Nifty bulls await directional move, auto stocks in focus
Sensex and Nifty traded near the flatline on Monday, the first trading day of July month, after consolidating in Friday's session.
Auto stocks were in focus amid the release of June month sales numbers. Shares of Samvardhana Motherson, Hero Moto, Bharat Forge, Maruti Suzuki, and Bajaj Auto rallied over 1% each. Within the Nifty50 pack, JSW Steel, and Bharti Airtel rallied over 1%, while NTPC, Power Grid, and Apollo Hospitals fell up to 2%.
The momentum was stronger in mid and smallcap indices. Metals, pharma, media and oil and gas sectors were trading in the green, while banks, financials and real estate stocks were under pressure.
Shares of GRSE rallied over 7% after winning an order from the Bangladesh government. Wockhardt shares were up over 12% after the pharma major said its investigational drug has successfully treated a young immuno-compromised cancer patient in the US.
Expert Take
The US core CPE for May coming at 2.6% is good news for the bulls since it increases the possibility of rate cuts by the Fed this year, analysts said.
«Despite high valuations, the market is likely to remain resilient. The healthy trend in the recent rally, which has pushed Nifty by 6.5% in June, is that it is being led by fundamentally strong largecaps like RIL, leading private sector banks, and Bharti Airtel. The high delivery-based buying in largecaps is a strong trend that will impart resilience to the market,» said Dr. V K Vijayakumar of Geojit Financial.
Chart readers said the market may soon make a directional move as
