Good Morning folks,
Yesterday was one of the easiest trading session to make money with market trend bearish for most of the trading session. All Intraday calls which were given gave good results. Today along with market report we have made a special report on Reliance AGM which is going to play a significant part in today's market movement.
Global cues:
• U.S. stocks Closed higher on Tuesday as tech stocks recover from session's lows.
• Financials held slim gains following mixed earnings from banks as JPMorgan and Citigroup beat consensus estimates.
• U.S. crude oil futures also fell on Tuesday after California reversed its economic reopening.
• European stocks opened lower Tuesday as a spike in coronavirus cases starts to weigh on global market sentiment.
• Asian markets are in green & Dow futures is trading higher.
• SGX Nifty is up by 100 points so can expect huge gap up opening in our markets.
Indian markets:
• Nifty closed at a 2-week low on Tuesday. Financials contributed to over 50% of the fall and ended 1.82% down.
• Nifty was under selling pressure and finally broke consolidation range on the lower side as traders fear the fast-rising virus. Strong bearish candle was formed.
• FIIs were net sellers of worth Rs. 1565.62 Cr. and DIIs were net sellers of worth Rs. 649.7 Cr.
• Options data suggests that an immediate trading range for the Nifty has been shifted to the lower side at 10,500-10,800 levels.
• Nifty formed a bearish candle on the daily chart, as the bulls failed to hold the momentum at higher levels.
• But 10560 should act as key support for Nifty.
• Tomorrow slight upmove can be seen in market before any correction. Also, Reliance AGM which has been widely publicised is scheduled tomorrow which can change whole dynamics for Nifty.
• Barring Pharma, all other Nifty sectoral indices traded in the red and upto 3% lower.
• Bank Nifty dropped by 3%. It has been underperforming Nifty index from last three trading sessions.
• IndusInd and Axis Bank lost upto 5%.
• Passenger vehicle and 2-wheeler sales decline by 50% and 39% respectively.
• Yes Bank down 8% to Rs 20.3. It has slumped 24% in the last 4 trading sessions. FPO to go live on July 15 at Rs 12-13.
• Rossari Biotech IPO subscribed nearly 3 times on Day 2 of the bidding process.
• Wipro reported 0.11% YoY growth in net profit at rs 2390.40 Cr.
• Only Dr Reddy’s, Airtel and titan ended in green out of all Nifty stocks.
• Nifty’s expected range tomorrow can be 10600 to 10820.
• Downside support is at 10680 & 10610 levels.
• Upside Resistance will be at 10740 & 10800.
• Maximum call OI of 29.5 lakh contracts was seen at 10,700 strike, which will act as crucial resistance for tomorrow.
• Maximum put OI of 22.1 lakh contracts was seen at 10,500 strike, which will act as crucial support tomorrow.
• The market appears to be torn between hope and fear. On one side is the hope of gradual economic recovery along with positive management commentary, on the other side, there is a fear of rising coronavirus cases leading to lockdown again.
• Auto stocks can give a good correction from the current levels. Any bounce can be a good shorting opportunity.
Stock Picks of day:
Results on July 15:
Infosys, L&T Infotech, Andrew Yule, Emerald Leasing, Amrapali Fincap, Minda Corp, Parker Agro, Arihant Institute
Reliance Industries Limited AGM:
• India’s most-valued private company Reliance Industries (RIL) will hold its 43rd Annual General Meeting on July 15.
• The oil-telecom-to-retail major recently crossed Rs 12 lakh crore in market capitalization becoming the first listed Indian entity to achieve the feat.
Key Highlights ahead of AGM –
- The Mukesh Ambani-owned company, has successfully achieved its target - set in the last AGM - to become a net debt free well before its schedule of March 31, 2021, by selling more than 25 percent stake in Jio Platforms ,rights issue of Rs 53,124 crore and stake sale to BP in the joint venture.
- For easy onboarding of its shareholders, RIL has launched an 24*7 Chatbot via Whatsapp number +91-79771-11111 to nuance processing of logging in, asking questions, and voting on the resolution.
- Reliance's share price hit a record high of Rs 1,947 on July 13 ahead of its AGM and has given a return of around 120% from the March bottom of Rs. 875.
Main Agendas on previous AGMs[2017-2019] :
2017
1:1 bonus issue, the launch of Jio Phone with free calls and energy asset monetization.
2018
O2C Integration , Integration of Jio and offline retail stores, and transitioning into a technology platform.
2019
End of Telecom investment cycle, deleveraging in 18 months, and telecom and retail listing in 5 years.
Shareholder Expectation-
- Jio Platforms- Oversees Listing of Jio platform (NASDAQ) is probable.
- Future Group- RIL Deal- Investors also expect finer announcements regarding its advanced talks to buy out stakes in Kishore Biyani's Future Group.
- Jio Fiber- The Road ahead for Jio Fibre services is expected to be announced(Launched-Sept. 2019, Subscriber- 35 Mn ).
- Asset Monetisation- Reliance is also in discussions with potential investors to sell stake in its Jio Optic Fibre investment trust and proposed stake sale in its oil-to-chemical division (O2C) with Aramco.
Recommendation: Target of 2000 seems easily achievable before month end on positive cues from AGM.
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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