Markets rebound on weekend, IT, Private Banks, and Consumer Durables Advanced 

Technical Overview – Nifty 50

After three days of negative closing the Benchmark index witnessed a short covering on 04th Aug and closed near 19,500 levels. On the weekly chart, Index has witnessed a throwback of the bullish triangle pattern near the trend line support.
On the daily chart, Index is trading in a rising channel pattern and presently trading near the support of the lower band of the pattern. On the weekly time frame, prices are trading in a higher high higher low formation which indicates a bullish market is on the move.

On the daily chart, the index is trading below its 9 & 21-day exponential moving average which is acting as an immediate resistance for the index. The momentum oscillator RSI (14) on the daily chart is hovering near 50 levels and on the weekly chart oscillator is reading near 70 levels. 

Maximum Call Open Interest Build Up witnessed in 19600-20000 Call & on the Put Side Maximum Open Interest is being witnessed in 19400-19500 levels. The PCR ratio holds at 0.88. Presently the Benchmark index is at a make-or-break level, if prices closed below 19,300 – 19,250 levels we will be witnessing a bearish breakdown in the index. If prices sustain above 19,450 levels, then the immediate upside will likely be open till 19,650 – 19,700 levels.

Technical Overview – Bank Nifty

The Bank Nifty closed in green on 4th Aug due to sharp short covering after three days of consecutive loss. The Banking index on the daily chart has witnessed a falling wedge pattern breakdown and prices are sustaining below its 9 & 21 EMA which is acting as an immediate resistance for the index.

The banking index on the weekly chart has witnessed a throwback near its trend line support and drifted more than 1 percent on the weekly time frame. The momentum oscillator RSI (14) has faced resistance near 70 levels and hooked down near 60 towards the closing of the weekly time frame.

The prices continue to trade above their major averages on the broader time frame which suggests this short-term weakness can be utilized to go long. Maximum Call Open Interest Build Up witnessed in 45000-45500 Call & on the Put Side Maximum Open Interest is being witnessed in 44500-45000 call sellers implies 45500 to act as resistance while 44400 – 44200 will act as strong support.The momentum oscillator RSI (14) has drifted below its trend line support which is placed at 50 levels and closed below the same on the daily time frame. The immediate support for the Bank Nifty stands at 44,200 levels and the index is likely to face resistance near 45,200 – 45,400 levels.

Indian markets:

• Domestic equity benchmarks staged a strong rebound on Friday, breaking a three-day losing streak.
• The Nifty index managed to close above the significant 19,500 level, indicating renewed market strength.
• Sectors like Information Technology, private banks, and consumer durables experienced growth and positive momentum.
• On the other hand, PSU banks, auto, and FMCG shares saw a decline in their values.
• The domestic market’s resurgence was driven by encouraging Q1 results, countering weaker global market trends.
• Despite the recovery, investor concerns persist due to the ongoing increase in US bond yields.

Global Markets

• Most shares in Europe and Asia declined on Friday, as rising bond yields continue to put pressure on equities in the wake of the U.S. credit downgrade.
• The Bank of England on Thursday hiked interest rates by 25 basis points, in the latest move by a global central bank to tame inflation.
• US stocks fell marginally on Thursday on surge in treasury yields after the release of latest economic data.

Stocks in Spotlight

• After Zomato Ltd achieved its first-ever profitable quarter, numerous brokerages raised their target prices for the stock, even though many maintained their current ratings. The stock surged by 10.7 percent following its announcement of a net profit of Rs 2 crore in the initial quarter of the current financial year, coupled with revenues of Rs 2,416 crore, reflecting a substantial 70.9 percent increase from the previous year.
   
• State Bank of India (SBI) experienced a 3 percent decline in its stock price following the release of its earnings report for the June quarter. The bank posted a remarkable 178 percent increase in net profit, reaching Rs 16,884 crore during the April-June FY24 quarter, compared to Rs 6,068 crore in the same period last year. Market expectations were surpassed as a poll of three brokerages anticipated a 147 percent rise in net profit to Rs 15,009 crore.
   
• Cummins India witnessed a 4.5 percent decline in its stock price following the announcement of its earnings report for the June quarter. The manufacturer of diesel and natural gas engines achieved a standalone profit of Rs 315.7 crore during the quarter, marking a significant 58.8 percent increase compared to the same period in the previous fiscal year. This growth was attributed to strong revenue and operating performance. The company’s revenue from operations also experienced a notable 31 percent year-on-year growth, reaching Rs 2,208.7 crore in the same quarter.

News from the IPO world🌐

• Concord Biotech, backed by Rakesh Jhunjhunwala’s firm sets IPO price band at Rs. 705-741
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