Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Markets languished in negative territory for major part of the trading session, although it drifted into positive territory for sometime towards the fag end before reversing the trend to end in the red.
IT stocks led the weakness in key benchmark indices after TCS Q1 results announced on Friday failed to cheer the street. Also, the downward trend in the European markets in early trades further dampened sentiment back home.
Technically, after the early morning selloff the Nifty found support near 16100 and recovered sharply.
We are of the view that the market is likely to continue with the range bound activity in the near future. For traders 16100 would act as a sacrosanct support level, while 16300 would be the immediate resistance level.
As long as the index trades above 16100 the uptrend wave is likely to continue till 16300-16350 and below 16100, the index could slip up to 16050 level.
Rupak De, Senior Technical Analyst at LKP Securities:
The benchmark Nifty remained sideways during the session. On the daily timeframe, the index has sustained above its near-term moving average.
The momentum oscillator RSI maintains its bullish crossover. The short term trend is likely to remain positive as long as it holds above 16000. On the higher end, resistance is visible at 16300.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty in the last week had reached a crucial junction formed by 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.
In terms of the Fibonacci retracement, it did little more than 61.8% of the June fall. The index continued to trade near these key parameters on July 11.
The hourly Bollinger Bands have started contraction. Thus the Nifty is expected to witness a brief consolidation near 16000-16275. As long as the Nifty stays above 16000 mark, the short term bounce can extend towards 16500. However, breach of 16000 will turn the table in favor of the bears.
Vinod Nair, Head of Research at Geojit Financial Services:
As the domestic market turned its focus towards quarterly results, the weak start of IT earnings wounded the sentiments, forcing benchmark indices to open on a weak note. However, with support from banking, metal and energy stocks, the domestic market managed to pare its losses to close flattish.
India’s June inflation data, which is due for tomorrow, is expected to remain in line with May’s inflation rate of 7.04%. Meanwhile, the US inflation data due on Wednesday is expected to show a further increase from its current peak level of 8.6% during May.
Rupee Close:
Indian rupee ended at fresh record closing low at 79.43 per dollar against Friday’s close of 79.25.
Market Close: Benchmark indices recovered from the intraday lows but ended with marginal losses in the volatile session on July 11.
At close, the Sensex was down 86.61 points or 0.16% at 54,395.23, and the Nifty was down 4.60 points or 0.03% at 16,216. About 2035 shares have advanced, 1297 shares declined, and 155 shares are unchanged.
Eicher Motors, ONGC, Tata Steel, M&M and Dr Reddy’s Labs were among the top Nifty gainers. Bharti Airtel, TCS, HCL Technologies, BPCL and Infosys were among the biggest losers.
Among sectors, auto, metal, oil & gas, realty and power indices rose 1-4 percent, while IT index shed nearly 3 percent.
BSE midcap and smallcap indices rose 0.5-1 percent.
Nifty Auto index rose 1 percent led by the Eicher Motors, M&M, Bosch
Jefferies View on Avenue Supermarts:
The brokerage house Jefferies has maintained a hold rating on Avenue Supermarts and raised the target to Rs 3,900 per share.
The core profit beat estimates on better gross margin.
The management is watchful of potential volume stress in discretionary segments, CNBC TV18 reported.
BSE Bankex index rose 1 percent supported by the Bank of Baroda, Federal Bank, ICICI Bank
HCL Tech Q1 Results Preview | Seasonality, moderation in demand, currency headwinds may weigh
Experts expect a flat to mid-single digit growth in profit on year as margins take a hit despite ~16 percent year on year growth in revenues
CLSA View On M&M:Research firm CLSA has maintained buy rating on Mahindra and Mahindra and raised target to Rs 1,486 from Rs 1,356 per share.The SUV business valuation shoots up with strong pipeline of EV SUV launches ahead.The capital raised for EV was at a valuation of USD 5.9-9.1 billion.Target of 20-30% EV penetration in SUV portfolio, with 5 product launches by FY26, reported CNBC-TV18.
Market at 3 PMBenchmark indices erased most of the intraday losses and trading flat with Nifty above 16200.The Sensex was down 55.23 points or 0.10% at 54426.61, and the Nifty was down 3.00 points or 0.02% at 16217.60. About 1945 shares have advanced, 1244 shares declined, and 140 shares are unchanged.
