Page 11 - Sameet Chavan News Today

Till the time the Nifty does not surpass the 19,550 – 19,600 level on a closing basis, one should avoid being complacent and ideally, it’s better to avoid aggressive trades, according to experts

Analysts expect Nifty to consolidate between 19,900-19,200. A move above 19,600 crucial for optimistic scenario; below 19,300 may reinforce selling pressure. Bullish setups for REC Ltd, PFC, Idea, and Divislab; short buildup for Britannia, ABFRL, and Dixon.

Plenty of data to be announced by the US this week including those on trade balance, CPI, initial jobless claims, wholesale inventories and consumer sentiments. The UK will declare industrial production, manufacturing production and GDP data. China will announce its FDI, CPI, producer price index (PPI) and trade balance data

For optimism to return to the markets, a move above 19,600 and a calm international scenario are essential. There is ambiguity in the markets. Experts suggest caution at every step.

Options data highlighted an intriguing battle between call and put writers around the 19500 levels. At 11 am, the Sensex was up 318.00 points or 0.49 percent at 65,558.68, and the Nifty was up 95.50 points or 0.49 percent at 19,477.20. About 2028 shares advanced, 949 shares declined, and 115 shares unchanged.

The option data showed bears were dominant with maximum call writing happening at 19,500 strike as it is emerging as an immediate girdle for the index. Demand at 19400 was seen providing support to the index.

Banks, IT and financial services stocks remained among the biggest drags, besides realty that has suffered from declining sequential revenue. Buying was seen in media and healthcare stocks.

Indices opened negatively but saw marginal gains in the afternoon session. IT, metal, oil & gas, and power sectors were up 1%, while FMCG was down 0.5%. Nifty formed a bullish candle and has been making higher highs and lows, with support at 19600 levels. BankNifty resistance at 46100 and support at 45000 levels. HindCopper, IDFC, and ACC saw long buildup, while PEL and RBL Bank saw a short buildup.

On July 28, Indian indices were subdued due to mixed global cues, with Nifty trading below 19,600. Bears dominated the day, causing unease among bulls. Weakness was attributed to overbought conditions, while key indices showed sluggishness during the week.

Indian benchmark indices start on a positive note after the Federal Reserves interest rate hike, but mid-morning sees gains erased and flat trading. Analysts predict further consolidation before a significant upward trend.