Global markets delivered mixed signals ahead of Monday trading, with MSCI's Asia Pacific Index up 0.1% after having climbed as much as 0.8% earlier, according to Mint. Among Asian markets, Japan's Nikkei 225 slipped 1.18% while the Topix rose 0.18%, and South Korea's Kospi declined 1.52%, reversing earlier gains of as much as 3%. However, Chinese markets opened higher with Hong Kong's Hang Seng Index rising 0.4% and the CSI 300 gaining 0.2%. US stock futures showed positive momentum with Dow Jones futures rising 0.17%, S&P 500 futures gaining 0.4%, and Nasdaq-100 futures rallying 0.98%. The Indian stock market is expected to open on a muted note, with Gift Nifty trading around 24,333 level, a discount of nearly 19 points from Nifty futures' previous close, indicating a steady but cautious start for frontline indices. Gift Nifty Live Chart signals a mildly positive start for domestic equities, with the index trading around 150 points above Thursday's spot Nifty close of 23,962, currently around the 24,000 psychological level.
Benchmark indices delivered strong performance on Monday, July 6, with the Sensex climbing 521 points (0.67%) to settle at 78,285 and the Nifty 50 gaining 160 points (0.66%) to close at 24,430. According to reports from Mint, this marked the fourth consecutive session of gains supported by monsoon revival and renewed foreign institutional investor buying this month. The broader market also remained positive, with both mid-cap and small-cap indices ending higher. Ponmudi R, CEO of Enrich Money, noted that Nifty witnessed strong session opening and closed above the 24,400 zone, above the tough hurdle of 24,350 level after a long time, improving bias and sentiment. The 24,400 region continues to act as the immediate resistance zone, with a sustained breakout above this level expected to reinforce bullish momentum and pave the way for an advance towards the 24,500 – 24,600 region. However, Vaishali Parekh from Prabhudas Lilladher noted that the Nifty 50 index after witnessing a weak session, consolidated near the 24,000 zone for most part of the session and closed near the 23,950 zone with bias and sentiment precariously placed as of now till clarity is established from geo-political tensions amid the Middle East.
As reported by Mint, Parekh identified the 24,200 zone as the near-term support which needs to be sustained, with fresh targets of 24,800 and 25,400 levels opening for the coming days. On the Bank Nifty outlook, she noted the index continues within the range between 58,500 and 57,200 levels, requiring a decisive breakout above 58,500 to trigger fresh upward movement. The frontline banking stocks like HDFC Bank and ICICI Bank have shown improvement in bias, which can pull the index further ahead, with important support near the 200-period MA at 57,200 level. Bank Nifty would have the daily range of 57,700-59,000 levels. Ponmudi R from Enrich Money added that on the downside, the 24,200 level is expected to provide immediate support, followed by the 24,000 psychological mark, which remains a crucial support zone for Nifty 50. Momentum indicators remain supportive, with the Relative Strength Index (RSI) hovering near the 61 mark, indicating strengthening bullish momentum while remaining comfortably below overbought territory. Vaishali Parekh from Prabhudas Lilladher emphasized that the Nifty 50 index would have the important near-term support at the 23,800 zone, failing which there can be intensified selling pressure, whereas on the upside, a decisive move above the 24,200 is necessary to improve the bias.
According to Mint, Vaishali Parekh recommended three buy-or-sell stocks for Tuesday trading. Lloyds Engineering Works is recommended as a buy at ₹90 with target ₹98 and stop loss ₹87. RBL Bank is suggested as a buy at ₹368 with target ₹375 and stop loss ₹362. E I D-Parry (India) is recommended as a buy at ₹760 with target ₹800 and stop loss ₹745. The recommendations come as global markets showed mixed performance, with technology stocks losing momentum in Asia while the dollar strengthened. US equities ended last week on a mixed note as optimism over a potentially less restrictive Federal Reserve policy was partly offset by profit-taking in large-cap technology stocks, according to Ponmudi R. Vaishali Parekh from Prabhudas Lilladher has now recommended Indian Bank at ₹791 with target ₹810 and stop loss ₹780, Kotak Mahindra Bank at ₹374 with target ₹385 and stop loss ₹365, and Nibe at ₹1580 with target ₹1680 and stop loss ₹1530 for Friday trading.
