Taking Stock: Sensex gains 270 points, Nifty ends near 19,450; autos, FMCG shine

Among the top movers on the Nifty 5o index, Sun Pharma and Eicher gained over 2 percent

In a rangebound session, markets ended in the green on July 11. The Sensex gained 273 points to end at 65,617.84. Nifty gained 83.50 points to close at 19,439.40.

About 1892 shares advanced, 1496 shares declined, and 117 shares unchanged. The broader markets exuberance continued with midcap and smallcap indices gaining about 1 percent each.

Among the top movers on the Nifty 5o index, Sun Pharma and Eicher gained over 2 percent. UPL fell 2.4 percent and JSW Steel closed 1.6 percent lower. In the F&O segment, Tata Communications, Dixon Technologies and Polycab were among stocks that saw long build-up while Deepak Nitrite, Navin Fluorine, Bandhan Bank witnessed short-covering.

Stocks and sectors

In the Nifty 50 index, Eicher Motors was the top gainer, rising nearly 3 percent. It was followed by Sun Pharma that also rose about 3 percent. Other gainers were Tata Consumer, Apollo Hospitals and Maruti Suzuki, among others.

UPL was the biggest loser, down over 2 percent. Bajaj Finance, Axis Bank, HCL Tech, JSW Steel and Hindalco Industries were other losers.

Among sectoral indices, Nifty Auto, Nifty FMCG, Nifty Pharma and Nifty Healthcare indices rose more than a percent each. Nifty Financial Services was top loser for the day.

OUTLOOK for July 12

Vinod Nair, Head of Research at Geojit Financial Services

The market now awaits the Q1 results, IT sector which kicks off tomorrow, where expectations are muted with a focus on the sustenance of margin and improvement in long-term guidance. The positivity also stems from China's anticipated stimulus to withstand economic growth and hope on the moderation in US inflation data. The overall valuation for India is marginally above the long-term average, which is fair given strong earnings expectations on FY24.

Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd

While the world is struggling on various economic parameters, India continues its upward march on various economic fronts and the latest being the strong direct tax collection numbers which further boosted investors' confidence. While positive global cues aided the sentiment, traders bought automobile, capital goods, power and FMCG stocks. However, markets may have to brace for intra-day volatility going ahead in the run up to the US Fed's FOMC meeting on July 26. Technically, on intraday charts the Nifty has formed a double top formation which is indicating temporary weakness. For intraday traders, 19500 would be the crucial breakout level, above which the market could move up till 19600-19625. However, below 19380, the selling pressure is likely to accelerate and the index could retest the level of 19300-19250.

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities

The Bank Nifty index is currently experiencing continued dominance from bears as selling pressure persists from higher levels. The index is facing a strong resistance zone at 45200, which has proven difficult to surpass.At present, the index is trading near a crucial support zone of 44800-44750. If this support zone is breached, it is likely to lead to further downside movement towards the 20-day moving average (20DMA), which is positioned at the 44500-44000 range.The Bank Nifty index has been trading within a broad range of 44500-45500. In such a range-bound scenario, it is advisable for traders to utilize opportunities presented by both the upside and downside movements.