BSE India approves buyback of Rs. 374 crore, Olectra Greentech Surges on key order received 

The Markets Today in a nutshell

Technical Overview – Nifty 50

After scaling a fresh all-time-high at 19524, the benchmark Nifty slipped hard and drifted more than 150 points, and closed at 19,331 levels. After registering a life-high Nifty on the weekly chart it formed a bearish shooting star candle stick pattern. For confirmation of the bearish candle stick pattern, we will be requiring a negative closing below the low of the candle on the weekly time frame.

Technically the structure of the Benchmark index is very impressive as prices are trading in a higher high higher bottom formation. The momentum oscillator has RSI (14) and has found resistance at 75 levels but still hovering in a bullish range shift zone. 

For the trend trader now 19,250 would be the sacrosanct support. Above this, the market could rally to 19,450 – 19,500 levels. On the flip side, below 19,250 uptrends may pause for a while. Below the same, we could see a quick correction to 19,100 levels.

Technical Overview – Bank Nifty

The Banking index on 7th July witnessed a gap down opening following its global peers and drifting more than 400 points and closing below the 45,000 mark. A couple of days back the Banking index formed two consecutive Doji candle stick patterns which hinted bulls are getting tired and there may be a pause in the trend.

After registering a life-high Bank Nifty on the weekly chart it formed a bearish gravestone Doji candle stick pattern. For confirmation of the bearish candle stick pattern, we will be requiring a negative closing below the low of the candle on the weekly time frame. Banking Nifty has partially filled the continuation gap formed on 3rd July.

For the trend trader now 44,700 would be the sacrosanct support. Above this, the Bank Nifty could rally to 45,400 – 45,650 levels. On the flip side, below 44,700 uptrends may pause for a while. Below the same, we could see a quick correction to 44,400 levels.

Indian markets

• Friday witnessed a challenging day for domestic shares as investors decided to book profits, influenced by weak global cues.
• FMCG, banks, and realty shares experienced corrections, while media and PSU banks defied the trend.
• The Nifty 50 index settled above the 19,330 mark but reversed from the morning high of 19,523.60.
• Global equities faced a decline as US bond yields surged, fueled by expectations of prolonged high interest rates.
• The release of strong US private payroll data further intensified concerns in the market.
• Market participants are eagerly awaiting key US non-farm payroll and unemployment data to gauge the Federal Reserve’s policy direction before its July meeting.
• Investors remain cautious due to the potential negative effects of upcoming interest rate hikes, the strength of the US dollar, and rising crude oil prices supported by OPEC cuts

Global Markets

• Markets in Europe traded mixed while Asian stocks tumbled on Friday after Wall Street sold off on stronger-than-expected U.S. jobs data, leaving room for more rate hikes ahead by the Federal Reserve.
• U.S. Secretary of Treasury Janet Yellen is in Beijing for a four-day trip to meet Chinese officials, marking a deepening thaw in ties between the U.S. and China.
• US stocks fell sharply on Thursday. Private sector jobs surged by 497,000 for the month, well ahead of the downwardly revised 267,000 gain in May and far more than the consensus estimate.
• The Labor Department said that initial claims for state unemployment benefits rose 12,000 to a seasonally adjusted 248,000 for the week ended July 1.
• The strong labor market data is likely to keep the Fed on track to raise interest rates at its meeting later this month.

Stocks in Spotlight

• The National Company Law Tribunal, Mumbai Bench (NCLT), has approved the Scheme of Arrangement between Reliance Industries Limited, its shareholders and creditors, and Reliance Strategic Investments. In light of this development, both RIL and Reliance Strategic Investments Limited will undertake the required measures, including determining the record date for the allotment and listing of equity shares of Reliance Strategic Investments.
• The Bombay Stock Exchange (BSE) has received approval for a share buyback program worth Rs 374.80 crore. The buyback will be conducted at a price of Rs 816 per share through the tender route. This initiative aims to repurchase 45,93,137 equity shares, accounting for 3.39 percent of the total equity shares in the paid-up capital.
• Olectra Greentech witnessed a significant surge of 18.02% after a consortium comprising the company and Evey Trans secured a Letter of Intent (LOI) from Maharashtra State Road Transport Corporation (MSRTC). The LOI entails the supply of 5,150 electric buses, with an approximate value of Rs 10,000 crore for Olectra Greentech. This development highlights the company’s commitment to the transition towards sustainable transportation solutions in India.

News from the IPO world🌐

• Ideaforge Technology closes with 93% gain on debut
• SPC Life Sciences gets SEBI’s go ahead to float IPO
• Utkarsh Small Finance Bank Rs. 500 crore to open on July 12

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