued their underperformance and ended lower in a range of 0.3-0.8%.
As the results season is largely behind us, domestic factors viz. updates on further unlocking and pace of vaccination will remain in focus. Meanwhile, the performance of the global indices may induce further volatility. Since we’re seeing limited participation, traders should focus on sectors that are trading in sync with the benchmark and wisely choose the stocks.
Deepak Jasani, Head of Retail Research, HDFC Securities
Advance decline ratio continued to be weak. This along with lower-than-recent-average volumes on Aug 16 suggests that action is concentrated in a few scrips. Nifty could continue its gradual grind upwards, while the broader market continues to see rotational profit booking.
Rahul Sharma, Co-Founder, Equity99
Nifty has once more formed a bullish candle at closing, with gaining intraday 33.95 points it managed to close at new record high levels, now going ahead 15,500 will act as a psychological level for immediate support followed by 15,475 -16,425-16,375 levels. Similarly on the upper side 16,600 will act as resistance followed by 16,675 levels.
Nifty Bank which underperformed Nifty50 which lost 74.85 points and closed at 36,094.50 has immediate support at 35,900 & if it breaks this level then 35,700----35,550 will be the next support. On the upside 36,300 will be the hurdle above which 36,550-36,700 will act as the resistance level.
Palak Kothari, Research Associate, Choice Broking
Technically, the Nifty Index has been trading higher high, higher low formation from the last few days which suggest strength for upside movement. Furthermore, the Index has been trading with a positive crossover of 21*50 HMA, which points out the potential for upward direction. Momentum Indicator MACD & RSI are also showing positive crossover on daily time frames which further adds strength to the index. At present, the nifty index has immediate resistance at 16,600 levels while downside support shifted up to 16,350 levels.
Santosh Meena, Head of Research, Swastika Investmart
Indian Markets outperformed as most of the global markets are trading on a weak note where Nifty & Sensex hit fresh all-time highs of 16,588 and 55,680 respectively. Midcap and Small-cap stocks underperformed where the market breadth was in favor of decline. Metal stocks shine in the leadership of Tata Steel after strong management commentary and multiple upgrades by FII broking firms. Reliance led the gain in headline indices amid news of positive development on a deal with Saudi Aramco.
Technically, Bullish momentum is continued in Nifty where 16,650 is an immediate target while 16,900 is the next target level. On the downside, 16,500-16,450 is an immediate demand zone whereas 16,350 will be critical support at any correction.
BankNifty is still consolidating in the 35,800-36,200 zone while 36,500 is the next critical hurdle; above this, we can expect a rally towards the 37,200-37,700 zone. On the downside, 35,500 will be immediate support while 35,200-35,000 will be critical support zone.
Market At Close | Here are the highlights of today's trading session
- Sensex & Nifty End At Record Closing Highs Led By Reliance
- Broader Markets Underperform Benchmarks; Market Breadth Favours Declines
- Sensex Rises 145 Points To 55,583 & Nifty 34 Points To 16,563
- Nifty Bank Slips 75 Points To 36,094 & Midcap Index 93 Points To 27,507
- Reliance Gains Over 1% On Reports Of Aramco’s Deal Up To $25 Billion
- Tata Steel Continues The Gaining Momentum On Strong Mgmt Comments Post Earnings
- Bajaj Twins Gain In Trade As Well, Bajaj Fin Rises Over 3%, Bajaj Finserv Over 1%
- Info Edge Recovers Over 2% From Lows On Better-than-expected Q1 Results
- Apollo Hospitals Moves 7% Higher After A Strong Set Of Q1 Earnings
- IGL Rises Nearly 1% While Amara Raja Slips Despite A Healthy Set Of Earnings
- Vodafone Idea Slips Over 5% Following Weak Q1 Results
- Cadila, Aurobindo, Page, BHEL, TVS Motor Top Midcap Losers
Closing Bell | The Indian equity benchmark indices ended higher Monday led by gains in metals and FMCG stocks. The Sensex gained 145.29 points, or 0.26 points, to end at 55,582.58, while the Nifty closed 33.95 points, or 0.21 percent, higher at 16,563.05. Broader markets underperformed the frontliners as the midcap and smallcap indices closed lower.
Among sectors, selling was seen in PSU Bank, auto, IT, media and pharma indices, while Nifty Metals, Nifty FMCG and Nifty Financial Services ended in the green. Tata Steel, Bajaj Finance, M&M, Britannia Industries and IOC were the top Nifty50 gainers, while Maruti Suzuki, Shree Cements, Eicher Motors, Power Grid Corp and Bajaj Auto were the top index losers. Read here.
Monsoon likely to be deficient in month of August, says IMD
It has been a quite patchy monsoon until now. While the month of June was good with nearly 10-13 percent of excess rainfall, July was in negative and August until now is negative as well. Out of the 4 geographical distributions, it is only the South peninsula that has seen positive rainfall, the rest 3 have seen deficiency. In an interview to Manisha Gupta, RK Jenamani of IMD said, "We have weak monsoon prevailing since last 7 days. We have not had much rainfall except in Andhra Pradesh and Telangana. In Maharashtra, we have not had high rainfall since 28 of July." Watch full interview here.
Expect 30% earnings growth for FY22; must have QSR stocks for long term: Gautam Duggad of Motilal Oswal
The June quarter corporate earnings saw a marginal beat on Nifty earnings on a year-on-year basis, despite low base. Gautam Duggad, Motilal Oswal Financial Services expects 30 percent growth in earnings for FY22 and said equity valuations will turn to FY23 post H2FY22. Speaking to CNBC-TV18, Duggad said, “We are still expecting 30 per cent-plus earnings growth for FY22. For our broader universal Motilal Oswal coverage of 208 stocks, we have seen an earnings growth of 117 percent, which is broadly in line. This performance led by commodities and cyclicals – metals and oil marketing companies (OMCs) – ex of those two sectors numbers is marginally ahead of estimates.”
Duggad added that he had not seen any change in EPS estimate of Nifty. He has a positive view on QSR sector and believes it is an exciting space for long term investment. "QSR is a space, which is very exciting and we have been positive on this space. We have recently upgraded Jubilant Foodworks also somewhere about Rs 3,000. If somebody has a long-term view, one must definitely have some exposure to QSR space,” he said. He believes the backdrop for liquidity and interest rates still remains very conducive for equity valuations.