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  1. IT stocks ignite fresh breakout, NIFTY50 forms bullish engulfing pattern

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IT stocks ignite fresh breakout, NIFTY50 forms bullish engulfing pattern

Upstox

3 min read | Updated on July 18, 2024, 20:27 IST

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SUMMARY

The NIFTY50 index is forming another bullish candle on the weekly chart and is showing early signs of closing above the previous week's high. Ahead of the Union Budget announcement next week, traders can closely watch the final formation of the weekly candle. A close above the previous week's high will be crucial for further gains.

IT stocks ignite fresh breakout, NIFTY50 forms bullish gngulfing pattern

IT stocks ignite fresh breakout, NIFTY50 forms bullish gngulfing pattern

After a gap down start, markets remained volatile and consolidated in a narrow -range during the first half of the session. However, amid strong buying momentum in the heavyweight large-cap stocks, the NIFTY50 index zoomed past the 24,700 mark to hit a new all-time high. The index registered gains of 0.7% to close the day at 24,800.

Strong buying in IT (+2.2%) and FMCG (+0.9%) sectors led the index higher, while profit-booking was seen in Media (-3.5%), Metals (-0.8%) and Realty (-0.3%) sectors.

The NIFTY50 has formed a bullish engulfing pattern on the daily chart, overtaking the doji candlestick patterns of the previous two sessions. This move negates previous indecision patterns and resumes the uptrend with support at the 24,500 mark. As long as the index remains above this level, the trend may remain positive.

However, as the Union Budget announcement approaches, traders should remain nimble and cautious of profit-booking at higher levels.

  • Top gainer and loser in NIFTY50: LTIMindtree (+3.4%) and Hero Motocorp (-1.4%)

  • Sector rotation was clearly evident as the broader markets underperformed the benchmark indices. The NIFTY Midcap 100 index fell 1% and the NIFTY Smallcap 100 index slipped 1.2%.

  • Top gainer and loser in NIFTY Midcap 100: IDBI Bank (+4.5%) and Zee Entertainment (-8.2%)

  • Top gainer and loser in NIFTY Smallcap 100: Manappuram Finance (+3.4%) and NLC India (-5.8%)

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Key highlights of the day

🚀 IT major Infosys jumped almost 2% ahead of its first quarter FY25 results. The company's results were released after market hours and beat Street estimates. Its net profit grew 7.1% YYoY to ₹6,368 crore, while revenues grew 3.6% YoY to ₹39,35 crore. The company recorded its highest ever number of large deal wins and raised its FY25 revenue guidance to a range of 3%-4%.

🎨Asian Paints fell over 1% after the company's Q1 FY25 net profit fell 24% YoY to ₹1,170 crore. The sharp fall in profit was due to a decline in revenues, which fell 2.3% YoY to ₹9,154 crore on subdued demand due to heatwave and general elections.
💊Aurobindo Pharma (-2%) was in the spotlight after its board approved the buyback of shares worth ₹750 crore at a price of ₹1,460 per share.
🖥️LTIMindtree jumped over 3% after the company reported a 3% QoQ jump in its net profit to ₹1,100 crore for FY 24-25. Revenue on a sequential basis also jumped 3% QoQ to ₹8,893 crore on the back of an increase in deals in the previous quarter. However, the company's net profit on a year-on-year basis slipped 1.5% to ₹1,134 crore.
🏦IDBI Bank rose more than 4% on reports that the Reserve Bank of India had approved its bidders as they met the fit and proper criteria. The development adds momentum to the bank's divestment process, in which the Indian government holds a 45% stake.

Top traded futures contracts

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Top traded options contracts

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4 trading insights from NIFTY 200🔍

📉Open=High (Bear power): Zee Entertainment, Hindustan Aeronautics, Dixon Technologies, Bharat Heavy Electricals and Fertilisers And Chemicals Travancore

📈Open=Low (Bull power): IDBI Bank, LTIMindtree, Tata Consultancy Services, Indus Towers and Marico

🏗️Fresh 52 week-high: Tata Consultancy Services, Indus Towers, ONGC, Torrent Pharma, Marico and Wipro

⚠️Fresh 52 week-low: N/A

And that's it for today's F&O recap! Get the full scoop on market trends and curated scans at https://pro.upstox.com/

See you tomorrow!

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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