FIRST TRADE: Nifty scales new all-time high despite higher June CPI print

Indian equities despite mixed global cues opened strong with the Nifty benchmark hitting a new high for the second consecutive day at the open. Nifty marked a fresh all-time high of 24,598. Last seen, both indices were up between 0.23-0.25 per cent, BSE Sensex was up 184.76 points at 80,704.1 and Nifty rose 61.35 points to trade at 24,563.5. 

The bull run in the Indian markets continued even as the June CPI inflation came in hotter-than-expected at 5.08 per cent, led by unexpectedly higher vegetable prices. 

"The global support for the market rally in India continues. It is important to understand that the US is leading this rally with 18.4% returns YTD in S&P 500 compared with 12.7% YTD returns in Nifty. The latest inflation data in the US indicates a rate cut by the Fed in September. This is likely to keep the US market buoyant with positive impact in India, too. However, valuations in India are moving to elevated levels. Investors have to be cautious about the excessive valuations in the momentum stocks which are moving to frothy levels," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

In the broader market, Nifty Midcap 100 also logged a fresh record high at  57,433.35, taking the YTD gains to 24 per cent. Meanwhile, Nifty Smallcap 100 underperformed and was down by 0.3 per cent.

Highlighting the key triggers for the day, Prashanth Tapse, Senior VP (Research), Mehta Equities said key catalysts for the day include the release of WPI inflation numbers and Federal Reserve Chair Jerome Powell's speech on July 15th.

The FOMO rally remains strong, with India projected to become the world's second-largest economy by 2031, the Dow Jones surpassing 40,000, and a 93% chance of a Fed rate cut in September. FIIs were net buyers of Rs. 3,844 crores last week, he added.

BUZZING STOCKS

On Q1 beat, shares of HCL Technologies gained up to 4.8 per cent at day's high to Rs 1635.85 per share on the BSE.

Shares of the Navratna PSU IREDA on upbeat Q1 show marked a fresh record high for the third consecutive day today.

Shares of Dalmia Bharat traded on a positive note even as the global brokerage downgraded the stock to equal-weight from the earlier overweight rating.

Trading strategy in Nifty and Bank Nifty

For Nifty, the preferred trade is to buy at 24,502 with a stop at 24,101, targeting 24,650/24,751. For Bank Nifty, buy at 52,279 with a stop at 51,451, targeting 52,500/53,100, noted Tapse. Bullish stocks include IRCTC, Zydus Life, and Torrent Pharma, he added.

Asian Markets

Most Asian markets retreated with Hong Kong's Hang Seng down over 1 per cent at the last count as China's latest GDP print disappointed. Also, uncertainty in the US after the assassination attempt on former President Donald Trump also weighed on sentiments. Meanwhile, Japan's stock market is shut today due to a public holiday.

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