Ola Electric Surges 15% on Q1 Loss; Nifty Steady at 25,050 Amid IT Drag, Auto in Focus

Ola Electric rallied despite reporting a higher quarterly loss, signaling bullish sentiment around EV plays. Nifty held above key support even as IT stocks extended declines.

Recent Development and Why It Matters

On July 14, Ola Electric shares jumped 15% intraday after the company reported a 23% year-on-year increase in net loss to ₹428 crore for Q1 FY26. While the headline numbers disappointed, the rally suggests investors are positioning for growth potential in the electric vehicle (EV) segment, especially ahead of the company’s much-awaited public issue later this year.

Despite broader market weakness driven by weak Q1 IT earnings and global tariff concerns, investor interest in new-age, high-growth sectors like EV remained intact. For traders, this marks a potential divergence between old-economy drag and new-economy momentum.

Also Read : Ola Electric Shares Rally 17% After Q1 Loss Narrows by Half

Market Reaction and Technical Outlook

Ola Electric, currently unlisted on the main indices but traded actively on unregulated platforms, saw a sharp uptick in buying interest following its Q1 update. According to dealers, large block trades were executed at premiums, with delivery-based volumes indicating accumulation ahead of the IPO.

Meanwhile, the Nifty 50 hovered near 25,050, down 0.39%, as IT stocks dragged. TCS, Infosys, and Tech Mahindra were among the top losers, reeling from poor earnings and US tariff fears after Donald Trump’s latest trade comments.

Nifty IT fell 1.54%, hitting its lowest levels in 3 weeks. Technical indicators show the Nifty IT RSI slipping below 40, indicating oversold territory, while the index broke below its 50-DMA, signaling further weakness if global cues deteriorate.

On Ola, traders are watching for the ₹550–₹600 valuation band, which insiders say may be priced into the IPO. The strong rebound despite losses suggests sentiment is prioritizing future growth over current profitability.

Broader Sector and Index Impact

While IT stocks dragged the index, pharma, media, and realty outperformed. Sun Pharma, Apollo Hospitals, and Zee Entertainment gained between 0.7%–1.2%. The BSE Midcap and Smallcap indices gained 0.5% and 0.3%, respectively, showing risk-on appetite beyond frontline tech names.

The Nifty Pharma and Nifty Media indices rose over 1%, helped by improved domestic earnings visibility. Traders rotated out of export-sensitive tech into domestic plays amid trade war anxiety.

Foreign Institutional Investors (FIIs) were net sellers for the third consecutive session, driven by weak earnings and a stronger dollar. Domestic Institutional Investors (DIIs) stepped in with selective buying in consumption and financial stocks.

Trading Sentiment and Watchlist Ahead

In the short term, market direction remains hinged on global cues, particularly the upcoming US inflation data and trade policy statements. With India VIX rising 4%, volatility is expected to remain elevated through the week.

For traders, key levels to watch include:

• Nifty support at 24,900, resistance at 25,200

• Bank Nifty support at 54,500

• Ola Electric IPO sentiment-driven trades, especially in Greaves Cotton and Sona BLW, which often move in tandem with EV buzz

Stocks to watch ahead:

• Castrol India: Up 6% after tax relief news; bullish crossover on daily chart

• DMart: Down 3% post-earnings; may see bounce near ₹3,900 support

• Anthem Biosciences IPO: Opens for bidding, Rs 3,395 crore issue may test oversubscription in pharma space

Know More About

• Fii Dii Data
• NSE Stocks Price