Closing Bell: Nifty ends above 16,000, Sensex gains 344 pts amid volatility; autos shine

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Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty, in the week gone by, stumbled near multiple technical parameters, which were near 16200. It is hovering near the level of 16000 for the last few sessions. On the weekly chart, it has formed an Inside bar, which shows loss of momentum. 

The hourly chart shows that the index has moved down from the upper end of a rising channel towards the lower end. 

The near term support zone for the index is 15850-15900. Once that is breached then the index can slide down towards 15500. From trading perspective, sell on rise will be the strategy for short term traders with reversal above the swing high of 16275. 

Rupak De, Senior Technical Analyst at LKP Securities:

The index remained sideward as it had been a lackluster session on the last day of the week. However, the index was able to reclaim the 16000 mark at the end. 

The momentum indicator has ended with a bullish crossover. Over the short term, the index may move towards 16170-16200. On the lower end, support is visible at 15900-15850.

Ajit Mishra, VP - Research, Religare Broking:

Markets remained volatile but finally ended with modest gains, taking a breather after the recent dip. After the initial uptick, the benchmark hovered in a narrow range for most of the session however buying interest in select index majors in the last hour aided positive close in the index. 

On the benchmark front, the Nifty settled at 16,049.20 levels; up by 0.7%. Amongst the sectors, most sectors traded in tandem wherein auto, consumer durables and capital goods were the top gainers. The broader indices too gained in the range of 0.6%- 0.9%.

Markets will first react to the banking major, HDFC Bank, numbers in early trade on Monday. Besides, the performance of the global indices especially the US markets and movement in crude will remain on participants’ radar. Amid all, we recommend continuing with a positive yet cautious approach till Nifty holds 15,900 and focusing more on stock selection.

Vinod Nair, Head of Research at Geojit Financial Services:

Volatility has re-emerged and investors have turned their focus on upcoming Fed policy in the backdrop of heightened US inflation. Fall in crude prices and reduction in FII selling added optimism to the domestic market while gloomy IT results, depreciating rupee and fear of global recession are restricting sizeable up move. 

In addition to the Fed policy, the domestic market's near-term momentum will be influenced by ongoing quarterly earnings.

Jateen Trivedi, VP Research Analyst at LKP Securities:

Rupee traded in a range between 79.80 and 79.98. As dollar index traded in a range, broadly the trend for dollar is positive till the time it is above USD 105 next hurdle for dollar can be seen around USD 110 hence rupee can be seen weak trend continued towards 80.50. 

79.25 will act as resistance for rupee and break above 79.25 will trigger short covering for rupee. Rupee range can be seen between 79.50-80.50 for the coming week.

Kunal Shah, Senior Technical Analyst at LKP Securities:

The Bank Nifty index witnessed some buying from the previous gap zone, however the trend remains sideways. The index downside support stands at 34,400 and resistance stands at 35,300. 

The index needs to break the range on either side for getting a clear trend. The index if it breaks the support of 34,400 will lead to further selling pressure towards 34000 where the highest open interest is built up on the put side.

Rupee Close:

Indian rupee ended flat after hitting fresh record low of 79.96 per dollar, intraday. INR has closed at 79.87 per dollar against Thursday’s close of 79.87.

Market Close: Indian benchmark indices ended on positive note in the highly volatile session on July 15.

At close, the Sensex was up 344.63 points or 0.65% at 53,760.78, and the Nifty was up 110.50 points or 0.69% at 16,049.20. About 1712 shares have advanced, 1491 shares declined, and 147 shares are unchanged.

Tata Consumer Products, Titan Company, Eicher Motors, Tata Motors and HUL were among the top Nifty gainers, while losers included Tata Steel, Power Grid Corporation, HCL Technologies, Wipro and JSW Steel.

On the sectoral front, Auto index added over 2 percent and FMCG and Capital Goods indices rose 1 percent each. However, Metal index fell 1 percent.

BSE midcap and smallcap indices gained 0.5 percent each.

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas

Rupee is expected to trade with a mildly positive bias on positive global markets. Risk assets recovered after Fed officials Christopher Waller and James Bullard said that they favored a 75 bps rate hike, trimming speculation of a 100 bps rate hike. 

However, any pullback in US Dollar may pressurize Rupee. Traders may take cues from US retail sales and industrial production data. USDINR spot price is expected to trade in a range of Rs 79.50 to Rs 80.50 in next couple of sessions.

Credit Suisse View on ACC

Foreign research house Credit Suisse has kept 'neutral' rating on ACC and cut the target price to Rs 2,000 from Rs 2,450 per share.

The long-term outlook was intact amid near-term energy cost headwinds. The company delivered in-line results with 10.5 percent growth in volumes. The margins were impacted at Rs 526 per tonne on a sharp spike in energy cost.

Credit Suisse reducing EBITDA/tonne estimate to Rs 750/tonne in CY22 and improving to Rs 970/1000/tonne in CY23/24, reported CNBC-TV18.

ACC was quoting at Rs 2,143.85, down Rs 12.55, or 0.58 percent on the BSE.

Kesoram Industries Q1 results: 

Kesoram Industries has posted net loss at Rs 61.2 crore versus profit of Rs 12.8 crore and revenue was up 4.2% at Rs 891.2 crore versus Rs 855.4 crore, YoY, reported CNBC-TV18.