Nifty trades higher on first Tuesday expiry, Sensex gains while all sectors shine in green

Nifty, Sensex extend gains to second session.

Dalal Street was near the day's high in the second half of the session as buying interest lead the benchmarks to trade almost half a percent higher each on Tuesday, August 2. This session marks Nifty 50's first Tuesday expiry as well.

At 12 p.m., the Sensex was up 304.20 points or 0.38 percent at 80,668.69, and the Nifty was up 105.70 points or 0.43 percent at 24,730.75. About 2555 shares advanced, 1066 shares declined, and 107 shares unchanged.

At all sectoral indices were trading with a positive bias. Nifty Energy and Nifty Media were the top gainers, rising 1.5 percent respectively, while Nifty Realty gained of 1.3 percent. Nifty Metal, PSU Bank, FMCG, and IT also advanced between 0.7 and 1.3 percent, while Auto inched up 0.4 percent.

The broader markets outperformed the benchmarks. The Nifty Midcap 100 gained 0.7 percent and the Nifty Smallcap 100 rose nearly 1 percent. The stronger advance in mid- and small-cap indices highlights a tilt towards broader market buying compared to the relatively modest move in large caps.

In sector-specific action, sugar stocks surged up to 12 percent after the government removed curbs on ethanol production from sugarcane and sugar syrup. This move is part of India’s strategy to promote ethanol blending in fuel while ensuring adequate sugar availability for domestic consumption. Stocks like Balrampur Chini, Bajaj Hindusthan, Shree Renuka Sugars, and Dhampur Sugar rallied sharply.

"Global geopolitics and power equations are changing at a fast and furious pace. India-US relations have deteriorated and normalcy appears difficult in the near future. More actions from the unpredictable US administration are likely. The consequences on the Indian economy and markets cannot be ascertained now," VK Vijayakumar, Chief Investment Strategist, Geojit Investments said.

"Investors should wait and watch for developments to unfold. Meanwhile, investments can be focused on domestic consumption plays which are on sound footing. There are clear signs of the Indian economy bouncing back as reflected in the Q1 GDP numbers," he added.

On a technical basis, the index is currently trading above its long-term EMA while approaching its short-term and medium-term EMAs, reflecting improving trend alignment. On the downside, immediate support is placed at 24,400, followed by 24,000.

"A break below these levels could trigger extended selling pressure. On the upside, resistance is seen at 24,700, followed by the 24,800–25,000 zone. A decisive move above this zone may open up fresh buying opportunities," said Mandar Bhojane, Sr Technical & Derivative Analyst, Choice Broking.

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