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The domestic market is likely to sustain its gains at the open on Tuesday as well. Gift Nifty at 19,891 suggests another promising opening for equites; Nifty futures at the NSE closed at 19,844 on Monday.
With core data growth remaining resilient, analysts expect sustained buying interest in the domestic markets. The first day of the new month will see momentum building, as equities across the Asia-Pacific region are up in early deals on Tuesday.
July ends with strong gains
Indian equities ended positively for the fourth consecutive month, with the Nifty gaining 2.9 per cent on the back of a healthy Q1 earnings season, a 6 per cent surplus in rainfall, and positive FII flows during the month (₹14,623 crore till July 28).
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Stocks to watch on August 1, 2023
Automobile cos, Maruti Suzuki, Spandana Sphoorty, Bandhan Bank PowerGrid, RVNL, Easemytrip, South Indian Bank, Anupam Rasayan, Aptus Value, Cholamandalam Finance, Escorts, GMDC, Godrej Agro, TTK Health, Tracxn Tech, TBZFredun Pharma, Shilpa Medicare, Greenply, Navin Fluorine, Cantabil Retail“Core sector growth hit a 5-month high of 8.2 per cent in June 2023, from 5 per cent in May 2023, led by six of the eight constituents, except cement and fertilisers. The tardy onset of the monsoon contributed to an improved performance in electricity, coal, etc,” said Aditi Nayar, Chief Economist, Head - Research & Outreach, ICRA Ltd. With the boost seen in mining and electricity from a dryer-than-normal June, we expect YoY IIP growth to print at 4-6 per cent in June 2023, in spite of the moderation in the YoY performance of several available high frequency indicators.”
RBI meet eyed
The focus now shifts to the RBI monetary policy outcome. It is widely expected that the central bank may retain the status-quo. The RBI monetary policy committee (MPC) will meet on August 8-10 and the decision will be announced on August 10.
The stock market is expected to remain in a consolidation phase and stock-specific activity will continue, they added.
“Going ahead, we expect the market to continue its north-bound journey, with phases of consolidation. The power sector remains in focus after NTPC reported strong quarterly results. Auto stocks will be in action as companies are likely to release improving monthly sales numbers, especially the 2W and CV segment, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
According to Deven Mehata, Equity Research Analyst, Choice Broking, the volume profile indicates the index has strong support in the 19,500-19,550 zone. Coming to open interest data, on the call side, the highest OI is observed at 19,800, followed by 20,000 strike prices, while on the put side, the highest OI is at a strike price of 19,600. On the other hand, the Bank Nifty has support at 45,360-45,500, while resistance is placed at 45,800-46,000 levels, he said
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