Indian equities gave up strong early gains as elevated crude prices and continued FII selling overshadowed optimism surrounding India-US trade negotiations. Profit-booking intensified across autos, financials, metals and realty, reflecting concerns over inflation and margin pressures, while IT showed relative resilience amid improving earnings visibility and renewed investor appetite for the sector. Analysts say resilient Q2 earnings and robust domestic institutional flows remain important market supports, but weak breadth and persistent foreign selling point to continued caution.
Wipro has given a bullish breakout from a descending channel pattern on the daily chart, followed by a healthy retracement and a strong closing candle, indicating renewed buying interest. The stock is trading above its 20-day, 50-day and 100-day EMAs, supporting the positive price structure. The RSI stands at 72.86, indicating strong bullish momentum, although the stock is in the overbought zone and may witness some short-term volatility.
Sachin Gupta, VP – Technical Research, Choice Equity Broking
NHPC is trading near a major support zone on the weekly chart and has rebounded from the 200 EMA, indicating buying interest at lower levels. The stock is attempting to recover from this support area, while the Rs 78 level may act as a key upside target and also coincides with resistance near the 100 EMA. The weekly RSI stands at 41.03, indicating relatively weak momentum, although a sustained recovery could support further upside.
Sachin Gupta, VP – Technical Research, Choice Equity Broking