Global markets ended lower on Thursday as oil prices climbed after a media report said an Iranian and Omani framework to reopen the Strait of Hormuz would prohibit passage of U.S. vessels until compensation was paid. Reports also indicated that Iran had attacked some targets in the vital waterway, adding to geopolitical tensions. The benchmark S&P 500 index shed 0.2% to close at 7,710.08 points, the blue-chip Dow Jones Industrial Average slid 0.9% to settle at 53,885.16 points, and the tech-heavy NASDAQ Composite declined 0.1% to finish at 26,348.35 points. According to Investing.com, U.S. Treasury yields also put pressure on stocks ahead of a closely-watched nonfarm payrolls report which could give further cues about monetary policy outlook. As per Truist's Keith Lerner, "After a surge that saw the S&P 500 gain more than 5% and technology stocks rise nearly 11%, a pause is both normal and healthy." The S&P 500 ended July nearly unchanged from where it began the month, marking the second consecutive month of unspectacular price action for the broad US stock market benchmark.
CRISIL has given a breakout above an inverse head-and-shoulders pattern on July 22, as reported by JM Financial Services. The stock is currently trading at ₹4,550.6 and has broken out of its tight consolidation range between ₹4,300 on the downside and ₹4,520 on the upside. The recent rally from around ₹3,800 to ₹4,540 levels followed by consolidation resembles a bullish flag-and-pole continuation pattern. Technical indicators support continued bullish bias with price trading above short-term, medium-term, and long-term moving averages.
The technology sector faced significant pressure as memory storage providers Sandisk and Western Digital saw negative sessions with losses of 6.8% and 13%, respectively. Both companies delivered quarterly top- and bottom-line beats, but their guidance failed to live up to sky-high expectations set by the furious rallies in their stocks heading into the earnings. Western Digital, which had jumped 153% YTD ahead of the latest quarterly report, saw a 13% decline, while Sandisk, which had seen a whopping 414% YTD jump, fell 6.8%. The weakness in these shares had earlier bled into Asian trade, with South Korean memory chipmakers Samsung Electronics and SK Hynix tumbling and dragging down the broader KOSPI index. Japan's Nikkei 225 also fell as the AI boom-driven demand concerns spread globally. Conflict around key shipping chokepoints keeps unsettling oil markets, with prices historically taking longer than expected to normalize even after tensions ease.
SBI Cards and Payment Services has broken out of a falling channel on July 14, currently trading at ₹660, as reported by Samco Securities. The stock is consolidating in a tight range with higher lows and higher highs since June 11, trading above short-term and medium-term moving averages. Tata Capital has confirmed a decisive breakout above a multi-month resistance zone after completing a Cup and Handle formation, with the stock trading at ₹382.7. Both stocks show strong institutional participation with improving volumes and sustained momentum above key moving averages.
Shipping Corporation of India has staged a decisive recovery after breaking above the upper boundary of a well-defined falling channel, currently trading at ₹308.6, according to Choice Broking. The stock has reclaimed and sustained above its rising 20-DEMA, with RSI surging above 60 and crossing its signal line. Sumitomo Chemical India is displaying improving bullish momentum after confirming a Golden Crossover, currently trading at ₹525.2. The stock has formed a Bullish Engulfing candle and RSI rebounded from the midpoint, indicating strengthening momentum.
Poonawalla Fincorp is exhibiting improving bullish momentum after confirming a golden crossover on the daily chart, currently trading at ₹490.85, as reported by Choice Broking. The stock has delivered a decisive breakout with an Inverse Head & Shoulders pattern formation. Ujjivan Small Finance Bank continues to exhibit strong bullish structure with higher highs and higher lows while sustaining above its rising 20-DEMA, currently trading at ₹72.05. The overall trend remains constructive with sustained trade above the 20-DEMA and improving price structure across these financial services stocks.
