Closing Bell: Sensex up 179 points, Nifty above 18,300; IndusInd, PowerGrid, Tata Motors top gainers

Markets consolidated for yet another session and ended marginally higher. After the initial uptick, Nifty hovered in a narrow range and finally settled at 18,315.10 levels. It was a muted session on the sectoral front too however selective buying in realty, energy and auto kept the traders busy. The broader indices also traded lackluster and ended almost unchanged.

We are seeing a healthy consolidation and expect the resumption of the uptrend soon. Traders should continue with the “buy on dips” approach till 18,050 is intact in Nifty. However, one should maintain caution in stock selection now as we’re seeing a mixed trend within sectors

The domestic market traded near the flatline, oscillating between gains and losses as investors refrained from taking a firm direction due to the uncertainties surrounding the US market. Globally, investors exercised caution in anticipation of US inflation data and a meeting between US political leaders to discuss fiscal concerns. Oil prices edged lower as industry data revealed a surprise surge in US crude stock, indicating a potential weakness in demand.

Indian markets have disconnected from other markets in the region to erase the entire under-performance for YTD CY23 – this has been led by a meaningful jump in FII buying in both cash and futures segments. Earnings reported so far have been largely in line with estimates with a few positive surprises in the Financials sector offset by disappointments among IT companies. On the other hand, both DIIs and Retail have been largely absent in terms of participation for the last 20 days. We expect technical resistance around current levels to allow over-bought momentum indicators to cool, and a rotational flow into other sectors besides Financials in the coming couple of weeks.”

The benchmarks experienced significant volatility throughout the day, characterized by an initial upward price gap, followed by a notable sell-off in the first half of the trading session, and ultimately culminating in a recovery towards the end of the day. Notably, the Nifty index, after making multiple attempts over the past week, successfully surpassed the crucial threshold of 18300. On the daily charts, the Nifty formed a bullish Dragonfly Doji pattern, indicating robust buying activity from market bulls and implying the potential for a sustained upward momentum in the market. Looking ahead, it is essential to monitor the levels of 18150-18200 as critical support levels, while breaching the mark of 18350 would open up possibilities for the market to reach the range of 18500-18600.

Indian Rupee ended at 81.99 a dollar, up 0.07 percent from its previous close. The 10 year bond yield fell 1 basis points to 7.043% from its previous close of 7.044%. Both bond yield and prices move in opposite directions.

Benchmark Sensex closed 179 points higher while Nifty ended above 18,300 amid high volatility.

The Sensex was up 178.87 points or 0.29 percent at 61,940.20, and the Nifty was up 45.80 points or 0.25 percent at 18,311.80. About 1800 shares advanced, 1601 shares declined, and 138 shares unchanged.

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Benchmark indices remained marginally higher amid high volatility, with the Nifty around 18,300.

The Sensex was up 65.00 points or 0.11 percent at 61,826, and the Nifty was up 17.50 points or 0.1 percent at 18,283.45. About 1,681 shares advanced, 1,772 shares declined, and 147 shares were unchanged.