Indian benchmark indices Sensex and Nifty 50 opened sharply higher on Friday, led by gains in information technology (IT) stocks after softer-than-expected US jobs data strengthened hopes that the US Federal Reserve may refrain from raising interest rates in the near term.
At 9:15 IST, the Nifty 50 advanced 0.83% to 24,375.65, while the BSE Sensex gained 0.84% to 78,152.34.
Market breadth remained positive, with 15 of the 16 sectoral indices trading in the green. The broader markets also participated in the rally, with the Nifty Midcap and Nifty Smallcap indices rising 0.4% and 0.5%, respectively.
The Nifty IT index emerged as the top sectoral gainer, climbing 1.9%. Investor sentiment improved after data showed US job growth slowed sharply in June, while payroll figures for the previous two months were revised lower, signalling a cooling labour market. The softer data prompted markets to scale back expectations of a near-term Fed rate hike.
Lower US interest rates typically support capital flows into emerging markets such as India and boost business spending in the US, a key revenue market for Indian IT companies, thereby boosting sector sentiment.
Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities
Nifty 50
The Nifty 50 has regained positive momentum after reclaiming the 24,000 mark, with improving market breadth and supportive domestic cues reinforcing the bullish undertone. Softer crude oil prices, easing inflation expectations and resilient institutional flows continue to underpin sentiment, although volatility in global technology stocks and uncertainty over the US Federal Reserve’s policy path may keep investors cautious.
Technically, the index remains well placed to extend its uptrend as long as it holds above 24,000. A sustained move above 24,300 could accelerate gains towards 24,450–24,600, while any corrective decline is likely to find buying interest in the 23,900–24,050 zone.
Stocks to buy today
Five-Star Business Finance Cmp: ₹541
With today’s strong close, share price has decisively surpassed the “multiple resistance” zone at 529 on a closing basis. On the weekly time frame, the stock has also confirmed the past one-year “down-sloping trendline” breakout at the 491 level, which reconfirms the trend reversal. This breakout is accompanied by high volume, indicating increased participation. The stock is well above its 20-, 50-, 100-, and 200-day simple moving averages (SMAs). These averages are also inching up with the price rise, which reconfirms bullish sentiment.
Investors should consider buying, holding, and accumulating this stock. Its expected upside is 585-610, and its downside support zone is 525-515.
Apollo Tyres Cmp: ₹457
On the daily chart, share price confirmed an “inverse Head & Shoulder “, a trend reversal pattern breakout at 446 levels along with huge volumes. The stock confirmed a trend reversal by forming a series of higher tops and bottoms, indicating bullish sentiment. The daily and weekly RSI strength indicators remain bullish, indicating rising strength. The stock is well above its 20-, 50-, and 100-day simple moving averages (SMAs). These averages are also inching up with the price rise, which reconfirms bullish sentiment.
Investors should consider buying, holding, and accumulating this stock. Its expected upside is 485-500, and its downside support zone is the 448–440 levels.
Exide Industries Cmp: ₹419
On the daily and weekly charts, share price is trending higher, forming a series of higher highs and lows, indicating bullish sentiment. Additionally, on the daily chart, the stock confirmed a “flag”- a continuation pattern breakout at 412 levels, accompanied by huge volumes, which reconfirms the bullish sentiment. The daily Bollinger Band buy signals indicate increased momentum. The stock is well above its 20-, 50-, 100-, and 200-day simple moving averages (SMAs). These averages are also inching up with the price rise, which reconfirms bullish sentiment.
Investors should consider buying, holding, and accumulating this stock. Its expected upside is 445-460, and its downside support zone is the 410–400 levels.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.