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Last Updated : Aug 02, 2019 08:07 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Market in bear grip; traders should not initiate fresh longs

In case if pull back attempt gathers steam then the initial target can be towards its 200-day simple moving average whose value is placed around 11,150.

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A terrible Thursday! Both Sensex and Nifty broke below crucial psychological support before bouncing back.

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The S&P BSE Sensex bounced back after breaching 37,000 on the downside before bouncing back while Nifty50 also broke below 10,900 levels but bulls pushed the index helped the index to climb above 10950 towards the close.

The final tally on D-Street – the S&P BSE Sensex dropped 462 points while Nifty closed 138 points lower at 10,980, a fresh 5-month low.

Indian markets remained in the bear grip since the beginning of the trade weighed down by comments made by US Federal Reserve chair on the future trajectory of rate cuts.

The broader markets also fell in line with benchmarks. All sectoral indices also saw selling pressure with Bank, IT, Metal and Pharma falling between 1 percent and 3 percent, but auto ended higher.

On the macro front, Gross GST collections stood at Rs 1.02 lakh crore in July, marginally up from the previous month, official data showed on August 1. The July 2019 mop-up was, however, 5.8 per cent higher than the Rs 96,483 crore collected in the same month last year.

The Indian rupee on Thursday dropped by 27 paise to close at a near five-week low of 69.06 against the US dollar amid strengthening of the American currency and heavy selling in domestic equities.

On the institutional front, FPIs were net sellers in Indian markets for Rs 1056 cr while DIIs were net buyers to the tune of Rs 561 cr, provisional data showed.

Big News:

As many as 84 companies will declare their results for the quarter ended June which include names like Aditya Birla Capital, Andhra Bank, Bata India, BEML, Birla Corp, Equitas Holdings, Exide Industries, GATI, Godrej Agrovet, GSPL, HDFC Ltd, ITC, Nestle India, State Bank of India, Union Bank of India, and V-Mart etc. among others.

HDFC Ltd: PAT likely to grow by 27% YoY

SBI: Likely to report a net loss of Rs 4816 cr (YoY

ITC: PAT likely to rise by 9.5% YoY

(All estimates are from Motilal Oswal)

Technical View:

Nifty formed a bearish candle which also resembles a 'Hammer' like pattern on the daily charts

The sharp weakness indicated that the market is completely under control of bears and hence traders are advised not to initiate fresh longs

In case if pull back attempt gathers steam then the initial target can be towards its 200-day simple moving average whose value is placed around 11,150

Bank Nifty fell towards 28,000. During the day it saw fall of around 750 points from its intraday high of 28,820 and finally closed with the loss of 508.75 points at 28,367.25.

Three levels: 10881-10850, 11076, 11150

Max Call OI: 11500, 11300

Max Put OI: 11000, 11200

Stocks in news:

Telecom major Bharti Airtel August 1 reported a consolidated net loss of Rs 2,866 crore in the quarter ended June 2019 against profit of Rs 107.2 crore in the quarter ended March 2019.

Tyre maker Ceat on Thursday said its consolidated net profit rose 15.06 per cent to Rs 82.2 crore for the first quarter ended June 30, 2019.

GlaxoSmithKline Consumer Healthcare on August 1 reported a 23.76 per cent rise in net profit to Rs 248.08 crore for the quarter ended June 2019.

Technical Recommendations:

We spoke to IIFL and here’s what they have to recommend:

Power Grid: Buy| Target: Rs 230| Stop Loss: Rs 207| Upside 7.5%

Bharti Airtel Aug Futs: Sell| Target: Rs 309| Stop Loss: Rs 333| Downside 5%

Tata Global Beverage: Buy| Target: Rs 277| Stop Loss: Rs 250| Upside 7%

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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First Published on Aug 2, 2019 07:16 am
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