Indian benchmark indices extended their gains for a third consecutive session on Friday, July 3, driven by strong buying in IT and pharmaceutical stocks, despite mixed global cues. The Sensex rose by 262 points, or 0.34%, closing at 77,763.91, while the Nifty 50 climbed 95 points, or 0.39%, to end at 24,270.85.
The Nifty 50 enters the new trading week with a positive bias, having broken through the crucial 24,200 resistance zone. The index remains above key moving averages, indicating a constructive broader trend. Improved market sentiment, reduced volatility, and sustained participation from both institutional and retail investors have strengthened the market's undertone.
Sumeet Bagadia, Executive Director at Choice Broking, noted that the 24,150–24,200 zone is expected to act as immediate support for the Nifty 50. A decisive break below 24,150 could lead to consolidation towards the 24,050–24,000 zone. On the upside, resistance is near 24,400, with a potential advance towards 24,600 if this hurdle is overcome.
“The 24,150–24,200 zone is expected to act as the immediate support area, as it coincides with the recent breakout zone, the falling resistance trendline, and the 100-day EMA.”
Sumeet Bagadia, Executive Director at Choice Broking
The Bank Nifty, although underperforming the Nifty 50, maintains a cautiously positive bias. It trades above key moving averages, suggesting a positive broader trend despite ongoing consolidation. Support is seen in the 57,400–57,500 zone, with resistance at 58,400–58,500. A breakout above this could lead to a rally towards 58,900 initially.
Sumeet Bagadia has recommended three stocks to buy on Monday, July 6: Jayaswal Neco Industries at ₹91 with a target price of ₹100, NTPC Green Energy at ₹95.50 with a target price of ₹105, and IDFC First Bank at ₹80.50 with a target price of ₹86. These recommendations are for educational purposes only, and investors should consult certified experts before making investment decisions.
“On the upside, immediate resistance is placed in the 58,400–58,500 zone. This remains the most crucial hurdle for the index in the near term.”
Sumeet Bagadia, Executive Director at Choice Broking
Background
The Indian stock market has been showing resilience with the Nifty 50 and Sensex maintaining upward momentum despite global uncertainties. This trend is supported by strong buying in sectors like IT and pharmaceuticals, as well as participation from both institutional and retail investors.
As the Indian stock market continues to show resilience, investors are advised to monitor key support and resistance levels closely. The ongoing consolidation in indices like the Bank Nifty suggests a pause within a larger uptrend, with potential for renewed bullish momentum if resistance levels are breached.
