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What might give the bulls some comfort is the fact that the Nifty ended nearly at the highest point of the day. The index recovered 200 points from the intraday low of 24,210, indicating that it continues to respect levels in the range it has been trading in. 24,200 – 24,000 on the downside, and 24,500 on the upside.
The Nifty ended the session nearly unchanged, which means that it ended the July F&O series with gains of just over 400 points. This was the second consecutive positive F&O series for the Nifty, after the 1,556 points it surged in the month of June.
While the dips are getting bought into, the question is whether the Nifty bulls have enough strength to take the index back to levels of 24,800 where it was a few days prior. 24,500, which was earlier a support for the index, has now become the first barrier to cross. That 24,530 level is also what the Nifty will have to close above on Friday to ensure that its seven-week winning run, continues into the eighth.
Friday’s session will see the market react to results of Tech Mahindra, Ramco Cements, MGL, AU Small Finance Bank, Mphasis, Cyient, Motilal Oswal, VST Industries and others.
Cipla, IndusInd Bank, Power Grid, InterGlobe Aviation, Amber Enterprises, Cholamandalam, City Union Bank, Equitas SFB, ESAF SFB, KEC International, Piramal Pharma, SBI Cards, TTK Prestige and others will also be reporting their June quarter results on Friday.
Foreign institutions remained net sellers for the third straight session on Thursday, while domestic investors continued to buy.
Rajesh Bhosale of Angel One wrote that the Nifty is in a time-wise correction phase with 24,200 – 24,100 acting as a base. In case that is breached on a closing basis, it can trigger a severe price correction. On the upside, 24,500 – 24,600 remains a key resistance zone. He advises traders to have a buy-on-dips and sell-on-rise strategy.
The short-term trend of the Nifty remains choppy, said Nagaraj Shetti of HDFC Securities. He expects the lackluster movement with a weak bias to continue for the next one or two sessions before a bounce from the lows. 24,100 – 24,000 are important supports on the downside and this could be a buy-on-dips opportunity, he said. 24,500 is a key hurdle on the upside.
The Nifty Bank continues to remain a pressure point for the market, having corrected over 1,400 points over the last three trading sessions. The pressure on Thursday came from Axis Bank and ICICI Bank, with the former reacting to its results. Both the heavyweights together contributed 80 points to the Nifty downside. For the week, the Nifty Bank is down over 2.5% and is poised for its third straight weekly loss.
The Nifty Bank closed below the 50-Day Exponential Moving Average as well as the upper band of the wedge, suggesting a weakening trend, indicating a short-term negative sentiment. He advises traders to use any rise in index as an opportunity to sell. The immediate support is between 50,500 – 50,200, while 51,200 – 51,500 is a resistance band.
Hrishikesh Yedve of Asit C Mehta Investment Interrmediates said that the Nifty Bank failed to close above 51,100, indicating weakness for the index, which is likely to continue till the index remains below that level. On the downside, 50,500 and 50,000 will act as a support.
What Are The F&O Cues Indicating?
These stocks saw fresh long positions for their August futures, meaning an increase in both price and Open Interest:
| Stock | Price Change | OI Change |
| GNFC | 0.80% | 92.01% |
| Polycab | 1.51% | 44.87% |
| Adani Enterprises | 0.65% | 39.25% |
| Indian Oil | 5.00% | 39.22% |
| IEX | 1.43% | 34.90% |
These stocks saw fresh short positions for their August futures, meaning a decline in price but an increase in Open Interest:
| Stock | Price Change | OI Change |
| SAIL | -2.77% | 117.04% |
| Chambal Fertilisers | -0.98% | 51.84% |
| RBL Bank | -2.84% | 49.39% |
| CONCOR | -0.53% | 48.89% |
| GMR Infra | -0.74% | 42.46% |
These are the stocks to watch out for ahead of Friday’s trading session:
- Tech Mahindra: Constant currency revenue growth of 0.7% sequentially, compared to estimates of 0.4% to 0.5% growth. Communication business declines on expected lines, with growth seen in Manufacturing, retail and healthcare business. New deal wins at $534 million, the highest in three quarters.
- DLF: Net profit up 22.5% to ₹644.7 crore. Revenue down 4.3% to ₹1,362.4 crore. EBITDA down 42.3% to ₹228.7 crore. EBITDA margin at 16.8% from 27.8% last year. New sales bookings for the quarter at ₹6,404 crore, a year-on-year growth of 214%. Residential segment witnessing structural upcycle and continue to strengthen new product pipeline. Net debt at ₹57 crore. Rental business saw 10% growth to ₹1,553 crore.
- United Breweries: Net profit up 27.5% to ₹173.8 crore. Revenue up 8.8% to ₹2,475.1 crore. EBITDA up 27.9% to ₹285.4 crore. EBITDA margin at 11.5% from 9.8% year-on-year. Overall volume growth of 5% during the quarter. Gross margin at 43%. Premium volume growth at 44%. Volume growth in Uttar Pradesh, Haryana and Punjab partially offset by Delhi. Price mainly driven by Rajasthan, Karnataka, Andhra Pradesh, Maharashtra & Tamil Nadu with positive mix driven by premiumization & state-mix partially off-set by growth of the economy segment.
- Sobha: Anamudi Real Estate LLP likely to sell 5% out of the 9.9% stake it has in the company via block deals worth $100 million. The deal price seen at a discount of 6% to Thursday’s closing price. There will also be a lock-in period on further sale of shares. Anamudi Real Estates LLP is owned by the Godrej Family.
- RBL Bank: Maple II BV sells 4.78 crore shares at ₹228 each in the block deal worth ₹1,090.77 crore. Morgan Stanley Asia Singapore Pte buys 1.25 crore shares worth ₹285.12 crore. Societe Generale buys 70 lakh shares worth ₹161.74 crore.
- SJVN: Gets Letter of Intent for allotment of Darzo Lui Pumped storage project worth ₹13,947.5 crore from the Government of Mizoram.
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