Stock market opening: Nifty, Sensex trade in green, Hero Moto, and Bajaj Auto take lead in early trade

Both Nifty and Sensex opened the day in green, with Sensex trading at 79,255.90 points, up by 0.28%, and Nifty trading at 24,077.50 points, up by 0.28 %, as of 10 am.

Hero Moto, Maruti, Bajaj Auto, JSW Steel, and Dr. Reddy took the lead in early trading, while NTPC, Powergrid Corporation, Apollo Hospitals, and Britannia remained laggards. As for sectoral indices, PSU bank, realty and healthcare opened the day in red, while all other broad-based indices were also trading in green.

Stocks in Action

Baja Auto reported strong sales numbers, with 11,02,056 units sold between April and June 2024. This was up by 7%, as compared to 10,27,407 units sold between April and June 2023.

JSW Renew Energy (Raj), a subsidiary of JSW Energy, signed a power purchase agreement with SJVN Limited for a solar capacity of 700 MW. The total locked-in capacity of the company stands at 13.9 GW. The stock was up by 0.95%, trading at Rs 741.50.

NCC Limited informed the exchange of receiving orders worth 335 Crores in June 2024. The company's stock was trading at Rs 320.05, up by 1.14%.

As per Aditya Gaggar, director of Progressive Shares, "profit booking at record levels dragged the Index lower to settle the last day of the week/month at 24,011. The weekly chart indicates a strong uptrend, while the daily chart denotes a temporary pause in its northward journey. Buying on dips will be an ideal strategy, with the downside being protected at 23,660 and 24,260 to be considered the resistance.

"We have been recommending ancillary stocks from the auto space, especially tyre counters. Heavyweight Reliance will likely lead the energy sector rally as it has given a strong breakout. Gas-related stocks also look firm on a technical front (IGL and Gujarat Gas). Some IT heavyweights indicate a resumption of its uptrend (HCL Tech, Tech Mahindra). Investors should keep an eye on the agro/specialty stocks, as a couple of stocks have given a strong breakout," he continued.

According to Shrikant Chouhan, Head Equity Research, Kotak Securities, "last week, the benchmark indices experienced a significant rally, with the Nifty rising by 2.15% and the Sensex gaining over 2,470 points. The energy and oil & gas sectors saw a rally of over 3%, while the realty and media sectors traded in negative territory despite strong momentum. Realty was down by 2.60%, and the media index was down by 2.1%. Throughout the week, the market surpassed the short-term resistance of 23,700/78,000, and the bullish momentum increased after the breakout".

"Technically, the formation of a long bullish candle on the weekly chart and the continuation of the breakout on the daily chart indicate bullish momentum to continue. Key support zones for the week are at 23,950/78,800 and 23,900/78,700. Above these levels, the bullish sentiment is likely to continue. For positional traders, the buying zone is between 23800 and 23750 levels.