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5 July 2021, Pre Market Report: Will Nifty rocket up from here?

Good Morning everyone, last week we could see complete consolidation in the market, and finally, the week ended with a slightly positive note. But seems like the entire consolidation is now helping the bulls get back with full force as trends on SGX nifty suggest a huge gap up opening.

Global Markets:

As discussed in our Saturday meetup, US markets continued their rally even on Friday to scale new records, even when the Indian market was consolidating. S&P closed, up for a seventh straight day, after jobs data for June showed robust hiring yet persistent weakness in the labor market that will keep the Federal Reserve from raising interest rates any time soon.

The Dow Jones Industrial Average rose 152.82 points, or 0.44%, to 34,786.35, the S&P 500 gained 32.4 points, or 0.75%, to 4,352.34 and the Nasdaq Composite added 116.95 points, or 0.81%, to 14,639.33.

Shares in Asia-Pacific were mixed in Monday morning trade as oil prices hovered about $76 ahead of another meeting between OPEC and its allies. Investors are also looking ahead to data releases in Australia and China.

In Japan, the Nikkei 225 slipped 0.5% in early trade while the Topix index shed 0.43%. South Korea’s Kospi edged 0.33% higher.

Indian Market:

As discussed in our meet, Major IT companies are coming out with their quarterly results soon, First among them being TCS, which will announce their results on 8th July. If TCS posts good results (Which major analysts say, it will) can lead to another rally among other IT stocks & can lead to markets going higher. Infosys will also announce their results on 9th July.

As discussed earlier, trends on SGX nifty suggest a 100points gap-up opening in the market, however as we have always discussed, 15900 still will act as a major resistance to go up. But once it is broken, we can expect a bigger rally in Indian Nifty soon.

Foreign institutional investors (FIIs) net sold shares worth Rs 982.8 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 930.39 crore in the Indian equity market on July 2. FIIs have been continuously selling in the Indian market buy DIIs are continuing to buy every day at every level. The majority of the funds for the DIIs come from mutual funds, as more and more people are now aware of the huge potential of mutual funds, and this again will lead to big buying and lifting up the Nifty in the coming weeks. This keeps me maintain my bullish view of the market.

Stock specific news:

India Pesticides | The company's shares will get listed on the exchanges today. The issue price was fixed at Rs 296 per share.

HDFC Ltd | The corporation earned Rs 263 crore as profit on the sale of investments during the first quarter of the current financial year. During the June 2021 quarter, the mortgage lender sold its entire stake in associate company Good Host Spaces for Rs 54 crore and sold a part stake in insurance arm HDFC ERGO General Insurance Company for Rs 209 crore.

Tata Steel | India crude steel production in Q1FY22 fell 2.7 percent QoQ to 4.62 million tonnes, while sales volume declined by 11.13 percent QoQ to 4.15 million tonnes.

ONGC | The company will procure equipment and services worth over Rs 30,000 crore to support its oil and gas exploration and production operations, which will provide local entities business and support ‘Aatmanirbhar Bharat’ initiative.

Avenue Supermarts | The company’s Q1FY22 standalone revenue rose to Rs 5,031.75 crore from Rs 3,833.23 crore, YoY.

Panacea Biotec | The company has received a manufacturing license from DCGI for Sputnik V vaccine against Covid-19 pursuant to its collaboration with the Russian Direct Investment Fund.

Info Edge (India) | The company has reduced the size of its offer for sale (OFS) in Zomato IPO by 50 percent to Rs 375 crore.

Cadila Healthcare | The company's subsidiary Viona Pharmaceuticals Inc is recalling over 21,000 bottles of metformin hydrochloride extended-release tablets.

Federal Bank | The bank’s total deposits in Q1FY22 fell 1.88 percent QoQ to Rs 1,69,393 crore, while gross advances decreased 1.56 percent QoQ to 1,32,770 crore.

CSB Bank | Total provisional deposits in Q1FY22 fell by 2.54 percent QoQ to Rs 18,652.80 crore, while gross advances decreased by 3.52 percent QoQ to Rs 14,146 crore.

Indian Hume Pipe | The company has received the Letter of Acceptance for the work of about Rs 257.60 crore from Madurai City Municipal Corporation.

Punjab and Sind Bank | The Reserve Bank of India imposed a penalty of Rs 25 lakh on the bank for non-compliance with certain provisions of directions on ‘Cyber Security Framework in Banks’.

V-Guard Industries | The company’s board has approved forming a new subsidiary for consumer electricals business.

Aarey Drugs & Pharmaceuticals | The company’s Q4FY21 net profit rose to Rs 1.4 crore from Rs 0.99 crore while revenue increased to Rs 178.25 crore from Rs 110.68 crore, YoY.

Udaipur Cement Works | CARE has upgraded the company’s credit rating for its various long term borrowings by one notch to 'AA' (Credit Enhancement-CE)/Stable from 'AA-' (CE)/Stable, which is based on credit enhancement on the back of the corporate guarantee provided by the holding company, JK Lakshmi Cement for its borrowings.

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