Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
After the short term bounce in the last week, the Nifty had reached the junction of its daily upper Bollinger Band, upper end of a falling channel on the daily chart as well as upper end of a rising channel on the hourly chart. Thereon it stepped into a brief consolidation mode.
In terms of the Fibonacci retracement, the index attempted to stretch beyond the 61.8% of the June fall however couldn’t sustain in the higher territory.
The tight consolidation range has been 16000-16275. The index is now approaching towards the lower end of the consolidation range i.e. 16000, which needs to be monitored closely on a closing basis. Breach of 16000 on a closing basis will drag the index into a short term correction mode
Ajit Mishra, VP – Research, Religare Broking
Markets traded under pressure and lost nearly a percent, in continuation to the prevailing consolidation phase. After the weak start, the benchmark drifted further lower and settled around the day’s low. Consequently, the Nifty index settled at 16,058.30; down by 1%.
The profit taking was widespread and mostly sectoral indices ended lower. The broader indices also lost nearly half a percent each.
Markets would react to the inflation data of India and the US in early trades. Besides, the earnings announcement from some of the IT majors would also be in focus. We recommend maintaining a focus on identifying stock-specific opportunities with a bias on the positive side.
Rupak De, Senior Technical Analyst at LKP Securities:
Nifty has slipped below the previous session’s low as bears remained at the helm. It has formed a small-bodied candle just below an important moving average, indicating a bearish day of mild significance.
On the lower end, however, 16000 is likely to act as crucial support. On the higher end, resistance is visible at 16200, where meaningful call writing has happened.
Vinod Nair, Head of Research at Geojit Financial Services:
Rate hike fears are back in focus in the global markets ahead of the release of CPI numbers. Inflationary pressures along with strong US jobs data would keep the Fed on the path of aggressive rate hikes.
On the domestic inflation front, retail inflation for the month of June is expected to be at 7.03%, maintaining the previous month’s levels. Demand concerns amid the rebound of virus cases in China compelled crude to trade lower.
Kunal Shah, Senior Technical Analyst at LKP Securities:
The Bank Nifty index formed an inside bar candle on the daily chart which indicates the market is stuck between the range of 35,000-35,600. The undertone remains bullish as long as the mentioned support of 35,000 is held on a closing basis.
The upside resistance if taken out will see a quick move towards the level of 36000 where the highest open interest is built up on the call side.
Indian rupee ended lower by 17 paise at 79.60 per dollar against previous close of 79.43.
Market Close: Benchmark indices ended lower for the second consecutive day on July 12 with Nifty below 16,100.
At close, the Sensex was down 508.62 points or 0.94% at 53,886.61, and the Nifty was down 157.70 points or 0.97% at 16,058.30. About 1436 shares have advanced, 1784 shares declined, and 157 shares are unchanged.
Eicher Motors, Hindalco Industries, Infosys, BPCL and Nestle were among the top Nifty losers. Shree Cements, NTPC, Coal India, Adani Ports and Bharti Airtel were among the biggest gainers.
Except power, all other sectoral indices ended in the red. BSE midcap and smallcap indices shed 0.5 percent each.
Credit Suisse On Star Health & Allied Insurance Company
Foreign research house Credit Suisse has maintained outperform rating on Star Health & Allied Insurance Company with a target at Rs 600 per share.
The large & growing agent base with pricing arrangements provide a partial moat and company is better placed to withstand competitive pressures, reported CNBC-TV18.
CLSA View On Apollo Hospitals
Brokerage firm CLSA has kept outperform rating on Apollo Hospitals Enterprises with a target at Rs 4,470 per share.
It reiterated its mid-teen revenue growth guidance for hospitals, while offline pharmacy has potential to grow revenue by 20% YoY.
Its cash flows will help it to invest in its digital business and company expects to sustain Rs 400 crore cash burn for digital business in FY24, reported CNBC-TV18.
Syngene International to acquire 26% stake in Ampyr Renewable Energy Resources Eleven
Syngene International has entered into an agreement for the purpose of acquisition of renewable power by acquiring equity stake up to 26% in Ampyr Renewable Energy Resources Eleven Private Limited, Special Purpose Vehicle formed by Ampyr India Asset Holdings Private
Limited, for generation and supply of solar power.
Syngene International was quoting at Rs 570.20, down Rs 2.90, or 0.51 percent on the BSE.
Rail Vikas Nigam bags order of Rs 1844.77 crore from NHAIRail Vikas Nigam Limited (RVNL) in named RVNL – SP Singla Constructions Pvt. Ltd. (Consortium) has been awarded Letter of Acceptance (LoA) by National Highways Authority of India (NHAI) regarding Construction of 4 laning of NH-5 from Kaithlighat to Shakral Village in Himachal Pradesh on Hybrid Annuity Mode. The total estimated cost of the project is Rs 1844.77 crore.
June retail inflation data expected this evening, consumer prices seen 7% higher
The key CPI inflation rate for June may come in above the medium-term target of 4 percent for the 33rd straight month. It will also likely be above the 6 percent upper limit of the central bank’s…