Informist, Thursday, Jul 13, 2023

By Maitri Seth

MUMBAI – Benchmark indices are likely to remain in a range on Friday. The Nifty 50 index is seen to remain in a 19300-19500 points range, with 19500 points being the crucial level for it to test. 

Shares of Wipro are likely to trade lower on Friday, a day after the company reported weak earnings sequentially for the quarter ended June. Investors also await the management's commentary, scheduled later today, to draw further cues. 

The Nifty 50 closed 0.2% higher at 19413.75 points today, after hitting a lifetime high of 19567 points. However, selling ahead of the weekly derivatives expiry today capped gains.

"Technically, the index reached a fresh all-time high but saw profit booking and formed a bearish candle", said Shrikant Chouhan, head of research at Kotak Securities. 

Metal and pharmaceutical sectors are likely to outperform in the next session. "Mid-cap and small-cap spaces are also posing some positive signs," said Raj Deepak Singh, technical analyst at ICICI Securities.

However, analysts believe that stock-specific movements will dominate the market's direction on account of the ongoing earnings season. "Going ahead, with the start of 2023-24(Apr-Jun) earnings season, market is likely to witness more stock-specific action", said Siddhartha Khemka, head of research at Motilal Oswal Financial Services.

Even though shares of information technology companies witnessed gains today, analysts believe these are likely to remain under pressure.

Shares of Wipro are expected to decline on Friday as the company reported a sequential fall in both its consolidated net profit and revenue. The company reported a consolidated net profit of 28.7 bln rupees for Apr-Jun, down 6.6% from a quarter ago, while its revenue dropped 1.5% sequentially to 228.3 bln rupees.

Market participants will also watch out for June quarter results of Bandhan Bank and JSW Energy. Globally, investors eye the US weekly export sales data, due to be released later today.  

"Nifty's failed attempt to break out from the 19300-19550 zone indicates further consolidation ahead. We recommend maintaining a cautious approach in the selection of stocks and focusing more on risk management," said Ajit Mishra, senior vice-president, technical research at Religare Broking.      

Edited by Deepshikha Bhardwaj

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