Closing Bell: Nifty above 19,700, Sensex gains 529 pts led by financials

The Nifty registered a new record high driven by the performance of the IT sector, large banks, and Reliance Industries. The daily chart shows a breakout from a consolidation phase, indicating positive change. The RSI is showing a bullish crossover, suggesting further upward movement. The immediate resistance for the index is expected around 19725-19750, while support is positioned at 19600 on the lower side.

Following today's flat to positive opening, the Nifty was Bullish throughout the day, concluding at an all-time high closing. For investors, the market is very strong and the buy on dips strategy can be applied with a strict stop loss of 19500, and if the Nifty closes below the indicated level, we can expect more profit booking. Today Banks have shown sharp bounce from the support levels and have attempted 45500 levels. Once Bank Nifty crosses the all-time high levels of 45655 it can head towards 46500 levels and above.

The market has traded positive with the Sensex gaining 0.80 percent and closed at 66589.03 and Nifty was up by 0.75 percent intraday and closed at 19711.45 levels whereas Bank Nifty was up by 1.41 percent and settled at 45449.75.

Among sectors Nifty PSU Bank and Nifty FIN Service and Nifty Private Bank ended in green while Nifty Realty, Nifty Auto and Nifty PSE ended on the lower side. In Nifty stocks, SBI, Wipro and Grasim Industries were the top gainers while ONGC, Tata Motors and Bharti Airtel were the prime laggards.

India VIX was positive by 5.90 percent intraday and settled at 11.31.

Volume profile indicates Index has a strong support around 19550-19475 zone. Coming to the OI Data, on the call side, the highest OI observed at 20000 followed by 19900 strike prices while on the put side, the highest OI is at 19600 strike price. On the other hand, Bank Nifty has support at 44900-45100 while resistance is placed at 45650-45800 levels.

Markets were in sublime form as benchmark indices scaled fresh peaks on the back of a rally in banking stocks after HDFC Bank announced better-than-expected Q1 results. Most of the corporate results announced so far have more or less met expectations, which shows the improving health of our economy. The rally came despite weakness in European markets and a mixed ending in key Asian gauges.

Technically, the Nifty has formed a bullish candle on daily charts and has also formed a breakout continuation formation on intraday charts. While the market is bullish, it is in an overbought and hence traders may prefer to book some profits at higher levels. For the trend following traders, 19600 would be the sacrosanct support level, above which the index could rally till 17800-17825. On the flip side, below 19600, the uptrend would be vulnerable.

Nifty rose on July 17 to touch yet another all time high. At close, Nifty was up 0.75% or 146.9 points at 19711.45. Volumes on the NSE were on the higher side. Smallcap index rose more than the Nifty even as the advance decline ratio was up at 1.58:1.

Most European and some Asian shares slipped on Monday after data showed the Chinese economy is growing a lot more slowly than expected and market participants getting impatient with the lack of major fiscal stimulus from Beijing.

19567-19800 could be the trading range for the Nifty in the near term though it seems due for some correction shortly. Bank stocks and sector could be in limelight in the near term.

The Nifty witnessed follow-through buying interest and closed in the positive, up ~147 points. On the daily charts, we can observe that the Nifty has decisively broken out of the sideways consolidation range on the upside and is now showing trending moves. The daily momentum indicator has a positive crossover which is a buy signal.

The daily Bollinger bands have begun to expand indicating an expansion of range. Thus, all parameters are suggesting that the positive momentum is likely to continue. On the upside immediate resistance is placed in the zone 19830 – 19900 while crucial support is placed in 19570 – 19550.

Bank Nifty deserves a special mention today as it has broken out of a falling channel indicating that the consolidation phase is over and it is likely to witness a sharp surge over the next few trading sessions. On the upside we expect it to target levels of 46500 in the short term. Crucial support on the downside is placed at 44700.

Despite the mixed performance observed in the Asian market due to China's underwhelming GDP data, the Indian market exhibited resilience, in anticipation of a bumper Q1 result. Nifty50 Q1 consolidated PAT is projected to grow by more than 20% YoY, which can upgrade the full year earnings growth of FY24.

Small caps outperformed as comparatively valuations are attractive trading below the long-term average compared to large and mid-caps.

Markets started the week on a firm note and gained nearly a percent, in continuation to Friday’s surge. After a flat start, the Nifty gradually inched higher as the day progressed and settled around the day’s high to close at 19,721.15 levels. The majority of the sectors traded participated in the move wherein banking, financials, pharma and energy majors were top contributors. And, the broader indices too moved in tandem and gained in the range of 0.35%-0.85%.

The sharp surge in the banking index after a pause in the IT pack reaffirms our bullish view and we are eyeing Nifty to gradually inch towards a new milestone i.e. 20000 mark. Traders should maintain their focus on stock selection based on the sectoral trend and look for buying opportunities on dips.

The Indian rupee outperformed the Asian currencies following risk-on sentiments and the dollar inflows. The fall in global commodities and the weak dollar index also supported the rupee. Most Asian currencies weakened versus the dollar after weak Chinese economic data.

Spot USDINR has been facing resistance at 200 DEMA at 82.43 and holding support in the area of 81.80 to 81.75.

Indian rupee closed 13 paise higher at 82.04 per dollar on Monday versus Friday's close of 82.17.

Benchmark indices ended on a strong note with Nifty closing above 19,700 level.

At close, the Sensex was up 529.03 points or 0.80% at 66,589.93, and the Nifty was up 147.00 points or 0.75% at 19,711.50. About 2013 shares advanced, 1559 shares declined, and 174 shares unchanged.

The biggest gainers on the Nifty included State Bank of India, Dr Reddy's Laboratories, Wipro, Grasim Industries and HDFC Bank, while losers were Hero MotoCorp, ONGC, Bharti Airtel, Tata Motors and JSW Steel.

BSE midcap index was up 0.3 percent and smallcap index added neatly 1 percent.

Barring auto, all other sectoral indices ended in the green with PSU Bank index up 2 percent and Nifty Bank index up 1 percent.

The public issue of Netweb Technologies India has garnered bids for 1.33 crore equity shares against an offer size of 88.58 lakh equity shares, subscribing 1.51 times on the first day of bidding on July 17.

Retail investors have bought 2.16 times the reserved portion which is 35 percent of the total IPO size, while the part set aside for employees has been booked 5.36 times.

The server, storage, and high-performance computing (HPC) solutions provider has reserved 20,000 equity shares of the IPO, for its employees. They will get the the shares at a discount of Rs 25 apiece to the final offer price.

High net-worth individuals have subscribed 1.83 times the reserved portion. Qualified institutional buyers (QIBs) have bought 1 percent shares of 24.29 lakh shares set aside for them.

Metropolis Healthcare has recorded core business revenue growth for Q1FY24 at around 12% over a year-ago period, whereas total revenue from operations for the quarter stood marginally negative compared to Q1FY23, mainly due to covid and B2G contract.

Core business excluded revenue from covid & covid allied tests & PPP contracts. Core business volume growth stood at around 13% during the quarter. Gross debt as on June 2023 was Rs 67 crore.

Metropolis Healthcare was quoting at Rs 1,461.65, up Rs 25.15, or 1.75 percent.

-Buy rating, target cut to Rs 290 per share
-Q1 was muted, especially MFI portfolio which experienced contraction in AUM
-Increase in MFI NPAs was due to seasonal weakness
-Bank’s non-MFI book was stable QoQ
-With collections holding up at +98%, expect gradual improvement in asset quality
-Factoring Q1 weakness, cut loan growth estimates, revise FY24-26 earnings down by 3%-6%