The Nifty 50 is back at making an attempt to scale the 20,000 mark. It closed above the 19,700 mark on Monday only for the second time in the last six trading sessions. The index ended the month of July with gains of close to 3 percent. This was the fifth straight monthly advance for the Nifty 50, a streak last achieved two years prior, between May-October, 2021.

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19,771 was the high that the Nifty 50 made on Monday after reversing exactly from levels of 19,600 on the downside, making this level a crucial support for the index. Auto stocks will be the dominant ones in Tuesday's trading session with companies coming out with their sales figures for the month of July. Stocks like Maruti will also be reacting to their quarterly results, which were reported after market hours on Monday.

"The underlying trend of the Nifty 50 remains choppy," said Nagaraj Shetti of HDFC Securities. He expects a decisive move above levels of 19,870 to open the doors for a sharp upmove towards levels of 20,000 in the near-term. Immediate support is seen at levels of 19,600.

The Nifty Bank index snapped a two-day losing streak during which it shed over 600 points. Despite ending higher, the index underperformed the Nifty 50 on Monday. However, the higher closing meant that the index ended above the 45,500 mark,

The Nifty Bank index reversed from the 20-DEMA level of 45,362 on the daily chart. Ashwin Ramani of SAMCO Securities said that a close above Monday's high of 45,695 can lead to initiation of fresh longs on the index, while 45,300 continues to be a strong support for the Nifty Bank.

Kunal Shah of LKP Securities said that the bulls ensuring that the Nifty Bank took support at its 20-DEMA was proof of their willingness to prevent further downside on the index. 45,700 - 45,800 continues to be a strong resistance area for the index and a break above that would mean a move towards its all-time high. However, Shah said that in case the index breaks below the 45,300 mark, it can lead to a correction towards 45,000 - 44,700.

The stock in focus on Tuesday would most likely be UPL after the agrochemical maker cut its full year revenue growth and operating profit growth guidance. Although the stock ended little changed on Monday, it may react to brokerage commentary post the analyst call.

"We are extremely disappointed in terms of the guidance cut that UPL has given and with el-nino conditions expected to now play out, my own sense is that the first half of the year will be an absolute washout. Second half recovery really depends on a lot of factors and therefore the stock trades below all pivot levels. So we would avoid the stock looking at the Q1 numbers,” Mayuresh Joshi of William O'Neill said.

What Do The F&O Cues Indicate?

Nifty 50's August futures shed 0.2 percent or 19,150 shares in Open Interest. They are now trading at a premium of 90.1 points compared to 105.75 points earlier. On the other hand, Nifty Bank's August futures added 8 percent or 1.45 lakh shares in Open Interest. Nifty 50's Put-Call Ratio is back at 1, from 0.82 earlier.

Piramal Enterprises has joined the F&O ban list from today's trading session, while Indiabulls Housing Finance continues to remain in the ban list.

Nifty 50 on the Call side for August 03 expiry:

Most Nifty 50 call strikes between 19,600 to 19,750 of this Thursday's expiry have seen shedding in Open Interest. However, the 20,000 strike call saw Open Interest addition for this week's expiry.

Nifty 50 on the Put side for August 03 expiry:

After Monday's gains, Nifty 50's put strikes between 19,600 and 19,700 saw addition in Open Interest. Interestingly, even the 19,000 strike call for this Thursday's expiry saw Open Interest addition

Here's a look at the stocks that added fresh longs on Monday, which means an increase in price and Open Interest:

Here's a look at the stocks which added fresh shorts on Monday, meaning a decrease in price but increase in Open Interest:

Here are the stocks to watch out for in Tuesday's trading session:

Maruti Suzuki: Board approves termination of contract manufacturing agreement with Suzuki Motor Gujarat. Maruti will acquire 100 percent stake in Suzuki Motor Gujarat from Suzuki Motor Corporation. Acquisition to be done before March 31, 2024. Quantum and process will be determined at a later date.

Nestle India: CMD Suresh Narayanan in an exclusive conversation with CNBC-TV18 said that hopefully a period of less inflation is coming and it sets the ground for volume-led growth. He further said that one-third of the portfolio is price-point-led and that M&A should not dilute the value accretion to the company.

EaseMyTrip: To acquire 51 percent aggregate paid-up share capital in three travel tech companies - Guideline Group, Tripshope Online and Dook Travels.

Petronet LNG: Strong beat on margins at 10.1 percent from 6.8 percent in the March quarter and higher than the 8.7 percent expected. Revenue fell 16 percent sequentially, while net profit grew by nearly 30 percent.

RVNL: Gets Letter of Award for two packages 16 and 17 of MPPKVVCL, Jabalpur Company Area. The packages are valued at Rs 149 crore and Rs 182 crore respectively.

Delta Corp: Puts IPO plans of online gaming unit on hold due to GST uncertainties.

What Do The Global Cues Indicate?

Asian equities have opened higher on Thursday ahead of private manufacturing surveys around the region including Japan, South Korea and China.

The Nikkei 225 has opened flat, as has the Topix as the country's unemployment rate fell slightly to 2.5 percent in June.

South Korea's Kospi is up nearly 0.7 percent, while the Kosdaq is up 0.5 percent. Hang Seng futures are pointing towards a stronger open.

Markets on Wall Street ended modestly higher on Monday, kickstarting a busy earnings week and ending the month with gains.

The Dow Jones ended 100 points higher, while the S&P 500 and Nasdaq gained 0.1 percent and 0.2 percent each respectively. The S&P 500 gained 3.1 percent in July, notching up its fifth straight positive month, since its seven-month winning streak that ended in August 2021.

It was the fifth straight positive month for the Nasdaq too, the longest streak since April 2021.

Foreign investors remained net sellers in the cash market on Monday, while domestic investors continued to pour in money at lower levels.

Osho Krishnan of Angel One said that the 19,600 level on the Nifty 50 will act as a support while the 200-point range between 19,800 - 20,000 sees a cluster of resistances. He advises traders to avoid complacency and buy the decline and sell the rallies.

Despite Monday's surge, the Nifty 50's Relative Strength Index (RSI) is still in a bearish crossover, indicating a potential downside, according to Rupak De of LKP Securities. A decisive move above levels of 19,800 may push the Nifty 50 towards the 20,000 mark, he said.

First Published:Jul 31, 2023 10:59 PM IST