Titan Company saw a nearly 4% decline on July 8 after JPMorgan downgraded its rating to ‘neutral’ from ‘overweight’, following the company’s June quarter business update. The brokerage also lowered its target price on Titan to Rs 3,450 from Rs 3,850
At the close of trading, Sensex edged down by 0.05% to 79,960.38 points, while Nifty closed marginally lower by 0.01% at 24,320.55 points.
Indian markets closed flat on July 8, stepping back from last week’s record highs, influenced by Titan dragging down indices after a downgrade by JP Morgan.
Now, markets are focused on upcoming June quarter earnings reports. The IT sector is poised to kick off its Q1FY25 earnings season starting from July 11, beginning with Tata Consultancy Services (TCS), the country’s largest software exporter.
At the close of trading, Sensex edged down 0.05 percent to 79,960.38 points, while Nifty closed marginally lower by 0.01 percent at 24,320.55 points.
Titan Company saw a nearly 4 percent decline on July 8 after JPMorgan downgraded its rating to ‘neutral’ from ‘overweight’, following the company’s June quarter business update. The brokerage also lowered its target price on Titan to Rs 3,450 from Rs 3,850.
In sectoral performance, Nifty FMCG emerged as the top gainer, rising 1.6 percent, followed by Nifty Oil & Gas which gained 0.8 percent. On the downside, Nifty PSU Bank was the biggest loser, falling 1.6 percent, followed by Nifty Consumer Durables and Nifty Metal which dropped 1.3 percent and 1 percent, respectively. Nifty Auto, Realty, and Nifty Bank each declined by 0.5 percent.
Most Asian stocks, led by Chinese markets, fell amid ongoing trade war concerns with the West and anticipation of interest rate signals. Despite positive gains on Wall Street last Friday, with the S&P 500 and NASDAQ hitting new highs, regional markets remained cautious ahead of Federal Reserve Chair Jerome Powell’s upcoming comments and key inflation data, including reports on consumer and producer prices for June later in the week. These data points will offer more insights into the future direction of US Federal Reserve interest rate policies.
Due to lack of any fresh trigger, markets witnessed a range-bound session throughout the day and ended marginally weak owing to select profit-taking in banking, telecom and realty shares. Weak Asian cues also weighed on sentiment, while stretched valuations could see investors maintain caution for sometime.
Vinod Nair, Head of Research, Geojit Financial Services
The market is turning to a consolidation phase due to the absence of major triggers to support the current premium valuation in the near term, prompting investors to book some profits. The earnings season is around the corner, and the initial expectation is subdued. With stable input prices and ongoing price cuts, the period of margin expansion appears to be concluding, which is likely to affect earnings and valuations.
Rupak De, Senior Technical Analyst, LKP Securities
The Nifty remained range-bound during the day, as market participants appeared to be in no hurry to decide the market’s direction. Support remains at 24,240, and a fall below this level might weaken the strength of the bulls. Until then, dips might be bought into. On the higher end, resistance is seen at 24,375-24,400. Above 24,400, the index might move towards 24,600
Shrikant Chouhan, Head Equity Research, Kotak Securities
Today, the benchmark indices witnessed lackluster activity, the Nifty ended three points lower while the Sensex was down by 36 points. Among sectors, FMCG index outperformed, rallied over 1.5 percent whereas PSU Bank index lost the most, shed 1.5 percent. Technically, after a muted opening entire day the market hovered between 24240/79730 to 24340/80000 levels. Intraday non-directional activity indicating indecisiveness between the bulls and the bears. We are of the view that, the intraday market texture is non-directional, perhaps traders are waiting for either side breakout.
For the bulls now, 24360/80100 would be the key resistance level. Post 24360/80100 the index could move up 24450-24500/80400-80600. On the flip side, dismissal of 24240/79730 may accelerate selling pressure. Below which, the market could retest the level of 24160-24120/79500-79200.
Ajit Mishra – SVP, Research, Religare Broking Ltd.
Today, the Nifty index traded within a narrow range and closed nearly unchanged, resulting in a muted session. Sector-wise, there was a mixed trend with gains seen in FMCG and energy, while metal, realty, and pharma sectors ended lower. The broader indices also showed a subdued trend, closing marginally down.
We anticipate a time-wise correction in the Nifty index due to rotational buying in heavyweight stocks, which has limited the downside so far. However, there are ongoing buying opportunities in select sectors and themes. Traders should exercise caution in stock selection and prioritize effective trade management strategies.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty ended flat in a volatile session on July 8. At close, Nifty was down 0.01% or 3.3 points at 24320.6. Cash market volumes on the NSE were down 7% to Rs.1.45 lakh cr. Broad market indices fell kore than the Nifty even as the advance decline ratio fell to 0.65:1.
Asian markets were mostly down on Monday while European stock markets edged up on Monday after early losses as investors digested snap French elections in which a hung parliament appeared the likeliest outcome.
In the first two months of the current fiscal year, India’s imports of coal increased 5.3% to 52.29 million tonnes (MT) compared to the same period last year.
Nifty formed a doji type pattern on July 08 with a long lower shadow. This has little predictive value. Nifty could stay in the 24164-24401 band for the near term.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
The range bound action with positive bias continued in the market on Monday and Nifty closed the day lower by 03 points. After opening with a flat to positive note, the market slipped into minor weakness in the early part of the session. It later moved into a narrow range and showed minor upside recovery towards the end.
A small body candle was formed on the daily chart with minor lower shadow. Technically, this market action looks like a doji type candle formation (not a classical one). But, having formed this pattern beside long bull candle of Friday signal sideways range movement in the market.
The minor degree bullish pattern like higher highs and higher lows is visible on the daily chart. Having showed a minor dip at 24168 levels on Friday, the chances of further upmove towards new higher high is likely in the near term.
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