Market Overview: Lower Open for Key Indices Amid IT Sector Concerns
On Thursday, the Indian stock market faced a downward trend as major indices, Nifty 50 and Sensex, started lower. The decline came in the wake of Wipro‘s announcement regarding a drop in revenue for the April to June quarter, which raised concerns among investors about the information technology sector. The Sensex fell by 362 points, settling at 76,682.29, while the Nifty 50 slipped by 129.75 points, reaching 23,307.45.
Impact of IT Stocks on Market Performance
Wipro’s shares tumbled by 5.1%, contributing to a 1.4% decline in the IT index. The company not only missed its fourth-quarter revenue expectations but also projected a revenue decrease of 1.5% to 3.5% for the upcoming quarter. In addition, shares of Infosys, Wipro’s larger rival, decreased by 1.1% ahead of its earnings report, which is set to be released after market hours on Thursday.
- Sensex: -362 points at 76,682.29
- Nifty 50: -129.75 points at 23,307.45
- Wipro: -5.1%
- Infosys: -1.1%
Sector Performance and Market Sentiment
The broader market showed a mixed performance, with eight out of thirteen sectors experiencing declines. Both the smallcap and midcap indices fell by approximately 0.2%. Analysts attribute the ongoing market uncertainty to persistent worries regarding tariffs imposed by U.S. President Donald Trump. Furthermore, comments from Jerome Powell, the chair of the U.S. Federal Reserve, regarding the considerable impact of tariffs on the global economy have heightened market caution.
Technical Analysis: Nifty 50 Outlook
According to Osho Krishan, Senior Analyst at Angel One, the market’s overall tone appears bullish despite recent dips attracting buying interest. The Nifty 50 is currently trading within a Falling Channel pattern, with recent support found at the lower channel boundary. The index is now approaching the upper boundary, with resistance levels around 23,600–23,700.
- Immediate Support: 23,250 (aligns with the 89 DEMA)
- Strong Support Zone: 23,000 – 22,900
Traders are advised to wait for intraday dips or consolidation before initiating new long positions.
Stock Recommendations for Thursday
For those looking to make informed trading decisions, Osho Krishan suggests considering the following stocks:
-
Gujarat Gas Ltd.
- Recent price resurgence with a strong weekly closure.
- Positioned above its 50 DEMA, indicating strength.
- Buy Recommendation: Around ₹410-400 with a stop loss at ₹380, targeting ₹440-460.
- Punjab National Bank (PNB)
- Notable recovery after being in oversold territory.
- Approaching the 100-DEMA, a significant technical level.
- Positive crossover between 21-day and 50-day DEMAs suggests an upward trend.
- Buy Recommendation: Around ₹98-95 with a stop loss at ₹90, targeting ₹116-110.
Final Thoughts on Market Dynamics
As we approach a long weekend, traders should exercise caution and avoid aggressive overnight positions due to lingering global uncertainty. The focus should remain on stock-specific opportunities that present favorable risk-reward scenarios in the current market environment.
