Largely positive global cues and upbeat macroeconomic numbers boosted the risk appetite of investors as flagship indices the Sensex and the Nifty ended with healthy gains on August 2.
Goods and Service Tax (GST) collections for July rose to Rs 1.16 lakh crore, triggering hopes of a recovery in the economy.
The core sector data for June indicates that the key industrial sectors are witnessing a gradual output recovery amid a waning second Covid wave. The combined output of the eight core sector industries rose by 8.9 percent in June from the year-ago period.
The Sensex closed the day 364 points, or 0.69 percent, higher at 52,950.63, while Nifty finished at 15,885.15, up 122 points, or 0.77 percent.
Mid and smallcaps outperformed the frontline stocks. The BSE midcap and smallcap indices closed 1.05 percent and 1.07 percent higher.
"Tracking global sentiments, vibrant sectors like realty, auto, IT and chemicals provided an edge to the Indian equities. Recovery is seen in July auto sales and an improved outlook for real estate due to a surge in property registrations helped these sectors to trade higher," Vinod Nair, Head of Research at Geojit Financial Services said.
"The $1 trillion infrastructure spending package in the US provided better prospects for the core economy, aiding global markets to start the month on a strong footing," said Nair.
Here’s what experts suggest investors should do on August 3:
Expert: Mazhar Mohammad, Chief Strategist– Technical Research & Trading Advisory, Chartviewindia.in
The Nifty made an indecisive hanging man candle. Hence, in the next trading session, it is critical that the index sustains above 15,834.
Sustaining above this level, a breakout above 15,900 can be expected, though it is too early to forecast such a breakout when the market is moving in a range.
In case of a strong breakout above 15,900, a sustainable upswing shall emerge with targets towards 16,300.
However, the breach of 15,834 on the downside can again make the market volatile and trendless.
Traders are advised to wait for a strong breakout above 15,900 before creating long positions in the index.
Chandan Taparia, Vice President and Derivatives Analyst, Motilal Oswal Financial Services
On the options front, maximum Put open interest (OI) is at 15,000, followed by 15,800 strikes while maximum Call OI is at 16,000, followed by 15,800 strikes. Minor Call writing is seen at 15,900 then 16,000 strikes while Put writing is seen at 15,900 then 15,800 strikes.
The options data suggests a broader trading range between 15,600 and 16,200, while the immediate range is between 15,800 and 16,000.
The Nifty has to hold above 15,850 to witness an up move towards 15,962 and 16,000. On the downside, support exists at 15,750 and 15,700 levels.
Rohit Singre, Senior Technical Analyst, LKP Securities
The overall trading range of Nifty is 15,600-16,000. The Nifty has reached the upper band of its overall range, which hints that one can start locking their gains on every rise.
If the index manages to give a decisive close above 16,000, then we may see more northward move in the near term.
Immediate support is near 15,815-15,750 and resistance at 15,920-16,000.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities
Volumes were less than the average of the past few days, which is not a good sign for the bulls.
The Nifty has resistance in the range of 15,900-15,950 and support at the 15,750-15,830. Fresh longs should be considered only if the Nifty closes above 16,000 with higher than average volumes.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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