Pre-market disclosure Tuesday, 07/07/2024 – In response to strong cues from Asian rivals, benchmark equity indices, the BSE Sensex and the Nifty, are probably going to begin today’s trading session on a somewhat optimistic note.
GIFT Nifty futures were trading at 24,388 levels at 7:00 AM, suggesting a 30-odd point increase on the Nifty 50 index at the opening bell.
Tuesday will see a spotlight on auto company shares, with Maruti Suzuki in particular, as the UP government eliminated the state’s registration cost in an effort to promote green energy.
Aside from that, investors will also be keeping an eye on the shares of RS Software, GM Breweries, Nitin Fire, and Delta Corp. when these businesses report their June quarter earnings today.
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On Tuesday, Emcure Pharma and Bansal Wire will have their market debuts. The mainstream IPO Emcure Pharma is expected to see a 36% listing gain according to the grey market premium trend, while Bansal Wire might launch on the SME platform at a 27% premium.
worldwide attitude
One day before US Fed Chairman Jerome Powell’s speech, the US market concluded on a mixed note on Monday. The NASDAQ and S&P 500 finished at record high levels after gaining 0.3% and 0.1%, respectively. However, the Dow Jones fell 0.1%.
At 4.278 percent, the yield on US 10-year bonds decreased. In terms of commodities, Brent Crude Oil futures fell to $85.65 per barrel and Gold futures sank to $2,370 per ounce.
Asia-Pacific equity markets began the morning with a favourable bias in trading. Each of the Australian stock indexes increased by about 0.5%. The Nikkei in Japan increased by almost 0.9%. Taiwan and the Kospi had increases of 0.3% and 0.1%, respectively.
FII and DII trading operations
Yesterday was the fourth consecutive day that foreign institutional investors (FIIs) were net purchasers in the cash segment. On July 8, they net bought stocks for Rs 61 crore. However, domestic institutional investors (DIIs) net sold shares on Monday for a total of Rs 2,867 crore.
FIIs net sold 7,323 contracts in index futures yesterday for Rs 473.46 crore in the derivatives market. 1,261 contracts in MidCap Nifty futures, 1,520 contracts in Bank Nifty futures, and 4,554 contracts in Nifty futures were net sold by FIIs.
For the fourth trading day in a row, the FIIs index long-short ratio was above 5:1, which indicates that for every short bet in index futures, foreign investors had more than five long index holdings. Long positions in the FIIs net index were 83.63 percent, while short positions were 16.37 percent.
Conversely, the index long-short ratio for DIIs and individual investors was approximately 0.5:1, or two index short bets for every long position.
Tuesday, July 09, trading plan – Is it the right time for you to purchase or sell in the Nifty, Bank Nifty? What market analysts have to say is as follows:
Ashwin Ramani works for SAMCO Securities as a technical and derivatives analyst.
On Monday, the Nifty had sideways trading. A range-bound movement resulted from the call and put writers (Bears and Bulls, respectively) competing at the 24,300 Strike in Nifty.
On the daily chart, the Nifty has created a doji candle that resembles a dragon fly today. The person who surrenders the earliest at the Nifty 24,300 Strike will determine the direction of the next move in the Index.
On the daily chart, the Bank Nifty has been showing signs of ambivalence with a series of doji candles. At the 52,500 Strike, the put writers (1.38 lakh contracts) are trailed by the call writers (1.89 lakh contracts), and the option activity during this strike will offer hints regarding Bank Nifty’s future course.
Om Mehra, SAMCO Securities Technical Analyst
While daily and hourly time frames proceeded to reach greater highs and lows, the Nifty formed a dragonfly doji. Situated at 24,150, the 10 DMA and the 23.6% Fibonacci retracement line provide immediate support for the Nifty.
If the index breaks through the all-time high of 24,401, it may move towards the 24,520–24,550 region. But if the India VIX breaks over the 15 barrier, which it did during the day, it could moderate the positive momentum. The VIX closed at 13.60, up 7.09% from the previous close.
For the past few sessions, the Bank Nifty has been stuck in a range between 51,996 and 53,357. The index would be driven in that direction by a breakout on either side of this zone, which would validate the trend. The daily RSI remains close to 60, suggesting potential strength. Furthermore, another important support level is the 20 DMA at 51,600.
Asit C. Mehta Investment Intermediates’ AVP of Technical and Derivatives Research, Hrishikesh Yedve
Technically, the Nifty has formed a doji candlestick pattern on a daily basis, indicating uncertainty. A buy-on-dips strategy should be implemented as long as the index maintains the low of 23,990 set last week. On the plus side, the index might try to short-term test the 24,500–24,600 levels.
The 52,000–53,200 range is where the Bank Nifty is consolidating. The index’s future course will be determined by a breakout on either side.
Angel One’s Rajesh Bhosale is an equity technical analyst.
From a technical standpoint, not much has changed as Nifty closed flat, staying inside the range of the previous session. Although the overall trend is still bullish, aggressive long bets on the index should be avoided due to the overbought conditions across a number of metrics.
We stress that a correction is probably coming soon, either in terms of price or time, and it appeared like Nifty was leaning towards the latter today. With important levels stretching to 24,000 – 24,600, the current trading range is indicated between 24,200 and 24,500.
While an increase towards the indicated resistance level should cause traders to book profits, any decline towards the lower end would represent a buying opportunity.
Senior Technical Analyst at LKP Securities, Rupak De
On Monday, the Nifty stayed in the range as traders didn’t seem to be in a rush to determine the direction of the market. Support is still at 24,240, and a decline below it could make the bulls less strong. Dips could be accepted until then. Resistance is observed at 24,375–24,400 on the upper end. The index may advance towards 24,600 if it rises above 24,400.
On the daily chart, the Bank Nifty has created a small-bodied candlestick. Nonetheless, as it closed above the crucial moving average, the trend is still bullish. 52,000 is a strong support level with a high presence of Put writers. In the meantime, call writers report high position at 52500. A closing above 52,500 could trigger a long-term increase towards 53000.
stocks prohibited by F&O
Aditya Birla Fashion Retail, Bandhan Bank, Chambal Fertiliser, GNFC, Hindustan Copper, India Cements, Indus Tower, and Piramal Enterprises are the eight equities that are prohibited from trading futures and options (F&O) on Tuesday.
primary market report
The SME segment’s Ganesh Green Bharat and Effwa Infra & Research initial public offerings (IPOs) will close for subscription today. As of the end of Day 2 of the offer period, the latter had received up to 50.2 times as many subscriptions as the former, which had received up to 33.5 times as many thus far.