Indian equity markets extended their winning streak for the second consecutive day on Thursday, with Nifty 50 gaining over 140 points to close at 24,175. According to Upstox, the index is witnessing a positive crossover of the 20 EMA crossing the 50 EMA from below, with momentum expected to accelerate further if the index manages to close above the previous swing high level of 24,250. The market's fear gauge, India VIX declined significantly by 7.2% to settle at 12.29 levels, indicating reduced market volatility expectations. GIFT NIFTY futures jumped 155 points at 7:45 am on Friday, indicating a gap-up opening for Nifty 50 on Friday. Technical analysis suggests the trend is likely to remain positive with the index having the potential to advance towards 24,300-24,500, while immediate support is placed at 24,000.
Sectorally, the Nifty Pharma index jumped 1.82% to 25,424.70, with major gainers including Dr Reddy's Laboratories (up 3.96%), Ajanta Pharma (up 3.45%), Torrent Pharmaceuticals (up 2.96%), and Cipla (up 2.67%). Other notable performers included J B Chemicals & Pharmaceuticals (up 2.81%), Ipca Laboratories (up 2.59%), Glenmark Pharmaceuticals (up 2.41%), Mankind Pharma (up 2.34%), and Lupin (up 2.24%). Among individual stocks, DCX Systems advanced 2.82% after securing purchase orders worth ₹435.85 crore, while Puravankara rose 2.78% following a joint development agreement for a 6.4-acre land parcel in Bengaluru with an estimated gross development value of around ₹1,000 crore.
The Nifty has stayed between 23,785 and 24,262 over the past 12 trading sessions while moving between its 50-day and 100-day moving averages, indicating the absence of a sustained directional trend. Wednesday's trading resulted in a bullish-bodied candle with an upper shadow and a higher high and higher low compared with the previous day, ending the recent pattern of declining highs and lows. The index has repeatedly tested the crucial 100-DEMA around the 24140-24170 zone and climbed back above its eight-day exponential moving average, though a decisive close above the 24,124 resistance level is still awaited to confirm a sustained breakout. The latest technical setup suggests the index has repeatedly tested the crucial 100-DEMA around the 24140-24170 zone and climbed back above its eight-day exponential moving average, with the downside remaining protected at 23,870.
The 24,050-24,124 zone has been identified as the immediate resistance area for Thursday, combining the upper boundary of the downward-sloping channel, Wednesday's high and the 100-day moving average. According to technical analysis, a sustained move above this zone can take the index towards the upper end of the range at 24,262. On the downside, immediate support is placed at 24,000, with a break below this level potentially leading to the filling of the June 15 gap area. The NIFTY Midcap 100 has outperformed its broader and large peer indices by hitting fresh record highs in June at the 62,909 level, though it has consolidated in the range of 59,500 to 62,200 levels for two consecutive months due to absence of fresh buying power. The NIFTY50's open interest data for the coming weekly expiry suggest that 24,000 remains a crucial support for the index, with the upside remaining protected at 24,500, with the highest open interest.
Global markets provided positive cues with US markets showing divergent trade on Thursday, with the Dow Jones rising 600 points to hit fresh record highs while the NASDAQ closed over 200 points lower as chip stocks continued to decline. Asian markets traded in the green on Friday morning, with the Japanese Nikkei index rising 400 points or 0.5%, Hong Kong's Hang Seng rallying 1.6%, and the Korean KOSPI soaring nearly 3%, the most amongst Asian peers. Brent crude oil prices remained steady near the $70 per barrel level as traffic in the Strait of Hormuz resumed to full capacity, while Saudi Arabia's oil output also rebounded to 90% of the pre-war levels, indicating a normalising supply situation in the Middle East.
