India's benchmark Sensex achieved a historic milestone by closing above the 80,000 mark for the first time on July 4, while the Nifty 50 also ended above the 24,300 mark. Despite opening higher, both indices retraced most of their gains throughout the day and closed only marginally higher.
The Sensex closed at a new record high of 80,049.67 points, marking a 0.08 percent increase, while the Nifty ended at 24,302 points, up 0.06 percent. During intraday trading, the Sensex peaked at a fresh record of 80,392.64 points, gaining up to 400 points. Similarly, the Nifty reached a lifetime high of 24,401 points, with an intraday gain of 100 points.
Among sectoral gainers, Nifty Pharma led with a gain of 1.4 percent, followed by Nifty IT and Nifty Auto, which rose 0.9 percent each. On the other hand, among the losers, Nifty Media declined by 0.5 percent, while both Nifty Financial Services and Nifty FMCG dropped by 0.2 percent each.
Outlook for 5 July
Ajit Mishra – SVP, Research, Religare Broking
The markets traded within a narrow range and ended nearly unchanged, pausing after Wednesday's gains. After an initial rise, the Nifty fluctuated throughout the day and settled near its lowest point at 24,306.55. Sector-wise, there was a mixed trend with pharmaceuticals, IT, and automotive sectors seeing moderate gains, while FMCG and metals remained subdued.
The broader indices performed better than the benchmark, each gaining about half a percent. Nifty has approached its immediate target of 24,500 and appears slightly overextended. It would be prudent to take some profits and wait for a potential dip before considering new long positions in the index. Meanwhile, the broader market strength and specific sectoral buying opportunities suggest that traders should focus more on stock selection and utilize dip/consolidation to add quality names.
Prashanth Tapse, Senior VP (Research), Mehta Equities
Benchmark Sensex steadily pared gains after scaling new life-time high in early trades, but managed to close above the 80,000-mark for the first time due to selective buying in banking and IT stocks. While the market is in an overbought zone, investors would rather wait for Budget to throw positive surprises before taking aggressive stance.
Vinod Nair, Head of Research, Geojit Financial Services
The defensive bet on large caps like IT and pharma gained momentum due to the diminishing US inflationary pressure, improvement in QoQ earnings outlook and a resultant sharp fall in the US 10 yr bond yield. The buoyancy in government spending and the green shoots in corporate earnings are now supporting the premium valuation. Return of FIIs to the domestic market and expectation of a rate cut in September are supporting market sentiment.
Aditya Gaggar Director of Progressive Shares
Right from the beginning, the index was seen giving up its gains and ended the session at 24,302.15 with a minuscule gain of 15.65 points. The pharma sector regained its momentum and advanced more than 1% to be the top performer followed by IT. On the flip side, media and FMCG were the laggards.
The interest of market participants was more towards broader markets as mid and smallcaps moved over 0.45%. From the past couple of days, it seems that the index is finding it difficult to hold higher levels and bearish divergence in RSI indicates weakening of momentum. The immediate support is placed at 24,150 while on the higher side, 24,400 will be considered as resistance.
Shrikant Chouhan, Head Equity Research, Kotak Securities:
The benchmark indices continued positive momentum, the Nifty/Sensex registered a fresh all time high of 24,401/80,392.64. Among sectors, Pharma, Healthcare and IT indices rallied over 1 percent whereas some profit booking were seen in selective Media and Financial stocks. Technically, after a gap up opening entire day the market hovered between 24,280-24,400/80,000-80,390 price ranges. After a promising uptrend rally currently, market witnessing non-directional activity at higher levels, perhaps traders are waiting for either side breakout. Now, for the day traders, 24,400/80,390 would be the immediate breakout level. Above which, the market could rally up to 24,500-24,525/80,700-80,800. On the flip side, below 24,280/80,000 the sentiment could change. Below the same, the market could retest the level of 24,200-24,165/79,700-79,550.
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