Nifty 8636 / Sensex 28003 /Bank Nifty 18740
29 Advances/ 20 Declines/ 0 Unchanged
Nifty ends below 8650, Sensex in red; ICICI, L&T fall 4-5%
TCS, Tata Steel, Maruti Suzuki, Wipro and Bajaj Auto were top gainers while ICICI Bank, L&T, BHEL, Adani Ports and GAIL were losers in the Sensex.
The market has ended flat with the Nifty below 8650. The 50-share was down 1.95 points at 8636.55 and the Sensex was down 48.74 points or 0.2 percent at 28003.12. About 1185 shares have advanced, 1564 shares declined, and 148 shares are unchanged.
Bank nifty on the other hand got weak and shed 212 points to close at 18740. Bank nifty started the day on a positive note but failed to hold the highs of 19100 levels and then finally slipped till closing. There are chances of it remaining a bit in correction for the coming days.
Although with BJP and Congress joint meeting held yesterday and congress deciding to support GST will be a huge positive for the market. The Question that will remain is that has the Nifty already discounted GST news and we may see a good profit booking rally from current levels and if it has not yet discounted then till what levels it can give us a rally.
Key Highlights of 1 August 2016
July sales: Domestic biz lifts Maruti Suzuki 13%; Royal Enfield up 31%
Advanced Enzyme Tech ends at Rs 1178, up 31% over issue price
Tech Mahindra Q1 profit falls 9.5%, revenue meets estimates
IPO market to perk up in the second half of 2016, says BofA-ML
WTO hasn't raised concerns over MIP on steel: Minister
NBFCs on a strong wicket, may grow at 20-25%: IIFL
Ministry seeks 6-month extension of MIP on steel: Sources
India July factory growth at 4 month high on strong demand: PMI
Our recommendations
We booked part profit in Hindustan Zinc future around 217, it was recommended to buy above 211.
Full profit was booked in REC around 222, it was asked to buy around 220---218.
Intraday recommendation of Tata steel went well as we booked full profit around 367 and it was recommended to buy around 364.
We booked full profit in Reliance Capital 450 CE around 25—27. It was recommended to buy around 20.
Another full profit was booked in Sun Pharma 820 CE around 38—40, it was asked to buy around 30.
Now what to expect next??
Nifty futures has immediate hurdle at 8750. Nifty will regain its strength only on close and sustain above the level of 8750, till then we can expect some consolidation and correction.
Nifty futures has support at 8650 now and a break of this level can make nifty to test 8610---8580 levels again. On close below the level of 8580 nifty will be under correction and it can test 8520—8480 mark.
Bank nifty on the other hand has support of 18720---18680 and a move below this level can bring good correction in bank nifty upto the levels of 18440—18380 and then to 18250 mark.
It has immediate resistance at 19200. Fresh strength and rally can only be expected on sustain and close above these levels.
Today's Top Pick
HCL Technologies... Yesterday we have seen mindblowing rally in it.
Double bottom pattern confirms the rally and we will see rally to remain continue in days to come.
Buy and accumulate HCL Technologies in cash around 760---740 with stop loss below 700 on closing basis for the initial upside target of 820---850+ mark.
More will update soon!!
