Technical Analysis

WHAT LIES AHEAD : NEAR-TERM PICTURE [EasyDNNnews:PaidContentStart]

SPOT NIFTY : 

The Nifty 50 extended its upmove for the second straight session on Thursday, supported by a sharp rally in the IT sector. The index opened above the previous day’s high and maintained its positive bias through the session, eventually closing 170 points higher. 

The price action remained constructive as the index formed a second consecutive higher high and higher low candle. The move was also supported by higher volumes compared with the previous session, which adds strength to the rally. Weekly volumes too were higher than the previous week, while broader market participation and index breadth remained firmly positive. 

However, the decline in open interest is one area to watch, as it suggests that part of the rally may have been driven by short-covering. The Nifty closed near a two-month high and also reclaimed its 100-DMA for the first time since mid-February. The index is now trading near the upper end of the range that has been in place since mid-June. 

Going ahead, sustaining above the 24,250–24,265 zone will be important for the index to maintain its positive momentum. The Bollinger Bands have started expanding, indicating the beginning of an uptrend. The index is now trading 1.16 per cent above its 50-DMA. The RSI is close to entering the bullish zone above 60, while the MACD histogram reflects improving bullish momentum. 

If the Nifty sustains above 24,250–24,265, the immediate resistance levels are placed at 24,462 and 24,602. A move above these levels could confirm a decisive uptrend. On the downside, the 50-DMA continues to act as support within the current range. As long as the index holds above the 23,784–23,828 zone, the bias remains positive. For short-term positions, the previous day’s low can be used as a stop loss. 

NIFTY DERIVATIVES: 

The Nifty has started the July series on a positive note, with both trading sessions ending in the green. From last Thursday’s close to this Thursday, the index has gained around 120 points, or 0.50 per cent. At the same time, volatility has cooled off meaningfully, with India VIX declining nearly 6 per cent over the same period. 

For the July 7, 2026 weekly expiry, the PCR stands at 1.32, while the max pain level is placed at 24,100. Options data indicate strong put writing at the 24,100 strike, followed by additions at the 24,150 and 24,200 strikes. 

This points to support shifting higher as traders gain confidence in the ongoing upmove. Interestingly, call unwinding was seen at the 24,000 strike, while meaningful open interest concentration on the put side also remains at 24,000, suggesting that this level has now turned into an important support zone. 

On the call side, fresh open interest addition was seen at the 24,400 strike, while the highest concentration remains at the 24,500 strike. This indicates that traders are currently positioning 24,400–24,500 as the immediate resistance zone. 

Overall, the options setup suggests a positive bias as long as the Nifty holds above 24,000–24,100, while a sustained move above 24,400 could open the door for further upside towards 24,500. 

STOCK STRATEGY 

GODREJ CONSUMER PRODUCTS LTD.. ......... BUY ......... CMP ₹1077.30 

BSE Code ...... 532424 Target 1 .... ₹1,155
Target 2 .... ₹1,184 
Stoploss ...₹1,012 (CLS) (Image) 

• Current Observation: Godrej Consumer Products is one of the leading emerging-market focused FMCG companies, with a strong presence in health, hygiene and beauty categories. Part of the Godrej Industries Group, the company has built a meaningful position in household insecticides and hair care across several emerging markets.
• On the technical front, the stock has given a breakout from an inverted head-and-shoulders pattern, which signals a positive shift in trend. It has also tested the 61.8 per cent retracement level of the recent downswing, while higher volumes over the last two sessions suggest renewed buying interest. The stock is trading comfortably above its 20-day and 50-day moving averages and is currently around 3.66 per cent above the 50-DMA.
• Momentum indicators are also supporting the bullish setup. The Bollinger Bands have started expanding after a period of contraction, indicating a possible rise in volatility. The MACD has moved above the zero line, with the histogram showing strengthening momentum. The RSI has shifted into the bullish zone, while the Stochastic RSI has generated a fresh positive signal. KST remains bullish, and the Elder Impulse system has also formed a strong bullish bar.
• Overall, the stock has registered a bullish breakout. A sustained move above Rs 1,075 may open the way for an upside towards Rs 1,155 1,184. Traders may consider maintaining a stop loss at Rs 1,012. 

REVIEW OF STOCK STRATEGY 

In Issue No. 37, dated June 25, 2026, we had recommended Aurobindo Pharma Ltd at Rs 1,554.20. The recommendation was based on the stock’s breakout from a five-week base, supported by strong volumes. Following the recommendation, the stock moved higher but has since retreated from elevated levels and closed near the recommended price. We advise readers to continue holding the position with the previously mentioned stop-loss, as the original investment rationale remains intact. 

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