By Rahul Shah
The bulls attempted a comeback on Indian exchanges last week as Sensex and Nifty managed to end in positive territory despite most global markets closing on a negative note. A weak oil price, supportive government policy, improved GST collection (Rs 1.44 lakh crore, up 56.5% YoY) and impressive monthly auto sales data in June boosted market sentiment. Sensex gained 180 points (0.3%) to settle at 52,907 while the NSE Nifty index advanced 53 points or 0.3% to end at 15,752.
However, the market was very volatile last week, due to the expiry of the June F&O series and volatility in global markets. Upstream oil companies saw a sharp decline after the government imposed a tax of Rs 6 per liter on the export of petrol and ATF and a tax of Rs 13 per liter on the export of diesel. Confidence slipped 4% from the previous week’s close. FMCG shares gained on falling palm oil prices.
This week, the stock market will be important both locally and globally. TCS Q1 results (Friday) and US Fed meeting minutes (Wednesday) will be the main focus. Indian markets are in a much better place than their global counterparts. Reasons Why Palm Oil Price Falls To Two-Month Low Brent Crude Falls From Recent High After OPEC+ Announces Additional 6.5 Lakh Barrel Oil Supply which could calm inflation. The government increased the basic import tax on gold from 7.5% to 12.5% and increased the export tax on petrol and ATFs (Rs 6/litre and diesel ( Rs 13/litre) to control the local currency and reduce the current account deficit The stock market in July will also very much depend on how the first quarter earnings season plays out and management’s comments regarding the impact of inflation and growth prospects.
The national currency depreciated to a new low of 79.11 against the dollar on Friday amid continued outflows from foreign stocks. The data showed outflows of foreign equities crossed the Rs 50,000 crore mark in June on a one-year high, taking year-to-date outflows to Rs 2,17,358 crore. A weakening rupee makes investing in domestic stocks unattractive to foreign investors. The US Fed’s rate-tightening cycle, recession fears and the never-ending war between Russia and Ukraine made foreign investors nervous, leading to outflows for the ninth consecutive month in June.
Nifty has formed a small bearish candle with a long lower shadow on the weekly frame that indicates a tussle between bulls and bears. Now it needs to hold above the 15735 areas for a bullish move towards the 15888 and 16000 areas while downside support is intact in the 15600 and 15500 areas.
Financing of Shriram Transport: BUY
Objective: Rs 1400 | Stop loss: Rs1230
Shriram Transport Finance retested the breakout on the daily charts after giving a breakout of the consolidation zone. It formed a bullish candle indicating buying interest for the meter. The RSI oscillator is positively placed on the daily and weekly charts and the supports are gradually moving upwards. Given the current chart structure, we advise traders to buy the stock for a rise towards 1400 with a stop loss of 1230.
Tata Steel: BUY
Objective: Rs 925 | Stop-loss: Rs 852
Tata Steel, after a massive sell-off in June series stocks, is in a support zone of 860 levels, given that the structure of the chart on a weekly scale, the current price offers a good risk for trading opportunities. rewards. We advise traders to buy the stock to bounce for a bullish move from 925 with a stop loss of 852.
(Rahul Shah is Senior Vice President, Group Advisory Leader-PCG, Broking & Distribution, Motilal Oswal Financial Services. Opinions expressed are those of the author. Please consult your financial advisor before investing.)