US Markets Stay Strong; Can Nifty Break 16,000 Again? Share Market Today

Here are some of the major updates that could move the markets today:

Stocks

Tata Elxsi clocked a robust 63 per cent growth in profit at Rs 184.7 crore for quarter ended June 2022 on strong operating profit and topline growth. The company reported a 30 per cent rise in the revenues from operations at Rs 725.9 crore.

Cipla  said its arm Cipla Health Ltd has signed definitive agreements to acquire nutritional supplement brand Endura Mass from Medinnbelle Herbalcare for an undisclosed sum.

Tata Steel Long Products  posted a net loss of Rs 331.09 crore in the June quarter, mainly on account of higher expenses. The company had a profit of Rs 331.60 in the year-ago period.

GKP Printing  said its board meeting is scheduled to be held on August 01, 2022 to consider and approve bonus shares.

GTPL Hathway has reported a 9 per cent decline in the profit to Rs 43.25 crore in quarter ended June 2022, but revenue increased nearly 5 per cent to Rs 630.9 crore in the same period with subscription revenue rising 3 per centto Rs 272.7 crore and broadband revenue increasing 24 per cent to Rs 113.9 crore.

Dabur India has four brands in its kitty having a turnover of Rs 1,000 crore and above, according to the company's annual report. Its two brands -- Dabur Honey and Dabur Chyawanprash - have over Rs 500 crore in sales.

What to Expect? 

NIFTY opened with a gap-up at 16,022 and moved higher. There was a downmove and once the day-low was broken, index accelerated the fall and NIFTY closed at 15,939, down by 28 points or 0.18%.

BANK NIFTY opened flat at 34,840. Though there was an initial up-move, it was sold into and the index moved below 34,800. BNF closed at 34,651, down by 177 points or 0.51%.

FMCG closed in the green.

The US markets closed slightly lower after a volatile day but the European markets closed deep in the red.

The Asian markets are mostly trading higher but HANG SENG is down. The U.S. Futures and the European futures are trading higher.

SGX NIFTY is trading at 15,990 indicating a gap-up opening.

NIFTY has supports at 15,870, 15,800 and 15,670. We can expect resistances at 16,000, 16,050 and 16,150.

BANK NIFTY has supports at 34,550, 34,390 and 34,000. Resistances are at 35,000, 35,400 and 35,550.

Foreign Institutional Investors net sold shares worth Rs 2800 crores. Domestic Institutional Investors net bought shares worth Rs 1800 crores.

INDIA VIX is at 18.3

You can see that VIX has dropped by 20% over the last month. 

There were reports that the government is considering a reduction in the windfall taxes and this led to a sudden price burst in Reliance yesterday. Let us watch the stock today.

The launch of SGX Nifty futures in GIFT city has been postponed as PM defers visit due to heavy rain in Gujarat. The futures once launched will have a trading time of 19 hours. Sgx Nifty in Singapore will continue to trade but will stop in the coming months.

China's quarterly GDP came out at 0.4% growth and this is the slowest pace since the Covid outbreak. However, the Chinese markets are still trading in the green.

The market participants were expecting a reaction to the CPI in the US markets. However, they opened lower and then managed to move higher. Bullard's statement that he favours a 75 basis points hike and not 100 lifted the sentiments. How the European markets open will be very important today to see if there is short covering.

Our WPI inflation has eased to 15.2, slightly better than expectations. However, it may not be given importance.

HDFC BANK results will be announced tomorrow. We will have to see how the positions are squared today.

I will be watching 15,870 on the downside and 16,050 on the upside.

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