6 July 2021, Post Market Report: Tata Motors slips! Yet another breakdown at 15900.
As I have been telling earlier, 15900 has been a major resistance and we could see the market touching all-time high today but could not sustain as everyone went into profit booking.
As I always say, we need some great news to actually take up the Nifty above 15900 now.
US markets opened after a holiday today and Nasdaq has already hit record highs as the US economy is improving.
The reason for the huge fall in Tata today was after JLR came with a statement that their productions are affected by chip shortage and hence, the company will face slowdown and JLR being a company with losses every year, this came like a thunder strike.
Also, GST collection data came in, which for the first time in the past few months has reduced below 1 lakh crore at 92,849 crores. This again was a letdown.
IT companies results this quarter is also expected to be below expectations as most companies like TCS & Infy have increase salaries and perks for their employees this quarter which can bring down their margins even though they have been doing good in terms of target achievement.
However, let us wait for TCS & Infy results on 8th & 9th July. If at all they come better than expected, then we can see another rally in IT.