30th July Strategy

Market View: Nifty finds support around 11150, while 11350 will act as resistance. Bank Nifty finds support around 29000, while 29500 will act as resistance on the upside.

30th July Strategy:

Global: Neutral

FII: Negative

DII: Positive

F&O: Neutral

‪Sentiment: Negative

Trend: Negative 

Nifty 11200 BankNifty 29300 Important level

11150-11250 small day range, Medium range 11100-11300

BankNifty 29200-29500 small day range, Medium range 29100-29600, Bigger range 28950-29750

For Existing Long Positions:

Nifty intraday SL 11150 n closing 11200

BankNifty intraday SL 29100 n closing SL 28950

For Existing Short Positions:

Nifty intraday n Closing SL 11300

BankNifty intraday SL 29600 n Closing 29400

For New Positions:

Sell Nifty in 11275-11300 range:

SL 11350 Tgt 11250, 11225, 11200

Buy Nifty:

SL 11150 Tgt 11250, 11275

Sell BankNifty in 29500-29600 range:

SL 29775 TGT 29375, 29200

Buy BankNifty in 29000-29100 range:

SL 28900 TGT 29200, 29325, 29375

RESULT ESTIMATION:

Axis Bank consensus expectations for Q1FY20E:

NII – Rs5,916cr, up by 14.5% yoy and 3.7% qoq, due to better credit growth aided by corporate & retail segments and stable NIMs.

PPOP – Rs5,099cr, up by 16.6% yoy and 1.7% qoq, due to higher NII and other income.

PAT – Rs1,745cr, up by 148.9% yoy and 15.9% qoq, due to higher PPOP.

Tech Mahindra consensus estimates for Q1FY20E:

Revenue – Rs 8,733cr, down 1.8% qoq on sluggishness in Enterprise vertical (weak BFSI and manufacturing), soft telecom vertical and on seasonal weakness in Comviva.

EBIT – Rs1,162cr, down 15.1% qoq, due to reversal of Comviva tailwinds, wage revisions, visa cost and currency movement.

EBIT Margin – 13.3%, contraction of 208bps qoq.

PAT – Rs981cr, down 13.4% qoq

BUZZ:

Cafe Coffee Day founder VG Siddhartha missing in Mangaluru; Stock tanks 20%.

Strides Pharma arm entered JV with China’s Sihuan Pharma.

Dr. Reddy’s Labs board approved amalgamation with promoter group-held co. Dr. Reddy’s Holdings. The holdings company holds 24.88% stake in the pharmaceuticals company.

Insecticides India received patent for concentrate formulation for 20 years.

BEML has commenced manufacturing metro cars for Mumbai Metro project.

Coal India sold 1.7% stake in the company via CPSE ETF. After this deal the government has 69.26 percent stake in the company.

Muthoot Finance stopped fresh gold loan advance temporarily in some branches from July 25-27 to moderate gold loan growth due to high gold prices. Fresh advances have resumed from July 29.

IOC has made alternate arrangements for sourcing oil to maintain supplies after US sanctions on Iran.

Kansai Nerolac board approved merger of three arms with self. 

Results today: Axis Bank, Bank of India, Dish TV, Gujarat Gas, Hero MotoCorp, NMDC, PNB Housing, Repro India, Shoppers Stop, Tech Mahindra, United Bank of India, VIP Industries.

MORE WILL UPDATE SOON!!