Dear Trader…
Markets
extended gains for yet another session and rose nearly half a percent. After
the gap-up start, Nifty future remained in a narrow range for most of the day
and finally settled at 19,296.00 levels.
All sectors contributed to the move wherein realty, oil&gas and
banking posted decent gains. The broader indices too traded upbeat and moved up
in the range of 0.60%-1.00%.
We reiterate a cautious view on the
index and suggest awaiting a decisive break above 19,404 for a sustained
recovery else the up move would fizzle out. However, there is no shortage of
stock-specific opportunities so traders should maintain their focus on stock
selection.
Meanwhile,
Real
estate stocks were in focus today after strong Q2 numbers from Godrej
Properties and management commentary of overall strong residential demand. Next
week investors will await US Fed Chair Powell speech for future guidance on
interest policy. Next week markets are likely to consolidate with a positive
bias. The 2QFY24 corporate earnings have so far been in line, with BFSI and
Automobiles driving the aggregate. The spread of earnings has been decent.
However, the margin tailwinds are likely to moderate in 2HFY24 with base effect
coming into play and pick-up in some commodity prices. Given the ongoing result
season, sector and stock specific action will continue.
Technically,
the
important key resistances are placed in Nifty future are at 19330 levels, which
could offer for the market on the higher side. Sustainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 19373 – 19404 levels. Immediate support is placed at 19232
– 19202 levels.
