Oracle Corporation

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Bullish +60

Vinay Rajani of HDFC Sec suggests Oracle Financial Services, Sun Pharma shares to buy

📉 Indian equity markets faced a sharp sell-off on May 18, with the Sensex dropping over 1,000 points to an intraday low of 74,180.

💸 The broader market correction erased nearly ₹9 lakh crore in investor wealth, pushing BSE-listed market capitalization below ₹452 lakh crore.

📉 The Nifty 50 index slipped more than 1% to a low of 23,317, trading below key 20-, 50-, 100-, and 200-day EMAs indicating a bearish trend.

🌍 Macro headwinds include rising Brent crude prices and Indian Rupee depreciation against the US Dollar, contributing to risk-off sentiment.

📊 HDFC Securities analyst Vinay Rajani recommends Oracle Financial Services Software as a buy with a target price of ₹9,800.

🐂 Oracle Financial Services shares displayed a bullish "hammer" candlestick pattern and broke out from a "Flag" pattern on daily charts.

💊 Sun Pharma is suggested for purchase at ₹1,875 by the same analyst, with a price target of ₹1,950.

📈 Sun Pharmaceutical Industries has surpassed the triple-top resistance near 1,850 accompanied by rising trading volumes.

🧬 Healthcare and Pharma sectors are showing relative strength compared to rate-sensitive segments which remain under pressure.

📉 Traders are advised to maintain a cautious stance and avoid fresh long positions until Nifty 50 sustains above 23,800.

⚠️ A decisive breakdown below the crucial support level of 23,262 could accelerate downside momentum toward 23,100.

🌐 Global markets have begun showing signs of increased volatility which may further influence domestic investor sentiment.

Bullish Signals
  • Oracle Financial Services Software has formed a bullish 'hammer' candlestick pattern on daily charts, indicating strong buying momentum.
  • The stock successfully broke out from a bullish 'Flag' pattern on the daily chart, signaling potential for further upside movement.
  • Oracle shares are currently trading above all medium- to long-term moving averages, confirming the strength of the uptrend.
  • Key technical indicators and oscillators have been showing distinct strength on medium-term charts.
  • Sun Pharma has surpassed trip top resistance near ₹1850, validating its breakout potential.
  • The recent price rise in Sun Pharma is accompanied by rising volumes, confirming institutional and retail interest.
  • Healthcare and pharma indices have broken out on both weekly and monthly charts, highlighting strong relative strength.
  • Indicators and oscillators for Sun Pharma are showing sustained strength across longer-term time frames.
Risk Factors
  • The Indian equity market is experiencing a sharp, broad-based selloff on May 18, with major benchmarks Sensex and Nifty 50 dropping over 1% amid weak global cues and heightened risk aversion.
  • The BSE Sensex plunged over 1,000 points to hit an intraday low of 74,180, erasing nearly ₹ 9 lakh crore in investor wealth in a single session.
  • Nifty 50 has corrected by over 1,250 points from its recent swing high and is trading below its 20, 50, 100, and 200-day EMAs, indicating a well-established bearish trend across multiple time frames.
  • Macro headwinds persist in the form of rising Brent crude prices coupled with depreciation of the Indian Rupee against the US Dollar, which continues to act as key negative factors for domestic equities.
  • Rate-sensitive sectors remain under significant pressure, and traders are advised to maintain a cautious stance with limited exposure due to these conditions.
  • Global markets have started showing signs of increased volatility after a period of steady upward movement, which could further influence near-term sentiment in domestic markets negatively.
  • Technical analysis suggests that a decisive breakdown below the crucial support level of 23,262 may accelerate downside momentum for the Nifty 50, with the next immediate support placed at only 23,100.
Full Analysis
Vinay Rajani, a Senior Technical and Derivative Analyst at HDFC Securities, has recommended shares in Oracle Financial Services Software and Sun Pharma Industries for purchase following a sharp market correction on May 18. The article details the broader context of a significant selloff in Indian equity markets that day, where the BSE Sensex fell over 1,000 points to an intraday low of 74,180 and the Nifty 50 dropped more than 1% to 23,317, erasing nearly ₹9 lakh crore in investor wealth. Rajani notes that while the market trend remains bearish with the Nifty trading below key moving averages, specific sectors are showing relative strength. For Oracle Financial Services Software, Rajani identifies a bullish "hammer" candlestick pattern on the daily charts and a breakout from a bullish "Flag" pattern. He states the stock is currently positioned above all medium- to long-term moving averages with strengthening indicators, supporting his buy recommendation at ₹9,100 with a price target of ₹9,800 and a stop-loss at ₹8,700. The analyst highlights that while rate-sensitive sectors face continued pressure due to high crude prices and a depreciating rupee, the IT sector appears to be stabilizing after technical pullbacks. Regarding Sun Pharmaceutical Industries, the recommendation is based on the stock surpassing the triple top resistance near 1,850 accompanied by rising trading volumes. Rajani points out that both healthcare and pharma indices have broken out on weekly and monthly charts with strong oscillators, suggesting a robust trend for the sector. His specific buy advice for Sun Pharma is at ₹1,875, targeting ₹1,950 with a stop-loss set at ₹1,825. The analysis suggests that while traders should remain cautious overall due to global volatility and macro headwinds, these two stocks offer technical opportunities amidst the broader market downturn.