New Heights: Sensex tops 81,000 mark for the first time, Nifty 50 crosses 24,700

The domestic frontline indices recorded another significant milestone in Thursday's intraday trade, with the Sensex crossing 81,000 points for the first time to set a new record high of 81,203 and the Nifty 50 crossed 24,700 for the first time to hit a new all-time high of 24,746. Both indices have jumped nearly 0.5% in today's intraday session.

The majority of the gains were driven by IT stocks, as investors turned optimistic towards IT stocks after the country's leading two IT firms, TCS and HCL Tech reported healthy performance in the June quarter. In the backdrop, the Nifty IT index continues its fourth consecutive bull run in today's trade, jumping another 2% to hit a new record high of 39,905.

Among the eight firms in the Nifty 50 index that hit a 52-week high on Thursday were four IT stocks.A new 52-week high record was set by Tech Mahindra, Britania Industries, HUL, ONGC, Wipro, Infosys, TCS, and SBI Life Insurance.

The index continued its upward trend, reaching a new all-time high of 24800. The index has risen by more than 3% this month, with strong support from the IT and FMCG sectors, which saw increases of 10% and 8% respectively. The bullish momentum is expected to persist as long as the index remains above 24,470. The immediate upside potential could be anywhere between 24,900 and 25,000, said Kapil Shah, Technical Analyst, Emkay Global, and Technical Analysis Trainer at Finlearn Academy

The June quarter results of Infosys Ltd, which isthe second-largest IT services business in India, have investors thrilled. Due mostly to a ramp-up of big projects, the IT giant is anticipated to see strong sequential revenue increase for the first quarter ending in June 2024.

Brokerages predict that the second-biggest provider of IT services would record faster constant currency revenue growth than its competitors, TCS and HCL Tech. Brokerage forecasts indicate that for the June quarter of 2024, the IT giant will probably record a consolidated net profit of three to six percent. Kotak Institutional Equities predicts that the acceleration of many mega-deals will boost revenue by 2.5%

The market will also be awaiting Wipro's Q1FY25 results, which are expected tomorrow, July 19. The analyst projects flat sequential revenue growth for Wipro in the June-ended quarter. Revenues would surpass Kotak Institutional Equities' average estimate of -1.5-0.5%. The brokerage said that it thought the relatively strong run was due to CAPCO's strength and the likely recovery in the Americas market.

Wipro's revenue is predicted to rise marginally from ₹22,208.3 crore in the March quarter to ₹22,491 crore in April-June, based on the average of five brokerage companies.

Technical Views

According to Pravesh Gour, Senior Technical Analyst, Swastika Investmart, a bullish engulfing candlestick pattern has formed at all-time high levels. On a longer timeframe, the chart shows a series of higher highs and higher lows. The immediate resistance level is at 82,000; if this level is breached, the next resistance will be at 82,800. On the downside, the immediate support level is at 80,800; if this level is broken, the next significant support will be at 80,300.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.