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  5. NIFTY50 forms bullish patterns on daily and weekly charts, hinting at further gains

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NIFTY50 forms bullish patterns on daily and weekly charts, hinting at further gains

Upstox
By Upstox News Desk

3 min read | Updated on July 05, 2024, 19:37 IST

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SUMMARY

The NIFTY50 index closed above the previous week’s high, indicating strength and momentum in the ongoing trend. The index has immediate support around 24,200 zone, while immediate resistance remains around 24,500.

Stock list

ONGC
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HDFCBANK
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BAJAJ-AUTO
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HAL
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NIFTY50 forms bullish patterns on daily and weekly charts, hinting at further gains

NIFTY50 forms bullish patterns on daily and weekly charts, hinting at further gains

Despite a gap-down start, the NIFTY50 index staged a rebound from the day’s low and closed Friday’s session flat. Led by strong gains in Reliance Industries and State Bank of India, the index ended the day at 24,323, while SENSEX closed at 79,996.

Majority of the sectors ended in green, with Oil & Gas (+1.8%) and Pharma (+1.2%) advancing the most. Banks (-0.8%) and Consumer durables (-0.2%) came under selling pressure.

The NIFTY50 started the day with a gap down opening of almost 100 points and remained under pressure throughout the day. However, the index staged a strong recovery of over 100 points from the day's low, resulting in the formation of a bullish piercing pattern on the daily chart.

The bullish piercing pattern is a two-candlestick pattern that indicates a potential reversal. It is formed when a green candle opens below the close of the previous red candle after a downtrend and then closes above the midpoint of the red candle. To confirm this pattern, traders often wait for the next day's close to ensure that the bullish trend is sustained before taking action.

  • Top gainer and loser in NIFTY50: ONGC (+4.0%) and HDFC Bank (-4.5%)

  • The broader markets extended their positive momentum for the second day in a row, with the NIFTY Midcap 100 index up 0.8% and the Smallcap 100 index up 0.7%.

  • Top gainer and loser in NIFTY Midcap 100: CG Power (+6.5%) and PB Fintech (-3.1%)

  • Top gainer and loser in NIFTY Smallcap 100: Raymond (+9.9%) and J B Chemicals and Pharmaceuticals (-2.3%)

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Key highlights of the day

🚀Defence stocks were in focus after the country's defence production recorded its highest growth in 2023-24. The value of production jumped 16% YoY to ₹1,26,887 crore. Shares of HAL, Bharat Dyanmics, BEL and Cochin Shipyard advanced in the range of 0.5% to 5%.
🏦HDFC Bank shares fell over 4% after the company reported a weaker than expected Q1 FY25 business update. The bank's loans fell 0.8% QoQ to ₹24.87 lakh crore, while deposits were flat QoQ at ₹23.7 lakh crore.
🏍️Bajaj Auto (+1.8%) was in focus after the company launched the world’s first CNG motorcycle-Freedom 125 for a price of ₹95,000 crore.
👕Tata Group's fashion and retail company, Trent, has crossed the ₹2 lakh crore market capitalisation milestone. This achievement makes Trent the fifth company in the Tata Group to cross this significant mark.

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): HDFC Bank, Titan, Bandhan Bank, Dixon Technologies and Tata Steel

📈Open=Low(Bull power): Aurobindo Pharma, TVS Motor, Hindustan Unilever, Divi’s Laboratories and Petronet LNG

🏗️Fresh 52 week-high: Rail Vikas Nigam, CG Power, Laurus Labs, Aurobindo Pharma, Federal Bank and Bharat Dynamics

⚠️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 on Monday!

Uplearn

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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