Ajit Mishra, VP - Research, Religare Broking:
We’re not surprised by the fall as markets were signaling exhaustion at the higher levels. Indications are in the favour of a further decline and Nifty could test 10,500 levels. Though the global markets are still buoyant, rising cases in India have raised fears of the imposition of lockdown in certain parts, which could dent the pace of recovery. We advise continuing with the stock-specific trading approach and accumulating defensive on dips.
Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services:
Nifty index opened gap down in line with the weakness in Global market and drifted towards 10550 zones. It formed a Bearish candle on daily scale and corrected by more than 200 points. It has broken its rising support trend line by connecting all the recent swing low of 7511, 9004, 9544, 9845, 10250, 10300 and 10700 zones. It has also given a consolidation break down by holding below its previous weekly support of 10650 zones. Mechanical indicator RSI has given a negative crossover and showing a sign of profit booking decline. Now, till it holds below 10700 zones, weakness could be seen towards 10500-10450 zones while immediate hurdle exists at 10750 then 10850 zones.
Deepak Jasani, Head Retail Research, HDFC Securities
:
Indian benchmark equity indices had their biggest single-day drop since early-June, tracking weakness in Asian peers. The NSE Nifty 50 index ended 1.79% lower at 10,609.
Technically, Nifty has shown weakness after a long time. On downmoves, it could take support at 10484.
Vinod Nair, Head of Research at Geojit Financial Services:
The markets exhibited high correlation with the global markets and with the virus infections hitting day highs in India, the uncertainty caught up with the markets. Global markets were weak following rising infections in US and US-China tensions being back in the news. Indian markets were also worried about the increasing number of localized lockdowns which would in turn again slowdown the predicted recovery for businesses. Volatility is expected to remain and investors are advised to be cautious and be stock specific in their trades.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The Nifty broke the level of 10650 on a closing basis. This could result in some downward movement. We could expect 10480-10500 as the next level of support and thereafter 10350. On the upside, in order to resume its uptrend, the markets would need to go past 10750 on a closing basis.
S Ranganathan, Head of Research at LKP Securities:
Dalal Street corrected close to 2% behind weakness in financials and metal stocks. Despite the two Telecom Majors holding firm ahead of key events, we witnessed profit booking in key auto stocks as their volume numbers are anyways known to the street for the first quarter.
Market Close
: Benchmark indices on July 14 witnessed profit booking which dragged Nifty below 10650 level on the back of selling pressure seen in the auto, bank and metal stocks.
At close, the Sensex was down 660.63 points or 1.80% at 36033.06, and the Nifty was down 195.30 points or 1.81% at 10607.40. About 820 shares have advanced, 1829 shares declined, and 116 shares are unchanged.
IndusInd Bank, Axis Bank, Eicher Motors, Zee Entertainment and Maruti Suzuki were among major losers on the Nifty, while gainers were Dr Reddy's Labs, Titan Company and Bharti Airtel.
Except pharma, all other sectoral indices ended in the red, while BSE Midcap and Smallcap indices ended 1 percent lower.
Steel Strips Wheels bags order
Steel Strips Wheels has bagged firm export orders for over 29,000 wheels for EU Caravan Trailer Market to be executed in August from its Chennai plant.
Crude Updates
Oil prices fell on Tuesday on worries that new restrictions to stem surging U.S. and Asian coronavirus cases could threaten a recovery in fuel demand just as OPEC+ producers prepare to increase output from August.
Barclays on June WPI:
Wholesale prices fell by -1.8% y/y in June, as a severe demand crunch and sharp fall in international commodity prices weighed on wholesale inflation. Both retail and wholesale inflation surprised to the upside versus expectations in June, as supply disruptions seems to have had a more pronounced impact on prices than anticipated. Details show that a normalisation in food prices is starting to take place as summer seasonalities begin. Fuel and power prices rose after falling for five straight months, likely signalling the end of the deflationary cycle in these areas. Core prices remain under control, though some signs of upside pressure is noticeable in manufactured food products, chemicals and basic metals.
Portfolio management firm acquires stake in Eveready Industries:
Guardian Advisors acquires additional 8.48% stake in Eveready Industries. Guardian Advisors now holds 19.84% stake in the company, reported CNBC-TV18.
Dr Reddy’s launches OTC drug
Dr. Reddy’s Laboratories announced the launch of Over-the-Counter Nicotine Polacrilex Lozenges, 2 mg and 4 mg, the store brand version of Nicorette Lozenges in the US market.
Rossari Biotech IPO subscription Updates
Mumbai-based specialty chemical maker Rossari Biotech's initial public offering has been fully subscribed on July 14, the second day of bidding, backed by retail and qualified institutional buyers.
The Rs 496-crore public issue has subscribed 1.13 times so far today, as it received bids for 92,60,195 equity shares against offer size of 81,73,530 equity shares (excluding anchor book), the data available on the exchanges showed.
