Stock picks of the day: More pain ahead for markets; use rallies to short Nifty
Episode 1414, Jul 09, 2019, 02:00 AM
The markets settled on a flat note in an eventful week with a slight positive bias. However, the final session turned the tables as budget proposals failed to cheer the participants and that in turn triggered a sharp decline in Nifty, which engulfed all the weekly gains.
We expect the excitement to continue this week as the earnings season would kick in and IT heavyweights, TCS and Infosys, will announce their results on July 9 and July 12 respectively.
On the macroeconomic front, IIP and CPI inflation will be unveiled on July 12. Besides, the progress of monsoon and global developments will also be watched.
After the initial overhang of the Union Budget, the focus now shifts to the earnings season. Chart patterns indicate a further decline in the Nifty towards 11,400 levels. We advise traders to use “sell on rise” approach.