Market Headstart: Nifty likely to open higher; SBI, Amara Raja top buys

The Nifty50 is likely to open higher on Thursday tracking Asian markets which were trading with a positive bias taking cues from Wall Street which rose to a fresh record high on hopes of a rate cut by US Federal Reserve.

“U.S. stocks rose on Wednesday, with each of the major indexes closing at a record high, as expectations grew that the Federal Reserve would take a more dovish turn as a raft of data provided more evidence of a slowing economy,” said a Reuters report.

Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 14 points or 0.12 percent. Nifty futures were trading around 11,962-level on the Singaporean Exchange.

The S&P BSE Sensex rose 22 points to 39,839 while the Nifty50 closed 6.4 points higher at 11,916 on Wednesday.

The Indian rupee July 3 saw a marginal 6 paise gain at 68.89 against the US dollar in line with a steady trend in domestic equities in the run-up to the Union Budget due on July 5.

On the institutional front, FPIs were net sellers in Indian markets for Rs 390 cr while DIIs were net buyers to the tune of Rs 287 cr, provisional data showed.

Stocks in news:

After a great response to public issue last week, IndiaMART InterMESH is set to make its debut on bourses on July 4. The issue price was fixed at Rs 973 per share. Most analysts expect IndiaMART to list with at least 10 percent premium over its issue price given strong demand and allotment ratio.

The US Food and Drug Administration (FDA) has pulled up Aurobindo Pharma for 'repeated' violations in current good manufacturing practice (CGMP) at three of its plants in manufacturing certain active pharmaceutical ingredients (API) and intermediates.

The second largest pure-play mortgage lender Indiabulls Housing Finance on July 3 said it will buyback debt worth Rs 2,705 crore from the investors before their maturity.

Technical Recommendations:

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

SBI: Buy| LTP: Rs 366.15 | Target: Rs 400| Stop Loss: Rs 348| Upside 9%

Amara Raja Batteries: Buy| LTP: Rs 631.25 | Target Rs 682| Stop Loss Rs.600| Upside 8%

Tech Mahindra: Sell| LTP: Rs 701.10| Target: Rs 648| Stop Loss: Rs 730| Upside 7.5%

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