Morning Outlook 3rd July, 2024

The domestic market took a breather, resonating with the mixed global trend, with the ECB showing caution regarding further rate cuts. In sectoral trends, IT stocks gained due to expected increases in discretionary spending, while auto stocks declined following lower-than-expected monthly volumes.

The investors are closely monitoring the progress of the monsoon, the forthcoming Union budget which can have potential economic implications. Recent spikes in US Treasury yields and a gradual rise in crude oil prices are affecting market trends.

A small negative candle was formed on the daily chart at the new highs, which is indicating a lackluster type movement in the market. Stocks specific there are some sort of tiredness is witnessing except IT sector so we are expecting stock specific movement in the market in days to come.  Banking stocks are also showing some sort of weakness on the chart but HDFC Bank is showing it is ready for a sharp upmove and can lead the market same pattern is with Reliance it is also taking a pause on the all time high levels which would also support index in short term as both stocks have major weightage in the index pack. Overall traders need to be cautious at these levels.

Immediate support is at 23900-24000. The next upside resistance to be watched around 24200-24350.

TECHNICAL PICKS

DERIVATIVE PICKS

UPCOMING ECONOMIC DATA

NEWS UPDATES

• BNP Paribas prefers these auto stocks; expects capex revival to drive CV segment
• IEX: Total electricity volume at 10,185 MU, up 24.7% YoY
• Government may opt for 5-7% equity sale in CONCOR after tepid response to strategic sale plan
• Mobile industry seeks rationalisation of Customs Duty for Export Push. Industry bats for tariff cuts, claims will make India competitive, assimilate with global value chains, boost exports
• Adani Port June cargo volumes up 12% at 37 mt YoY, Q1 vols up 7.5% at 109 mt YoY

Source: Moneycontrol, Economic Times,  Indian Express, Business Today, Livemint, Business Standard

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