• Wall street fell on Thursday following a historic contraction in the second quarter GDP and
• European shares fell on Thursday as dismal earnings reports and weaker than expected German GDP data took the shine off the U.S Fed’s vow to keep the stimulus taps open to shore up a coronavirus-ravaged economy
•Trends on SGX Nifty indicate a positive opening for the index in India with a 58 points gain.•The Indian stock market is expected to open in the green following positive Asian cues and acceleration in China factory recovery
Indian markets:
• Indian indices gave up gains, Sensex slipped 335 points and Nifty ended below 11100
• FIIs were net buyers of worth Rs. 207.3 Crore and DIIs were net sellers of worth Rs. 387.24 Crore
• BPCL slipped 8% after the government for the third time extended the deadline for bidding for privatisation of oil refineries
• Dr. Reddy surges 5% to an all time high on the back of brokerage upgrades after Q1 earnings
• Gold surge to record high of Rs 53,277 per 10gm
• Except pharma and IT, other sectoral indices ended in red.
• RIL’s Q1 consolidated net profit, is up 31% at Rs.13233Crpre, which beats the analyst estimates who projected a net profit of 7700crore, markets will react to this result today
• The contribution chart for Nifty is shown below:
Trends:
• Initially the market opened with an uptick, led by supportive global cues however the selling pressure in the later half trimmed all gains and pushed the index in red.
• Indian markets have broken the recent pattern of one day up – one day down by falling for two consecutive sessions.
• Formation of bearish candle on the daily scale in follow up to an indecisive spinning top candle in the previous session indicates that the index remained negatively biased.
• Nifty can fall to 10950 or 10850 if it breaks 11,030 levels. On the higher side, resistance exists at 11150 and 11200 levels.
• Markets are now turning bearish and the selling zone is shifted to 10,200 in nifty from 10300 earlier.
• RIL posted its Q1 results on Thursday with 31% increase in bottom line profits expect the stock to move up to 2,150 levels
• Airtel is trading at its 30 days Moving Average expect a sudden surge in buying in the early hours of trade on Friday. Expect the stock to move up to 560 levels
• Maruti recently broke its resistance level expect the stock to move up to 6,320 levels with 6,222 being a key support
• Axis Bank showed a formation of a bearish candle with decent vols on Thursday. Expect some selling and movement to 418 levels
Option strategy for tomorrow:
• The short-term trend of the Nifty is slightly negative.
• Nifty & BankNifty are sell on rise type of markets now. Any bounce can be used as sell signal.
• If Nifty opens flat or gap up, wait for trend but mostly markets will fall.
• If there is gapdown wait for the bounce to sell
• Nifty is a sell at 11200 level.
• Nifty’s expected range tomorrow can be 10980 and 11220.
• Upside resistance is at 11160 and 11200 levels
• Downside support is at 11040 & 11000 levels
• Maximum call OI of 55.38 lakh contracts was seen at 11,200 strike which will act as crucial resistance for tomorrow
• Maximum put OI of 49.84 lakh contracts was
• Traders should prefer hedged bets and maintain position on both sides
Results on July 29
State Bank of India, Tata Motors, Sun Pharmaceutical Industries, Indian Oil Corporation, UPL, JSW Energy, Just Dial, NIIT, Reliance communications
Source: moneycontrol
Knowledge Capsule
The Spinning Top
Two things are quite prominent.
• The candles have a small real body
• The upper and lower shadow are almost equal
Small real body – This indicates that the open price and close price are quite close to each other. For instance the open could be 210 and the close could be 213. Or the open could be 210 and close at 207.
The upper shadow – The upper shadow connects the real body to the high point of the day. If it is a red candle, the high and open are connected. If it is blue candle, the high and close are connected. The presence of the upper shadow tells us that the bulls did attempt to take the market higher. However they were not really successful in their endeavor.
The lower shadow – The lower shadow connects the real body to the low point of the day. If it is a red candle, the low and close are connected. If it is a blue candle, the low and open are connected. The presence of the lower shadow tells us that the bears did attempt to take the market lower. However they were not really successful in their endeavor.
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Spinning
Top in an Uptrend |
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Spinning
Top in a Downtrend |
Please note that all the recommendations/views/ levels we provide are based on the theory of technical/fundamental analysis and personal observations. This does not claim for sure/ certain profit or any fixed returns. we are not liable for any losses you make on the given takes and levels. You are advised to take your position with your sense, discretion, and judgment. only you would be responsible for outcomes of your trades
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