Nifty Consolidates Ahead of Major Earnings
The Indian stock market is expected to remain volatile in the upcoming trading sessions as several key companies announce their quarterly earnings. The Nifty 50 index has been consolidating in a narrow range over the past few trading sessions, and investors are eagerly awaiting the Q1 results to make trading decisions.
As many as 38 companies are set to announce their earnings for the April-June period on Saturday. The leading players scheduled to announce their Q1 results on July 26 include IDFC First Bank, Kotak Mahindra Bank, Lodha Developers, and Balkrishna Industries, among others.
Key Stocks to Watch Out for
IndusInd Bank’s June quarter earnings will be closely watched by the investor and analyst community, as the private sector lender gears up to report its first quarterly performance after the derivative accounting episode that rattled investor confidence and led to questions around governance and succession planning.
Whirlpool of India is likely to report a net profit of Rs 137 crore and total revenue of Rs 2,529 crore for the first quarter, according to estimates. Its Ebitda is seen at Rs 204 crore, and margin is expected at 8.1%.
Mazagon Dock Shipbuilders Ltd. will hold its Board meeting on Monday, July 28, for consideration and approval of the company’s unaudited standalone and consolidated financial results for the quarter ended June.
IDFC First Bank is likely to clock a net profit of Rs 2,997 crore and a net interest income of Rs 22,493 crore for the quarter ended June, according to a survey of analysts’ estimates done by Bloomberg. The company is expected to post a net interest margin of 6.25%.
Nifty Levels and Technicals
The Nifty 50 index closed at 15,432.15 on July 25, with a gain of 0.15% over the previous trading session. The index has been trading in a narrow range of 15,350-15,450 over the past few weeks, with a strong support at 15,350.
The Nifty is expected to remain range-bound until the Q1 earnings season is over, with a potential upside of 2-3% if the results are positive. However, if the earnings are disappointing, the index could face a correction of 1-2%.
Investing Strategies
Investors with a medium- to long-term perspective can consider investing in quality stocks that have a strong track record of delivering consistent earnings growth. They can also diversify their portfolios by investing in various sectors, including technology, healthcare, and consumer staples.
For short-term traders, it’s essential to monitor the technicals and keep an eye on the Nifty’s support and resistance levels. They can also consider trading in options or futures contracts to manage their risk.
Conclusion
The Indian stock market is expected to remain volatile in the upcoming trading sessions, with several key companies announcing their quarterly earnings. Investors should remain cautious and keep an eye on the Nifty’s technicals and key stock movements. With a strong support at 15,350, the Nifty has the potential to rise 2-3% if the earnings are positive.
