Opening Bell: Sensex, Nifty to open flat ahead of CPI data; SBI, NTPC, Maruti, Wipro, Hindustan Copper, Zydus Lifesciences shares in focus

The Indian share market is expected to open flat-to-higher on Thursday, tracking mixed cues from global peers as investors assessed the U.S.-China trade deal. At 8:00 a.m., GIFT Nifty futures traded higher by 36 points, or 0.14%, at 25,247, signalling a gap-up opening for the domestic benchmarks, the BSE Sensex and the NSE Nifty.

Investors will keep an eye on retail inflation data, as measured by the Consumer Price Index (CPI), for May, scheduled to be released post market hours today. On the global front, the Asian markets traded mixed today, following a negative closing on Wall Street overnight after the U.S. inflation data.

On Wednesday, the Indian benchmark indices had ended marginally higher, amid optimism over trade talks between the U.S. and its major partners, including India and China. The 30-share BSE Sensex closed higher by 123.42 points, or 0.15%, at 82,515.14, while the Nifty50 ended higher by 37.15 points, or 0.15%, at 25,141.40, marking their sixth straight day of gains.

Stocks to watch

Hindustan Copper:  The state-owned company plans to invest around ₹2,000 crore over the next five to six years.

State Bank of India (SBI):  The country's largest commercial lender has completed the recruitment of 13,455 junior associates for branches across the country.

Maruti Suzuki India:  The National Company Law Tribunal (NCLT) in New Delhi has approved the first motion application for the merger of Suzuki Motor Gujarat Private Limited, a wholly owned subsidiary, with Maruti Suzuki India.

RailTel:  The government-owned company has received a work order worth ₹119.49 crore from South Eastern Coalfields Limited (SECL) for delivering managed bandwidth services.

Nazara Technologies: Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, has offloaded a 1.98% stake in the gaming company through open market transactions.

Sterlite Technologies:  The company, in collaboration with Dilip Buildcon Ltd, has signed a ₹2,631.14 crore deal with Bharat Sanchar Nigam Limited (BSNL) to develop BharatNet middle-mile network in Jammu & Kashmir and Ladakh region.

Wipro:  Promoter group entities swapped around 18.05 crore shares, representing a 1.72% stake, via open market transactions on Wednesday.

NTPC:  The power major has secured $750 million via external commercial borrowings (ECB) to support its business growth and expansion plans.

Zydus Lifesciences:  The drug maker has received the Establishment Inspection Report (EIR) from the US FDA.

Technical outlook

A fresh trigger is needed for the Nifty to decisively surpass the 25,200 hurdle; otherwise, the ongoing consolidation may continue, said Ajit Mishra, SVP-Research, Religare Broking. “Participants are now closely watching the upcoming macroeconomic data, particularly CPI inflation and updates on trade deals, for further cues. Amid this backdrop, we recommend maintaining a stock-specific approach and focussing on prudent trade management, especially considering the overbought conditions in several mid-cap and small-cap stocks," he said.

Technically, after an intraday up move, the Nifty and the Sensex experienced selling pressure near the 25,200 and 82700 levels, respectively. On the daily charts, it has formed a small Doji candlestick pattern, indicating indecisiveness between the bulls and bears, said Shrikant Chouhan, Head-Equity Research, Kotak Securities.

“We believe that as long as the market trades within the 25,000/82,000 to 25,200/ 82,700 range, this range-bound behaviour is likely to continue. A successful breakout above 25,200/82,700 could push the market up to the 25,350–25,400/83,000-83,300 levels. On the other hand, below 25,000/82,000, selling pressure is likely to accelerate. If the market falls below this level, it could slip to the 24,850–24,775/81,700-81,500 range.”

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