Pre Market Report (07-07-2020)

Global cues:

 

•       USA Markets surged on Monday as investors continued to back mega-cap tech stocks as better-than-expected economic data suggested the recovery remains on track despite an ongoing increase in Covid-19 cases nationwide.

•       Positive macroeconomic data and hopes of a vaccine boosted sentiment that the global economy will bounce back from an expected recession this year.

•       Dow futures trading in Negative in the morning and Asian markets are Mixed.

•       SGX Nifty is down by 20 points. So our markets may open flat.

 

Indian markets:

 

•       On Monday nifty gave a gap up opening and continued its upwards trend till 10800 where heavy selling was witnessed and profit booking kicked in.

•       Nifty ended in green for four consecutive days.

•       FII’s were net buyers and bought shares worth Rs. 348.35 Cr, while DIIs are also net buyers with and bought shares worth of Rs. 263.47 Cr in equities. FII’s were net buyers for two consecutive days.

•       Volumes were low on Monday as well.

•       Overall markets are still strong. There was a good upside in metals because Asian markets ended strongly. Auto also looked strong. There was selling pressure in FMCG, Telecom and Banknifty.

•       Nifty is not following technicals.  A red candle today could have confirmed the trend reversal after the formation of a red hanging man candle on Friday which didn’t happen.

•       Nifty again rallied today because of reliance and HDFC bank.

•       Fun fact: Nifty rallied 3200 points from bottom made in march, out of that 5 stocks (Reliance, HDFC twins, Infosys, ITC) contribution is 2400 points. We have to think whether these 5 stocks alone depict true picture of economy of our country.

•       Nifty’s expected range today can be 10650 to 10870.

•       Resistance levels:                         Support levels:

     10820                                                 10740

     10870                                                  10700

       

     10900                                                  10670

   

•       Nifty current setup looks set for move towards the levels of 11000, but should correct and a strong correction is expected because lot of big players are waiting to sell at those levels.

•       Maximum call OI of 23.96 lakh contracts was seen at 11,000 strike, which will act as crucial resistance.

•       Reliance by far has been the torch bearer of Nifty. When reliance falls, Nifty is going to face even bigger fall.

•       Bank nifty faced selling pressure on Monday as well and is still to break its recent higher level of 22500.

Buzzing stocks of day :

 

•       Tata Consultancy Services (TCS) were trading higher for the fourth straight day, up 3 per cent at Rs 2,269 on the BSE on Monday ahead of its Q1 FY2021 results.

•       Reliance Industries (RIL) hit a fresh record high of Rs 1,847.7, advancing 3.4 percent, by announcing a stake sale of 0.39 per cent in its digital services subsidiary to Intel Capital for Rs 1,894.50 crore. Market cap breached 13 trillion mark.

•       HDFC Bank shares gain 3% on strong loan growth in June quarter.

•       ITI, Bharat Dynamics, Hindustan Aeronautics, IDBI Bank and RIL witnessed strong buying interest from market participants as they scaled their fresh 52-week highs.

•       Marico slipped 4 percent to Rs 344 in intra-day trade on profit-booking after the company said it has seen a 13-15 percent decline in revenues for the quarter ended June 2020.

Stocks to be on today's market watch:

•       Mahindra & Mahindra has seen a strong upmove. Can be bought on dip for a target of 595/600.

•       Bajaj finance is currently at breakout level. Can be bought above 3150 level for a target of 3300/3350.

•       Tata motors can be bought for a target of 114/116.

 

 

 

Results on July 7:

Shree Renuka Sugars, GKB Ophthalmics, Bazel International, Best Agrolife, Best Eastern Hotels, Bhanderi Infracon, Indian Acrylics, Marg Techno Projects and Polymac Thermoformers.

 

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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