Closing Bell: Sensex, Nifty end higher led by IT stocks; mid & smallcaps underperform

Taking Stock | IT Stocks Push Sensex, Nifty Higher; Mid And Smallcaps Disappoint

The rally was not broad-based as the BSE midcap and smallcap indices closed with losses of 0.51 percent and 0.22 percent, respectively.... Read More

It appears to be the day of consolidation on the bourses as Nifty surprisingly remained steady without any volatility on expiry sesion within the trading range of a bearish candle registered in last Wednesday’s session which resulted in Inside Bar kind of formation. However, despite this positive move advance decline ratio clearly favored bears hinting at wide spread profit booking in broader markets. Hence, it remains critical for the index to sustain above 15673 levels to continue sideways consolidation with positive bias though strength in the index shall not be expected unless it closes above 15862 levels but sustainable upmove is possible only if Nifty closes above 15900 levels.

In case if it slips below 15670 then bears can start dominating by eventually pushing the index towards lower end of the broader trading range present in the zone of 15900 – 450 levels. Therefore considering sideways nature traders are advised to remain neutral on long side but intraday shorting opportunity arises below 15670 for a modest target of 15550 levels.

: Nifty opened positive and moved upwards since its opening tick as Bulls were seen active in the index with the support at 15700 levels. It moved in a consolidative manner in the second half and closed near 15800 with gains of around 100 points.

Since it is beginning of new series, option data is scattered at different strikes. On option front, Maximum Put OI is at 15500 followed by 15000 strike while maximum Call OI is at 16000 followed by 16500 strike. Call writing is seen at 16000 and 16500 strike while Put writing is seen at 15000 then 15500 strike. Option data suggests a wider trading range in between 15400 to 16200 zones while an immediate range in between 15600 to 16000 zones.

Bank Nifty opened positive and headed towards its previous day’s high of 34935 levels. Selective banking stocks kept the Bank Nifty in strength and it closed with gains of around 250 points. It formed a Bullish candle and an Inside bar on daily scale. Now it has to hold above 34750 zones to move up towards 35000 and 35250 zones while on the downside support exists at 34500 and 34250 levels.

Nifty has gone sideways; the range is between 15400 and 15900. Unless we do not get past either level, we will not see a significant move. While the bias is on the upside and there is still room for the index to conquer 16100, a buy on dips approach is recommended.

Sensex ended up 392.92 points or 0.75% at 52699.00, and the Nifty jumped 103.50 points or 0.66% at 15790.50. IT stocks rallied led by TCS, Infosys and Tech Mahindra. On the other hand, Reliance Industries, Coal India and Indian Oil Corporation are the top losers. About 1415 shares have advanced, 1717 shares declined, and 135 shares are unchanged.

Among the sectors, Nifty IT jumped over 2 percent followed by metals and banks. Pharma and energy stocks dragged the most.

The market witnessed some lackluster movement and an attempt to hold the support level around the Nifty 50 Index level of 15800. The market suggests, trading above 15800 is positive from a short-term perspective. Sustaining above 15800 levels, the market expects to gain momentum, leading to an upside projection till 16100-16200 level. The market observed the momentum indicators like RSI, MACD to further strengthen in favor of a positive outlook.

: Shares of Reliance Industries (RIL) traded about a percent lower while the company’s 44th annual general meeting (AGM) was underway. In the last ten years, shares of RIL saw mixed trends on the day of the company’s AGM, reacting to the company’s announcements, falling on six occasions, while rising on the rest of AGM days.

: Gold prices have been hit hard last week, as the US Fed in its latest meeting has surprised the markets with its hawkish shift and projected rate increases as soon as 2023, which buoyed the dollar index and led to the steep decline of around six percent in the precious metal. However, the Fed chair in his recent testimony has calmed the markets' nerves by his dovish sentiment that could underpin gold prices going forward. Fed Chair - Jerome Powell has maintained that the Fed would retain loose monetary policy until the recovery is complete, but did talk about removing some of the emergency support in coming months.

Gold looks primed for a rebound which can extend towards Rs 47500 per 10 grams and then eventually Rs 48100 per 10 grams in the coming days. On the flip side, any convincing breach of the Rs 46500 per 10 gram support would lead to a further downdraft towards Rs 45700-45300 per 10 grams area.

Use Dips To Buy As Small & Midcaps Likely To Consolidate; Over 30 Bargain Buys To Watch Out For: ICICIdirect

The Nifty50 is up over 12 percent this year and on track to test 16,000, but the move towards 16,400, the next big target, would have ups and downs... Read More

Shares of Nureca were locked in a 5 percent upper circuit of Rs 1,627.50 on BSE after Hornbill Orchid India Fund acquired a stake in the company. Hornbill Orchid India Fund, a Mauritius-based hedge fund, acquired a 1.95 percent equity stake in Nureca, a home healthcare and wellness products seller, on June 23. Hornbill Orchid India Fund bought 1,95,766 equity shares in Nureca at Rs 1,549.97 per share on the BSE, the bulk deals data showed.