Closing Bell: Market ends with marginal gains; IT, power, realty drag, metals shine

Taking Stock: Market ends marginally high in choppy trade; RIL, metal stocks gain

The BSE midcap index ended 0.45 percent down and the smallcap index 0.25 percent... Read More

Nifty went nowhere after opening and remained within the range of previous session. Nifty ended with the gain of 24 points to close at 19356. Nifty managed to protect its level above 5 days EMA, placed at 19344. Bank Nifty underperformed Nifty by closing with the minor losses.

Nifty Midcap 100 and Nifty Small cap 100 Index underperformed the Benchmark Indices today where they fell by 0.38% and 0.58% respectively. Declining shares outnumbered the advancing shares as advance decline ratio stood at 0.68 on BSE, lowest since 23-June.

NSE Cash market volumes were lower as compared to last ten-day average. Amongst the sectoral Indices, Nifty IT, Media and Reality were top losers while Nifty Metal and oil & gas Index ended in the green.

Nifty seems to have stuck in the trading range of 19300-19500. Breakout from this range on the either side would decide the direction for the market.

Following the stellar listing of the ideaForge on Friday, Cyient DLM to got healthy listing above 45% as per our estimates, hence we continue to advice allotted investors to book profits and if anyone wish to buy fresh should wait and watch for counter as markets may see some pressure to sustain at higher levels. The issue was reasonably priced when compared to its listed peers which are trading in the range of 35 times to 95 times such as Syrma SGS Technology, Kaynes Technology, DCX Systems and Avalon Technology, post listing it can match the peer’s valuations hence upside from here would be limited. However, we see few risks on lower margins and high dependency on few key clients as a concern.

The Nifty witnessed a range-bound trading session and consolidated within the range (19524 – 19303) of the previous trading session. It closed in the green by ~24 points. Today the Nifty opened in the green however it was unable to sustain at higher levels. It faced resistance in the zone 19430 – 19450 where the 20-hour moving average is placed. On the daily charts, we can observe that the Nifty is in the process of retracing the rise it has witnessed in the previous couple of weeks. The crucial Fibonacci retracement level and gap area coincide around 19200 – 19180 which could act as a support zone from a short-term perspective and on the upside 19520 – 19550 shall act as an immediate hurdle zone from a short-term perspective. The daily momentum indicator has a positive crossover and thus this dip should be bought into.

As far as Bank Nifty is concerned, the Index continued to trade with a negative bias. It witnessed follow-through selling pressure and filled the gap area between 44800 – 44900 created on the 3rd of July, 2023. The Bank Nifty is in the process of retracing the rise it witnessed in the last couple of weeks and there are multiple supports in the form of Fibonacci retracement levels around 44840 – 44587 which could arrest the downside. The correction is providing an opportunity for an entry and this is a dip that should be bought into.

Markets oscillated in a narrow range and ended marginally in the green amid mixed cues. The tone was positive in the early hours, thanks to the strong up move in Reliance however pressure in the other heavyweights capped the upside and trimmed the gains as the session progressed. Consequently, the Nifty index ended closer to the middle of the day’s range at 19355.90 levels.

Meanwhile, the sectoral trend was mixed wherein metal and energy showed resilience while IT, realty, and FMCG drifted lower. The broader indices too witnessed a dip and shed nearly half a percent.

Indications are in favor of further consolidation in the index and the recent dip in the US markets is also weighing on the sentiment. It is thus advisable to limit leveraged positions and wait for the resumption of the trend.

Profit-taking in late trades erased most of the early gains as key indices ended with modest gains in a volatile trading session. Hiccups could be seen in the run up to the US monetary policy meeting later this month. There are enough indications that the Fed would go for a rate hike this month to keep inflation under control.

Technically, the Nifty found resistance near 19435 while 19330 acted as a key support zone. For day traders, a fresh uptrend rally is possible only after the 19435 breakout, above which the market could rally till 19500-19525. On the other hand, a fresh sell off could be seen after the dismissal of 19330 and below the same, the index could slip till 19250-19200.

Indian equities faced broad-based weakness, but the benchmark managed to stay marginally positive with the support of strong buying in heavyweight stocks. The weakness was led by IT stocks, as the sector is set to kick off the Q1 result season with expectations of soft earnings. Additionally, cues from the US markets are unfavourable, as concerns about another rate hike persist despite expectations of a fast cooling of future US CPI inflation data.

Indian rupee closed 17 paise higher at 82.57 per dollar versus previous close of 82.74.

Benchmark indices ended with marginal gains in the volatile session on July 10.

At close, the Sensex was up 63.72 points or 0.10% at 65,344.17, and the Nifty was up 24.10 points or 0.12% at 19,355.90. About 1454 shares advanced, 2123 shares declined, and 144 shares unchanged.

Reliance Industries, Tata Steel, JSW Steel, HDFC Life and Bharti Airtel are among the top gainers on the Nifty, while losers were HCL Technologies, Titan Company, Power Grid Corporation, TCS and HUL.

Except metal (up 1.8 percent), all other sectoral indices ended in the red.

BSE midcap index down 0.45 percent and smallcap index shed 0.25 percent.

Larsen & Toubro and Navantia, Spain signed a Teaming Agreement (TA) today for the purpose of submission of a techno-commercial bid for the Indian Navy’s prestigious P75 (India) submarine program.

As per the agreement, Navantia would carry out the design of P75(I) submarines based on its S80 class of submarines, the first of which was launched in 2021 and is undergoing sea trials prior to its delivery to Spanish Navy at the end of 2023.

Larsen & Toubro and Navantia, Spain signed a Teaming Agreement (TA) today for the purpose of submission of a techno-commercial bid for the Indian Navy’s prestigious P75 (India) submarine program.

As per the agreement, Navantia would carry out the design of P75(I) submarines based on its S80 class of submarines, the first of which was launched in 2021 and is undergoing sea trials prior to its delivery to Spanish Navy at the end of 2023.

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