Daily Snippets
Date: 26th July 2023 |
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Technical Overview – Nifty 50 |
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In early action, Gift Nifty was flirting with the dotted lines indicating an up-and-down session for benchmark Nifty. But as the market opens prices witnessed a marginal gap opening and prices traded above 19,750 levels for the majority of the time.
As mentioned in yesterday’s report Nifty is continuously taking support near its 9 EMA which is placed at 19,700 levels. The momentum oscillator RSI (14) on the daily chart has formed a bullish hidden divergence where the oscillator made a lower low but prices denied to do the same.
The highest call side open interest is at 19,800 & 20,000 and the highest put side open interest is at 19,700 & 19,600 levels. The calls writers exited their positions from 19,700 CE and Put writing was on the verge at 19,750 levels.
Technically 19,700 – 19,650 will act as immediate support for the index and the upper band is capped below 19,900 – 19,950 levels for the day.
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Technical Overview – Bank Nifty |
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The Bank Nifty on the daily chart has witnessed a bullish falling wedge pattern breakout on the intraday chart and prices are trading above the upper band of the pattern. The Banking index on 26th July witnessed a flat opening but traded in a higher high higher bottom formation throughout the day which results in a bullish day.
The Bank Nifty on the daily chart is trading in a rising wedge pattern and has continuously taken support at 9 EMA which is placed at 45,700 levels. The momentum oscillator RSI (14) on the daily chart is reading near 65 levels with a bullish crossover on the cards.
The highest call side open interest is at 46,000 & 46,200 and the highest put side open interest is at 46,000 & 45,900 levels and the Bank Nifty PCR ratio stands at 0.91 levels. The call writers exited their positions from 46,000 CE and Put writers increased their position at 45,900 levels. Technically 45,800 – 45,600 will act as immediate support for the banking index and the upper band is capped below 46,400 – 46,550 levels for the day.
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Indian markets:
- Market started positively and continued to gain momentum, staying close to the day’s high.
- Investors are eagerly awaiting the outcome of the US Fed’s meeting later tonight, which could bring the last rate hike for this year.
- Capital Goods, FMCG, and realty sectors all saw a rise of 1 percent each.
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Global Markets
- European shares declined while Asian stocks ended mixed as investors brace for the U.S. Federal Reserves rate decision on Wednesday.
- On Wall Street, the three main indices closed higher on Tuesday, led by gains in shares of technology, materials and communication services companies.
- Global central bank meetings are in focus. Markets reportedly anticipate a 25 basis points interest rate hike from the US Federal Reserve on Wednesday and European Central Bank on Thursday. Meanwhile, the Bank of Japan on Friday is likely to keep its super-loose policy intact. Investors are waiting for Chair Jerome Powells statements on his outlook for the economy as it tackles inflation.
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Stocks in Spotlight
- Can Fin Homes experienced a sharp decline in its share price, plummeting over 9 percent. This steep drop came as a result of the company’s recent revelation of a significant misappropriation of funds amounting to Rs 38.53 crore at its Ambala branch. According to the housing financier’s statement, the fraudulent activities were orchestrated by three of its employees who abused their authority to sign cheques. The funds were illicitly transferred to various personal bank accounts, and the fraud was eventually discovered on July 24. This news has understandably shaken investor confidence in the company’s financial integrity, leading to the drastic decrease in its share value.
- Tata Motors DVR shares have been on a remarkable upward trend, surging for six consecutive sessions in Wednesday’s trade. The stock experienced a staggering 17.93 percent jump, reaching a 52-week high of Rs 440, compared to its previous closing price of Rs 373.10. This surge in the carmaker’s DVR shares can be attributed to the recent announcement of the conversion of differential voting rights into ordinary shares. The move is aimed at simplifying and consolidating Tata Motors’ capital structure while also ensuring ample liquidity for the company’s growth prospects.
- Tech Mahindra, an IT services company, experienced a 4 percent sequential decline in revenue, amounting to $1600.7 million (Rs 13,159 crore), which fell short of analyst estimates. This quarter has proven to be challenging for most major IT companies, and Tech Mahindra’s revenue drop of 4.2 percent in constant currency terms stands out as the steepest among its peers. Notably, other industry players like Wipro and HCLTech also witnessed a decline in revenue during the same period.
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News from the IPO world🌐
- Concord Biotech, backed by Rakesh Jhunjhunwala’s firm targets August IPO launch at upto $1bn valuation
- Oriana Power sets IPO price band at Rs. 115 to Rs. 118 per equity share
- Textile Manufacturer Shri Techtex to roll out IPO
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Day Leader Board
Nifty 50 Top Gainers Stock | Change (%) | LT | ▲ 3.60% | CIPLA | ▲ 2.30% | ITC | ▲ 2.20% | BRITANNIA | ▲ 1.90% | SUNPHARMA | ▲ 1.70% |
| Nifty 50 Top Losers Stock | Change (%) | BAJFINANCE | ▼ -1.70% | BAJAJFINSV | ▼ -1.40% | M&M | ▼ -1.30% | APOLLOHOSP | ▼ -1.30% | TECHM | ▼ -1.10% |
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Sectoral Performance Top Sectors | Day change (%) | NIFTY PSU BANK | 1.50% | NIFTY REALTY | 1.19% | NIFTY FMCG | 1.05% | NIFTY MEDIA | 0.93% | NIFTY PRIVATE BANK | 0.68% |
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Advance Decline Ratio Advance/Declines | Day change (%) | Advances | 1839 | Declines | 1708 | Unchanged | 150 |
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Numbers to track Indices Name | Latest | % 1D | % YTD | Dow Jones (US) | 35,438 | 0.1 % | 6.9 % | 10 Year Gsec India | 7.1 | 0.00% | 3.50% | WTI Crude (USD/bbl) | 80 | 1.1 % | 3.5 % | Gold (INR/10g) | 59,114 | 0.20% | 7.10% | USD/INR | 81.87 | (0.1) % | (1.0) % |
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