Dalal Street saw some relief buying in trade on Tuesday, July 29, with all sectors trading strongly in the green, with gains of half a percent seen on the benchmarks as investors hunted for beaten-down bargains following a three-day losing streak.
At close, the Sensex was up 446.93 points or 0.55 percent at 81,337.95, and the Nifty was up 140.20 points or 0.57 percent at 24,821.10. About 2376 shares advanced, 1465 shares declined, and 150 shares were unchanged.
Further, volatility and fear in the markets continued to moderate, with the India VIX index slipping over four percent to 11.54.
The broader markets outperformed, snapping a multi-session spiral, indicating strong buying interest across all market-capitalizations. The Nifty Midcap 100 index rose 0.8 percent, while the Nifty Smallcap 100 cut short an eight-day fall to rally almost one percent.
On the sectoral front, all sectors were in the green, with the realty, metal, and pharma indices recording a jump of over one percent each. The IT index was the sole laggard, sulking close to the flatline, dragged by selling in certain technology heavyweights following the update that TCS might layoff two percent of its workforce.
Despite the uptick seen today, analysts noted that Nifty remains in a short-term downtrend. "The next significant support level for the index is seen near 24,500. On the upside, the previous swing low support of 24,882 is now expected to act as a crucial resistance level, indicating that any recovery attempts might face stiff selling pressure around that mark," said Devarsh Vakil, Head of Prime Research, HDFC Securities.
According to experts, the lack of a trade deal between India and U.S. is weighing heavily on sentiment, as the August 1 deadline for the imposition on tariffs approaches. "President Trump’s success in reaching deals with Japan and EU, which were advantageous for the US, may further make the US position harder on deal with India. It remains to be seen what transpires before August 1st deadline," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
He added, "President Trump, having tasted blood in deals so far, is likely to act tough, going forward. This is a concern. Sustained FII selling is impacting the market despite the DII buying. It is better to remain in a wait and watch mode."
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