Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities:
The Nifty fell below 11350 and closed at 11200 levels. Profit taking in large-cap and index heavyweights led to a massive fall in the markets. We often see profit-taking in the market before the Fed meeting. Below the 11149 levels, the Nifty could fall up to 11050 or 10900 levels. At the top, there will be major hurdles at 11240 and 11300 levels. It is better to buy only after a big decline between the levels of 10950 to 10850.
July 29, 2020 / 04:50 PM IST
S Hariharan, Head - Sales Trading, Emkay Global Financial Services:
From a technical standpoint, 11300 is an important resistance level on Nifty, and Bank nifty is expected to under-perform the broader index. IT and FMCG indices have been out-performers, while Pharma index is trading close to an important technical resistance. Implementation of new margin guidelines for the cash segment can be expected to be a short-term dampener on market volumes, which have trended strong for the last 2 months.
July 29, 2020 / 04:49 PM IST
Nagaraj Shetti, Technical Research Analyst, HDFC Securities:
The short term trend of Nifty is slightly negative. But the overall uptrend status of the market remains up and still there is no formation of any reversal pattern at the highs, as per daily chart. There is a possibility of upside bounce (from here or from the lows) and retest of the overhead resistance of 11350 in the next few sessions. On the downside the area of 11100-11060 is likely to offer strong support for the market ahead.
July 29, 2020 / 04:39 PM IST
Ajit Mishra, VP - Research, Religare Broking
Markets traded volatile and settled with a cut of nearly a percent. After the initial uptick, the benchmark inched gradually lower as participants preferred to book some profit ahead of monthly expiry. Besides, the existence of a critical hurdle around 11,350 zone in the Nifty added to the pressure.
Markets will react to the outcome of Fed meet in the early trade on Thursday i.e. July 30. The scheduled derivatives expiry combined with earnings would keep the participants on their toes. Indications are in the favour of further profit-taking in the benchmark ahead so we advise booking profits in existing longs and wait for clarity to reenter.
July 29, 2020 / 04:35 PM IST
Deepak Jasani, Head Retail Research, HDFC Securities:
Indian equity benchmark indices reversed most of Tuesday's gains on July 29, pulled lower by heavyweight Reliance Industries. The Nifty ended down 98 points or 0.9% at 11,203.
Indian markets continue to give mixed signs with alternate days of gain and loss. The indecision period could soon end with a lot of macro data (including US Fed decision) expected soon.
July 29, 2020 / 04:15 PM IST
Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services:
Nifty index failed to continue its bullish momentum of the last session and witnessed selling pressure at higher zones. It surpassed previous day’s high of 11317 mark but absence of buying was missing which took the index to retest the low of 11150 zones. It formed an Outside Bar as it moved higher and tested lows of previous session while a Harami candle formation as follow up was missing even after the bullish breakout of last session.
Index has got stuck in range in between 11050 to 11350 zones and requires a decisive range breakout with follow up action to commence the next leg of rally. Now it has to continue to hold 11150 zones to extend its move towards 11350 then 11500 zones while on the downside key support exists at 11050 levels.
July 29, 2020 / 04:12 PM IST
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
During trading hours the 11150 level was threatened but we were swift to bounce back. 11100 is a crucial support to watch out for. We should not close below that level as it would tantamount to a break of short term support which can send the Nifty southward by 150-200 points. The markets continue to be bullish and today's sluggish move can be attributed to the monthly expiry tomorrow.
July 29, 2020 / 04:11 PM IST
Vinod Nair, Head of Research at Geojit Financial Services:
Indian indices gave up gains and closed in the negative with profit booking seen in the recent outperformer RIL. Global markets were generally undecided ahead of the US Fed Reserve meeting and mixed earnings reports in addition to rising virus cases forcing economies to reconsider restrictions to contain the spread. Stock specific action was also visible, post earnings results, and this trend is expected to continue. Adequate liquidity in the market should ensure that these corrections are bought into.
Market Close: Benchmark indices ended lower on July 29 with Nifty mange to close above 11200 dragged by the Reliance Industries and IT and auto stocks.
At close, the Sensex was down 421.82 points or 1.10% at 38071.13, and the Nifty was down 97.60 points or 0.86% at 11202.90. About 1359 shares have advanced, 1300 shares declined, and 129 shares are unchanged.
Reliance Industries, M&M, HCL Technologies, Hero MotoCorp and Nestle were among major losers on the Nifty, while gainers were Dr Reddys Labs, Tata Steel, Grasim, Bharti Infratel and IndusInd Bank.
Mixed trend seen on the sectoral front with auto, energy, infra and IT indices ended lower, while buying witnessed in the pharma, metal and FMCG sectors.
July 29, 2020 / 03:28 PM IST
Yash Gupta, Equity Research Associate, Angel Broking:
Dr. Reddy's consolidated revenue from operations for Q1FY21 stood at Rs 4,418 crore up by 15% YoY from Rs 3,844 crore in Q1FY20, driven by Europe business which was up by 47.7%. Revenue from Global generic business was up by 6% from Rs 3,298 Crore to Rs 3,507.5 crore while revenue from API up by 88.43% from Rs.453.9 crore to Rs 855.3 crore in Q1FY21.
Gross margins stood at 56.0% in Q1FY21 up by 430 bps from 51.7% in Q1FY20 on account of a favorable product mix and forex benefit. Profit before tax for the quarter stood at Rs 878.9 Crore up by 3% YoY as the base quarter had one off other income of Rs 375.9 crore which had inflated profits. We remain positive on the future prospectus of the company.