The Nifty 50 index closed above the 19,000 mark for the first time on June 30. Since then, it has already added 500 points to its rally, and is halfway through the journey towards 20,000. The weekly options expiry also saw the Nifty 50 break above a key resistance level from the last two sessions, which was around the 19,450 mark.

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For the week, the Nifty 50 is now up over 300 points and even though the global cues do not look very promising, the index is set for its sixth weekly advance in the last seven weeks.

The Nifty 50 has witnessed a negative divergence on its RSI on the hourly chart, which may restrict the pace of the upmove going forward, said Gaurav Bissa of InCred Equities. "This, combined with the rising trendline resistance at the 19,600 mark can result in some profit booking in the Nifty 50 in the coming days," he said. 19,330 is an immediate support, while 19,150 - 19,200 are key medium-term supports.

On the other hand, Shrikant Chouhan of Kotak Securities expects the index to move towards levels of 19,575 - 19,625, as long as it remains above the 19,375 support level. Below the key support levels, the index can have a quick intraday dip towards 19,325 - 19,300, he said.

After a few days of underperformance, the Nifty Bank index finally contributed to the index upmove on Thursday, ending higher by nearly 200 points. However, Thursday's high turned out to be just the same as Wednesday's, while the low of 45,042 was 30 points below the intraday low on Wednesday. For the week, the index has gained over 600 points, and is set for its second straight weekly advance.

Kunal Shah of LKP Securities said that 45,000 is the make or break level for the index and further added that it has to surpass the 45,500 levels on the upside, which has seen heavy call writing, for a move towards 46,000. It is advisable to adopt a buy-on-dips approach as long as the 45,000 support is intact, he said.

Oil Marketing Companies were the stars on Thursday with all three of them - HPCL, BPCL and Indian Oil ending at 52-week highs. Indian Oil will be holding a board meeting today to consider raising funds via a rights issue. All three stocks have between 10-15 percent over the last month.

"One of the major headwinds or troubles in terms of identifying opportunities in this space is in terms of predicting those government policies around these companies. And that has been a challenging aspect. So adjusted for that the current valuations, it doesn't offer too much comfort. Of course the current marketing margins and refining margins are looking reasonably okay. But on a normalized level, we don't feel that could sustain for a longer period of time," said George Thomas of Quantum AMC.

What are the F&O Cues Indicating?

Nifty 50's July futures added 6.2 percent and 6.47 lakh shares in Open Interest. They are now trading at a premium of 38.8 points compared to 68.35 points earlier. Nifty Bank's July futures also added 7.4 percent or 2 lakh shares in Open Interest on Thursday. Nifty 50's put-call ratio is at 1.48 Vs 1.37 earlier.

BHEL and Delta Corp have entered the F&O ban list from today's session.

Nifty 50 on the Call side for July 13 Expiry:

For next Thursday's weekly expiry, Nifty 50's call strikes between 19,500 and 19,650 have seen addition in Open Interest. Even the 19,900 call strike, which expires next week has seen Open Interest addition.

Nifty 50 on the Put side for July 13 expiry:

On the other hand, Put strikes of the Nifty 50 for next week's expiry have also seen some unusual options activity. While strikes between 19.250 and 19,500 added Open Interest, addition, and in fact, the maximum addition was seen in the 17,500 put strike, which is a 2,000-point downside from current levels.

Lets take a look at the stocks that added fresh longs on Thursday, meaning an increase in price and Open Interest:

Lets take a look at the stocks that have added fresh shorts on Thursday, meaning a decrease in price but increase in Open Interest:

Some stocks also saw short-covering on Thursday, meaning an increase in price but decrease in Open Interest:

Here are the stocks to watch out for in today's trading session:

Titan: Standalone revenue for the June quarter grows 20 percent year-on-year. The largest business, jewellery, grew by 21 percent during the quarter. Akshaya Tritiya sales in April and wedding purchases in June were Robust. Wearables grew by 84 percent, while EyeCare grew 10 percent. CaratLane saw 32 percent growth.

Tata Steel: India deliveries up 17.9 percent at 4.8 MT. European and Thailand deliveries down 8 percent and 13 percent year-on-year respectively. Higher production in India driven by ramp-up at NINL. Data is in-line as shutdowns in Europe were informed at previous results. No negative surprise.

Dabur: Consolidated growth in the June quarter, including recently acquired Badshah Masala, seen at 10 percent year-on-year. International business sees strong performance with double-digit growth in constant currency.

Sobha: Overall sale in June quarter up 27.9 percent year-on-year to Rs 1,465 crore. Price realisations up 24.6 percent year-on-year to Rs 10,506 per square feet.

JK Cement: Arm JK Maxx Paints acquires 20 percent stake in Acro Paints for Rs 60.24 crore.

Indian Oil: To form JV with Praj Industries to build biofuel production capacities in India. Board meet today to consider raising funds via rights issue.

Suzlon: Board meet today for fund raising.

What Are Global Cues Indicating?

Markets in the Asia-Pacific have opened lower for the second day in a row after a stronger-than-expected jobs data triggered a sell-off on Wall Street overnight.

The Nikkei 225 index is down 1.1 percent, as is the Topix. The Kospi is down 1.1 percent as well after Samsung estimated a 96 percent likely plunge in its second quarter operating profit. Hang Seng futures also point to a lower open.

Overnight in the US, the DOw Jones fell nearly 400 points, while the S&P 500 and the Nasdaq fell 0.8 percent each. This was the worst single-day drop for the Dow and S&P 500 since May.

FOMC minutes showed most officials supported further rate hikes and what added fuel to the fire was the ADP private sector jobs data, which added nearly 5 lakh jobs for the month, compared to consensus estimate of 2.2 lakh.

Foreign investors continued to remain net buyers in the cash market on Thursday, while domestic investors continued to book profits at higher levels.

The Nifty 50 reaching the 19,500 mark is the upper end of the Fibonacci projection of the weekly top-bottom swings, said Nagaraj Shetti of HDFC Securities. A sustainable move above this hurdle could take the index towards its next resistance zone of 19,800 in the coming weeks, he said. Immediate support is at 19,400.

Immediate support for the Nifty 50 is now at 19,420 - 19,300, according to Angel One's Rajesh Bhosale. He advises traders to enjoy this run without getting complacent and focus on risk management. 19,650 - 19,700 on the upside is the next resistance level.

First Published:Jul 7, 2023 12:00 AM IST