Global cues:
• Us markets ended higher boosted by job report of addition of 4.8 million jobs against the expected 3 million jobs on Thursday and Markets were closed on Friday on account of memorial day.
• No of covid positive cases climb higher in USA and there is also fear of second wave of coronavirus.
• Dow futures are up by 1% up in the morning and Asian markets are in green, china is up 3%.
• SGX Nifty is trading at around 110 points points higher. So there can be gapup opening in our markets today.
- There is no proper reason for this bullishness. Despite increase in no of covid cases and poor quarterly performance of company markets are going up.
Indian markets:
• On Friday our markets ended higher backed by positive economic data and speculation of potential vaccine.
• Infact The Nifty recorded its third consecutive week of gains.
• FII’s were net buyers and bought shares worth Rs 857.29 crore, while DIIs are net sellers and sold shares worth of Rs 331.96 crore in equities. FII’s were net buyers for the first time since June 25th.
• Interestingly, Inspite of low volumes markets went up. This keep door open for further correction in the markets.
• Indian Vix fell by more than 2.5% which is good as it reduces volatility. Nifty traded in short range of 80 points on Friday. This was the first time nifty traded in range less than 100 in last 3 months.
• Nifty’s expected range tomorrow can be 10730 to 10500.
• But on weekly basis nifty may trade between 10000 to 11000.
• There is a huge open interest being created at 10700 & 10800 on call side and 10500 & 10400 on put side.
• Market may face resistance at 10620 levels & 10700 & 10730 levels.
• Downside support is at 10570 & 10530 levels.
• One needs to be cautious while creating portfolio here because nifty’s current PE ratio is around 27.79. Historically, huge correction was seen when nifty PE ratio was around 28.
• HDFC Life is coming to Nifty50. Now HDFC group (HDFC, HDFC Bank, HDFC Life) consists of 20% of Nifty.
• Add 13% weightage of reliance to Nifty. These both alone consists of 33% of Nifty. These stocks have done pretty well in last week. So the upmove in Nifty may not be a true indication of bullishness in Nifty. This explains low volumes as well.
• Also Nifty closed with hanging man red candle, which signals reversal in trend.
• Bank nifty has experienced selling pressure and closed negative on Thursday and Friday even though Nifty closed in green.
• So, Monday can be make or break for Banknifty. If they bulls cant take it upwards we can expect some correction there.
Buzzing stocks of the day:
• Bajaj Finance was the most active stock on Friday in terms of value (Rs 2,523 crores) and showed a downward movement of 1.09%, expected to slip downwards.
• Edelweiss Group has reported Rs 2,245 crore loss in the quarter to March and is expected to test its 50 day moving average at Rs 58.76
• Shares of defence companies Hidustan Aeronautics Ltd. & Bharat Dynamics were in focus at the bourses on Friday and rallied up to 12 per cent on the BSE after the Ministry of Defence (MoD) approved the purchase of weapons and equipments worth Rs 38,900 crore.
• Justdail may see some selling pressure below 380 levels as it would be below its 9 –day moving average and would be bucking its current trend.
• Airtel has formed a strong bullish candle and currently at breakout level. It can see an upmove.
Results on July 6:
NBCC (India), Sadbhav Infrastructure Project, BCL Industries, BMW Industries, Bodal Chemicals, DCW, Dynamic Industries, IFB Agro Industries, IFB Industries, JMD Ventures, Nyssa Corporation, Welcure Drugs & Pharmaceuticals.
Source: moneycontrol
Disclaimer
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 fix returns. we are not be 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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