Dalal Street swung back into the green after seeing some losses on open on Monday, July 21. The positive sentiment around the blue-chip, heavyweight banking pack lifted the benchmark indices in trade.
At 12:05 p.m., the Sensex was up 272.82 points or 0.33 percent at 82,030.55, and the Nifty was up 65.20 points or 0.26 percent at 25,033.60. About 1681 shares advanced, 1825 shares declined, and 167 shares unchanged.
The sectoral indices presented a mixed front. The Nifty Auto index rose 0.4 percent, while the Nifty Metal was the top gainer, rising 1.04 percent on the back of strong global commodity cues. Bank Nifty rallied 0.9 percent, as ICICI Bank and HDFC Bank's earnings supported the index.
On the flip side, Nifty Pharma declined 0.3 percent, paring some of its recent gains. Nifty IT continued to underperform, falling 0.4 percent as global tech sentiment remained weak. Nifty FMCG was down 0.6 percent, dragged by profit booking in heavyweight stocks. Nifty PSU Bank was the worst hit, shedding 0.7 percent following a strong rally in recent sessions.
Overall, banking stocks traded mixed following a slew of earnings over the weekend. Blue-chip index heavyweights such as HDFC Bank and ICICI Bank were trading solidly in the green, while smaller peers such as RBL Bank and Union Bank dragged.
Bank Nifty was higher by almost one percent, with HDFC Bank and ICICI Bank contributing to the gains to lift the index. Further, Kotak Bank and IDFC First Bank were the only other constituents trading with gains, while the others dragged.
“The single most important factor which the market will be focusing on in the coming days will be the outcome of the trade talks between the US and India. If an interim trade deal between the two countries is reached with a tariff rate of less than 20 percent on India, that would be a positive from the market perspective," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
On a technical level, the immediate support is placed at 24,917, with a stronger support zone in the 24,850–24,700 range. A breakdown below this zone could trigger increased selling pressure. On the upside, 25,000 is acting as immediate resistance, while a decisive breakout above 25,150–25,250 is essential to resume the bullish trend.
Considering the current environment of elevated volatility and mixed global cues, traders should maintain a cautious sell-on-rise strategy, especially when using leverage.
"Booking partial profits during rallies and maintaining tight trailing stop-losses is recommended to manage risk effectively. Fresh long positions should only be considered if the Nifty sustains above the 25,000 level. While the broader market undertone remains cautiously bullish, close attention must be paid to key technical levels and macro developments," suggested Mandar Bhojane, Senior Technical & Derivative Analyst - Research at Choice Equity Broking Private.
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Disclaimer: The views and investment tips expressed by investment 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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