Hero Motocorp rise on optimism around new collaboration,  ITC rallies on demerger news of hotel business 

The Markets Today in a nutshell

Technical Overview – Nifty 50

The Indian benchmark index Nifty has recorded seven consecutive days of gains, surging from 18,700 to 19,400 levels. Nifty on the daily chart has formed a Doji candle stick pattern for two consecutive days suggesting indecision among their traders at all-time high levels.

The positive takeaway from today’s trading session was that despite the rise in volatility and pessimism, Nifty managed to end in green. INDIA VIX increased by 1.54% and closed at 11.88 levels. Max OI on Call at 19,500, Max OI on Put at 19,300, and Nifty PCR ratio stands at 1.41 for the 6th July expiry..

The immediate support for the Nifty stands near its continuation gap which is placed at 19,200 levels and the upper band for the index is capped below 19,450 – 19,475 levels.

Technical Overview – Bank Nifty

The Banking Index on the daily chart closed in red after forming a long-leg doji candle stick pattern in its previous trading session. The Bank Nifty on the weekly chart has presently formed a shooting star candle stick pattern but still has two days left for close.

The momentum oscillator RSI (14) has reached near 70 levels and witnessed dizziness in the trend. The MACD indicator holds firmly above its polarity levels with a bullish crossover. The 9 & 21 EMA are still below the price which is acting as an immediate support for the index. 

Max OI on Call at 45,500, Max OI on Put at 45,000, and Bank Nifty PCR ratio stands at 1.08 for the 6th July expiry. Now index has to continue to hold above 44,800 zones to extend the move towards 45,500 – 45,600 zones while on the downside support exists at the 44,600 mark.

Indian markets

• Benchmark indices ended near the flat line after a volatile session on Wednesday.
• Nifty closed near the 19,400 level after hitting a day’s low of 19,339.60 in late trade.
• Weak global cues and moderation in Service PMI data restricted gains.
• Uncertainties surrounding the forthcoming release of FOMC minutes undermined global investors’ risk tolerance.
• FMCG and auto shares rallied, while banks and financial services stocks declined.
• Business activity growth in India’s services sector moderated to a three-month low in June.
• Output charges saw the sharpest rise in close to six years, according to a private survey.
• S&P Global India services Purchasing Managers Index (PMI) fell to 58.5 last month from 61.2 in May.
• India’s manufacturing PMI fell to 58.7 in June from 57.8 in May, as per data released on Tuesday.

Global Markets

• The Dow Jones index futures were down 153 points, indicating a weak opening in the US stocks today.
• Markets in Europe and Asia declined on Wednesday as investors await the release of private surveys on services activity in China and Japan.
• US stock markets remained closed on Tuesday as Wall Street observed a public holiday on the account of US Independence day.
• Traders are now looking ahead to the release of the minutes of the Feds last policy meeting later on Wednesday and the non-farm payrolls report on Friday.

Stocks in Spotlight

• Hero Motocorp witnessed a surge of over 4% in its stock price on July 5, driven by market expectations of the company expanding its two-wheeler market share in the premium segment. The anticipated growth comes with the introduction of the Harley-Davidson X440, a mid-size bike developed in collaboration with the renowned American brand. Analysts are optimistic about Hero Motocorp’s extensive dealer network and the potential for increased production volume, which are believed to contribute to the success of the new bike. Reflecting this positive outlook, brokerage house Jefferies has maintained a ‘buy’ rating on the stock and raised its target price to Rs 3,500.
  
• ITC’s share price experienced a gain of over 2.5% on July 5, reaching a fresh 52-week high, following reports that the process of demerging the company’s hotel business is underway. According to sources, ITC is actively exploring alternate structures for its hotel business. This development occurs amidst a booming hospitality sector, despite high room rates. Earlier statements from ITC’s chairman and managing director, Sanjiv Puri, indicated that the demerger of the conglomerate’s hotel business is a viable option, given the sector’s recovery post-Covid-19. 
  
• RBL Bank witnessed a gain of over 4% in its stock price following the announcement of substantial growth in deposits and advances on a yearly basis. While the news garnered investor confidence, the stock’s gains were limited due to subdued sequential growth. Notably, ICICI Securities recently held a meeting with RBL Bank’s managing director and chief executive officer, Subramania Kumar, along with other executives.

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
• Senco Gold IPO booked 2.68 times by second day of bidding 

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