Market Mogul Daily: Comprehensive Analysis of Indian Stock Market on 18th July 2024

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 The Indian stock market experienced a highly dynamic trading day on 18th July 2024, marked by a blend of volatility and optimism. Major indices like Nifty and Sensex achieved new milestones, closing at record highs due to significant buying in heavyweight stocks. However, the mid-cap and small-cap segments witnessed a decline, reflecting a mixed sentiment among investors.



Key Indices Performance


• Nifty: Closed at 24,801, up by 187 points (0.8%), recovering from an intraday low of 24,504.

• Sensex: Surged by 626 points (0.8%) to close at 81,343, marking a historic high above the 81,000 level.


Sectoral Highlights


IT and FMCG Sectors


• IT Sector: The Nifty IT Index rose by 2%, bolstered by impressive Q1 results from tech giants like LTI Mindtree, TCS, Infosys, Tech Mahindra, and Wipro, each gaining between 2-3%.

• FMCG Sector: The Nifty FMCG Index increased by 1%, with notable gains from Marico, ITC, Hindustan Unilever, and Tata Consumer Products, which advanced between 1-2%.


Capital Goods and Defense


• Capital Goods: Experienced a downturn, with ABB slipping 5% following a decline in orders across various regions reported by its parent company.

• Defense Stocks: Also saw significant losses, contributing to the overall dip in the mid-cap and small-cap indices.


Volatility Index


• India VIX: Rose by 3%, indicating increased market volatility ahead of the upcoming Union Budget. Over the past three trading sessions, the VIX has climbed by 6%.


Technical and Derivative Outlook


Technical Analysis


• The Nifty index formed a strong bullish candle, closing with gains around 190 points.

• Key support levels are identified at 24,650 and 24,500, while resistance levels are at 25,000 and 25,150.


Derivative Insights


• The Nifty futures closed at 24,810, up by 0.67%.

• Positive sentiments were observed in stocks like IndiaCem, Cholafin, ONGC, TCS, and MCX, among others.

• India VIX showed a slight increase, hovering at lower zones, which is favorable for bulls to maintain momentum.

• Option data suggests a broader trading range between 24,400 to 25,200, with an immediate range between 24,600 to 25,000.



Major Stock Movements


Top Gainers


• IT and FMCG Stocks: Infosys, TCS, Marico, ITC, Hindustan Unilever, and Tata Consumer Products were among the top gainers.

• Technology Sector: LTI Mindtree, TCS, and Wipro saw significant gains.


Top Losers


• Capital Goods: ABB declined by 5%.

• Defense Sector: Experienced considerable losses, contributing to the decline in mid-cap and small-cap indices.


Corporate News


Tata Power


• MoU with NHPC Renewable Energy: Tata Power signed a memorandum of understanding with NHPC Renewable Energy to pursue solar initiatives aimed at achieving 100% solarisation of government buildings.


Zensar Technologies


• Acquisition of BridgeView Life Sciences: Zensar Technologies, through its US subsidiary, agreed to acquire a 100% interest in BridgeView Life Sciences for $25 million.


Vedanta


• Dividend Windfall: Vedanta Ltd. is set to receive up to Rs 6,741 crore in dividends from Hindustan Zinc following the transfer of general reserve to retained earnings approved by the Jaipur bench of the National Company Law Tribunal.


Quarterly Results


• Sterling & Wilson Renewable Energy: Reported a Q1 net profit of Rs 5 crore, reversing a loss of Rs 95 crore from the previous year.

• Newgen Software: Q1 revenue decreased by 16.2% QoQ to Rs 315 crore, with net profit down 54.8% QoQ at Rs 48 crore.

• Grindwell Norton: Q1 net profit fell 3.6% YoY to Rs 93 crore, while revenue rose 5.6% YoY to Rs 706 crore.

• Havells India: Achieved a Q1 revenue increase of 20% YoY to Rs 5,806 crore, with net profit up 42% YoY at Rs 408 crore.


Global Market Impact


US and Asian Markets


• US Nasdaq Composite: Declined by 3% overnight due to a drop in chip-related stocks amidst reports of stricter export restrictions and geopolitical tensions spurred by comments from former President Donald Trump.

• Asian Markets: Fell by up to 2%, mirroring the negative sentiment from the US markets.


European Markets


• Technology Sector: European stocks gave up early gains as technology shares continued their decline.

• UK Index: Up by 0.5% on expectations of a rate cut following slower wage growth.

• Germany and France: Both indices saw marginal gains.


Conclusion


The Indian stock market demonstrated resilience on 18th July 2024, achieving record highs in major indices despite global volatility and sectoral divergences. The IT and FMCG sectors led the gains, while mid-cap and small-cap segments faced profit booking pressures. As the market anticipates the Union Budget, volatility is expected to remain elevated, offering both opportunities and challenges for investors.


Stay tuned to Market Mogul for more insightful analysis and updates on the Indian stock market. For queries or feedback, feel free to connect with us @MarketMogulIN.


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