The NSE Nifty 50 (India 50) could be volatile on Thursday with an upward bias, analysts told Capital.com.
“Nifty’s short-term trend continues to be positive,” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities, while Prashanth Tapse, Vice President (Research), Mehta Equities added:
“We suspect the Nifty could trade fragile and a bit wobbly on Thursday in overbought conditions.”
ITC stock price and Wipro stock price may react to new developments on these counters.
“Although the fatigue in the Nifty at the peaks and the hurdle is visible, but there is still no strong evidence of an inversion pattern taking place at the peaks.
A sustained move above the 16,550 – 16,600 levels could pull Nifty towards another 16,800 level hurdle in the near term. Any decline from here could find support at around 16,300-16,250 levels in the short term,” Shetti added.
Oil prices fell on Wednesday after US government data showed lower demand for gasoline during the peak of the summer driving season, reducing energy demand, coupled with the impact of price hikes. interest rate. U.S. gasoline inventories rose 3.5 million barrels last week, the data showed, according to a Reuters report.
Mehta Equities’ Tapse believed optimism in global markets over easing fears of hawkish Fed rate hikes helped the Nifty rise.
“In contrast, Nifty has support at 16,321 points. In the event of a collapse of Nifty’s major intraday support at 16.321 points, the next pivot point could be found at 16,000 psychological points,” he added.
“The market is hoping that the US Fed will not be aggressive in raising rates at its next meeting, while falling commodity and crude oil prices have also moderated the downtrend of recent sessions,” Shrikant said. Chouhan, head of equity research (retail) at Kotak Securities said.
Nifty 50 hot actions
ITC chief executive Sanjiv Puri said on Wednesday that the business conglomerate is reviving plans to create an alternative hospitality structure following a recovery in the hospitality industry.
Addressing shareholders at the company’s annual general meeting, Puri said plans to unlock value for the hotel business had been put on hold earlier as the industry had been badly hit by the pandemic, according to a report.
Technology services giant Wipro reported a 20.6% year-on-year drop in its consolidated net profit to INR 25.66 billion ($320 million) for the first quarter ended June 30 , impacted by the increase in expenses.
In the corresponding quarter of last year, the company recorded a net profit of INR 32.43 billion, according to an update from the stock exchange. Ahead of the earnings announcement, Wipro shares closed up 1.49% at INR 411.70.
Nice on Wednesday
On Wednesday, Nifty closed 1.1% higher at 16,520.85, with sectors such as metals, information technology and fast-moving consumer goods indices rising the most. The telecommunications and electricity indices fell the most.
“The tone remained firm in the first half, thanks to the continued rebound in the IT, metal and energy packs, but profit taking in the second half trimmed the gains.
Finally, the Nifty Index came in at 16,520; up 1.1%. Meanwhile, the broader indices underperformed and closed slightly higher,” said Ajit Mishra, Vice President (Research) Religare Broking.