Nifty, Bank Nifty Extend Gains; Bulls Charge On

Friday’s Pick

APOLLOHOSP 25JUL24 6250 CE Rs 26,250 (Per 5 Lot)
IRFC Rs 2,000 (Quantity 200)

Nifty Technical view

The Nifty 50 index showed a strong upward trend on the daily charts, highlighted by a bullish candlestick pattern due to a late-day rally. This positive movement is supported by momentum indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), which both suggest continued positive momentum. On the weekly chart, there was a significant green candle indicating that the index reached new highs and maintained higher lows, signaling ongoing strength in the market.

Indian Vix

Market volatility decreased for the fourth day in a row, which is reassuring for bullish investors and adds stability to the market. The India VIX, often referred to as the fear gauge, fell by 1.24 percent to 12.70, down from 12.86 on Friday, and it has decreased by over 8 percent over the week.

FII And DII Data

Foreign institutional investors (FIIs/FPIs) purchased Indian stocks worth Rs 1,241.33 crore, whereas domestic institutional investors (DIIs) sold Indian stocks totaling Rs 1,651.36 crore during the same period.

Put Call Ratio

The Nifty Put-Call Ratio (PCR), a measure of market sentiment, dropped to 1.20 on July 5 from 1.27 in the previous session. A higher PCR, particularly above 0.7 or exceeding 1, suggests that traders are selling more Put options than Call options, typically signaling a strengthening bullish sentiment in the market. Conversely, if the ratio falls below 0.7 or moves towards 0.5, it indicates that there is more selling of Call options than Put options, reflecting a bearish sentiment in the market.

Stocks in the news

Bandhan Bank:
Ratan Kumar Kesh, the Executive Director and Chief Operating Officer of Bandhan Bank, has been appointed as the interim Managing Director and CEO of the private lender, effective July 10.

Nifty and Bank Nifty Support and Resistance level

Resistance 24,360, ,24,405, and 24,480
Support based 24,210,24,165, and 24,090
Resistance 52,790,52,915 and 53,120
Support based 52,390, 52,265 and 50,060

Index Future levels

Nifty Futures Sell below 24400 The suggested targets for this are 24,600 and 24800 with the stop loss set at 24,150.

Bank Nifty future buy above 52,800 index is expected to see up side levels of 53100 and 53,300 and level 52,550 will act as a stop loss.

Fundamental Pick: ZYDUSWELL

Buy at ₹2118 | Target price: ₹2230 |Stop Loss:₹2050

Headquartered in Ahmedabad, Zydus Wellness is an integrated consumer company with a range of well-known health and wellness brands such as GluconD, Complan, Sugar Free, Nycil, Everyuth, Nutralite, and Sugarlite. To ensure wide distribution across India, the company has invested in 24 integrated warehouses, 1,700 distributors, and 2,000 field representatives. It operates five manufacturing facilities, and its flagship brands lead their respective categories. Despite challenges posed by the pandemic, the company successfully launched 11 new products in FY2021-22.

The analysis indicates a positive outlook for ZYDUSWELL based on its daily chart. Over the past five days, the stock has consistently formed higher highs and higher lows, and recently broke above a key resistance level, suggesting potential upward movement. Additionally, the increase in trading volume and the stock trading above the short-term Volume-Weighted Average Price (VWAP) of ₹2105 further reinforce a bullish scenario.Zydus Wellness Ltd’s revenue increased by 10.21% year-over-year to ₹786.60 crore in Q4 2023-2024. On a quarterly basis, the company achieved a significant revenue growth of 93.46% over the last three months.

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