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Stock Market Daily Updates: 6 July 2021

Indian markets ended near record close on Monday, boosted by metals and financials, as investors hoped for a strong corporate earnings season. Today, the markets are likely to make flat-to-negative start despite broadly positive cues from Asian peers.

Photo Credit : Subhabrata Das

1459337783_YBVYmn_stockmarket-Dealing-room_SD2-870.jpg

Dear Trader…

Yesterday, Indian equity benchmarks ended with gains of over half percent on Monday amid strong gains in realty, Metal and Banking stocks. Domestic indices witnessed a gap-up opening and maintained the levels in morning deals, as sentiments got a boost as India recorded the highest-ever exports of $95 billion during April-June, up 85 per cent Y-o-Y and 18 per cent higher than the first quarter of the fiscal year 2019-20. The merchandise exports grew 47 per cent Y-o-Y to $32.46 billion in June, driven by a robust demand of engineering goods, petroleum products, and gems and jewellery in the external markets. 

Some optimism also came with Union Finance Minister Nirmala Sitharaman’s statement that the government has been proactive in responding to the challenges caused by COVID-19 and is also taking up substantial reforms despite the pandemic. Besides, in reversal of a two-month selling trend, foreign portfolio investors (FPIs) in June turned out to be net buyers by investing Rs 13,269 crore in Indian markets.

FII and FPIs, on Monay saw a net sold of Rs 338.43 crore in the cash segment. A total of Rs 3561.23 crore was sold against a total purchase of Rs 3222.80 crore. Domestic institutional investors today saw a net purchase of Rs 645.59 crore in the cash segment. A total of Rs 3932.93 crore was sold against a total purchase of Rs 4578.52 crore.

Indian markets ended near record close on Monday, boosted by metals and financials, as investors hoped for a strong corporate earnings season. Today, the markets are likely to make flat-to-negative start despite broadly positive cues from Asian peers. Fear of inflationary pressures due to higher energy costs might keep the indices under pressure after OPEC+ nations called off talks on output levels. However, some respite may come later in the day as India recorded 34,067 new infections, lowest since March 18. The total caseload has surged to 30,618,939, while 29,744,831 have recovered. 

some support will come as data from the Reserve Bank of India showed the government's Emergency Credit Line Guarantee Scheme (ECLGS) significantly boosted credit growth for the micro, small and medium enterprises (MSMEs) in the financial year ending March 2021 even as concerns about asset quality of this segment grew. Traders may take note of SBI research report stating that household debt has sharply jumped to 37.3 per cent of the GDP in the pandemic year from 32.5 per cent in FY20, confirming the deeper financial impact of COVID-19.

Ø INDEX MOVEMENT - 06.07.2021

  • Nifty Future closed @ 15858 as on 05.07.2021..!!

Dear Traders,

Nifty Future has resistance at 15909 – 15939 Point; above which other resistance levels are at 15989 - 16008 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 15808 – 15787 Point; below15787 Point, other support levels are at 15737 - 15707 Point.

I am positive for the next bullish trend only above @ 16008 Point but be with the trend. Let the market decide further moves. 

As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario, regarding Long term positions, it is preferable to remain cautious now...!!

If Nifty Future crosses @ 16008 Point, again then the upper side target is quite high and it may touch @ 16088 Point in the short term...!!!

  • Bank Nifty Future closed @ 35336 as on 05.07.2021..!!

Dear Traders,

Bank Nifty Future has resistance at 35474 – 35606 Point; above which other resistance levels are at 35676 – 35808 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 35170 – 35008 Point; below35008 Point, other support levels are at 34939 – 34808 Point.

I am positive for the next bullish trend only above @ 35808 Point but be with the trend. Let the market decide further moves. 

As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario, regarding Long term positions, it is preferable to remain cautious now...!!

If Bank Nifty Future crosses @ 35808 Point, again then the upper side target is quite high and it may touch @ 36006 Point in the short term...!!

Ø Trading Idea for the derivative stocks….

  • ADANI ENT. @ Positive Trend @ Rs 1380 with Stoploss of Rs @ 1363 for the Target near @ Rs 1424 - 1430 in short term…..!!!
  • ESCORTS LTD @ Positive Trend @ Rs 1188 with Stoploss of Rs @ 1170 for the Target near @ Rs 1222 – 1230 in short term…..!!!
  • VOLTAS LTD @ Positive Trend @ Rs 1003 with Stoploss of Rs @ 990 for the Target near @ Rs 1047 – 1060 in short term…..!!!
  • CIPLA LTD @ Positive Trend @ Rs 960 with Stoploss of Rs @ 753 for the Target near @ Rs 993 – 1003 in short term…..!!!
  • BATA INDIA @ Negative Trend @ Rs 1608 with Stop loss of Rs @ 1616 for the Target near @ Rs 1570 – 1557 in short term...!!!
  • HAVELLS INDIA @ Negative Trend @ Rs 1047 with Stop loss of Rs @ 1055 for the Target near @ Rs 1008 - 996 in short term...!!!
  • AMARA RAJA BAT. @ Negative Trend @ Rs 770 with Stop loss of Rs @ 777 for the Target near @ Rs 733 - 727 in short term...!!!
  • TVS MOTOR @ Negative Trend @ Rs 636with Stop loss of Rs @ 644 for the Target near @ Rs 598 – 588 in short term...!!!

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Nikhil Bhatt | Research Analyst - SEBI

The author is a well established entrepreneur having a more than 16 years of experience in the field of stock market and financial management.

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