Monday, August 7, 2023

MARKET EYE UPCOMING CREDIT POLICY ON 10 AUG 2023

RESULT ON 8 AUGUST 2023

Aarti Industries Ltd

Adani Ports & Special Economic Zone Ltd

Birla Corporation Ltd

Borosil Renewables Ltd

Brigade Enterprises Ltd

Chambal Fertilisers & Chemicals Ltd

Coal India Ltd

Data Patterns (India) Ltd

EIH Ltd

EPL Ltd

Eureka Forbes Ltd

Gujarat Alkalies & Chemicals Ltd

Gujarat State Fertilizers & Chemicals Ltd

Happiest Minds Technologies Ltd

Hikal Ltd

Hindalco Industries Ltd

Infibeam Avenues Ltd

Ircon International Ltd

Linde India Ltd

Lloyds Metals & Energy Ltd

Mishra Dhatu Nigam Ltd

Oil India Ltd

Phoenix Mills Ltd

Prestige Estates Projects Ltd

Siemens Ltd

Star Cement Ltd

Suven Pharmaceuticals Ltd

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Global equities traded cautiously on Monday after a mixed US jobs report, although US and Chinese inflation figures and China trade data due later this week could influence future Federal Reserve interest rate policy. The benchmark indices closed higher for the second consecutive day on August 7, with the Nifty at 19,600. To finish, the Sensex was up 232 points. Although markets started the week in firm sentiment, they remained range bound in morning trade. In the second half of the trading session, buying in IT and pharmaceutical stocks helped the index break its congestion and end the day at 19597, up 80 points. After today's positive open, the Nifty was consistently positive while the Bank Nifty ranged sideways to bearish on the day, ending the day with a sideways close. For investors the market consists of buy on dips with a strict stop loss of 19300 which also provides a strong base for the Nifty and if the Nifty closes below the stated level we can expect more profit booking. Bank Nifty was down 0.09% to close at 44837. Among sectors, Nifty AUTO, IT and PHARMA ended in the green, while Nifty Metal and PSU Bank and Media ended on the downside. Among Nifty stocks, Divis Lab, M&M and SBI Life Insurance were the biggest gainers, while SBI, Britannia and Tata Motors were the biggest laggards. India VIX was up 5% on the day and settled at 11. The volume profile shows that the index has strong support zone 19300-19400. As for the OI data, on the call side the highest OI is 19700 followed by a 19800 strike price, while on the put aside the highest OI is a 19500 strike price. On the upside, Bank Nifty has support at 44500-44600 while resistance lies at 45200-44350. The near-term focus will remain on the RBI's monetary policy decision, which is scheduled for Thursday. The market is already pricing in the status quo and expects no cut this year on inflation concerns. The Nifty has been in a countertrend pullback for the past few trading sessions. It closed the second consecutive trading session up around 80 points. Looking at the daily charts, we can observe that the Nifty has overlapped the swing low of 19565  and hence the decline is no longer impulsive in nature. The pullback still appears to be corrective in nature and is unlikely to continue at higher levels. It has reached the 61.82% Fibonacci retracement level (19600) of the 19795-19300 decline, which is likely to provide resistance. Also, the hourly momentum indicator has hit the equilibrium line, indicating that the pullback has matured and a new cycle can begin. Overall, we continue to maintain our negative stance on the Nifty and expect a 19100 level in the short term. Bank Nifty traded within the range of the previous trading session and ended in the red. As a result, an inside bar pattern has been formed on the daily charts, reflecting the extremes of the pattern, i.e. 45125 and 44525, at crucial levels from a short-term perspective. Violation of these levels on one side will result in movement in that direction. Taking into account the price and momentum setup, we expect the index to trade on a negative bias from a short-term perspective with targets of 44000.

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