Brokerages expect HCL tech to report weak earnings, Mazgaon Dock rallies on expectation of new orders

The Markets Today in a nutshell

Technical Overview – Nifty 50

Nifty managed to close in the green above 19,400 levels, primarily driven by the movement of Reliance Industries. The benchmark index witnessed a gap-up opening and claim 19,500 levels post-lunch session. As the day progressed traders looked to book profit and the index drift below 19,450 levels during the close.

However, the overall market breadth leaned toward bulls indicating a bullish sentiment for the day. It is important to monitor the market breadth over the next few days to ascertain any signs of exhaustion in trends for certain large-cap stocks.
The highest OI on the call side is placed at 19,500 followed by 19,600 and the highest OI on the put side is placed at 19,400 followed by 19,300. 

Option data seems to be neutral and the option chain suggests the same as PCR stands at 0.90.
The immediate support for the Nifty stands near its 9 EMA which is placed at 19,300 levels and the upper band for the index is capped below 19,525 – 19,600 levels.

Technical Overview – Bank Nifty

The Bank Nifty on the 11th of July witnessed a marginal gap up opening but couldn’t hold on to its gains and drifted below the day’s low towards the closing. Overall post the rectangle pattern breakout in the banking index prices are presently in the pullback mode.

The 21 EMA is expected to act as an immediate support for the banking index which is placed at 44,400 levels. 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 44,600.

The banking index on the weekly chart is still trading in a higher high higher bottom formation and trading above 21 EMA. The immediate support for the Bank Nifty stands near its 21 EMA which is placed at 44,400 levels and the upper band for the banking index is capped below 45,100 – 45,250 levels.

Indian markets

• Domestic shares concluded the trading session on Tuesday with gains, as the Nifty index closed above the 19,400 mark.
• The positive sentiment mirrored the broader Asian market, which experienced a widespread increase during the day.
• Traders were optimistic about potential Chinese stimulus measures and were hopeful for a moderation in US inflation data.
• Within the domestic market, auto, FMCG, and pharma shares witnessed strong demand.
• Investors were eagerly awaiting the upcoming quarterly earnings reports from IT companies.
• Although muted results are anticipated, investors are optimistic about the possibility of long-term guidance improvements.
• HCL Tech and TCS are scheduled to announce their Q1 earnings on Wednesday, July 12th.

Day Leader Board

Global Markets

• Markets in Europe and Asia advanced on Tuesday, tracking moves on Wall Street as U.S. markets snapped a three-day losing streak.
• Meanwhile, heavyweight Chinese technology stocks rose on Tuesday, extending a recent run of strong gains as traders bet on a clearer regulatory outlook for the sector, while expectations of more stimulus measures also aided sentiment.
• Chinese property stocks rose on Tuesday after the PBOC extended recent emergency spending measures for the sector.
• US stocks edged higher marginally on Monday as investors awaited inflation data, due to be released on Wednesday.
• Investors are bracing for a slew of inflation data later in the week, including June inflation numbers from the U.S., which will give clues to the Federal Reserve’s hiking path.

Stocks in Spotlight

• Mazagon Dock Shipbuilders Ltd. Shares of Mazagon Dock Shipbuilders surged 10 percent on July 11 on expectations of new orders, which will help increase the company’s depleting order book. The stock also hit a new all-time high of Rs 1,591.85 on the same day. India’s Ministry of Defence is said to have cleared the purchase of three additional Scorpene or Kalvari class submarines to be constructed at Mazagon Dock Shipbuilders; in collaboration with France’s Naval Group. The Rs 20,000-22,000 crore contract is expected to be signed during Prime Minister Modi’s upcoming visit to France on July 13-14.
• Suzlon Energy Ltd. Shares of Suzlon Energy rose 3.5 percent on July 11 after the renewable energy solutions provider announced an order win for the development of a 47.6 MW wind power project for The KP Group. The project is located at Vagra in Bharuch district in Gujarat and is expected to be commissioned in 2024.
• HCL Technologies is expected to report a net profit of Rs 3,782 crore in Q1FY24, according to average of the estimates by Philip Capital, Nirmal Bang, AMP, and HDFC Securities. This is a 5.3 percent decline quarter-on-quarter, and a 8.1 percent increase year-on-year. Dollar revenues are expected to be around $3,268 million in the April to June quarter, a 0.8 percent growth sequentially and a 7.8 percent growth year-on-year. Revenue (in Rupees) for the tech company is estimated to be around Rs 26,858 crore in Q1FY24, a 0.4 percent increase quarter-on-quarter and 13.8 percent increase year-on-year in the company’s revenue numbers, according to a mean consensus of the above four brokerage firms.

News from the IPO world🌐

• Netweb Technologies IPO to open on July 17.
• Kaka Industries IPO has been subscribed by 79.80 times.
• ESAF SFB files for IPO a third time, scales down size.

Sectoral Performance

Advance Decline Ratio

Numbers📈 that matter

Please visit www.fisdom.com for a standard disclaimer.