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Double Trouble: Nifty Rocks and Bank Nifty See Decline


Yesterday’s Pick

Investment Pick HDFCLIFE Rs 6,400 (Quantity 200)

Nifty Technical view

The Nifty 50 index showed a positive candlestick pattern after a Doji pattern in the previous session. Momentum indicators, RSI and MACD, are both trending positively across all major timeframes. This suggests the index is likely to rise above 24,500 in the coming sessions, potentially reaching 24,800, with immediate key support at 24,300.

Indian Vix

Volatility increased again, surpassing the 14 mark and closing above the 10-day EMA for the first time in several weeks. If volatility closes above 14.6, which is the 200-day EMA, and stays there, it could be a warning sign for bullish investors. The India VIX, also known as the fear index, rose by 5 percent, reaching 14.28 from 13.6.

FII And DII Data

Foreign institutional investors (FIIs/FPIs) bought Indian stocks worth Rs 314.46 crore, while domestic institutional investors (DIIs) purchased Indian stocks amounting to Rs 1,416.46 crore during the same period.

Put Call Ratio

The Nifty Put-Call Ratio (PCR), a measure of market sentiment, increased to 1.28 on July 9, up from 1.18 in the previous session. A rising PCR, or a value higher than 0.7 or surpassing 1, indicates that traders are selling more Put options than Call options, generally signaling a strengthening bullish sentiment in the market. Conversely, if the ratio falls below 0.7 or moves toward 0.5, it suggests higher selling in Call options compared to Puts, reflecting a bearish mood in the market.

Stocks in the news

Maruti Suzuki India Limited :
Maruti Suzuki India Limited (MSIL) announced enhancements to its existing warranty programs for all vehicles, effective from Tuesday until further notice. The standard warranty, previously two years or 40,000 km, has been extended to three years or 100,000 km (whichever comes first), according to a company statement.

Godrej Consumer Products :
Godrej Consumer Products reported that the domestic market remained sluggish during the quarter, with high-single-digit growth in organic volume and mid-single-digit growth in value. However, during the quarter, the company achieved double-digit growth in volume and high-single-digit growth in value. At the consolidated level (organic), they expect flat INR sales, double-digit growth in constant currency sales, and double-digit growth in reported EBITDA.

Nifty and Bank Nifty Support and Resistance level

Nifty
Resistance 24,445, 24,470, and 24,515
Support based 24,360, 24,335, and 24,290
BankNifty
Resistance 52,625, 52,700, and 52,830
Support based 52,370, 52,290, and 52,160

Index Future levels

Nifty Futures Sell near 24560 The suggested targets for this are 24,260 and 24100 with the stop loss set at 24,760.

Bank Nifty future Sell below 52,500 index is expected to see down side levels of 52300 and 52,100 and level 52,850 will act as a stop loss.

Fundamental Pick: APOLLOTYRE

Buy at ₹537 | Target price: ₹600 |Stop Loss:₹501

Apollo Tyres Ltd, a leading multinational tyre manufacturer founded in 1972 and headquartered in India, operates in over 100 countries across six continents. Recognized as one of the world’s top tyre manufacturers, Apollo Tyres offers a diverse range of products and brands. The company produces and sells a wide variety of tyres for different vehicles, including cars, light trucks, SUVs, buses, vans, and trucks. Additionally, Apollo Tyres manufactures and sells tubes and flaps, catering to a broad spectrum of vehicle needs.

In Q4 2023-2024, Apollo Tyres Ltd’s revenue increased by 0.73% compared to the same period last year, reaching ₹6,332.63 crore. However, the net profit fell by 13.7% to ₹354.08 crore, and the net profit margin decreased by 14.33% to 5.59%. Promoters increased their holdings from 37.34% to 37.36% in the March 2024 quarter, while foreign institutions increased their holdings from 17.96% to 18.15% in the same period.

Happy Trading!

Commodity Samachar
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