Nifty Technical View
The Nifty 50 index has been steadily climbing for three consecutive sessions, showing a positive trend in its Relative Strength Index (RSI), which measures momentum. However, the appearance of consecutive Doji candlestick patterns at the peak suggests potential uncertainty or a possible reversal. If the index holds above 24,500, it could aim for targets between 24,700 and 24,800 in the near future, with important support found at 24,300.
Indian Vix
Volatility saw a slight uptick but largely stayed within a range, remaining below the 200-day Exponential Moving Average (EMA) of 14.6. For bullish investors, a close above the 14.6 level could be worrisome. The India VIX, also known as the fear index, increased by 0.25 percent, rising from 14.19 to 14.22.
FII And DII Data
Foreign institutional investors (FIIs/FPIs) purchased Indian stocks worth Rs 1,271.45 crore, whereas domestic institutional investors (DIIs) sold Indian stocks amounting to Rs 529.48 crore during the same period.
Put Call Ratio
The Nifty Put-Call ratio (PCR), a measure of market sentiment, decreased to 1.25 on July 16 from 1.33 in the previous session. An increasing PCR, especially when it exceeds 0.7 or goes above 1, suggests that traders are selling more Put options than Call options, typically signaling a strengthening bullish sentiment in the market. Conversely, if the ratio drops below 0.7 or approaches 0.5, it indicates higher selling in Call options compared to Put options, reflecting a bearish mood in the market.
Stocks in the news
Asian Paints: Asian Paints reported a 25 percent decline in its net profit for the June quarter, with earnings dropping to ₹1,187 crore from ₹1,575 crore in the same period last year, primarily due to weak demand and lower realisations. The company’s income fell by three percent to ₹9,126 crore, compared to ₹9,379 crore previously. Profit before depreciation, interest, tax, other income, and exceptional items (PBDIT) decreased by 20 percent to ₹1,694 crore from ₹2,121 crore. The PBDIT margin also dropped to 18.9 percent, down from 23 percent in the corresponding period last year.
Zydus Lifesciences Ltd: Zydus Lifesciences Ltd has signed a non-exclusive patent licensing agreement with Takeda Pharmaceutical Company to market the novel Potassium Competitive Acid Blocker (P-CAB) Vonoprazan in India. According to an official release on Wednesday, the drug will be marketed in India under the brand name Vault®.
Nifty and Bank Nifty Support and Resistance level
Nifty
Resistance 24,650, 24,665, and 24,695
Support based 24,590, 24,575, and 24,550
BankNifty
Resistance 52,560, 52,630, and 52,735
Support based 52,340, 52,270, and 52,160
Index Future levels
Nifty Futures buy near 24550 The suggested targets for this are 24,750 and 24850 with the stop loss set at 24,420.
Bank Nifty Future Sell below 52,400 index is expected to see down side levels of 52100 and 51,900 and level 52,750 will act as a stop loss.
Momentum Pick: COCHINSHIP
Buy at ₹2800 | Target price: ₹3181 |Stop Loss:₹ 2627
Buy at ₹2800 | Target price: ₹3181 |Stop Loss:₹ 2627
Founded in 1972, Cochin Shipyard Limited (CSL) is a prominent entity in the construction of diverse vessels, as well as the repair and refitting of various types of ships, including periodic upgrades and life extensions. CSL has constructed and repaired some of the largest ships for its global clientele and has exported around 45 ships to international customers. Over the years, CSL has honed its capabilities from building bulk carriers to smaller, technologically advanced vessels such as Platform Supply Vessels and Anchor Handling Tug Supply Vessels.
In Q4 of the fiscal year 2023-2024, Cochin Shipyard Ltd experienced substantial financial growth compared to the same period last year and the previous quarter. Revenue surged by 86.35% year-on-year to ₹1,366.17 crore, with a 22.62% increase quarter-on-quarter. Net profit saw an impressive 558.06% year-on-year jump to ₹258.88 crore, alongside a 5.93% quarterly increase. The net profit margin expanded.
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Commodity Samachar
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