Can Nifty hold up to the high levels? will profit booking kick in? Important to watch.

Good Morning Everyone, Nifty had a great bull run last week, and today again opening with a big gap-up. We might see some profit booking however, IT looks stronger let see if it can support Nifty or give in to the fall.

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Global Markets:


US markets are closed today as it is Labor day today, hence we will not have any cues from there tomorrow. But for Friday, as discussed in the Saturday meet, US markets closed mixed due to a long weekend and also jobs data that showed some low down in hiring.


The Dow Jones Industrial Average fell 74.47 points, or 0.21%, to 35,369.35, the S&P 500 lost 1.41 points, or 0.03%, to 4,535.54 and the Nasdaq Composite added 32.34 points, or 0.21%, to 15,363.52.


Asian markets continue to be mixed and we don't see major cues coming in from there for the Indian market for the past 2 weeks as discussed in our meet.


Indian Market:


Trends on the SGX Nifty indicate a gap up opening today at levels above 17350, if that happens, we could see some profit booking in the morning itself.


It is very important for the market to hold up above 17200 today to continue the up move, and if it comes below 17200, they can see a major profit booking kicking in bringing the market down further. So I would suggest you book some profits as the market opens on stocks that are in a good position.


The industrial output for the month of July is the key data to watch out for in the coming week, which is scheduled on Friday. Experts expect the growth to be in double digits on a low base in the year-ago period and largely around similar lines of June data, with the strong manufacturing PMI data, easing restrictions by states in India, and increased economic activity. However, Friday being a holiday in India on account of Vinayaka Chaturthi, we might see its effect only next Monday.


After a couple of weeks of selling, foreign institutional investors returned to India with a substantial amount of inflow on the back of very dovish commentary of US Fed Chair Jerome Powell in the speech at Jackson Hole. Now all eyes are on the Fed meeting scheduled later in September and till then the street will closely watch whether the inflow will continue at the same pace going ahead.


FIIs have net bought Rs 6,867.73 crore worth of shares in the week gone by, whereas domestic institutional investors seem to have preferred to book profits as they net sold Rs 1,421.12 crore worth of shares in the same period.


The movement in the Nifty Bank is crucial for the Nifty50's northward journey going ahead as in the passing week, it was one of the key supportive sectors that helped Nifty50 surpass 17,300 levels. Experts feel Nifty Bank needs to strongly hold on to the 36,000 mark going ahead for further upside which ultimately is expected to help the benchmark to continue its run-up.


Some key events this week can affect the market next week.


Stock Specific News:


Engineers India | Chennai Petroleum Corporation entrusted the execution of EPCM-1 with MPMC & EPCM-3 services for 9 MMTPA Cauvery Basin Refinery (CBR) project at Nagapattinam, Tamil Nadu to Engineers India. The total awarded order value is Rs 1,039 crore, with a total project schedule of 42 months for mechanical completion.


HealthCare Global Enterprises | The company acquired oncology hospital labs and clinical trials business from Strand Lifesciences.


Reliance Industries | Subsidiary Reliance Strategic Business Ventures acquired 2,28,42,654 equity shares in Strand Life Sciences for Rs 393 crore.


ICICI Lombard | The company has received regulatory and other approvals from the Insurance Regulatory and Development Authority of India (IRDAI) for the demerger of the general insurance business of Bharti AXA General.


Fermenta Biotech | The company reported lower consolidated profit at Rs 11.31 crore in Q1FY22 against Rs 13.6 crore in Q1FY21, revenue rose to Rs 109.65 crore from Rs 94.44 crore YoY.


Bank of India | LIC acquired an additional 3.87 percent stake in the bank via QIP, raising shareholding to 7.05 percent from 3.17 percent.





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