TCS results in line with weak estimates, Delta Corp plunges 23 percent amid an increase in GST 

The Markets Today in a nutshell

Technical Overview – Nifty 50

NIFTY50 on the 12th of July witnessed a gap-up opening following its global peers and claim a high at 19,507 levels. Post that index continued to trade in a lower low lower high formation on the intraday basis and finally drift below 19,400 levels during the close.

The benchmark index on the daily chart is trading within the rising channel pattern and is presently halted near the upper band of the pattern. The index on the daily chart has formed a bearish engulfing candle stick pattern. 

The highest OI on the call side is placed at 19,500 followed by 19,600 and the highest OI on the put side is placed at 19,300 followed by 19,400. Option data seems to be in the favor of bears and the option chain suggests the same as PCR stands at 0.69.The immediate support for the Nifty stands near its 9 EMA which is placed at 19,300 levels and the upper band for the index is capped below 19,500 – 19,550 levels.

Technical Overview – Bank Nifty

The Bank Nifty on the daily chart witnessed a marginal gap up opening on 12th July but couldn’t hold on to its opening gains and drift below 44,700 levels. Overall post the rectangle pattern breakout in the banking index prices are presently in the pullback mode.

The 21 EMA is expected to act as an immediate support for the banking index which is placed at 44,489 levels. The highest OI on the call side is placed at 45,000 followed by 44,800 and the highest OI on the put side is placed at 44,500 followed by 45,000. Option data seems to be in the favor of bears and the option chain suggests the same as PCR stands at 0.61.

The Bank Nifty has witnessed four consecutive days of negative closing and has reached near its make-or-break levels. The immediate support for the Bank Nifty is placed at 44,450 – 44,400 levels and the upper band for the banking index is capped below 45,000 – 45,100 levels.

Indian markets

• After two consecutive days of gains, the domestic stock market experienced a slight decline on Wednesday.
• The Nifty index dropped below the 19,400 level, despite briefly reaching a high of 19,507.70 earlier in the trading session.
• Concerns over subdued earnings in the IT sector contributed to the negative sentiment among investors.
• However, there was a sense of optimism due to the possibility of a decrease in US inflation, which provided some support.
• IT shares witnessed a decline, while PSU banks, pharma, and realty shares registered gains.
• The day’s market movement reflected the mixed dynamics and cautious approach of investors, influenced by sector-specific factors and global economic indicators.

Day Leader Board

Global Markets

• Shares in Europe and Asia advanced on Wednesday ahead of the key inflation data from India and the US to be released later today.
• Japans corporate goods price index rose at a slower pace of 4.1% year-on-year in June, the sixth straight month that growth has slowed. Also known as the wholesale inflation gauge, the 4.1% figure is lower than Mays revised print of 5.2%, and also the slowest inflation rate recorded since April 2021.
• US stocks ended higher on Tuesday, helped by optimism ahead of key inflation reports and as JPMorgan and other financial shares gained before earnings later this week.
• US consumer price data is due on Wednesday, while a producer prices report is due on Thursday. Investors are looking for further clues on whether price pressures are abating and if the Federal Reserve is nearing the end of its interest rate hiking cycle.

Stocks in Spotlight

• Tata Consultancy Services (TCS) announced a 16.8% year-on-year (YoY) growth in net profit for the quarter ended June 30, 2023. This impressive performance can be attributed to the company’s ability to secure significant total contract value (TCV) deals despite operating in a challenging business environment. The reported figures align with subdued estimates amid a weak demand landscape.
• Marksans Pharma witnessed a significant rally of almost 9% on July 12 following the approval granted by the US Food and Drug Administration (FDA) for the company to manufacture a pain relief tablet. This development represents a promising opportunity for the drug maker to expand its product portfolio and enhance its presence in the market.
• Delta Corp faced a significant decline of 23% on July 12 following the decision made by the GST Council to impose a 28% tax on online gaming, casinos, and horse racing. This sudden tax imposition comes at a challenging time when the online gaming industry was showing signs of recovery, fueled by the establishment of a Self Regulatory Body (SRB) and the lifting of the ban on Battlegrounds Mobile India.

News from the IPO world🌐

• Utkarsh Small Finance Bank IPO booked 3.6 times, retail portion 11.7 times on Day 1.
• Netweb Technologies IPO to open on July 17
• ESAF SFB files for IPO a third time, scales down size.

Sectoral Performance

Advance Decline Ratio

Numbers📈 that matter