Berger Paints rally on bonus share issue announcement, IT companies in demand

Technical Overview – Nifty 50

The benchmark index witnessed a flat opening for the start of the fresh calendar month and traded within the band of 19,700 – 19,770 levels throughout the day. Nifty has reversed from a bullish Gartley harmonic pattern from the key support area of 19,500-19,600 and the average line of the Bollinger Band, indicating the potential for bullish momentum. 
In July, bulls dominated the equity market as Dow Jones reached a 52-week high, gaining 3.35%, while Sensex and DAX also hit new all-time highs with gains of 2.8% and 1.85% respectively.

The highest call side open interest is at 19800 & highest put side open interest is at 19600. Option writing data is dominated by the call writers but the trend is mildly positive which indicates a continuation of the sideways trend.
As far as levels are concerned, 19,600 is likely to act as a cushion, while the pivotal zone of 19,550, coinciding with 21 EMA (exponential moving average), is expected to act as sacrosanct support. On the higher end, 19,850 seems to be very much achievable for the coming weekly expiry.

Technical Overview – Bank Nifty

The Bank Nifty from the last three trading sessions is trading just above the lower band of the rising wedge pattern and has shown support near its 21-day exponential moving average. Index from the last three trading sessions is trading between the 9 & 21 EMA which clearly indicates a sideways momentum for the Banking Index.
The Banking index on the daily chart is still trading in a higher high higher low formation and the pattern will be well intact until prices don’t move below 44,500 levels. The momentum oscillator RSI (14) on the daily chart is reading above its upward-rising trend line support above 50 levels. 

The highest call side open interest is at 46,000 & highest put side open interest is at 45,500. Option writing data is indicating mix set of numbers. PCR ratio stands at 0.80.
The immediate support for the Bank Nifty is placed at 45,200 and below that index will witness a breakdown. On the higher end, 45,850 – 46,000 will be an immediate level to watch out for in the Banking index.

Indian markets:

• Domestic equity barometers closed with minor losses on Tuesday.
• The Nifty fell below the 19,750 level after reaching a high of 19,795.60 earlier in the day.
• The market started the day on a positive note but faced profit booking in the early hours, leading to a rangebound trading session.
• Despite the minor losses, the overall sentiment in the market remains positive, thanks to favorable global cues and selective buying in different sectors.
• IT shares were in demand, indicating strong investor interest in the Information Technology sector.
• On the other hand, realty shares witnessed corrections during the trading session.

Global Markets

• European shares declined while Asian stocks ended mixed on Tuesday, taking cues from Wall Streets and fuelled by a general sense of optimism about the economic outlook.
• Bets on the Federal Reserve calling it a day on its interest rate hiking cycle have been a key driver of buying for weeks as inflation continues to drop while the economy remains robust.
• That has been compounded by Chinas recent promises of stimulus measures to kickstart growth, as a string of data showed the countrys post-Covid recovery has all but puffed out.
• Meanwhile, Chinas factory activity remained in contraction territory for the fourth straight month, with the purchasing managers index coming in at 49.3 compared with the market expectation of 49.2. According to the countrys national bureau of statistics, the PMI level is also higher than the 49.0 recorded in June.
• The PMI for the non-manufacturing sector in July came in at 51.3, compared to Junes figure of 53.2.
• In US, all major indices ended Mondays main trading session modestly higher, with the S&P 500 at a 16-month high.

Stocks in Spotlight

👉Mahindra and Mahindra Limited (M&M) announced its plans to establish an electric vehicle (EV) battery testing facility at Mahindra Research Valley (MRV) in Chengalpattu and a crash test facility at Mahindra SUV Proving Track (MSPT) SIPCOT, both located in Tamil Nadu. The EV battery testing facility will require an investment of Rs 210 crore and is expected to create employment opportunities for more than 1,000 people. Simultaneously, M&M will construct the crash test facility at a cost of Rs 290 crore.

👉Berger Paints witnessed a surge of over 2 percent following its announcement to consider a proposal for a bonus share issue at the upcoming board meeting on August 9. The company revealed that it will evaluate issuing bonus shares by capitalizing its reserves, subject to approval from shareholders. The news generated significant market interest, as evidenced by around 13 lakh shares changing hands on the exchanges, twice the company’s monthly traded average. This would be the seventh time Berger Paints issues bonus shares

👉Go Fashion shares surged by 5 percent after the company reported robust financial results for the quarter ended June 2023. The company achieved a remarkable 15 percent year-on-year growth in revenue, amounting to Rs 190 crore, and an 8 percent YoY increase in net profit, reaching Rs 26 crore. Trading volumes were significantly higher at 365,624 shares, almost three times the 20-day average. This impressive performance was driven by volume growth and a consistent expansion of exclusive brand outlets (EBOs). Despite the challenging retail industry conditions, Go Fashion successfully added 25 new stores in Q1 FY24, further contributing to its growth trajectory. The positive financial results and expansion efforts reflect a promising outlook for Go Fashion’s future endeavors.

News from the IPO world🌐

• Concord Biotech, backed by Rakesh Jhunjhunwala’s firm sets IPO price band at Rs. 705-741
• SBFC IPO to kick in from Aug 3
• Textile Manufacturer Shri Techtex to roll out IPO 

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