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Last Updated : Aug 01, 2019 08:31 PM IST | Source: Moneycontrol.com

Trade Setup for Friday: Top 11 things to know before Opening Bell

Selling across sectors, except Auto, dented sentiments after there was no indication from Federal Reserve Chairman Jerome Powell about a further rate cuts later in the year.

Sunil Shankar Matkar

The market started the month on a bearish note, as bears retained a tight control over Dalal Street throughout the session on August 1. The Nifty broke the psychological 11,000-mark to close at a fresh five-month low.

Selling across sectors, except Auto, dented sentiments after there was no indication from Federal Reserve Chairman Jerome Powell about a further rate cuts later in the year.

The BSE Sensex declined by 462.80 points to 37,018.32 while the Nifty50 plunged 138 points to 10,980 and formed a bearish candle on daily charts.

Close

"A long negative candle was formed with a long lower shadow. Technically this pattern indicates a weak ongoing trend and an emergence of decent buying at the lower levels," Nagaraj Shetti, Technical Research Analyst, HDFC Securities told Moneycontrol.

He added, technically though, Nifty recovered smartly from a day's low, still there is no formation of any reversal pattern at the lows. Previously, few such lower level recoveries have failed to sustain the highs.

According to him, the short term trend of Nifty is down and more weakness is likely to continue in the next one to two sessions. The next downside supports to be watched is around 10,800 levels, he pointed out.

The market breadth has remained in favour of bears as about two shares declined for every share rising on the BSE. The Nifty Midcap and Smallcap indices fell in line with benchmarks losing over a percent each.

We have collated 11 data points to help you spot profitable trades:

Key support and resistance level for Nifty

The Nifty closed at 10,980 on August 1. According to the pivot charts, the key support level is placed at 10,881.73, followed by 10,783.47. If the index starts moving upward, the key resistance levels to watch for out are 11,077.53 and 11,175.07.

Nifty Bank

The Nifty Bank closed at 28,367.25, down by 508.75 points on August 1. The important pivot level, which will act as crucial support for the index, is placed at 28,003.1, followed by 27,639.0. On the upside, key resistance levels are placed at 28,775.5, and 29,183.8.

Call options data

Maximum Call open interest is at 11,500, which will act as a crucial resistance level in August series. It was followed by 11,300 strike.

Significant Call writing is at 11,000 followed by 11,200 strike.

Put options data

Maximum Put open interest is at 11,000, which will act as a crucial support level in August series. It was followed by 11,200 strike.

The high Put writing is at 10,700 followed by 11,000 strike.

Analyst or Board Meetings/Briefings

Mangalam Organics: Company will announce its June quarter earnings on August 12.

Asahi Songwon Colors: Company will announce its June quarter earnings on August 12.

Marathon Nextgen Realty: Company will announce its June quarter earnings on August 12.

Ansal Housing: Company will announce its June quarter earnings on August 12.

Pokarna: Company will announce its June quarter earnings on August 9.

Prataap Snacks: Company will announce its June quarter earnings on August 9.

Capacite Infraprojects: Company will announce its June quarter earnings on August 8.

General Insurance Corporation of India: Annual General Meeting of shareholders to be held on August 27.

Kolte-Patil Developers: Earnings conference call to be held on August 6 for Q1FY2020 earnings.

Kajaria Ceramics: Annual General Meeting to be held on August 26.

Stocks in news

Bharti Airtel Q1: Consolidated net loss at Rs 2,866 crore versus profit of Rs 107.2 crore, revenue rises 0.7 percent to Rs 20,737.9 crore versus Rs 20,602.2 crore QoQ; India wireless EBIT loss at Rs 1,242 crore EBIT loss of Rs 1,377.8 crore and average revenue per user rises 5.1 percent to Rs 129 versus Rs 123 QoQ.

Raymond Q1: Loss at Rs 14.85 crore versus profit of Rs 0.02 crore, revenue rises to Rs 1,435.12 crore versus Rs 1,250.66 crore YoY.

Adlabs Entertainment Q1: Loss at Rs 32.47 crore versus Rs 20.92 crore, revenue falls to Rs 81 crore versus Rs 84.72 crore YoY.

Dhampur Sugar Mills June quarter: Profit rises to Rs 58.5 crore versus Rs 32.25 crore, revenue increases to Rs 937 crore versus Rs 734.4 crore YoY.

Tata Power Q1: Profit falls to Rs 151.3 crore versus Rs 1,670.9 crore, revenue rises 6.2 percent to Rs 7,766.7 crore versus Rs 7,315.2 crore YoY.

HCC Q1: Consolidated net loss at Rs 17.4 crore versus loss of Rs 66 crore, revenue rises 6 percent to Rs 2,455.9 crore versus Rs 2,316.1 crore YoY.

Raymond: Board authorised the senior management to explore and evaluate potential options to restructure the businesses of the company.

