Post-Budget Market Outlook: India Cements, Apollo eyed

Updated: Jul 12 2014, 00:13am hrs
MarketReal Estate Investment Trusts got a push in this Budget, which could aid deleveraging realty companies. Reuters
Two major events ruled market breadth this week, which witnessed slaughtering of bulls, as markets tumbled from their highs post-Rail Budget and Union Budget reaction. However, for a few infra stocks the Budget proved to be a bonus and on B-day these stocks trended up.

Two sectors that strictly required de-leveraging were infrastructure and real estate. Real Estate Investment Trusts got a push in this Budget, which could aid deleveraging realty companies.

The highlight of this Budget is the government's effort towards making infrastructure lending attractive by easing statutory liquidity and cash reserve requirements on long-term infrastructure lending.

Several steps were ushered in to benefit rural infrastructure by making allocations towards rural power infrastructure, rural roads and smart cities. The new government may have a higher thrust on infrastructure, which will aid industrial growth. A focus on industries and infrastructure will initiate the growth scale to double-digits. The market is at new highs and will rise more.

Overall trend of Nifty July Future is still bullish on chart, but in short term, market may test its psychological support level of 7500. if Nifty July Futures breaches its support level of 7460 it can plunge to the levels of 7345 and further down to the levels of 7205. Whereas if sentiments support Nifty july Futures a bounce back from the levels of 7500 can be expected, crossing of 7605 can bring bulls back in action and can test 7725 and 7785 mark in near term.

Stocks to watch:

INDIACEMENTS FUT SHORT- India cements fut is in its corrective phase and stock is consolidating near its support level with negative biasness with an RSI of 38 confirming weakness in stock. Thus one can initiate sell position in india cements fut below the levels of 97.75 with SL of 98.80 for TGTS of 95 & 93 in near term

APOLLOHOSP FUT LONG- overall trend of APOLLOHOSP fut is bullish on long term charts and stock has recently recovered from its corrective phase. Stock is trading with an RSI of 61 on long term charts. If apollohosp fut manages to cross its level of 1047 buying can be initiated with a strict SL order to be placed at 1036 and for TGTs of 1068 & 1080

Vivek Gupta Director Research, CapitalVia Global Research Limited, Equity market outlook