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| Nifty50 and Bank Nifty Future |
The monthly derivative expiry for Nifty and Bank Nifty future is scheduled tomorrow. Before coming to the trading strategy let us first understand the market so far. Today, Wednesday morning most of the Asian markets were trading in positive bias, as expected Indian share market also opened in a flat and positive note.
The market has reacted negatively to the news of the International Monetary Fund (IMF) for lowering India’s FY20 growth forecast. IMF has cut India's growth by 0.3% to 7% for 2019 and to 7.2% for 2020 because of slow economic growth and weaker than expected outlook for domestic demand. But India will still be the fastest-growing major economy in the world and ahead of China as per IMF
Market update: Nifty 50 stocks and Bank Nifty future
In the end, the market failed to hold its early gains and closed in red today for the fifth consecutive day. Nifty was down 60 points at 11,271 whereas Sensex was down 135 points at 37847.65. Nifty Midcap and Smallcap 100 Index also declined by 1.48% and 1.45% respectively.
Bank nifty future was highly volatile today, it has given a movement of 364 points. PSU Banking space was the major loser in Bank Nifty today. In July series, Bank Nifty Future has declined almost 4% so far and tomorrow on the expiry day we can expect short covering.
On a sectoral basis, Metal, Auto, Energy, Pharma and IT are top losers today. Media, Chemical and consumer nondurables sectors were ended in the green today. The top Nifty 50 gainers are Zee Ent, Asian Paints, HDFC, HUL and HCL tech. The top Nifty 50 losers are Adani Ports, Indiabulls Housing, UPL, Eicher Motors, and Indusind Bank
Next Trigger for Nifty and Bank Nifty Future
Indian share market reacted negatively since after the Budget in July series. FII’s are the net seller and DIIs are the net buyers in this series. Market analysts are giving more downside targets. Nifty Midcaps and Small Caps are bleeding. In such a scenario, Investors get confused about what to do in the market.
Indian Market is seriously looking for a positive trigger. FED meeting, RBI monetary policy, Q1 results and July monsoon update can be the next trigger for the market. Let’s hope we can see a bounce back soon in the Nifty and Bank Nifty future in the Aug series.
Q1 Results for Nifty 50 stocks
On Tuesday, a Nifty 50 Engineering and Capital good stock Larsen and Toubro (L&T) has announced its Q1 results, the company reported PAT rose by 21% to Rs 1361 crore in the June quarter compared with Rs1129 crore in the same quarter last year. The EBITDA margin fell to 6.40% from 6.80% on a yearly basis. Consolidated gross revenue rose 10% to Rs 29636 crore.
The company said it has won new orders worth of Rs 38,700 crore at the group level during the June end quarter. The L&T share price reacted negatively and fell 1.57% today on NSE and closed at 1387.35. It may further fall but one can accumulate the stock on the decline for the long term perspective.
Another Nifty 50 stock that reported Q1 result after the market on Tuesday was Hindustan Unilever (HUL). The company reported a profit growth of 15% on YoY. The consolidated profit for the June quarter was Rs1792 compared to the profit of Rs 1565 crore posted in the same quarter last year.
The total consolidated increased 6% to Rs10509 crore during the June quarter against Rs9,909 crore in the same period last year. The EBITDA of the company came at Rs 2647 crore 18% up on a yearly basis.
The share price of HUL reacted positively today in the market. The HUL share closed at Rs 1728.65 per share up more than 2% today.
Today, during the market a Nifty 50 stock Asian Paints announced its Q1 results. The company reported an 18% increase in consolidated net profit at Rs 672 crore for the June end quarter. Last year in the same quarter the company’s net profit was Rs570.02 crore.
The total income for the June end quarter stood at Rs 5204.19 crore, up 17% as against Rs 4460.25 crore in the same quarter previous year. The share price of Asian Paints closed Rs 1483.40 per share up almost 3.78% from the previous close.
Tomorrow’s Q1 results in Nifty 50 stocks are Bajaj Finance, Bajaj Finserv, Tata Motor
Nifty and Bank Nifty Future Trading Strategy for tomorrow
Primary Trend of Nifty Future: Volatile (Bias Sideways)
Nifty Future Range-Bound Trend: All up moves Initiates Profit Booking (Sale) @ 11384, whereas all Down moves Initiate Short Covering (Buy) @ 11188
If Nifty Future moves above 11295 then you should Buy with 1st Target of 11320 during the day with a Stop Loss of 11255 FOR the Target of 11320- 11348- 11384
If Nifty Future moves below 11255 then you should Sell with 1st Target of 11220 during the day with a Stop Loss of 11295 FOR the Target of 11220- 11188- 11130
Primary Trend of Bank Nifty Future: Volatile (Bias Sideways )
Bank Nifty Future Range-Bound Trend: All up moves Initiates Profit Booking (Sale) @ 29201, whereas all Down moves Initiate Short Covering (Buy) @ 28838
If Bank Nifty Future moves above 29064 then you should Buy with 1st Target of 29132 during the day with a Stop Loss of 28940 FOR the Target of 29132- 29201- 29318
If Bank Nifty Future moves below 28940 then you should Sell with 1st Target of 28838 during the day with a Stop Loss of 29064 FOR the Target of 28838-28769-28705
Conclusions:
Nifty and Bank Nifty future trading strategy given above are only for expiry day one should trade with strict stop loss. The market is expected to be volatile tomorrow. Indian share market will open as per global cues. If global market supports then both Nifty and Bank Nifty future can close in positive at the end of the day tomorrow.
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Happy Investing!
Finogyan Team
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