Broad Strokes, July 8, 2024

Nifty’s Potential Rise Above 24,500

1. Outlook and Technicals: Nifty may move range-bound but positive, with potential to rally above 24,400 towards 25,000.
2. Support and Resistance: Traders should monitor support at 24,000 and 23,800, while selling near resistance levels.
3. Sector Recommendations: Bullish on BFSI, IT, oil & gas, and select midcaps; cautious re-entry strategy recommended.

Railway Stocks Surge Ahead of Union Budget

1. Stock Performance: Railway stocks like RVNL, IRFC, and TexRail surged up to 15% due to expected budget allocations.
2. Market Sentiment: Positive sentiment driven by plans for new coaches and high-speed trains.
3. Analyst Expectations: Anticipated capex expansion and volume growth boost investor confidence.

PSU Stocks Valuation Concerns and Budget Impact

1. Valuation Issues: Kotak’s report highlights overvaluation concerns for PSU stocks like BHEL and CSL.
2. Budget Tailwinds: Resurgence of ‘Modi stocks’ driven by expected budget impacts.
3. Sector Insights: Positive outlook on defense companies; growth in marine and aviation sectors emphasized.

Defence Sector Stocks Show Strong Growth and Potential

1. Growth Potential: Favorable outlook for stocks like Hindustan Aeronautics and Bharat Electronics.
2. Key Factors: Indigenization, strong order books, and manufacturing tie-ups.
3. Long-term Outlook: Bullish on core sectors like electronics; cautious investment approach due to high valuations.

Adani Wilmar Shares Rise on Positive Q1 Business Update

1. Stock Surge: Shares rose over 4% due to 13% YoY volume growth.
2. Segment Growth: Edible oil segment up 13% in volumes, food & FMCG segment also grew.
3. Market Position: Consistent revenue growth in branded products, strong sales and distribution execution.

Paytm Stock Surge

1. Stock Performance: 9% surge driven by founder’s $100 billion valuation ambition.
2. Strategic Moves: Partnerships with Zomato and Samsung Wallet influenced stock.
3. Financials: Q4 widened loss, but potential uptrend predicted by analysts.

ONGC Stock Surge

1. Stock Peak: Surged to a nine-year high at Rs 303, near record peak.
2. Brokerage Ratings: ‘BUY’ rating with a target price of Rs 325 due to dividend potential and crude realizations.
3. Production Plans: Ramping up production at KG 98/2 field expected to boost earnings.

Titan Stock Performance and Analyst Downgrades

1. Stock Decline: 4% decline due to weak Q1 update.
2. Brokerage Actions: JPMorgan, Morgan Stanley, and Goldman Sachs reduced target prices.
3. Market Challenges: High gold prices and competition impacting demand and margins.