Ahead of Market: How the Markets are Moving
10 Things That Will Decide D-Street Action on Monday
Analyzing How the Market Is Getting Influenced
Domestic indices recorded gains last week despite mixed signals from the global market, especially concerning inflation concerns. Investor focus was primarily on large-cap stocks, which led to underperformance in the mid and small-cap segments. Here are the key factors that will shape the market action on Monday:
1. Market Consolidation
According to Ajit Mishra, SVP, Research, Religare Broking, there is a possibility of consolidation in the benchmark index following recent upward movement. Support is expected around the 23,700-23,900 range on any declines. Banking stocks are currently consolidating, while sectors such as IT, energy, and FMCG are buoying the index higher.
2. US Market Performance
U.S. stocks ended weaker on Friday after an early rally fizzled. The Dow Jones Industrial Average fell 0.11% to 39,122.94, the S&P 500 lost 0.41% to 5,460.30, and the Nasdaq Composite dropped 0.71% to 17,732.60. Investors are digesting in-line inflation data and weighing political uncertainty after the U.S. presidential debate.
3. European Market Sentiment
European shares closed lower on Friday, with the pan-European STOXX 600 declining 0.2%. This marked the fourth straight session of losses, influenced by political uncertainties in France and a drop in shares of beauty giant L'Oreal.
4. Technical View on Nifty
The Nifty index is facing resistance at the 24,000-24,100 levels. Any dip from these levels might find support around the 23,700-23,900 range. Traders should strategize accordingly, considering potential consolidation after recent gains.
5. Stock Radar
Several stocks will be in focus on Monday, driven by significant fund-raising activities, major deals, and land acquisitions announced after market hours on Friday:
- Neogen Chemicals: Promoter Haridas Thakarshi Kanani divested a 5.67% stake, acquired by SBI Mutual Fund and White Oak Group.
- HDFC Life Insurance: Received a GST order demanding a tax and penalty totaling Rs 265.4 crore.
- Godrej Properties: Acquired leasehold rights for an 11-acre land parcel in Pune and 7 acres in North Bengaluru for development projects.
- Zydus Lifesciences: Entered a licensing agreement with Dr. Reddy’s Laboratories for co-marketing Pertuzumab biosimilar in India.
- JSW Energy: Its subsidiary JSW Neo Energy received a letter of award for 300 MW wind-solar hybrid power projects from SJVN.
6. SME Listings
New SME listings on July 1 include Visaman Global Sales, Mason Infratech, Sylvan Plyboard India, and Shivalic Power Control.
7. Bulk Deals
Several significant bulk deals were recorded:
- HFCL: Promoter Nextwave Communications sold a 1.38% stake.
- Stanley Lifestyles: Nippon India Mutual Fund increased its stake by 6.53%, with additional purchases by Franklin Templeton Mutual Fund and Morgan Stanley Asia Singapore Pte.
- Samhi Hotels: Foreign investor GTI Capital Alpha Pvt Ltd sold a 4.74% stake, with ICICI Prudential Mutual Fund, Morgan Stanley Asia Singapore Pte, and Abu Dhabi Investment Authority as buyers.
- Solara Active Pharma Science: TPG Growth IV SF Pte Ltd sold 20 lakh equity shares.
- Ugro Capital: Societe Generale bought a half percent stake.
8. Ex-Dividend Stocks
Stocks trading ex-dividend include Tata Communications, Geojit Financial Services, GHCL, GHCL Textiles, and Lloyds Enterprises.
9. Ex-Date for Spin-Off
Oriental Carbon & Chemicals will trade ex-date for a spin-off.
10. Global Market Trends
Asian markets showed mixed performance on Friday. Investors are closely watching inflation and industrial production data from Japan and key U.S. inflation readings. Positive sentiment in some indices contrasts with slight corrections in others.
Summary
Investors should prepare for potential consolidation in domestic indices, driven by mixed signals from global markets and key sector performances. Key stocks and recent market activities will also play significant roles in Monday’s trading dynamics.