volatile and slightly nervous about profit booking, analysts say

On Monday, Nifty closed down 0.53% at 16,631 – Photo: Shutterstock

The NSE Nifty 50 (India 50) looks volatile ahead of Tuesday’s session as a downward correction is expected, analysts told Capital.com. The index would continue to be influenced by Asian stocks, which have fallen from more than three-week highs, and the US Federal Reserve’s policy meeting this week, they said.

Tata Steel stock price and Tech Mahindra stock price could react to the news flow of these counters influencing the National Stock Exchange index.

On Tuesday, major companies announcing their first quarter results include Asian Paints, Bajaj Auto, Larsen & Toubro, Tata Power Company and Union Bank of India.

“On Monday, a small negative candle formed on the daily chart with a minor upper and lower shadow. Technically, this pattern indicates the completion of a recent uptrend and the start of a short-term downside correction against at the highs,” said Nagaraj Shetti, technical research analyst at HDFC Securities.

“The indications are for some consolidation in the index and we expect volatility to remain high, thanks to the current earnings season and the results of the upcoming US Fed meeting.

Buy the dip!

In the meantime, we maintain our positive view and suggest continuing with the ‘buy on dip’ approach,” said Religare Broking VP (Research), Ajit Mishra.

Sameet Chavan, Chief Technical and Derivatives Analyst at Angel One, however, believed that the overall trend remains bullish, but in between there are opportunities for consolidation or profit taking.

“As this is the monthly expiry week, we are likely to see some interesting moves in the markets. Additionally, globally there are key events scheduled and therefore this week will be the week of action” .

Hot Stocks

Tata Steel

Tata Steel on Monday reported a 12.83% drop in its consolidated net profit to INR 77.65 billion ($970 million) for the June quarter, impacted by higher expenses, even as its total revenues operations increased by 18.64% to INR 634.30 billion.

The company’s total expenses, including the cost of materials consumed and financial costs, reached INR 519.13 billion during the quarter, it said in a regulatory update. Ahead of the earnings announcement, the company’s shares closed up 3.06% at INR 964.70.

Tech Mahindra

Tech Mahindra reported a 24.8% decline in net profit on a sequential basis to INR 11.32 billion for the June quarter, impacted by salary hikes and increased travel expenses.

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The Pune-based company recorded a net profit of INR 15.06 billion for the quarter ended March. On an annual basis, the net profit of the IT services company fell by 16.4% from INR 13.53 billion, it said in a regulatory filing.

Ahead of the earnings announcement, the share price of the Mahindra & Mahindra Group company fell by 1.43% to INR 1,014.

Nice on Monday

On Monday, Nifty closed down 0.53% at 16,631, ending a six-day winning streak. Tata Steel, IndusInd Bank and Coal India were the biggest gainers, while Mahindra & Mahindra, Maruti Suzuki India and market heavyweight Reliance Industries were among the losers.

“Nifty should have corrected after a six-day rise. However, the fact that it did not close at the intraday low is some consolation.

Worries ahead of the US Fed meeting may cap the upside for the next 1-2 sessions, and 16,563-16,719 may be a band for the near-term Nifty,” said Deepak Jasani, Head of Market Research. retail at HDFC Securities.

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NIFTY 50 forecast: Should you buy the dip?Nifty 50 Global stock market index.  With a dark background and a world map.  Graphic concept for your design.