Nifty 50’s rollercoaster ride amid volatility, Zydus Lifesciences, Colgate Palmolive, and Cipla Lead and more

Technical Overview – Nifty 50

The Benchmark index on the monthly expiry day witnessed a gap-up opening following its global peers but couldn’t hold on to its gain for more than 30 mins and prices started to deteriorate. The prices on the intraday chart traded in a lower low lower high formation for the entire day and sustained below 9 EMA for the majority of the time.

The daily candle on 27th July engulfed its past four days’ candle during the trade but covered strongly in the last 30 mins of the trade. The momentum oscillator which formed a bullish hidden divergence has failed and the oscillator breach its previous low. The immediate support for the Nifty stands near its 21 EMA which is placed at 19,500 levels and the upper band for the index is capped below 19,750 – 19,800 levels.

Technical Overview – Bank Nifty

The Banking index started its monthly expiry day with a more than 200 points gain but identical to benchmark index prices witnessed a strong profit booking and continues to trade in a lower high lower low formation on the intraday chart.
The daily candle on 27th July has engulfed its past four days’ candle and formed a tall red bearish candle on the daily time frame. The momentum oscillator which formed a bullish hidden divergence has failed and the oscillator breach its previous low.

The Bank Nifty on the daily chart is trading in a rising wedge pattern and presently trading near the pivot levels of the pattern. The immediate support for the Bank Nifty stands near its 21 EMA which is placed at 45,280 levels and the upper band for the index is capped below 46,000 – 46,200 levels

Indian markets:

• Volatility in the market is observed due to the expiry of the July F&O series.
• The Nifty50 has recorded net losses for the fourth consecutive derivatives series in July, leading some traders to unwind their long positions, resulting in a market decline.
• The Federal Reserve’s decision to raise interest rates by 25 basis points was in line with market expectations.
• However, Fed Chair Jerome Powell’s comments about the potential for further rate hikes if inflation does not cool down as anticipated caused investors to book profits.

Global Markets

• Wednesday, July 26, the U.S. markets closed mixed after the Federal Reserve hiked interest rates by 25 basis points, taking rates to a target range of 5.25% to 5.5%. 
• In his opening remarks, Fed Chair Jerome Powell acknowledged the extensive progress made yet highlighted that the full impact of policy tightening is yet to be experienced. The Federal Reserve will maintain a data-dependent approach moving forward.
• Japan’s Nikkei 225 ended Thursday’s session up 0.82% at 32,920.00, recoding gains in the Paper & Pulp, Steel, and Pharmaceutical Industry sectors. USD/JPY was down 0.17% to 139.97 at 04.30 AM ET.
• Australia’s S&P/ASX 200 rose 0.73%, ending the session at 7,455.90, reflecting gains in the A-REITs, IT, and Consumer Discretionary sectors. AUD/USD was up 0.84% to 0.6813 at 04.30 AM ET.

Stocks in Spotlight

• Zydus Lifesciences experienced a notable rise in its shares, increasing by 5 percent and reaching a 52-week high of Rs 654. This surge came after the pharmaceutical company received final approval from the United States Food and Drug Administration (USFDA) for its plerixafor injection. The purpose of this medication is to prepare these patients for a stem-cell transplant. The drug will be manufactured at Zydus Lifesciences’ injectable manufacturing facility located in Ahmedabad, Gujarat. With this latest approval, the company’s total number of approvals stands at 374, and they have filed over 442 ANDAs since the inception of the filing process in the fiscal year 2003-04, as reported by the company.
   
• Colgate Palmolive witnessed a significant surge of over 6 percent in its stock price following impressive Q1 results. The household and personal products company reported better-than-expected numbers for June, driving this positive market response. During the quarter, the company achieved a remarkable 10.6 percent year-on-year growth in revenue from operations, reaching Rs 1,323.67 crore. Its domestic sales also performed well, experiencing a growth of 12.3 percent, while toothpaste sales saw a double-digit increase. The company’s profit saw substantial growth of 30.5 percent, reaching Rs 273.7 crore, as a result of strong top-line performance and operational efficiency.
   
• Cipla experienced a significant surge of nearly 10 percent in its stock price, driven by the pharmaceutical company’s impressive earnings report for the April-June period, which exceeded market expectations. This positive performance was well-received by several brokerages, leading them to raise their price targets for the stock. Cipla’s bottomline and topline both surpassed estimates, demonstrating the company’s strong financial performance. As a result, the management decided to raise the margin guidance for the current fiscal year to 23 percent from the previous projection of 22 percent. This positive outlook further bolstered investor confidence and contributed to the stock’s notable upswing.

News from the IPO world🌐

• Concord Biotech, backed by Rakesh Jhunjhunwala’s firm targets August IPO launch at upto $1bn valuation
• Oriana Power sets IPO price band at Rs. 115 to Rs. 118 per equity share
• Textile Manufacturer Shri Techtex to roll out IPO 

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