Market Headstart: Nifty may see gap down opening; Infosys, Avenue Supermart top buys

Image result for Market Headstart: Nifty may see gap down opening; Infosys, Avenue Supermart top buysThe Nifty50 is expected to open lower on Monday tracking Asian markets which were trading at a 2-month low on escalating tension between the US and China on the trade war front.

U.S. President Donald Trump abruptly decided on Thursday to slap 10% tariffs $300 billion in Chinese imports, stunning markets and ending a month-long trade truce. China vowed on Friday to fight back, said a Reuters report.

On Friday, the Dow Jones Industrial Average fell 98.41 points to 26,485.01, the S&P 500 lost 21.51 points to 2,932.05 and the Nasdaq Composite dropped 107.05 points to 8,004.07.

The S&P BSE Sensex rose 99 points to 38,118 while the Nifty50 closed 17 points higher at 10,997 on Friday.

Trends on SGX Nifty indicate a negative opening for the broader index in India, with 0.64 percent loss or 70 points. Nifty futures were trading around 10,944-level on the Singaporean Exchange.

The rupee dived 54 paise on Friday to close at an over six-week low of 69.60 against the US dollar as soaring crude oil prices and a fresh flare-up in US-China trade tensions weighed on emerging market currencies.

On the institutional front, FPIs were net sellers in Indian markets for Rs 2,888 cr while DIIs were net buyers to the tune of Rs 2,812 cr, provisional data showed.

Stocks in news:

Oriental Bank of Commerce on August 3 said the RBI has imposed a fine of Rs 1.5 crore, and Rs 50 lakh on PNB on it for the delay in reporting fraud in the Kingfisher Airlines account.

Footwear major Bata India Ltd on August 2 reported a 22.52 percent increase in consolidated profit at Rs 100.97 crore for the first quarter ended June 2019.

State Bank of India (SBI) on August 3 said the Reserve Bank has imposed a penalty of Rs 50 lakh on it for non-compliance relating to reporting of frauds.

Technical Recommendations:

We spoke to Axis Securities and here’s what they have to recommend:

Infosys: Buy| LTP: Rs 775| Target: Rs 795-810| Stop Loss: Rs 750| Upside 4-6%

Pidilite Industries: Buy| LTP: Rs 1265| Target: Rs 1305-1330| Upside 4-6%

Avenue Supermart (DMART): Buy| Target: Rs 1540-1565| Stop Loss: Rs 1440| Upside 4-6%

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