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Nifty eyes 24800 onset of Q1 earnings…

ICICIdirect Research 03 Jul 2026 DISCLAIMER

The equity benchmark continued its winning streak over the fourth consecutive week and settled the monthly expiry week at 24280, up 0.9%. Small cap index outshone by gaining 2%. Sectorally, Realty, Pharma, Defence remained at forefront while PSU Bank, energy underperformed.

What we expect:

  • Expect continuation of upward momentum towards 24800 in the month of July
  • Over the past two weeks the index has formed a higher base above the cluster of short-term moving averages. The formation of higher peak and trough confirms structural improvement that makes us revise support base at 23700 
  • Midcap index continued to hover around lifetime highs while smallcap index has seen significant catch-up activity as it is just 3% away from its All Time High
  • The current traction in broader market is backed by improvement in market breadth that bodes well for durability of ongoing up move
  • Pharma index broken out of 18 months consolidation and clocked a fresh All-time High.

The buoyancy in the market is well supported by the convergence of favorable macroeconomic tailwinds:

a)      Easing of geopolitical tension

b)     Falling crude oil prices

c)      Rupee appreciation

d)     RBI’s slew of measures to attract foreign flows into debt instruments

e)     Q4FY26 GDP growth

f)       Lower expectations of Fed’s rate hikes

 

Key Monitorable:

  • Fed Minutes
  • Commencement of Q1 earnings: TCS, LTF

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