Dishman Carbogen: US FDA completed inspection of company's subsidiary's Neuland unit with no observation.

Eicher Motors July Sales: Total Royal Enfield sales fell 22 percent to 54,185 units versus 69,063 units YoY.

Tata Motors: Company to cut electric vehicle price by up to Rs 80,000 from August, due to GST rate revision.

ACC: Company appointed Rajani Kesari as Chief Financial Officer.

LIC Housing Finance: Siddhartha Mohanty appointed as MD, CEO.

Crest Ventures: Company has liquidated its entire stake being 37,20,000 equity shares representing 62 percent of the total issued, subscribed and paid-up equity share capital in its subsidiary Crest Wealth Management Private Limited.

KCP: Company has differed the proposal for setting up of Grinding Unit at Naidupeta, Andhra Pradesh. Due to environmental concerns, the company approached the Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) for cancellation of allotment of land at Industrial Park, Naidupet, Andhra Pradesh. The APIIC had accepted its request and cancelled the allotment.

Dhunseri Tea & Industries: Company signed binding agreement(s) with Tata Global Beverages for sale of its branded business (Lalghora & Kalaghora).

Wipro: N Vaghul, Independent Director and Dr Ashok S Ganguly, Independent Director, have retired from company's Board of Directors. Company launched co-innovation center with Amazon Web Services.

SRF: Engineering plastics business has been divested to DSM India Private Limited.

Jaypee Infra: NCLAT overturns NCLT order directing return of 758 acre land to Jaypee Infra under IBC.

Results To Watch Out For

Results on August 2: SBI, ITC, HDFC, Power Grid Corporation of India, GATI, BSE Limited, Alphageo (India), Xpro India, Gujarat State Petronet, Andhra Bank, VLS Finance, Exide Industries, Birla Corporation, Ujjivan Financial Services, Equitas Holdings, Filatex India, Aditya Birla Capital, Vinyl Chemicals (India), D-Link (India), IRB Infrastructure Developers, Astral Poly Technik, Sterling Tools, Bata India, Capri Global Capital, Insecticides (India), National Fertilizers, Camlin Fine Sciences, Birla Corporation, Somany Ceramics, Godrej Agrovet, eClerx Services, Lumax Industries, Dhampur Sugar Mills, Parag Milk Foods, Elgi Equipments, Tata Communications, Dhampur Sugar Mills, Surya Roshni, INOX Leisure, V-Mart Retail, Kaya, McDowell Holdings, MM Forgings, BEML, Deepak Nitrite, Sical Logistics, Firstsource Solutions, Union Bank of India, Raj Oil Mills, Laurus Labs, TCPL Packaging, HUDCO, Summit Securities, Rico Auto Industries Limited

State Bank of India

Country's largest lender SBI is expected to report a healthy profit in the June quarter on lower provisioning, and higher treasury income & loan growth, with asset quality improvement, brokerages feel. The bank will announce its quarterly earnings on August 2.

Among brokerages considered, the minimum amount of profit is expected to be around Rs 2,500 crore, while the maximum is estimated to be Rs 6,000 crore for the quarter. In the corresponding quarter of the last fiscal, SBI posted a loss of Rs 4,875.9 crore.

According to brokerages, loan and NII growth could be in double digits with lower slippages, but other income or non-interest income may be quite strong.

"We expect loan growth of 17 percent YoY, led by growth in retail books and portfolio buyouts. NII is expected to increase by 10 percent YoY due to lower interest reversals and better recoveries from w/off accounts. Non-interest income is expected to remain strong at 38 percent YoY on account of an improvement in the treasury performance and fee income," Motilal Oswal said, adding stress addition is likely to moderate to 1.7 percent levels, as it believes that most of the stress has been recorded in previous quarters.

ITC

ITC, which will also release numbers on August 2, is likely to show double-digit growth year-on-year in revenue as well as profit in the quarter ended June 2019 backed by cigarette business, according to the brokerages.

Cigarette volume growth could be around 5.5-6 percent in Q1FY20 on lower base of 1.5 percent growth in the year-ago. The volume growth in March quarter was 7.5 percent.

"We model 5.5 percent YoY increase in cigarette volumes and 3 percent increase in realization (portfolio level). We forecast 11 percent YoY growth in cigarette EBIT," Kotak said.

"We model 9 percent, 15 percent and 10 percent YoY growth in FMCG, hotels and agri-business. Expect strong margin expansion for these segments as well (except hotels where margins would be impacted as gestation costs of the new Kolkata property kick in)," it added.

Bulk deals

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(For more bulk deals, click here)

FII & DII data

Foreign Institutional Investors (FIIs) sold shares worth Rs 1,056.55 crore, but Domestic Institutional Investors (DIIs) bought Rs 561.28 crore worth of shares in the Indian equity market on August 1, as per provisional data available on the NSE.

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First Published on Aug 1, 2019 08:15 pm
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