Gujarat Gas Soars on Merger News, Dixon Technologies Slips on Growth Outlook, HPCL Gains from Falling Crude Prices

Written by - Fisdom Research

Array

September 2, 2024 3 minutes

Indian markets overview:

The Nifty 50 continued its record-breaking streak on September 2, marking 13 straight sessions of gains despite weak global cues.
The index, along with the BSE Sensex, reached new highs, driven by strength in banking, FMCG, and IT stocks.
However, other sectors like capital goods, metal, healthcare, telecom, and media saw declines of 0.4-1.6 percent.
The BSE midcap index also set a new record but finished flat, while the smallcap index fell by 0.5 percent.

On September 2, the benchmark index opened with a gap up, driven by positive global cues, and stayed mostly positive, showing bullish momentum.
The advance-decline ratio was balanced at 1:1. Intraday, the index filled its opening gap and found support near the 9 EMA on the 30-minute chart. Following a breakout above a horizontal trend line on August 29, prices have held above this level, with indicators supporting a bullish trend.
Open interest is highest for calls at 25,300 and puts at 25,000.
The outlook is bullish, with buying on dips recommended; immediate support is at 25,150–25,100 and resistance at 25,400.

The banking index rose about 0.25% for the day, trading above the previous day’s candle and indicating a bullish bias.
It remained stable between 51,200 and 51,500 and has maintained a short-term upward trend, closing above the key DEMA.
The weekly chart’s rising trend line supports the RSI (14), which has crossed above 55, signaling positive momentum, while the MACD shows a positive crossover.
The outlook remains bullish, recommending buying on dips, with immediate support at 51,200–51,000 and resistance at 52,000.

Shares of Gujarat Gas jumped over 11 percent after its board approved a merger plan involving Gujarat State Petroleum Corporation, GSPC Energy, and Gujarat State Petronet. This move led brokerages to quickly upgrade their target prices for the city gas distribution company.

Dixon Technologies shares dropped over 4 percent after the company announced that growth for FY25 would be slow due to its current ramp-up phase. The company attributed the anticipated slowdown to ongoing adjustments and expansion efforts.

HPCL shares rose over 2 percent as declining Brent crude prices, down nearly 7 percent in five sessions due to lower demand from China and potential OPEC+ production increases, are expected to boost the company’s margins by reducing input costs.