Indian stock markets opened on a positive note on July 15, with the Sensex climbing over 200 points and the Nifty soaring above the 24,550 mark. This uptick occurred despite mixed global cues. Investors are keenly watching the Q1 results for further market direction.
Key Focus: Q1 Results
Investors are looking ahead to the quarterly results of major companies, including Jio Financials, HDFC Life, Asian Paints, LTI Mindtree, Infosys, Havells, Wipro, JSW Steel, and Paytm. Additionally, global economic indicators such as China’s Q2 GDP, US Core Retail Sales data, and the European Central Bank’s interest rate decisions will provide further market insights.
Market Performance
The benchmark indices have maintained their upward momentum for six consecutive weeks, driven by strong earnings in the IT sector. At 09:15 am, the Sensex was up 187.39 points or 0.23% at 80,706.73, and the Nifty rose by 64.70 points or 0.26% to 24,566.90.
Analysts’ Insights
Analysts anticipate that pre-budget discussions will contribute to market fluctuations, highlighting the potential impact of fiscal policy decisions on market sentiment.
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V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned, “The global rally, led by the US market with 18.4% returns YTD in S&P 500 compared to 12.7% in Nifty, continues to support the Indian market. Recent US inflation data suggests a possible Fed rate cut in September, which is likely to positively impact the Indian market as well. However, investors should be cautious about high valuations in momentum stocks.”
IT Sector Outlook
The IT sector’s Q1 results from TCS and HCL Tech have shown improving prospects, though growth projections remain modest. Financials continue to be fairly valued, and the decline in US 10-year bond yields is favorable for Foreign Institutional Investor (FII) inflows.
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Fundamental View
Ajit Mishra, SVP of Research at Religare Broking Ltd., advised a hedged approach during the earnings season due to potential volatility. “Focus on sectors like IT, energy, FMCG, and pharma for long trades. Exercise caution with sectors like railways and defense, which have seen significant gains, by maintaining trailing stop losses.”
Technical View
Vaishali Parekh, VP of Technical Research at Prabhudas Lilladher, indicated that the Nifty has been consolidating between 24,150 and 24,450 levels, forming a positive bullish candle. A breakout is anticipated, targeting 24,900 and 25,600 levels, with crucial support at 24,000.
For the Bank Nifty, a breach above the 53,300 zone could trigger a fresh breakout, with targets at 55,100 levels. Support for the week is at 79,600/24,200 levels, and resistance is at 81,500/24,800 levels. The weekly range for Bank Nifty is projected to be 51,300-53,200 levels.
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Conclusion
Investors should monitor key Q1 results and global economic data closely. A cautious approach is recommended, particularly with sectors showing high valuations. Staying informed about fiscal policies and economic indicators will be crucial for making sound investment decisions.
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Disclaimer: The views and investment tips expressed by investment experts are their own and do not represent the website or its management. It is advisable to consult certified experts before making any investment decisions.
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