TATA Motors surges on JLR Growth Outlook and Tata Technologies IPO

The Markets Today in a nutshell

Technical Overview – Nifty 50

The positive baton from yesterday’s session found its way into today’s session as well and that too, led to fresh all-time highs for Nifty at the 19011 mark. It is forming a higher top and higher bottom on the weekly chart. The momentum indicators and oscillators also are very much in the buy mode. 

The India VIX declined by 1.02% and closed at 10.89. Market participants showed a bullish outlook with aggressive net long positions. The benchmark index on the daily chart has witnessed a horizontal trend line breakout and the index closed above the same.

As the index has closed at all-time high levels and the bullish breakout on the charts validates the bullish momentum. Technically, key support to watch now is at the 18751 mark. The next hurdle is to watch at the 19150 mark on a closing basis.

Technical Overview – Bank Nifty

The banking index on the monthly expiry day showed a bullish momentum but failed to close above its horizontal trend line resistance which is placed at 44,400 levels. 

Bank Nifty is trending above the golden cross on the daily chart. Technically, the bullish crossover of 9EMA over 21EMA is known as the ‘golden cross’ – the short to medium-term bullish trend. 

The Bank Nifty on the weekly chart has formed a bullish above-the-stomach candle stick pattern and if the index closes above 44050 levels then the validity of the pattern will be intact. Technically, key support to watch now is at the 43,900 mark. The next hurdle is to watch at the 44,500 – 44,650 levels on a closing basis.

Indian markets

• Sensex and Nifty achieved new all-time highs on Wednesday, underpinned by robust buying interest in heavyweight stocks.
• The banking and financial sectors experienced a surge, driven by the anticipation of an increase in credit demand in the coming months.
• Expected improvement in the monsoon performance is set to invigorate agricultural output and stimulate rural demand, contributing to the market’s bullish momentum.
• The market rally was further strengthened by robust Foreign Institutional Investor (FII) inflows.
• A shrinking current account deficit had a positive influence on investor sentiment, bolstering market performance.
• The gains were widespread across sectors, with Pharma, Metal, and Healthcare emerging as the top performers, thereby eclipsing other sectors.

Global Markets

• Markets in Europe advanced while Asian stocks ended mixed on Wednesday.
• ECB President Christine Lagarde said that the Eurozone inflation has entered a new phase that could linger for some time, requiring the ECB to keep policy tight and avoid declaring an end to rate hikes.
• U.S. stock indexes advanced on Tuesday as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserves aggressive interest rate hikes.
• The outlook from consumers brightened more than expected in June even with an expected recession on the horizon, the Conference Board reported Tuesday. Consumer confidence for the month rose to an index value of 109.7, up from 102.5 in May. That was the highest reading since January 2022.
• Meanwhile, the Biden administration is reportedly considering new curbs on exports of artificial intelligence chips to China set off a retreat in postmarket trading for some US tech stocks.

Stocks in Spotlight

• InterGlobe Aviation, the operator of IndiGo, experienced a commendable surge of nearly 4 percent on June 28, marking a milestone in India’s aviation sector by becoming the first company to cross a market capitalization of Rs 1 trillion. This extraordinary achievement came on the back of its shares hitting a record high, registering a robust gain of 29 percent this year alone. Further bolstering its global standing, IndiGo now proudly ranks 10th in terms of market value among the top ten listed aviation companies worldwide.
• Tata Motors witnessed an impressive rally, jumping nearly 2.5 percent to reach a 52-week peak at Rs 589.30. The market sentiment for the auto giant remained buoyant, spurred by the promising growth outlook for its luxury subsidiaries Jaguar and Land Rover (JLR), and further catalyzed by the approval of the public offer for its subsidiary, Tata Technologies. The dual boost from its high-end vehicle segment and technological wing has effectively propelled Tata Motors to new market heights.
• Brokerages have reinforced their optimistic outlook on Zomato, in light of the annual figures disclosed by Prosus, an investor with a 33 percent stake in Zomato’s competitor, Swiggy. Prosus, a division of South Africa’s Naspers, revealed a 26 percent YoY surge in Swiggy’s gross merchandise value (GMV) for its primary food delivery business, reaching $2.6 billion. Despite food delivery orders growing by 30 percent, a decrease was noted in the average order value – a trend not mirrored by Zomato. Maintaining stride with Swiggy’s GMV growth, Zomato reported a GMV of $3.2 billion for the calendar year 2022, marking a 26 percent YoY increase, but without a similar decline in average order value.

News from the IPO world🌐

• Ideaforge IPO subscription period extended till June 30
• Mukka Proteins refiles DRHP with SEBI to launch IPO
• Afcons begins IPO talks with banks.

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Sectoral Performance

Advance Decline Ratio

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