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Last Updated : Jul 02, 2019 07:57 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Nifty may move up sharply if index closes above 11,911

The downside remains capped with 11,775-11692 acting as crucial support levels for the index. Investors can remain long on Nifty50 till Budget with a stop loss of 11750-11775.

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The countdown to the Budget has started and it looks like the D-Street is already in a good mood.

Sensex rallied nearly 300 points on July 1 to snap its 2-day losing streak while the Nifty reclaimed 11,850 helped by strong global cues.

Close

The final tally on D-Street – Sensex rose 291 points to 39,686 and Nifty recorded 3-week closing high at 11,865, up 76 points from its previous close.

Global markets edged higher as trade tensions between the US and China eased that helped Nifty breakout above 11,800. On the domestic front, expectations of a pro-growth Budget, and steady auto sales data helped the rise.

The Indian rupee surrendered most of its early gains and settled for the day 9 paise higher at 68.94 against the US dollar on Monday as investor sentiments were revived by US-China trade truce.

On the provisional front, FPIs were net buyers in Indian markets for Rs 426 cr while the DIIs were net sellers to the tune of Rs 50 cr, provisional data showed.

Big News:

Revenue collection from the Goods & Services Tax (GST) for June stood at Rs 99,939 crore. It slipped below Rs 1 lakh crore for the first time since February, when it totalled Rs 97,247 crore.

Gross collection in May and April stood at Rs 100,289 crore and Rs 113,865 crore, respectively.

On the macro front, eight core sector industries recorded a growth of 5.1 percent in May on the back of healthy output in steel and electricity. The eight core sector industries - coal, crude oil, natural gas, refinery products, fertiliser, steel, cement, and electricity - grew by 4.1 percent in May last year.

Technical View:

Nifty formed a bullish candle on the daily charts -- hits 3 weeks closing high

The index closed above its crucial short term moving averages such as 5-EMA, 20-EMA, and 13-EMA

Experts feel 11,911 is crucial level to watch out for in the coming sessions, if the index closes above the said level then there could be a sharp upside.

The downside remains capped with 11,775-11692 acting as crucial support levels for the index

Investors can remain long on Nifty50 till Budget with a stop loss of 11750-11775

Three levels: 11775, 11884, 11991

Stocks in news:

Homegrown auto major Tata Motors on July 1 reported a 14 percent decline in total sales at 49,073 units in June. The company had sold a total of 56,773 units in the same month last year, Tata Motors said in a regulatory filing.

Lenders to the troubled non-banking finance company (NBFC) Dewan Housing Finance (DHFL) have decided to sign the inter-creditor agreement to implement the resolution plan by July 5.

Chennai-based TVS Motor Co July 1 reported an 11 percent decline in total sales at 2,79,102 units in June. The company, which makes two-wheelers and three-wheelers, had sold 3,13,614 units in the same month last year, TVS Motor Co said in a statement.

Technical Recommendations:

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

State Bank of India: Buy| LTP: Rs 361| Target: Rs 400| Stop-Loss: Rs 340| Upside 11%

Federal Bank: Buy| LTP: Rs 109| Target: Rs 120| Stop-Loss: Rs 103 | Upside 10%

CESC: Buy| LTP: Rs 785| Target: Rs 850| Stop-Loss: Rs 760 | Upside 8%

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 Jul 2, 2019 07:57 am
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