Monday Market Opening: Zomato, Vodafone Idea, Dish TV Go Bullish

Last week, the Indian stock market saw much drama happening. After a dull week, it finally closed on a positive note on Friday. The BSE Sensex was up 480.57 points, closing at 65,721.25, while the NSE Nifty was up 135.35 points and closed at 19,517. With a new trading week opening today, experts feel that the market will continue to see the drama. 

The Top Gainers 

Here is a look at some of the top gainers on Friday that gave good returns. These included HCL Infosystems, Thomas Cook (India), LIC Housing Finance, and Castrol India.

HCL Infosystems was up 20 per cent and is trading at Rs 20.40. In the last five days, it has gained 25.93 per cent. Thomas Cook (India) was up by 14.93 per cent and is available at Rs 97.40. In the last one month, it has jumped 29.01 per cent.  

LIC Housing Finance gained 8.23 per cent and is trading at Rs 426.80. In the last five days, it has jumped 2.65 per cent. Castrol India jumped 8.14 per cent and is trading at Rs 152.70. It is inching towards its year range of Rs 153. 

Bullish Signs In These Stocks

According to the momentum indicator MACD, there are some stocks which are showing bullish signs. These include Zomato, Vodafone Idea , Shree Renuka Sugars, and Dish TV India.

Zomato has gained 10.17 per cent and is available at Rs 95.35, and Vodafone Idea is up by 4.46 per cent and is trading at Rs 8.20.

Shree Renuka Sugars is trading at Rs 46.95 following a jump of 2.85 per cent. Dish TV India gained 1.15 per cent and is trading at Rs 17.55.

Expert Speak 

Arvinder Singh Nanda, Senior Vice President, of Master Capital Services

The market will react to the upcoming RBI Policy, Inflation data, forex reserve, ongoing Q1FY24 earning season, crude oil inventories, US inflation data, US Initial jobless claims, and UK GDP Data will come in the upcoming week. 

Major companies will be announcing quarterly results such as Indigo Paints, Emami, Torrent Pharma, Aarti Industries, Adani Ports, Coal India, Hindalco, NMDC, Oil India, Bata India, Bharat Forge, Tata Power, ZEEL, 3M, Bajaj Electrical, Hero Motocorp, LIC, Apollo Hospitals, Godrej Industries, IRFC, Info Edge, ONGC, Voltas and many more.

From a technical analysis perspective, the market found support at an important level around 19300 and closed above 19500. The Relative Strength Index (RSI) had previously been in the overbought zone, but it has now come down to 67, indicating a potential easing of bullish momentum. The market is still supported by the 55-day Exponential Moving Average (EMA). Overall, the market remains uncertain, and investors should closely monitor the support and resistance levels, technical indicators, and global economic developments to make informed decisions.

The Nifty corrected more than 680 points after making its all-time high at 19991 caused by sudden selling by Foreign Institutional Investors (FIIs). The negative sentiment can be attributed to the downgrade of the US rating and profit booking by investors who were concerned about high stock valuations. These concerns were also flagged by analysts. Additionally, mixed global economic data may have contributed to the cautious market sentiment.

Pravesh Gour, Senior Technical Analyst, Swastika Investmart

The market will have an eye on the RBI MPC meeting, which will be announced on 10 August, 2023. The RBI may reportedly keep the benchmark repo rate unchanged in its upcoming bimonthly policy review. The RBI has kept the Repo rate unchanged at 6.5% Since February. We are heading towards the last batch of Q2 earnings of key companies such as ADANIPORTS, APOLLOHOSP, COALINDIA, GRASIM, HEROMOTOCO, HINDALCO, ITC, and ONGC, among others, which will lead to stock-specific movements.

On the global front, the trend in global stock markets, the movement of the Dollar index, the rupee against the dollar, and crude oil prices will also dictate the trend. On the Marco front, market participants will be closely observing key events like Industrial Production and Manufacturing Production data, which will be released on August 11, 2023. China will announce the inflation rate for July on August 9, 2023. Additionally, Institutional activity will also have a significant impact on market trends.

"Nifty is currently finding support at the 19300 level, and there was a recent correction from the 20000 mark. The 20-DMA (Daily Moving Average) located around 19600 is a crucial resistance level that Nifty needs to overcome. If Nifty manages to close above its 20-DMA, it may indicate a resumption of bullish momentum.

However, there is a risk of nifty falling further to the 18888 level if it slips below the 19300 support. Traders should closely monitor the price action around these levels to assess the market's direction.

Shrikant Chouhan, head of equity research retail, Kotak Securities

We are of the view that the short-term market texture is on the weak side but we could see a promising pullback rally if the index succeeds to trade above 19400/65300. Above 19400/65300, the index could move up to 19600/67000 or 20-day SMA. Further upside may also continue which could lift the market till 19700/67200.on the flip side, below 19400/65300 the selling pressure is likely to accelerate. Below and the index could slip till 19300-19250/65000-64900. 

The current market texture is volatile; hence, level-based trading would be the ideal strategy for short-term traders. About Bank Nifty: After a sharp correction, the Bank Nifty took the support near 50-day SMA and bounce back sharply. For the traders now, 50-day SMA or 44500 would be the sacrosanct support level. Above which, it could rally till 20 day SMA or 45400-45500. On the flip side, below 44500 uptrend would be vulnerable. Below the same, it could retest the level of 44300-44000.

(All views expressed by experts are personal. Investments are subject to market risks and this article suggests you to invest wisely)