HDFC AMC surges, M&M stock rallies amid strong sales numbers, Bajaj Auto reported weak sales 

The Markets Today in a nutshell

Technical Overview – Nifty 50

On a weekly time, frame, the Nifty surpassed the new milestone of 19,300 mark making it historically significant for the market. The Benchmark index has witnessed a bullish ascending triangle pattern breakout and the index is trading above the upper band of the bullish pattern on the weekly time frame.

Nifty followed a breakout from a period of consolidation, indicating a strong bullish reversal. The overall trend appears positive in the near term as the index has consistently remained above its short and medium-term averages. India VIX increased by 6.85% and closed at 11.54 levels. Max OI on Call at 19,500, Max OI on Put at 19,300, and Nifty PCR ratio stands at 1.57 for the 6th July expiry.

Now index has to continue to hold above 19,100 zones to extend the move towards 19,425 – 19,500 zones while on the downside support exists at the 19,000 mark.

Technical Overview – Bank Nifty

The Bank Nifty on the Monday session witnessed a gap up opening above 45,000 levels andcontinued to trade above the mentioned levels with a bullish bias throughout the day. The Banking index continues its bullish breakout momentum and registered a life high at 45,353 levels.

PSU Banks stock was in focus as PSU Bank witnessed a bullish rectangle pattern breakout after a couple of months of consolidation. The momentum oscillator RSI (14) for the PSU Index has to witness a breakout above 60 levels with a bullish crossover.

Max OI on Call at 45,200, Max OI on Put at 45,000, and the Bank Nifty PCR ratio stands at 1.46 for the 6th July expiry. Now Banking Index has to continue to hold above 44,600 zones to extend the move towards 45,600 – 45,800 zones while on the downside support exists at the 44,400 mark.

Indian markets

• Domestic equities began July with strong performance, with benchmark indices reaching new record highs.
• The Sensex surpassed the 65,000 level for the first time.
• The Nifty concluded above the 19,300 mark.
• This surge was mainly driven by strong performances in metal, oil & gas, and financial stocks.
• Investor sentiment was positively influenced by promising domestic data and supportive global cues

Global Markets

• The Dow Jones index futures were up 89 points, indicating a positive opening in US stocks today.
• European shares advanced on Friday after a set of strong U.S. economic data bolstered the view that the Federal Reserve will likely keep interest rates higher for longer.
• Chinas factory activity in June contracted for a third month, with the official manufacturing purchasing managers index (PMI) coming in at 49.0. This was below the previous reading of 49.2 and below the 50 level that separates contraction from expansion. German consumer price inflation unexpectedly increased to 6.4% (y-o-y) in June, rising from the 14-month low of 6.1% recorded in May.
• US stocks rallied on Thursday, led by banking stocks following better-than-expected data that raised hopes the US economy could avert a recession. Large US banks passed a Federal Reserve stress test, generating speculation of potential dividend hikes and share buybacks.
• Fed Chair Jerome Powell signaled on Thursday that the U.S. central bank was likely to resume its monetary tightening campaign after a break earlier this month.

Stocks in Spotlight

• Mahindra & Mahindra’s shares rose nearly 2% following a report of a 21% increase in domestic passenger vehicle sales in June 2023 compared to the previous year. The company sold 32,588 units, which exceeded Nomura’s estimate by 429 units. Overall, M&M reported a year-on-year growth of 15.4% in total auto sales for June, amounting to 64,429 units. Particularly impressive was the sale of three-wheelers, including electric models, which surged by 59% to 6,377 units compared to June 2022, indicating strong performance and potential in this segment.
• Mazagon Dock Shipbuilders skyrocketed nearly 8% in early trading on July 3rd, reaching a 52-week high of Rs 1,342. This surge came in response to the company signing a contract worth Rs 2,725 with the Ministry of Defence. Under this contract, Mazagon Dock Shipbuilders is tasked with restoring INS Shankush, a sub-surface killer (SSK) class submarine. The delivery of the refurbished submarine is scheduled for 2026, indicating a long-term commitment and potential growth for the company.
• Bajaj Auto shares took a downturn on the afternoon of July 3rd, as the company reported weak sales for June. According to an exchange filing, the company’s two-wheeler exports saw a sharp 33% year-on-year drop, landing at 1,27,357 units. Additionally, commercial vehicle exports fell by 23% compared to June last year, down to 13,461 units. Bajaj Auto’s sales for June were disappointing, missing Nomura’s estimates by 9,000 units. Overall, the company experienced a 2% year-on-year sales decline in June. 

News from the IPO world🌐

• EbixCash IPO expected to hit market in July 2023
• SPC Life Sciences gets SEBI’s go ahead to float IPO
• Afcons begins IPO talks with banks.

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Sectoral Performance

Advance Decline Ratio

Numbers📈 that matter