7 July 2021, Post Market Report: DII's also start selling and Nifty falls missing its all-time high.
Good Evening Everyone, As discussed in the Pre-market report, 15900 has been a very tough resistance and we could see that again today.
I have always been telling that until we have some very positive news, it is difficult to break the 15900 marks and settle above that.
The market opened with a gap down today as discussed in the pre-market report. If you have not read that, you can read it by clicking here.
After the gap down opening, the Nifty Index went on to rise till 15885 and then went into a complete profit booking mode which continued till the day close. Of course, there was no reason for the Index to go higher and every investor took it as an opportunity to book profits. To date, even the DIIs (Domestic Institutional Investors) who were buyers for the past few days and were supporting the markets, also went into a selling mode today.
The DII's sold for a net of 949.18 crores and the FFI's (Foreign Institutional investors) also sold net of 554.92 crores bringing down the Nifty Index by 151 points or 0.96%
On a daily chart, There was a bearish candle formation, which does signify a bearish trend ahead, however, we can confirm that only by Monday to see if it can stabilize close to 15600-15500 levels. If the Index goes lower, then we can confirm a short-term trend reversal.
Sector Watch: Every sector closed in the red today except IT, which was probably expecting some good news from TCS results, that were announced after the market hours today.
As expected, TCS came out with great results where the profit was up by almost 28.5% to 9008 crores compared to last year, and revenue was at around 45000 crores which just missed analyst's estimates of 48000 crores by a jiffy. Margins were also higher compared to last year, but slightly lower than last quarter due to the wage hikes.
However, As I have told earlier, TCS results build confidence in the sector and we should definitely see some positivity in the sector in the coming days. Infosys will also come up with their results next Tuesday, which will again strengthen the sector is what I feel. So do keep your holding in the IT sector tight, we can see some rally in them soon as they have been consolidating for a long time now.
Of course, no guesses there as the IT sector lead the day with TechM which has been consolidating for a long time moved up today, followed by SBI life & Eicher motors. LEt me tell you, keep a watch on TechM & HCL from the IT sector that has still good potential to move up. Also, Mahindra & Eicher are 2 stocks from the Auto sector that should do well in the coming weeks.
Tata Motors continued the fall and was the top loser for the day. We have to wait and average it once it comes to a good level, however, I think that Rs. 300 levels are good to enter the stock if you are not having it in your portfolio. However, keep some funds handy to average it if it moves lower. But Rs. 300 is of course good support, lets wait and watch if it will go lower.
That's it, for now, team, let's catch up tomorrow on the premarket report tomorrow.