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After The Bell: Zomato off to a flier, what should investors do on Monday?

The Nifty has to hold above 15,800 to witness an upmove towards 15,962 and 16,000, while on the downside, support exists at 15750 and 15700 levels, say experts

July 23, 2021 / 05:03 PM IST

Food delivery giant Zomato had an impressive debut as it listed with gains of over 50 percent and closed the trading session on Juy 23 up 66 percent.

Tracking the momentum in the primary markets, the Sensex and the Nifty, which were trading flat-to-lower in the morning session, saw good buying that the BSE Sensex close 138 points higher at 52,975, while the Nifty rose 32 points to 15,856.

"Domestic indices continued to advance ahead tracking rising global risk appetite and higher domestic inflows from local investors. Earnings season continued to pump in optimism in India and global markets, while the Fed is set to deliberate its easy-money policy in the meeting ahead,” Vinod Nair, Head of Research at Geojit Financial Services, said.

Attractive IPOs, banking and realty stocks attracted domestic buyers, while mid and small-caps traded mixed, he added.

The S&P BSE midcap index closed flat, while the smallcap index ended with gains of 0.1 percent.

Close

Sectorally, buying was seen in realty, banks, FMCG and finance stocks, while selling pressure was visible in capital goods, industrial, telecom, and consumer durable.

India VIX fell 0.99 percent from 11.88 to 11.76 levels. A decline in the volatility indicates the that bulls are again in charge and buying interest is being seen at every meaningful decline.

On the options front, the maximum Put OI is at 15,000 followed by 15,800 strikes, while maximum Call OI is seen at 16,000 followed by 15,900 strikes. Options data suggests an immediate trading range of 15-700-16,000.

IndexPricesChangeChange%
Sensex60,048.47163.11 +0.27%
Nifty 5017,853.2030.25 +0.17%
Nifty Bank37,830.3058.60 +0.16%
Nifty 50 17,853.20 30.25 (0.17%)
Fri, Sep 24, 2021
Biggest GainerPricesChangeChange%
Asian Paints3,448.60127.95 +3.85%
Biggest LoserPricesChangeChange%
Tata Steel1,272.10-46.60 -3.53%
Best SectorPricesChangeChange%
No Best Sector details available.
Worst SectorPricesChangeChange%
No Worst Sector details available.

Come July 26, markets will react to quarterly results of Reliance Industries, ITC, and ICICI Bank.

Here’s what experts suggest investors should do on July 26:

Expert: Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services

The Nifty formed a Doji candle on the daily scale and a Bullish Hammer pattern on a weekly scale, which indicates that declines are being bought but follow-up is missing at higher zones.

The index has to hold above 15,800 for an up move towards 15,962 and 16,000, while on the downside, support exists at 15,750 and 15,700.

Sumeet Bagadia, Executive Director, Choice Broking

Technically, the Nifty has been consolidating in a bullish trend with higher high and higher low formation, which indicates a bullish movement in the counter.

Moreover, the index has given closing above 21 and 50 DMA, which adds strength for the coming session.

A stochastic indicator witnessed a positive crossover on the daily time frame, which supports the bullish trend. At present, the Nifty has support at 15,600, while resistance is at 15,950.

Ajit Mishra, VP-Research, Religare Broking Ltd

Markets will first react to the results of two index majors—Reliance Industries and ICICI Bank—on July 26. Besides, participants will be closely eyeing the global market for cues.

As we’re again trading closer to the upper band of the prevailing consolidation range of 15,900, we reiterate our view to limit naked leveraged positions and wait for a decisive signal from the index.

Ashis Biswas, Head, Technical Research, CapitalVia Global Research Limited

The market witnessed a swift recovery after the initial fall; 15,800 will be an important support level in the short term. If the market breaches 15,900 and sustains above the level, it can gain momentum, leading to an upside of 16,200 levels.

Momentum indicators like RSI and MACD stay positive and market breadth will improve, further strengthening the short-term bullish outlook.

Disclosure: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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