Good Morning & Welcome to Thursday's trading action at Dalal Street, dated 18th July 2019.

SGX Nifty wobbles in early action; indicating that Dalal Street will struggle to hold last three days gains. Blame it to President Donald Trump's latest comment about trade, saying there’s "a long way to go" before the U.S. and China reach a deal.

Growth Worries Lingers As Trade Remains Elusive.

But the good news for our stock markets is that Oil prices have slipped below $57 a barrel on prospects of easing geopolitical risk.

7 AM GLOBAL UPDATE:

DOW (-116, 27220)

NASDAQ (-38, 8185)

SGX NIFTY (-38, 11636)

NIKKEI (-217, 21252)

HANG SENG (-200, 28393)

BOVESPA (+80, 103855)

OIL (-0.20, $56.58)

GOLD (+4, $1427)

SUCCESSFUL INVESTING IS ANTICIPATING THE TRENDS OF:

Global: Negative.

FII: Negative.

DII: Positive.

F&O: Neutral.

‪Sentiment: Neutral.

NIFTY’s CRUCIAL LEVELS:

Nifty’s CURRENT MARKET PRICE: 11,688.

Nifty’s SUPPORT:

Intraday: 11591/11521.

Medium Term: 11,471/11281.

Long Term: 10,751.

Nifty’s RESISTANCE:

Intraday: 11727/11797.

Medium Term: 11841/11939.

Long Term: 12,501.

Nifty’s RANGE:

Intraday: 11601-11717.

Medium Term: 11287-12105.

Long Term: 10751-12501.

Nifty’s OUTLOOK

Intraday: Neutral.

Medium Term: Neutral.

Long Term: Positive.

Our call of the day suggests Dalal Street unlikely to get traction on buy side as denting sentiments are:

1. Elusive Trade Deal: Comments from President Donald Trump on the lack of progress between Beijing and Washington in the long-running dispute over trade and import tariffs.

President Donald Trump said an agreement with China on trade tariffs had “a long way to go,” and most importantly said he could impose the full slate of tariffs on Chinese imports.

2. Foreign portfolio investors have pulled out Rs 4,120 crore in the month of July till date, the highest outflow markets have seen in 2019.

Meanwhile our chart of the day suggests establishing short position in stocks like EICHER MOTORS, and PAGE INDUSTRIES with interweek perspective.

IMPORTANT THEMES FOR THE DAY:

Aggressive sell buttons are unlikely get activated as Oil prices have slipped to $57 a barrel. Oil prices sank on signs of easing Iran tensions. Amidst falling oil prices sentiments could soar at Dalal Street. That's a good news for Dalal Street.

Investors could also be salivating about the possibility of lower interest rates from the Federal Reserve. There is also optimism on the street as Fed's Chief Jerome Powell's message seems like license to buy all stocks.

Also, hints of economic stimulus out of China that might be helping out bullish traders.

Technically, hurdles for Nifty at 11797-11839 zone while downside nicely supported at 11521 mark.

Derivative data suggests that Maximum Call open interest (OI) of 32.30 lakh contracts were seen at the 12,000 strike price. It will act as a crucial resistance level for the July series. while Maximum Put open interest of 25.13 lakh contracts were seen at 11,600 strike price. This 11,600 mark on Nifty will act as a crucial support level for the July series.

Stocks banned in F&O segment: DHFL, IDBI, RELCAP, RELINFRA, TATAELXSI.

Q1 results to trickle in on Thursday: ACC, Larsen & Toubro Infotech, Sterlite Technologies, 8K Miles Software, Rallis India, Colgate Palmolive (India).

Now lets take a look on stocks where Q1 results trickled out yesterday:

• YES BANK reported a 91% fall in its net profit, with core income growing at just about 2.8% from a year ago. At lower prices YES Bank stock price has priced in the collapse in growth. Technically support for the stock is placed at 80-82 zone.

• Wipro's June quarter consolidated net profit jumped 12.6% to ₹2,388 crore. Wipro revenue grew by 5.3% in Q1. The results were above street's expectations.

• Mindtree’s revenues rose just 0.8% sequentially in Q1, slower than most analysts’ estimates

Outlook for Thursday: Consolidation day likely

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