Nifty Under Pressure: Five Days of Losses Put Bulls on Defense

Yesterday’s Pick

IRFC Rs 5,000 (Quantity 200)
NLCINDIA Rs 2,200 (Quantity 200)
Short Term Pick ONGC 3,000 (Quantity 200)

Nifty Technical View

The Nifty 50 index recently formed a Doji-like candlestick pattern following a bullish candle in the previous trading session. This suggests a potential period of consolidation. Despite this, the overall trend remains positive as the index continues to form higher highs and higher lows. If the index maintains its level above 24,300, it is likely to reach 24,500 after the consolidation period. The immediate key support level for the index is at 24,200.

Indian Vix

Volatility increased for the first time in the last five consecutive sessions, but it remains well below the 200-day Exponential Moving Average (EMA) of 14.6. Therefore, it is not yet a significant concern for bullish traders. The India VIX, often referred to as the fear index, rose by 7.13 percent, climbing from 12.7 to 13.6.

FII And DII Data

Foreign institutional investors (FIIs/FPIs) bought Indian stocks worth Rs 60.98 crore, while domestic institutional investors (DIIs) purchased Indian stocks amounting to Rs 2,866.79 crore during the same period.

Put Call Ratio

The Nifty Put-Call ratio (PCR), which reflects market sentiment, decreased to 1.18 on July 8 from 1.20 in the previous session. An increasing PCR, or a value higher than 0.7 or exceeding 1, suggests that traders are selling more Put options than Call options, generally indicating a bullish sentiment in the market. Conversely, if the ratio falls below 0.7 or moves toward 0.5, it indicates higher selling in Call options compared to Put options, reflecting a bearish mood in the market.

Stocks in the news

Tata Motors:
Tata Motors’ global wholesales, including those of Jaguar Land Rover, increased by 2 percent to 3,29,847 units in the first quarter of FY25 compared to the first quarter of FY24. The company’s global wholesales of commercial vehicles and the Tata Daewoo range rose by 6 percent to 93,410 units during the reporting quarter. However, the global wholesales of Tata Motors’ passenger vehicles in Q1 were 1,38,682 units, a decrease of 1 percent compared to Q1 FY24. The global wholesales of Jaguar Land Rover were 97,775 units, up by 5 percent, with Jaguar wholesales at 8,227 vehicles and Land Rover wholesales at 89,528 vehicles.

CG Power and Industrial Solutions Ltd:
CG Power and Industrial Solutions Ltd, an engineering firm within the Murugappa Group, has appointed Amar Kaul as its new Managing Director and CEO. The CG Power board has been searching for a successor to the current Managing Director, N. Srinivasan, for the past several months. Kaul has been appointed for a five-year term starting on July 25, 2024, according to a company statement.

Nifty and Bank Nifty Support and Resistance level

Resistance 24,340, 24,365, and 24,405
Support based 24,260, 24,240, and 24,200
Resistance 52,640, 52,750, and 52,925
Support based 52,285, 52,175, and 51,990

Index Future levels

Nifty Futures Buy above 24400 The suggested targets for this are 24,600 and 24800 with the stop loss set at 24,150.

Bank Nifty future buy above 52,600 index is expected to see up side levels of 52900 and 53,200 and level 52,250 will act as a stop loss.

Fundamental Pick: Godrej Consumer Products

Buy at ₹1426 | Target price: ₹1486 |Stop Loss:₹1394

Godrej Consumer Products Ltd (GCPL) is a leading Indian consumer goods company, incorporated in 2000. As a subsidiary of Godrej Industries Ltd, GCPL operates across multiple lines of business including home and personal care, food and beverages, and agri-care. GCPL’s top products include soaps, shampoos, air fresheners, fabric care items, insecticides, and food products such as edible oils, frozen snacks, and ready-to-eat meals.

Godrej Consumer Products reported double-digit volume growth in Q1, with broad-based growth across both Home Care and Personal Care segments. Environmental activist Naoroji holds shares worth nearly Rs 7,000 crore in Godrej companies. Motilal Oswal Financial Services has selected Godrej Consumer as one of its top picks for the June quarter earnings season.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

Also Read: Copper Price Hits Three-Week High: Is a Breakthrough on the Horizon?

Recommended Read: GDP : Is it an important aspect that you should focus on?