Stock Market News: The domestic benchmark indices, the Sensex and the Nifty 50, opened higher on Friday's session led by heavyweight Tata Consultancy Services (TCS) shares that exceeded quarterly (Q1FY25) revenue projections, and speculations that the world's largest economy will slash rates next month spurred information technology (IT) stocks.
As of 9:15 IST, the Sensex gained 0.25% to 80,093.62 points, while the Nifty 50 increased 0.3% to 24,387.95.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that encouraging both domestic and global cues might cause the market, which has been trading in a narrow range this week, to respond positively. The US's 0.1% drop in inflation in June served as a positive worldwide cue, igniting expectations of a rate decrease by the Fed in September, of which the market projects a 90% chance. The better-than-expected TCS results and encouraging management comments are the favourable domestic cues that can boost the majority of IT companies.
Since the past 5-6 consecutive sessions, the benchmark index continues to consolidate within 24,500-24,100 levels indicating a short-term sideways trend. Hence any either side breakout may signal further direction. On the downside crucial support zones are placed around 23,800-23,600 levels whereas, above 24,500 levels, the index is likely to extend its momentum towards 24,800-25,000 levels in upcoming weeks. The index is well placed above its 20, 50, 100 day SMA and these averages are inching up along with the price rise confirming the bullish trend, said Rajesh Palviya, SVP, Technical and Derivatives Research, Axis Securities.
Nifty 50 in the current series has witnessed a Long Addition with a price gain of 1.27% (306 points) and an increase in open interest by 4%. As per options data of the weekly expiry scheduled on 18th July 25,000, 24,800 and 24,500 Call strikes have high OI concentrations indicating a strong resistance; while on the Put side, high open interest concentration was at 24,000, and 24,200 acting as support, explained Palviya.
The stock is in a strong up-trend forming a series of higher tops and bottoms. On the weekly time frame, the stock has confirmed a "multi-month resistance zone" at 295 levels on a closing basis indicating the resumption of a prior uptrend. Huge rising volumes signify increased participation. The daily and weekly strength indicator RSI has turned bullish showing rising strength.
ONGC yesterday has seen a price gain of 2.36% in current expiry and an increase in open interest by 5% as per provisional data indicating a Strong Long Build-up. In the July series, there has been a high OI concentration at 300 call strike which has seen significant unwinding and shifting to 305 call strike indicating strong support at 300 followed by 285 where there is max pain. Strong support is seen at 300 & 280 levels as significant OI concentration on the Put side is outstanding.
Investors should buy, hold and accumulate this stock with an expected upside of 320-335 with a downside support zone of 295-288 levels.
The stock has registered an all-time high at 616 levels indicating bullish sentiments. Moreover, the stock has also confirmed "Cup & Handle" formation at 603 levels on a closing basis. The stock is well placed above its 20, 50, 100 and 200 levels which reconfirms the bullish trend. The daily, weekly and monthly strength indicator RSI has turned bullish indicating rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of 640-685 with a downside support zone of 585-550 levels.
On the daily timeframe, the stock has confirmed an "inverse Head & Shoulder" formation at 135 levels on a closing basis. This breakout is accompanied by huge volumes which signifies increased participation. Recently the stock has recaptured its 20,50,100 and 200-day SMA and rebounded sharply which supports positive bias. The daily, weekly and monthly strength indicator RSI has turned bullish indicating rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of 157-170 with a downside support zone of 135-125 levels.
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.
