Sectoral performance was generally positive as Nifty Media became the best performer gaining 2%, followed by Nifty Auto 1.6%, Nifty Oil & Gas 1%, Nifty Energy 1%, Nifty Pharma 0.7%, Nifty Infra 0.7% and Nifty PSU Bank 0.5%. The worst performing sector was Nifty IT, which fell 1.5%, followed by Nifty FMCG falling 1%.
Market Closing | Sensex Rises by 166 Points; Nifty above 24350
The Indian equity indices were trading higher on the BSE for the third day in succession on July 31, helped by the positive performance of financials, automobile stocks, and certain blue chips. The Sensex closed the day at 78,094.64, up 166.49 points or 0.21 percent, while the Nifty ended at 24,383.60, up 66.45 points or 0.27 percent.
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Ajit Mishra – Senior Vice President, Research, Religare Broking
Friday saw a continuation of gains on bourses, helped by upbeat quarters seen across businesses. After a strong opening, the Nifty held on to its positive bias through the day. Even though some gains were eroded by profit-booking near the close, the index managed to settle at 24,383.60, recording a rise of 0.27%.
The participation was positive on a sector basis, with Auto continuing its outperformance along with Financials receiving fresh inflows post the Bajaj twins results. The support came from the Pharma and Energy sectors, whereas IT continued its underperformance despite its recent rally, trailed by FMCG. The broader markets saw participation in the rise, with the midcap and smallcap indices rising more than half a percent each.
The positive tone was underpinned by a strong recovery in the world’s financial markets along with healthy domestic quarterly results. The sentiment was further reinforced by consistent FII flows during the last few sessions along with the fall in price of Brent crude and a rise in the value of rupee. Still, investors await news flow on the ongoing earnings season and global macroeconomic events.
Technically speaking, the Nifty has become stronger on the bullish side since it has successfully managed to cross another important resistance level of the 200-day EMA in the range of 24,370. The index seems set to slowly make a move towards the 24,600 level, which was the swing high level previously; however, once an effective break above this level takes place, it will pave way for the 24,800 to 25,000 levels. In terms of support, the level of 24,270 is seen to act as the immediate support, and the 24,150 to 24,050 level would be considered as the key support area. As long as the index remains above this level, the “buy-on-dips” trend seems favorable. We repeat our recommendation of relatively stronger stocks in auto and pharma sectors.
Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities
The index made another run-up for the third consecutive session on Friday and gained another 66 points on the upside. Nifty generated a bullish candle formation in the daily chart having upper and lower shadow. From technical perspective, this movement reflects the formation of high wave or doji candlestick formation at the high indicating low volatility in the markets at the barriers.
The current position of Nifty is near the cluster of resistances around the levels of 24350-24400 (previously opened gap down of 8th July, previous swing high of 17th July and 200 days EMA). Therefore, there are chances of consolidation or minor pull-back prior to decisive breakout from the resistance zone.
Nifty maintains the positive trend in the market. Sustained break above the level of 24400 could push Nifty up to levels of 24600-24700 within a short span of time. Immediate support is seen at 24200
