Wipro jumps amid results, JBM auto soars on huge order

Technical Overview – Nifty 50

NIFTY50 on 14th July witnessed another gap-up opening duplicating its previous day’s move but this time sustained above 19,450 levels and closed in green indicating a supportive move from the lower levels. On the weekly chart, the Benchmark has witnessed and positive closing for three consecutive weeks and has witnessed a triangle pattern breakout on the weekly time frame.

The Nifty50 on the daily chart is trading in a higher high higher bottom formation and continues to trade above its short and medium-term averages. The highest OI on the call side is placed at 19,500 followed by 19,600 and the highest OI on the put side is placed at 19,500 followed by 19,400. Option data seems to be in the favor of bulls and the option chain suggests the same as PCR stands at 1.17.

India VIX continues to read within the range of 10 – 12.50 levels suggesting neutral volatility. The last hour of buying has forced Nifty to witness a breakout in the smaller time frame. The immediate support for the Nifty stands near its 9 EMA which is placed at 19,375 levels and the upper band for the index is capped below 19,625 – 19,670 levels.

Technical Overview – Bank Nifty

The Bank Nifty on 14th July witnessed a gap-up opening and post that prices continued to trade lower throughout the day but a last-hour buying in the index has pushed banking index above 44,800 levels.

The Banking index after a 7-day throwback period has finally formed a bullish hammer candle stick near its trend line support suggesting it can be an immediate bottom for the index. Similarly, the weekly chart index has again formed a Doji candle for consecutive weeks suggesting the volatility in the index.

The highest OI on the call side is placed at 45,000 followed by 44,800 and the highest OI on the put side is placed at 44,500 followed by 44,800. Option data still seems to be in the favor of bears and the option chain suggests the same as PCR stands at 0.76. The immediate support for the Bank Nifty stands near its 21 EMA which is placed at 45,500 levels and the upper band for the index is capped below 45,200 – 45,400 levels.

Indian markets:

• Domestic equity indices closed with significant gains on Friday.
• Nifty surpassed the 19,550 mark.
• Positive global cues drove the market.
• Declining trend in US inflation and resilience of the US economy are supporting global equity markets.
• Steady decline in the dollar is favorable for emerging markets like India.
• Dollar reached its lowest level since April 2022.
• Sustained FPI flows in India due to favorable conditions.
• India VIX indicates no fear in the market despite record high index levels.

Global Markets

• Markets in Europe and Asia mostly advanced on Friday, taking cues from an overnight rally on Wall Street, as producer price index data further showed that inflation in the worlds largest economy was cooling.
• This in turn spurred bets that the Federal Reserve was close to reaching peak interest rates in its current cycle, sparking strong gains in technology stocks.
• Singapores economy avoided a technical recession in the second quarter, growing 0.7% year-on-year and 0.3% quarter-on-quarter, advanced estimates showed.
• US stocks extended recent gains to end higher on Thursday as data showed the annual increase in U.S. producer inflation was the smallest in nearly three years.
• The U.S. producer price index rose in June less than anticipated, climbing 0.1% year on year, while core PPI, which strips out volatile food and energy prices, climbed 0.1% also lower than expectations.

Stocks in Spotlight

• Wipro jumped 2.69%. The IT majors consolidated net profit declined 6.65% to Rs 2,870.1 crore on 1.55% decrease in revenue form operations to Rs 22,831 crore in Q1 FY24 over Q4 FY23. On a year on year (YoY) basis, the IT firms net profit jumped 11.96% while revenue rose 6.05% in Q1 FY24. For the quarter ending 30 September 2023, Wipro expects revenue from its IT Services business segment to be in the range of $2,722 million to $2,805 million. This translates to sequential guidance of -2% to +1% in constant currency terms
• Patanjali Foods surged 5 percent upper circuit on July 14 after its promoter, Patanjali Ayurveda, proposed to sell 2.53 crore equity shares or a 7 percent in the listed Fast Moving Consumer Goods (FMCG) company. On July 13, the share had hit a 5 percent lower circuit of Rs 1,166.65 after the Offer For Sale started.
• JBM Auto soared 11.5 percent on July 14 after the company and its subsidiaries won orders for approximately 5,000 electric buses to supply to various STUs in the states of Gujarat, Haryana, Delhi, Telangana, Orissa among others and multiple Fortune 500 companies coupled with leading corporates of the country, the company said in an exchange filing. The stock also hit a 52-week high of Rs 1,539.60 on the same day.

News from the IPO world🌐

• Utkarsh Small Finance Bank IPO subscribed 16.20 times on Day 2
• Oriana Power plans to raise up to Rs 60 cr through IPO
• Patanjali foods ofs get 2x non-retail bids

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