RIL rallies on Reliance Retail share capital reduction, HDFC Bank to participate in NSDL IPO

The Markets Today in a nutshell

Technical Overview – Nifty 50

The benchmark index starts its week with a marginal gap up and traded above 19,400 levels for the initial hours. The index couldn’t hold on to its gains and drifted lower below 19,400 levels and continued to trade below the same throughout the day and closed within its previous day’s candle range.

Nifty on the weekly chart it formed a bearish shooting star candle stick pattern. For confirmation of the bearish candle stick pattern, we will be requiring a negative closing below the low of the candle on the weekly time frame.

The highest OI on the call side is placed at 19,400 followed by 19,500 and the highest OI on the put side is placed at 19,400 followed by 19,300. Not much-put writing is seen but the option chain is in favor of bears with PCR 0.78.For the trend trader now 19,250 would be the sacrosanct support. Above this, the market could rally to 19,450 – 19,500 levels. On the flip side, below 19,250 uptrends may pause for a while. Below the same, we could see a quick correction to 19,100 levels.

Technical Overview – Bank Nifty

Last week, Bank Nifty hit an ATH by breaking through a critical resistance level at 44,500, which turns to a support level this week. The Bank Nifty on 10th July, couldn’t hold on to its opening gains and drifted lower below 45,000 levels and closed below the same.

The gravestone doji on the weekly chart signals caution for the bulls. For confirmation of the bearish candle stick pattern, we will be requiring a negative closing below the low of the candle on the weekly time frame. The Banking index on the daily chart is holding above its 9 & 21 EMA from the last couple of trading sessions which is acting as immediate support for the index. The highest OI on the call side is placed at 45,000 followed by 45,200 and the highest OI on the put side is placed at 45,000 followed by 44,800 levels.

For the trend trader now 44,600 would be the sacrosanct support. Above this, the market could rally to 45,200 – 45,300 levels. On the flip side, below 44,600 uptrends may pause for a while. Below the same, we could see a quick correction to 44,350 levels.

Indian markets

• Domestic equity barometers recorded marginal gains on Monday, while the Nifty index closed slightly above the 19,350 level.
• The IT sector, which is on the verge of entering the Q1 result season.
• All sectoral indices on the NSE, except Nifty Metal and Nifty Oil & Gas, concluded the day in negative territory.
• Investor sentiment was impacted by apprehensions regarding a potential rise in interest rates in the US, despite forecasts indicating a decline in future US inflation figures.

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Global Markets

• European shares advanced while Asian stocks ended mixed on Monday ahead of key inflation reports this week, including the U.S. consumer price index report due Wednesday and the producer price index on Thursday.
• U.S. Treasury Secretary Janet Yellen concluded her visit to Beijing, and said that the talks were direct and productive, putting bilateral ties on surer footing.
• US stocks ended lower on Friday in a seesaw session, as investors digested a US jobs report that showed weaker-than-expected growth and awaited more economic data and corporate earnings in the weeks ahead.
• The Labor Departments June jobs report showed payrolls increased less than expected, cooling down from May. Nonfarm payrolls rose by 209,000, while the unemployment rate came in at 3.6%.

Stocks in Spotlight

• Reliance Industries (RIL) witnessed a significant jump of 3.78% in its stock price. The company announced that its subsidiary, Reliance Retail, has received approval from its board of directors to reduce the equity share capital held by shareholders other than its Promoter and holding company, Reliance Retail Ventures. This reduction will be implemented by paying a consideration of Rs 1,362 per share, determined through the valuation provided by two independent registered valuers.
• HDFC Bank witnessed a slight decline of 0.27% in its stock price. The Bank, announced its intention to participate in the initial public offering (IPO) of National Securities Depository Limited (NSDL). The bank plans to offer for sale up to a 2% equity stake, which translates to approximately 40,00,000 equity shares held by HDFC Bank in NSDL, as mentioned in the draft red herring prospectus filed with the Securities and Exchange Board of India on 8 July 2023.
• Larsen & Toubro (L&T) experienced a marginal decline of 0.17% in its stock price following the company’s signing of a teaming agreement (TA) with Navantia, Spain. The agreement aims to jointly submit a techno-commercial bid for the highly significant P75 (India) submarine program of the Indian Navy. With an estimated value exceeding Euro 4.8 billion, this project represents India’s largest defense acquisition initiative. Furthermore, upon successful execution, it is anticipated that a 30-year lifecycle sustenance contract of similar value will follow.

News from the IPO world🌐

• Ideaforge Technology closes with 93% gain on debut
• SPC Life Sciences gets SEBI’s go ahead to float IPO
• Utkarsh Small Finance Bank Rs. 500 crore to open on July 12

Sectoral Performance

Advance Decline Ratio

Numbers📈 that matter

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