Out of the 186 points that the Nifty rallied on the final trading day of the week, 129, or nearly 70% of that came from the six IT stocks – TCS, Infosys, Wipro, HCLTech, Tech Mahindra and LTIMindtree.
Its a new week, but a truncated one and of course one that promises to be full of action as well as the earnings season begins to gather steam. The week gone by nearly turned out to be a dull one until the IT stocks woke up from their long slumber post TCS’ results and took the Nifty higher, thereby ensuring that the index gained for the sixth week in a row.
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The Nifty IT index had its best single day gain since October 2020 last Friday. Out of the 186 points that the Nifty rallied on the final trading day of the week, 129, or nearly 70% of that came from the six IT stocks – TCS, Infosys, Wipro, HCLTech, Tech Mahindra and LTIMindtree. The other contributors to the upside were stocks like Reliance Industries and Axis Bank.
At one point, the Nifty not only broke past 24,500 on the upside, but came within touching distance of even conquering 24,600. The index though, reversed from its latest record high of 24,592 but managed to close above the mark of 24,500. For the week, the Nifty ended 0.7% higher.
HCLTech, which was the only IT stocks that was not participating in Friday’s rally in the initial bits of trading, recovered from the day’s low and also ended with gains of 3%. The stock will now react to its quarterly results, which were reported after market hours on Friday. Also reacting to their results will be stocks like Avenue Supermarts and IREDA, among others.
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Monday’s trading session will see stocks like HDFC AMC, HDFC Life and Jio Financial Services report results.
The US markets too rebounded from Thursday’s dip with the Dow Jones scaling a new record past the mark of 40,000. The S&P 500 and the Nasdaq also gained 0.5% and 0.6% respectively. There might just be a reaction in the markets post the shootout at former President Donald Trump’s rally, in which he was injured.
Friday’s trading session saw foreign institutions be net buyers in the cash market, while domestic institutions continued to book profits at higher levels.
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The Nifty appears to have completed its one day dip and has started to move higher, said Nagaraj Shetti of HDFC Securities, while pointing to a similar move on June 24, post which the index had continued to move higher. He now expects the index to test levels of 24,950, having crossed the immediate hurdle of 24,400. Downside support is at 24,350.
Kotak Securities’ Amol Athawale is of the view that 24,400 – 24,350 will be key supports for trend following traders and moves above that will take the Nifty to 24,650 – 24,750 levels. Only a slip below these levels can take the index back to 24,200 – 24,150.
Hrishikesh Yedve of Asit C Mehta Investment Interrmediates said that the Nifty nearly tested its short-term target of 24,600 and will now have to cross that level to trigger fresh bullish momentum. Till then, he advised considering buying on every dip with support seen near levels of 24,170.
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The Nifty Bank remained an underperformer as had been the case all through last week. The index remained little changed on Friday and managed to end the week with losses of close to 0.7%. With that, the eight-week winning streak of the Nifty Bank came to an end. Although the index did see a spike above the mark of 52,500, in line with the Nifty moves, it could not sustain above those levels, correcting over 500 points from the highs.
The Nifty Bank found support from the rising trendline, which continues to highlight a positive trend, said Om Mehra of SAMCO Securities. He also expects a short-term pullback on the index, where if 51,800 is broken on the downside, it can head further down towards 51,200.
Rupak De of LKP Securities said that the Nifty Bank continues to face resistance at the 52,800 mark and in case it manages to break and sustain above those levels, it can move further higher towards 54,000.
What Are The F&O Cues Indicating?
These stocks added fresh long positions on Friday, meaning an increase in both price and Open Interest:
| Stock | Price Change | OI Change |
| Atul | 2.38% | 17.27% |
| IndiaMART | 2.06% | 17.17% |
| Dalmia Bharat | 3.60% | 13.71% |
| L&T Technology Services | 0.42% | 13.37% |
| Manappuram Finance | 5.31% | 13.04% |
Fresh short positions were seen in these stocks on Friday, meaning a decline in price but an increase in Open Interest:
| Stock | Price Change | OI Change |
| ABB | -3.36% | 7.82% |
| Asian Paints | -1.47% | 7.26% |
| Siemens | -2.34% | 4.48% |
| Divi’s Laboratories | -0.74% | 3.97% |
| Astral | -2.70% | 3.39% |
Short covering was seen in these stocks on Friday, meaning an increase in price but a decline in Open Interest:
| Stock | Price Change | OI Change |
| Birlasoft | 5.29% | -15.61% |
| Petronet LNG | 0.19% | -8.75% |
| Coforge | 6.62% | -7.20% |
| Deepak Nitrite | 0.10% | -5.92% |
| Voltas | 0.47% | -4.67% |
Unwinding of long positions was seen in these stocks on Friday, meaning a decline in both price and Open Interest:
| Stock | Price Change | OI Change |
| Glenmark Pharma | -0.45% | -9.47% |
| Balrampur Chini | -1.02% | -8.80% |
| GAIL | -0.76% | -6.64% |
| REC | -1.65% | -6.37% |
| IPCA Labs | -0.79% | -5.64% |
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| Stock | Key Highlights |
|---|---|
| HCLTech | FY 2025 revenue growth guidance: 3%-5% (constant currency), EBIT margin: 18%-19%, Services revenue growth: 3%-5% YoY. Total contract value: $1,960 million. Beat on profit, revenue, margins, and US Dollar revenue expectations. |
| IREDA | AUM growth: 33.9% YoY to ₹63,207 crore, Gross NPA: 2.19% (from 2.36% in March), Net NPA: 0.95% (from 0.99% in March), Provision-Coverage Ratio: 57.2% (from 48.8%), Net Interest Income up 37.6% YoY to ₹369.1 crore, Provisions write-back: ₹30 crore, Operating profit up 30.3% YoY to ₹445.7 crore. |
| Avenue Supermarts | Net profit up 17.5% YoY to ₹773.8 crore, Revenue up 18.6% YoY to ₹14,069.1 crore, EBITDA up 18% YoY to ₹1,221.3 crore, EBITDA margin flat at 8.68%. |
| Lupin | Received Establishment Inspection Report from USFDA for its Dabhasa facility in Gujarat with no observations, inspection concluded with No Action Indicated classification. |
| PTC Industries | Board approves raising up to ₹700 crore through QIP or other permissible modes in one or more tranches. |
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