Sensex gains 304 points, Nifty closes at 10,947; Reliance Industries top gainer

Vinod Nair, Head of Research, Geojit Financial Services 

Market rallied to a five month high as fading trade war woes and shift in attention to corporate earnings supported investor’s sentiment. Any revival in earnings growth will give scope for re-rating in valuation for many mid cap stocks which were the real victim of the recent correction. However, rupee depreciated and bond yield rose in expectation of increase in June CPI inflation.

Market Breadth

Market breadth, indicating the overall health of the market, remained positive. On the BSE, 1,670 stocks rallied, 966 stocks declined, while 140 stocks remained unchanged.

Broader Markets Outperform 

In the broader market the BSE Midcap and the BSE Smallcap indices added 1 per cent each.

Markets At Close

The Sensex ended at 36,239, up 304.90 points, while the broader Nifty50 settled at 10,947, up 94.35 points.

Reliance Industries Top Gainer

Reliance Industries share price rallied on Tuesday after global brokerage Credit Suisse initiated coverage on the stock. The stock settled 3.10 per cent higher at Rs 1028.50 on the BSE. Credit Suisse sees Rs 1180 per share target price on the stock, an upside of 15.39 per cent from today's intraday high level. "There is significant potential in consumer businesses, while Reliance Jio has potential to create significant value too. Jio is much more than a telecom business. Lastly, petcoke gasification should help growth in refining margin of Reliance Industries," said Credit Suisse . 

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TCS kicks off Q1 earnings season today; here's what to watch out for

Tata Consultancy Services (TCS), country's largest software services firm will report its June quarter earnings for financial year 2018-19 later today, kicking off the Q1FY19 results season. After a strong March quarter, the IT giant is expected to report another quarter of outperformance as Rajesh Gopinathan, CEO and Managing Director, TCS takes centrestage to lay out Q1 report card post market hours. 

Sensex Heatmap

Source: BSE

Market update

The Sensex and Nifty were trading higher, led by index heavyweights such as HDFC Bank and Reliance Industries, with investor focus now on corporate earnings, starting with Tata Consultancy Services (TCS) later in the day. Broader Asian shares were up for a third day as hopes of upbeat corporate earnings drove Wall Street higher.

Wall Street on Monday

Both the Dow and S&P 500 boasted their biggest gains in more than a month overnight, as bank shares jumped ahead of earnings reports later this week. The S&P banks index posted its sharpest rise since March 26. The Dow rose 1.31 percent, while the S&P 500 gained 0.88 percent and the Nasdaq 0.88 percent.

Top 5 stocks in focus on July 10: TCS, HCL to SRF limited; here are the 5 newsmakers of the day

Tata Consultancy Services (TCS): The country's largest IT services exporter firm will be releasing its June quarter results today. It is expected to continue with good performance in the first quarter of the financial year 2018.

Anil Singhvi's Market Strategy for July 10

• Buy Nifty with a stop loss of 10,800 and a target of 10,900-10,925-10,950
• Sell Nifty in the range of 10,925-10950 range with a stop loss of 11,000 and a target of 10,900-10,875. 

FAST MONEY: Here are key intraday trading ideas

HCL Tech (Buy)

Target: Rs 990
Stoploss: Rs 955

• Board meeting to discuss buyback on July 12
• This time buy back price could be Rs 1050-1100 per share 
   

Markets on Monday

The benchmark indices rose on Monday, with the Sensex posting a five-month closing high, driven by index heavyweights such as Reliance Industries and Infosys, while the broader Nifty50 posted a near four-week closing high. The broader NSE Nifty closed 0.74 percent higher at 10,852.90, while the BSE Sensex ended up 0.78 percent at 35,934.72. In the broader market, the BSE Midcap and the BSE Smallcap indices added up to 1.6 per cent.

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