Q1 earnings in focus; what stock market investors should do on Monday
With international markets supporting the move we could see Nifty showing some positive moves on a break above 15950
The market ended higher for the second consecutive day on July 23 led by financials names. At close, the Sensex was up 138.59 points or 0.26%, at 52,975.80, and the Nifty was up 32 points, or 0.20% at 15,856. Broader markets underperformed the benchmarks, with BSE midcap and smallcap indices ending flat.
Food delivery giant Zomato made a stellar debut, listing with nearly 53% premium, at Rs 116 against its final offer price of Rs 76. The share closed 65.59 percent higher at Rs 125 .
Mukesh Ambani-owned oil-to-telecom conglomerate Reliance Industries Limited (RIL) on Friday posted a consolidated net profit of ₹12,273 crore, down 7.2%, year-on-year (YoY) in the quarter ended 30 June, 2021.
Cigarette-FMCG-to-hotel major ITC on July 24 has reported a 28.6% year-on-year growth in standalone profit at Rs 3,013.5 crore in the quarter ended June 2021, partly driven by low base in the year-ago quarter. The Q1FY21 quarter was impacted by first wave of Covid-19. Profit was at Rs 2,342.76 crore in corresponding period previous fiscal.
The highlight of the week was the sharp bounce of the lows. All said and done Nifty remains in a range between 15600 on the lower side to 15950 on the higher side. The volatility contraction is taking longer than normal. The contraction in volatility cannot be a permanent feature. Sooner or later market should show a directional movement.
With international markets supporting the move we could see Nifty showing some positive moves on a break above 15950. Nifty has tested the resistance At 15950-15900 thrice. The general rule is that price should see a breach the fourth time. On the daily nifty has taken a pause at gap resistance at 15880-15840. A close above 15880 will be the first sign that the gap area is closed and the markets could move higher.
Next week is the last week of July expiry. Traders could consider betting that Nifty would trade beyond 16200-16300 going into the August expiry.
Sumeet Bagadia, Executive Director, Choice Broking
Technically, the Nifty has been consolidating in a bullish trend with higher high and higher low formation, which indicates a bullish movement in the counter.
Moreover, the index has given closing above 21 and 50 DMA, which adds strength for the coming session.
A stochastic indicator witnessed a positive crossover on the daily time frame, which supports the bullish trend. At present, the Nifty has support at 15,600, while resistance is at 15,950.
Ajit Mishra, VP-Research, Religare Broking
Markets will first react to the results of two index majors—Reliance Industries and ICICI Bank—on July 26. Besides, participants will be closely eyeing the global market for cues.
As we’re again trading closer to the upper band of the prevailing consolidation range of 15,900, we reiterate our view to limit naked leveraged positions and wait for a decisive signal from the index.