Nifty holds 11900, mid smallcap outperform on a lacklustre day

Benchmark indices consolidated in a narrow range and closed flat with a positive bias on July 3 ahead of the Budget 2019. Nifty held on to its crucial support at 11,900 towards the close of the trade.

The final tally on D-Street – Sensex rose 22 points to 39,839 while Nifty closed 6.4 points higher at 11,916.

The broader market outperformed benchmark indices. The S&P BSE Midcap index rose 0.11 percent while the S&P BSE Smallcap index rose 0.26 percent.

The sectoral indices exhibited a mixed trend. While Auto, IT and Consumer Durables remained the top losers, the other sectors like FMCG, Capital Goods, and Realty were the top gainers.

Markets are likely to remain volatile ahead of the Budget on July 5 and profit taking at higher levels could be seen towards 11,950-12,000. Investors would also track developments around US and Iran tensions and crude oil prices.

“We maintain our cautious stance on the Indian markets. The near-term movement is likely to be driven by the upcoming Union Budget (scheduled on July 5),” Jayant Manglik, President – Retail Distribution, Religare Broking Ltd said.

“Globally, while the temporary trade truce between the US and China is a positive development, the recently escalated tensions between the US and Iran could continue to induce high volatility across indices. Meanwhile, market participants would also monitor the monsoon progress, movement of crude oil prices and currency,” he added.

Technically, Nifty formed a bearish candle on daily charts that resembles a ‘Doji’ pattern on the daily charts. The index is trading in a narrow range for the past three trading sessions.

Nifty is expected to face strong resistance at 12,000-12,020 while supports are placed at 11,850-11,820.

Stocks in news:

Shares of Parag Milk Foods gained 3 percent after the company appointed Chief Executive Officer.

Excel Crop Care shares rallied nearly 4 percent after Gujarat Pollution Control board withdrew its closure order to company’s Bhavnagar plant.

Bharat Gears shares gained 2 percent after the acquisition of auto clutch maker that has a business in India and abroad.

Indiabulls Housing Finance rose 7 percent after early redemption of non-convertible debentures.

Shares of Mahanagar Telephone Nigam gained 4 percent on reports of a bailout package for both state-run telecom companies.

Global update:

European markets are trading higher after EU leaders’ agreed on the nomination of IMF chief Christine Lagarde as the new head of the European Central Bank.

Asian markets ended lower as global trade concerns weighed on investor sentiment. Nikkei was down 0.53 percent at 21,638.16, Shanghai Composite shed 0.94 percent at 3,015.26 and Kospi fell 1.23 percent at 2,096.02.

India Union Budget 2019: What does Finance Minister Nirmala Sitharaman have up her sleeve? Click here for top and latest Budget news, views and analyses.