The portion set aside for qualified institutional buyers fully subscribed and retail 1.57 times, while the reserved category of non-institutional investors saw 29 percent subscription.
Market Updates
Benchmark indices recovered from the day's low point but still trading lower dragged by the auto, metal, banks and energy stocks.
At 14:31 IST, the Sensex was down 646.51 points or 1.76% at 36047.18, and the Nifty was down 190.50 points or 1.76% at 10612.20. About 620 shares have advanced, 1798 shares declined, and 88 shares are unchanged.
Dilip Buildcon declares lowest bidder
The company through JV i.e Dilip Buildcon Limited -HCC (JV) has been declared as L-1 bidder for the tender floated by the National Highways Authority of India for the project worth Rs 1900 crore.
Most active stocks on NSE in terms of value
Rupee ends at 75.41 per US dollar against Monday's close of 75.19 per US dollar
Mindtree Q1
Net profit grew 3.3 percent at Rs 213 crore against Rs 206.2 crore QoQ. Dollar revenue went down 9 percent at USD 253.2 milliona against USD 278.4 million QoQ. Rupee revenue was down 6.9 percent at Rs 1,908.8 crore against Rs 2,050.5 crore QoQ. EBIT went up 2.6 percent at Rs 262.3 crore against Rs 255.7 crore QoQ. EBIT margin stood at 13.7 percent against 12.5 percent QoQ.
March Telecom Data
: Bharti Airtel lost 12.61 lakh users against addition of 9.23 lakh users MoM. Reliance Jio added 46.87 lakh users against addition of 62.58 lakh users MoM. Vodafone Idea lost 63.53 lakh users against loss of 34.67 lakh users MoM.
Buzzing Stock
Shares of Eveready Industries India surged 10 percent after the promoters of Dabur reportedly bought an 8.8 percent stake in the company through a bulk deal. The Burman family confirmed the purchase to CNBC-TV18. The spokesperson said the investment in Eveready was purely in the family’s personal capacity and its stake in Eveready had risen to 20 percent now.
Barbeque Nation Hospitality gets Sebi's go ahead to float IPO:
Casual dining chain Barbeque Nation Hospitality has received markets regulator Sebi's approval to raise about Rs 1,000-1,200 crore through an initial public offering. The IPO comprises a fresh issue of shares worth Rs 275 crore and an offer-for-sale of up to 98,22,947 equity shares, according to the draft papers filed with the Securities and Exchange Board of India (Sebi). Proceeds of the issue will be utilized to repay an outstanding borrowing of Rs 205 crore in part or full and for general corporate purposes.
Recommendation
Anand Rathi believesHDFC Life with sound capital position and solid product portfolio with lower ULIP mix, remains well positioned for recovery and growth given the broader positive traits in the life insurance industry and the company’s focus ontargeting new geographies andcustomer segments, enhancing product offeringand bolstering digital capabilities.
"We continue to remain positive on the company andmaintain ourbuy rating with a revised target price ofRs.685 per share," the brokerage said.
Century Textiles Q1
The company's Q1 consolidated net loss at Rs 40 crore versus profit of Rs 64.6 crore and revenue was down 54.3% at Rs 399.9 crore versus Rs 875.1 crore, YoY, reported CNBC-TV18.
European Markets trade lower:
BF Utilities hits upper circuit
BF Utilities share price hit 10 percent upper circuit on July 14 after ace investor and billionaire Radhakishan Damani acquired 1.3 percent equity stake.
Ace investor Radhakishan Damani acquired 4.91 lakh equity shares in Kalyani group company BF Utilities during the quarter ended June 30. It was the second company, wherein Damani bought fresh shares during the June quarter, as per the latest shareholding pattern available on exchanges.
Hareesh V, Head Commodity Research at Geojit Financial Services:
Gold’s haven demand continues to be supported by concerns over surging new virus cases across the globe, weak dollar and escalating political and financial uncertainties. Meanwhile, signs of an economic rebound are likely to trigger higher level profit-booking.
Technical Outlook (London spot): As long as prices stay above $1,770, bullish sentiments are likely to continue with resistance seen at $1,830 followed by $1,882 levels. The immediate downside reversal point is $1,735.
Inflation in charts:
June WPI Inflation Data
June WPI Inflation was at -1.81 percent against -3.21 percent, while Core Inflation rate at -0.9 percent versus -1.3 percent, MoM.
Nifty Metal Index declined over 2 percent dragged by the Welspun Corp, Hind Copper, APL Apollo:
CLSA on Crompton Greaves Consumer Electrical:
Broking house CLSA has maintained buy call with a target at Rs 255 per share. The company has reported a fourth straight year of expanding EBITDA margin, while FCF generation improved significantly during FY20 at Rs 310 crore.
