Stock Overview : Nifty Levels - 30th July 2012

Next week,  global cues and RBI action will hold the key for our stock market’s direction. Across the world, quarterly earnings  are the trend setter for the respective indices. In domestic market too, earning of the corporate  will play major shot.

On 31st , RBI  will  undertake  its credit  policy  review,    any rate cut will be crucial to impart some growth of our economy. Monsoon recovery in addition to inflation numbers may add some turn in the domestic story. Nifty  rollovers  to  August  series  were  recorded  at  70.06% vs. the 3Months’  average of 66.35%. Market wide rollover was at 83.86% in line with the 3M average of 82.53%. The Nifty August series has starting with futures OI of 2.05 crore shares, which is considerably higher than the last series and maximum in the last four months.

Moreover, index futures have closed at 38 points premium, suggesting long positions have been rolled into August. The US Federal Reserve and the European Central Bank both meet next week amid investor expectations of actions to stimulate economic growth and, in the case of the ECB, tackle the spreading euro zone debt crisis. Quantitative easing, or QE1 and QE2, in recent years strongly boosted stocks. Any such announcement will be viewed as positive by global markets.

Sectorally, realty, financials and capital goods stocks observed high rollover of positions while automobile, oil & gas and technology stocks observed relatively low rolls into the August series. Next week, Automobile and cement stocks will be in focus as the companies from these two sectors start unveiling their monthly sales volume data or July 2012 from Wednesday.

Index heavyweights like Idea, BHEL and Sesa Goa saw relatively high rollover of positions into the August series while Maruti, Hero MotoCorp and Reliance Infra witnessed low rolls. This will be crucial while deciding these stocks move. The important results to be announced next week include Bank of Baroda, GAIL (India), JP Associates and Cipla.



Nifty Levels for today:

Resistance Level Nifty- 5170/5225
Support Level Nifty-5070/4980