Indian benchmark indices extended gains for the second consecutive day on July 2, with the Nifty 50 closing at 24,175.70, gaining 169.85 points or 0.71%. The index recorded its best closing level in nearly two months, supported by a sharp rebound in IT stocks and falling crude oil prices following positive US-Iran talks. The Sensex also ended strong, rising 579.48 points or 0.75% to close at 77,502.12, while the Bank Nifty ended largely unchanged. Market breadth remained positive with 2,226 stocks advancing, 1,145 declining and 81 remaining unchanged out of 3,452 stocks traded on the NSE. The India VIX declined sharply by 7.18% and slipped below the 12.3 mark, registering its lowest closing level since the second half of February.
According to The Times of India, ITC has been recommended as a buy in the ₹286-292 range with a target of ₹330, representing a 14% return over 6 months. The stock has undergone a corrective phase over the past 21 months and is currently consolidating near a crucial support zone. The current correction closely mirrors the earlier phase between July 2017 and March 2020, when the stock fell from ₹338 to ₹124, declining by 214 points. The ongoing correction has exhibited a comparable magnitude, with the stock declining from ₹485 to ₹275, a fall of 210 points. The monthly stochastic has rebounded from oversold territory and generated buy signals, supporting a positive bias for the stock.
As reported by The Times of India, Ramco Industries has been recommended as a buy in the ₹334.00-342.00 range with a target of ₹388, representing a 15% return over 6 months. The stock has recently generated a breakout above the last 4 months bullish Cup & Handle formation, signaling continuation of the up move and offering a fresh entry opportunity. The breakout is supported by strong volume signaling larger participation at the breakout area, highlighting strength in the move. A key technical observation is the recent formation of a golden crossover, where the 50-day Exponential Moving Average (EMA) has crossed above the 200-day EMA, which is widely regarded as a strong bullish signal indicating a shift in trend from bearish to bullish territory.
The Nifty IT index emerged as the top sectoral gainer, surging 4.64%, snapping a four-session losing streak in which it had declined 6.5%. This marked the sharpest single-day rally in over 1-year for the IT sector. The rally was led by Infosys, which gained over 5%, while HCLTech, TCS, Tech Mahindra, and Wipro advanced 2%-5%. The rebound was seen on the back of weakening AI-driven momentum in South Korea, making Indian IT stocks more attractive alongside improving domestic market sentiment. The positive momentum in IT stocks aligns well with the technical recommendations for both ITC and Ramco Industries, as the broader market recovery supports the bullish outlook for these stocks.
