The NSE Nifty 50 index (India 50) will likely continue its volatility on Friday with a negative bias, ahead of June auto numbers and interest rate concerns, analysts told Capital.com.
Auto manufacturers would disclose sales numbers on Friday with the two-wheeler segment to come under pressure while passenger and commercial segments could offset weakness, as per industry expectations.
Asian Paints share price and Reliance Industries share price to come under focus on Friday following respective corporate developments.
Nifty 50 (India 50) price chart
“The familiar fears of more interest rate increases and the risk of recession continue to haunt investors. Nifty’s biggest support is placed at 15,367 and below the same, expect a waterfall of selling. Nifty’s major hurdle is seen at 15,927,” Prashanth Tapse, Vice President (Research) at Mehta Equities said.
Nagaraj Shetti, technical research analyst at HDFC Securities also sounded a word of caution on Nifty outlook.
After the formation of false upside breakout at 15,800 levels on 27 June, the absence of any sharp weakness from near the hurdle in the last three sessions could be in favour of bulls to make a comeback from the lows.
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India 50 key support level is 15,700
"But, any decisive move below 15,600 levels is likely to negate the bullish bet and could result in sharp weakness down to 15,200 levels”, he said.
“For Nifty, 15,700 could be the key support level and 15,900 would act as an important resistance zone. On further decline, the index could fall to 15,600-15,550 levels. Any fresh uptrend is possible only after the index sees 15,900 breakout and above the same it could move up to 16,000-16,050,” Shrikant Chouhan, head of equity research (Retail) at Kotak Securities.
Nift 50 Hot stocks
Asian Paints shareholders approved the reappointment and modified pay structure of its chief executive officer and managing director Amit Syngle. The shareholders had approved his reappointment at the company’s annual general meeting, according to a stock exchange update.
Earlier, according to a local media report, two proxy advisory firms – Institutional Investor Advisory Services and InGovern Research Services – who provide advice to shareholders, had advised investors to vote against the reappointment of Syngle, citing lack of disclosures on salary.
Reliance Industries group company - Reliance Brands - on Thursday announced a strategic partnership with the UK-based fresh food and organic coffee chain, Pret A Manger. Under the long-term master franchise agreement, the Indian company will launch and build the global sandwich franchise’s brand in the country. RBL is a subsidiary of Reliance Retail Ventures, which in turn, is a subsidiary of billionaire Mukesh Ambani-controlled RIL.
Nifty on Thursday
On Thursday, Nifty ended down 0.12% at 15,780.25, mostly in line with the global markets on fears of hefty rate hikes to rein in soaring inflation.
“Markets remained volatile on the monthly futures and options expiry day and finally closed on a flat note. After the initial uptick, it traded under pressure for most of the session, however, intermediate recovery in the select index heavyweights capped the downside.
The recent pause in the index has derailed the momentum on the broader front as well. And, indications are still mixed so we suggest keeping a check on leveraged positions and waiting for clarity. Apart from the global factors, upcoming auto sales data will also be in focus for cues,” Ajit Mishra, vice president (Research) at Religare Broking said.