Sensex surges 888 points on strong earnings, Fed optimism
Indian equity benchmarks staged a broad-based recovery driven by robust June-quarter earnings and anticipation of a dovish US Federal Reserve decision, creating near-term trading opportunities in select tech and biotech names.
Indian equities rallied sharply on Wednesday, with the Sensex climbing 888.68 points to 77,654.60 and the Nifty 50 gaining 264.85 points to close at 24,250.20. The broad-based advance pushed over 100 stocks to 52-week highs, reflecting renewed risk appetite across large-, mid-, and small-cap segments. Every major sector except realty closed in the green, with IT, pharmaceuticals, and private banks leading gains of 1 to 2 percent.
The recovery comes despite mixed global signals and a rebound in Brent crude prices. Domestic investors instead focused on robust corporate results for the June quarter and growing optimism surrounding the upcoming US Federal Reserve policy decision. The Indian rupee strengthened for a third consecutive session, closing at 95.64 against the US dollar, further supporting the bullish equity sentiment.
From a technical standpoint, the Nifty has established a revised support zone around 24,050 after sustaining its position above the 24,100 Fibonacci resistance level. Raja Venkatraman, co-founder of NeoTrader and a SEBI-registered analyst, noted that the index is now testing the 24,300 zone. A sustained break above this level could clear the path toward 24,500, though supplies at higher price points are expected to test buyer confidence.
Within this recovering market, Venkatraman has identified three specific stocks exhibiting technical strength and accumulation patterns. All three recommendations carry a two-month investment horizon.
C.E. Info Systems, operating as MapmyIndia, is recommended for a long position above ₹1,165 with a stop loss at ₹1,110 and a target of ₹1,295. The digital mapping and IoT firm has formed a double-bottom pattern after months of decline, suggesting accumulation at lower levels. Investors should weigh the 45.44 price-to-earnings ratio against risks including project delays, automotive sector dependency, and corporate governance concerns.
IT services provider Sonata Software is flagged for a buy above ₹318, targeting ₹355 with a stop loss at ₹299. The stock is showing signs of revival following a broader sector slump and recent profit-booking. While the company benefits from strong Microsoft and AWS partnerships, traders are warned of risks tied to high client concentration and macroeconomic headwinds.
Biopharmaceutical company Concord Biotech rounds out the list with a buy recommendation above ₹1,335, a stop loss at ₹1,290, and a target price of ₹1,460. The stock recently broke out of a consolidation phase near its Tenkan Sen and Kijun Sen indicators. Despite a high P/E ratio of 53.09, the R&D-driven API manufacturer is riding a fresh bullish candle, though exposure is tempered by therapeutic concentration and international supply chain vulnerabilities.
