Indian shares recovered from early losses to finish flat on July 5. Gains in Reliance Industries, State Bank of India, and Hindustan Unilever offset losses in HDFC Bank Ltd. Analysts expressed concerns following a weaker-than-expected Q1 business update from HDFC Bank.
The sensex closed 0.1 percent lower and Nifty, ended up 0.1 percent. During intraday trading, Sensex saw a decline of over 550 points, while Nifty dropped by 130 points.
Among sectoral gainers on the Nifty, Nifty Oil & Gas led the way with a gain of 1.9 percent, followed by Nifty Pharma and PSU Bank, both up by 1.3 percent each. Nifty FMCG also showed strength with a gain of one percent. On the other hand, among sectoral losers, Nifty Bank was the top decliner, down by 0.8 percent, followed by Nifty Consumer Durables, which was down 0.2 percent.
Investors are cautious before Friday's US jobs data, expected to show moderate hiring amid signs of a cooling economy like weaker ISM Manufacturing PMI and ISM Service Sector PMI reports. The payroll report could influence the Fed's decision on rate cuts.
Outlook for July 8
Vinod Nair, Head of Research, Geojit Financial Services
The domestic market traded with a mixed bias, with the heavy-weight banking sector acting as a laggard. Adding to the worry are the top lending banks, which recorded a sequential decline in deposit growth in the June quarter. While Midcap and Small Cap outperformed and the respective BSE indices hit an all-time high. Globally, investors now await the US non-farm payroll data to be released later today to gauge the trajectory of the US Fed’s potential rate cuts.
Shrikant Chouhan, Head Equity Research, Kotak Securities
Indian equity market sentiments remained positive with both the Sensex 30 and the Nifty 50 index reaching a new high this week. On a weekly basis, BSE 30 and Nifty 50 index gained more than 1 percent, while the BSE Midcap and the BSE Smallcap index outperformed the large-caps index. Amid the positive market momentum, most of the sectoral indices reported positive gains this week. BSE IT services performed strongly ahead of the upcoming Q1FY25 earnings season. Oil prices has been gradually inching upwards over the past one month, which needs to be monitored.
Over the next few weeks, key events for the market include macro factors, Union Budget and the Q1FY25 earnings. Individual stocks will be in focus on Q1FY25 earnings and management commentary over the coming few weeks.
Rupak De, Senior Technical Analyst, LKP Securities
The index started with a gap down. However, after the initial weakness, Put writers returned heavily. The 24200 level witnessed heavy writing on the put side, marking a short-term support for Nifty. The last-hour spike in the Nifty shows the resilience of the bullish trend. This strength is likely to prevail in the market until it breaks below 24200 decisively. A fall below 24200 might induce profit booking in the market.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
After showing minor weakness from the highs in the last couple of sessions, Nifty witnessed buy on dips action on Friday and closed on a sharp intraday upside recovery note. After opening with a downside gap, Nifty slipped into further weakness in the early part of the session. Minor upside recovery was seen in the mid part, but the market demonstrated sharp intraday upside bounce from the lows towards the end and Nifty closed the day higher. The opening downside gap has been filled completely.
A reasonable bullish candle has been formed on the daily chart after opening lower and with minor upper and lower shadow. Technically, this market action signal formation of bullish counterattack type candle pattern, which signal possible come back of bulls after a small dip.
Previously, similar type of formation on June 24 has resulted into a sustainable upmove for the subsequent week. This is positive indication.
The underlying trend of Nifty continues to be positive. There is a possibility of upside breakout hurdle around 24400-24500 levels in the next few sessions. Immediate support is at 24170 levels.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd
Markets were mostly range-bound and traded in the red for almost the entire trading session, as investors traded with caution ahead of the US non-farm payroll data which could give some indication on the interest rate direction going ahead.
While the undertone remains bullish, investors are waiting for Budget and the road-map ahead to boost growth.
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