Its ESoP expenses has reduced further to 0.5% of revenues. The company has comprehensive plan to conserve cash & reduce cost, reported CNBC-TV18.
Buzzing
Shares of Biocon jumped almost 5 percent in morning trade on BSE on July 14 after the company said it will launch biologic drug Itolizumab for the treatment of moderate to severe COVID-19 patients at a price of around 8,000 per vial.
Sriram Iyer, Senior Research Analyst at Reliance securities:
Record-high COVID-19 cases in the US in a day have cast doubts over the pace of economic re-openings well as the resumption of schools in the fall season.
International bullion prices have started weaker on July 14 in Asian trade amid profit booking. However, the downside remains limited amid escalating tensions between US and China, keeping its safe-haven appeal intact.
Technically, the MCX August gold contract made a high of 49,265 levels and did not manage to cross its all-time high of 49,348. The metal had a volatile session, indicating some exhaustion of prices at the high 49, 300 level. Resistance holds at 49,230-49,400 level and Support is at 48,900-48,750 levels.
MCX September silver made a high of 53,184 levels from where it gave a more than 3 percent gains. Prices are likely to trade with an upside momentum and silver could trade in the 52,600-53,500 range in the coming session.
Nifty Auto Index fell 2 percent dragged by the Motherson Sumi, Ashok Leyland, Tata Motors:
Ravindra Rao, VP- Head Commodity Research at Kotak Securities:
Comex gold traded 0.7 percent lower near $1,801 after gaining 0.7 percent the previous day. Gold weakened as global risk aversion helped the US dollar index stabilise. However, supporting the price is increasing virus cases in the US, US-China tensions and renewed ETF buying.
Gold may witness choppy trade as market players assess the virus and geopolitical risks, however, the general bias may be on the upside amid increasing challenges to the global economy.
Rupee near day's low
Indian rupee extended the early losses and trading near the day's low level at 75.39 per dollar, amid selling seen in the domestic equity market.It opened 15 paise lower at 75.34 per dollar against previous close of 75.19.
Market Updates
Benchmark indices extended the early losses and trading near the day's low level amid selling seen in the metal, auto, banks and energy stocks.
At 11:05 IST, the Sensex was down 558.69 points or 1.52% at 36135.00, and the Nifty was down 166.40 points or 1.54% at 10636.30. About 574 shares have advanced, 1589 shares declined, and 83 shares are unchanged.
Crude Updates
Oil prices fell around 2% in early trade on Tuesday on worries that new clampdowns on businesses to stem surging coronavirus cases in California and other US states could threaten the nascent recovery in fuel demand.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking
: Nifty struggled around 10,900, which resulted in a decent profit booking. The major culprit for this intraday weakness on July 13 was the sheer underperformance of the banking conglomerates. If we have to take out any positives from yesterday's move, the only thing that comes to our mind is the closing of Nifty above 10800. For the coming session, 10900 becomes the immediate resistance; whereas 10750 followed by 10670 would be seen as intraday supports.
Metal, Cement and IT stocks displayed strength along with the gravity defying move in Reliance Industries. The only concerning factor is the banking space and this continues to be a key factor in the next few days.
SIAM data
: June total domestic passenger vehicle sales went down 49.6 percent YoY. June domestic passenger car sales went down 58 percent YoY, at 55,497 units. June 2-wheeler sales was down 38.6 percent YoY at 10,13,431 units.
Gold Updates
Gold prices slipped below the key USD 1,800 level on Tuesday, as the USdollar strengthened, although worries over surging coronavirus cases globally and Sino-UStensions put a floor under bullion prices.
City Union Bank to raise capital
The company board has approved raising further capital through QIP route to the tune of Rs 600 crore and raising up to Rs 500 crore via debt.
The S&P BSE Bankex shed almost 2 percent dragged by RBL Bank, IndusInd Bank, Bandhan Bank and Axis Bank.
Rupee Opens:
Indian rupee slipped in the early trade on July 14. It opened 15 paise lower at 75.34 per dollar against previous close of 75.19.
Yes Bank Further Public Offering: NVS Wealth Managers
Further Public Offering between Rs 1,154 crore to Rs 1,250 crore. Equity shares of face value of Rs 2 each at a Price Band of Rs 12-Rs 13 per equity share (Including Share Premium of Rs 10-Rs 11 per equity share) aggregating up to Rs 15,000 crore. (Post Issue Market Capitalization as per the price band = Rs. 30,079 – 31,332 crore.)
Minimum lot size of 1,000 Equity Shares and in multiples of 1,000 thereafter.
We believe that the inflow of Rs 15,000 crore from the upcoming FPO will go a long way in strengthening the bank’s balance sheet by enhancing its CET 1 Ratio, Solvency Ratio, Capital Adequacy Ratios, and would provide growth capital to the Bank. We recommend all investors to subscribe to this issue with an 18-24 month horizon.
