GIFT Nifty 🇮🇳: (-122, 25282)
TCS Q1FY26 was above street expectation but we suspect is unlikely to move the needle in favor of IT stocks.
TCS Q1 profit was up 6%. The company has blamed ‘geo-political uncertainties which has caused demand contraction’
Our call of the day suggests IT stocks can witness massive rebound only if the Federal Reserve turns ultra-dovish.
Traders will now eye Q1 results of IT stocks like:
14th July: HCL Tech
16th July: LTTS, Tech Mahindra
17th July: LTIM
23rd July: Infosys
Nifty bulls are likely to receive fresh drubbing also amidst:
1) Trump tariff uncertainties’
2) Hawkish remarks from the Fed’s Musalem.
Technically, confirmation of strength only above Nifty 25670 mark.
Now, the 3-positive catalysts:
1) WTI crude oil futures fell 2% to below $67 per barrel as traders digested news that OPEC+ may pause planned output hikes starting in October.
2) In yesterday’s trade, FIIs turned out to be net buyers to the tune of Rupees 221 crores while DII were net buyers to the tune of Rupees 591 crores.
3) India VIX, the fear index has slumped towards 11.67 levels.
The Gyan Mantra: Stay nimble as there could be some “whipsaw” in the near term.
Amongst stock specific action:
1) Emcure Pharmaceuticals (+1.98%) advanced after the U.S. Food and Drug Administration (USFDA) conducted a pre-approval inspection (PAI) at its manufacturing facility (Oncology) located at G.I.D.C., Sanand, Ahmedabad, Gujarat.
2) HDFC AMC (+1.28%) and NAM India (+1.8%) on reports that the net inflow into equity mutual funds surged 24% to Rs 23,587 crore in June, reversing the declining trend of the last five months
Now, here is the preferred trade on Nifty and Bank Nifty:
Nifty (25355): Sell at CMP. Stop at 25771. Targets 25221/25000. Aggressive targets at 24700-24900 zone.
Bank Nifty (56956): Sell at CMP. Stop at 58151. Targets 56500/56100. Aggressive targets at 55000-55300 zone.
Our chart of the day is bullish on HDFC AMC, MARUTI and M&M on any early excessive intraday weakness with an interweek perspective.
The 1 Stock to Buy Now: Buy HDFC AMC (CMP 5208): Buy at CMP. Stop at 4951. Targets 5279/5369. Aggressive targets at 5501. (Interweek Strategy). Likely to enjoy strong session as long as 4983 support is held. Massive breakout play on the daily charts is quite likely as the recent sequence of higher high/low is intact on time-frames. Confirmation of strength only above 5279.
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