Closing Bell: Sensex up 274 points, Nifty around 19,450; mid, smallcaps shine

Taking Stock: Sensex gains 270 points, Nifty ends near 19,450; autos, FMCG shine

About 1892 shares advanced, 1496 shares declined, and 117 shares unchanged. The broader markets exuberance continued with midcap and smallcap indices gaining about 1 percent each... Read More

The Indian rupee appreciated for the second day in a row following foreign fund inflows and stronger Asian currencies. The long liquidation from the speculators and expectation of the central bank intervention supported the rupee.

In the near-term, spot USDINR is expected to face resistance around 82.95 and support at 82.20.

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The Nifty started on a higher note but experienced significant volatility throughout the day. However, the overall trend remained bullish as it sustained above the near term moving average. The RSI indicated a bearish crossover, suggesting a potential decline in the market.

There is a support level at 19400/19300, which might prevent further downside movement. On the upside, there is a resistance level at 19550, which could potentially limit upward movement in the market.

Domestic equities traded in positive territory after an encouraging handover from global peers. Nifty opened higher and remained steady throughout the session to close with gains of 84 points (+0.4%) at 19439 levels. Broader market outperformed with the Nifty midcap 100 and Nifty smallcap 100 up +0.9% and 1.2% respectively. Auto, FMCG, Pharma, and Consumer Durables were major gainers up more than 1% each. Defence sector was in the limelight on the eve of India’s PM visit to France where they are likely to sign several deals including a Technology transfer agreement.

Nifty has been trading between 19400-19500 range for the last 6 trading sessions and has shown strength at lower levels. Even today Nifty held on to its gains despite profit booking in several banking and Financial heavyweights. Going forward, we expect the positive momentum to continue on the back of healthy earnings, consistent FII inflows, and improving monsoon. Technology sector is likely to remain in action as TCS and HCL Tech will announce their result on Wednesday. Investors would also watch for India and US’s inflation data to be release Wednesday.

The Bank Nifty index is currently experiencing continued dominance from bears as selling pressure persists from higher levels. The index is facing a strong resistance zone at 45200, which has proven difficult to surpass.

At present, the index is trading near a crucial support zone of 44800-44750. If this support zone is breached, it is likely to lead to further downside movement towards the 20-day moving average (20DMA), which is positioned at the 44500-44000 range.

The Bank Nifty index has been trading within a broad range of 44500-45500. In such a range-bound scenario, it is advisable for traders to utilize opportunities presented by both the upside and downside movements.

The market now awaits the Q1 results, IT sector which kicks off tomorrow, where expectations are muted with a focus on the sustenance of margin and improvement in long-term guidance. The positivity also stems from China's anticipated stimulus to withstand economic growth and hope on the moderation in US inflation data. The overall valuation for India is marginally above the long-term average, which is fair given strong earnings expectations on FY24.

Markets edged higher in a volatile session, in continuation to the prevailing consolidation tone. The first half was upbeat however Nifty failed to surpass the immediate hurdle at the record high and witnessed profit taking in the latter half. Finally, it settled at 19439.40; up by 0.43%.

Most sectors contributed to the move wherein auto, FMCG and pharma were among the top gainers. Meanwhile, the broader indices outperformed and gained nearly a percent each.

The pressure in the banking pack is capping the upside while others are trying their best to push the markets higher. Though it may further delay the resumption of the trend, the tone is likely to remain positive. Besides, we are closely eyeing the US markets for cues and their sustained recovery could trigger the next leg of up move. Meanwhile, we reiterate our view to focus on stock selection and utilizing this phase to gradually accumulate them on dips.

Indian rupee ended 21 paise higher at 82.36 per dollar against Monday's close of 82.57.

Benchmark indices ended higher on July 11 with Nifty around 19450 amid buying across the sectors barring metal and PSU Banks.

At close, the Sensex was up 273.67 points or 0.42% at 65,617.84, and the Nifty was up 83.50 points or 0.43% at 19,439.40. About 1892 shares advanced, 1496 shares declined, and 117 shares unchanged.

Biggest gainers on the Nifty included Sun Pharma, Eicher Motors, Tata Consumer Products, Apollo Hospitals Enterprises and Maruti Suzuki, while losers were UPL, JSW Steel, Bajaj Finance, Axis Bank and HCL Technologies.

Except metal and PSU Bank, all other sectoral indices ended in the green with auto, power, FMCG, capital goods and healthcare added 1 percent each.

The BSE midcap and smallcap indices up nearly 1 percent each.

McLeod Russel has approved the execution of an exclusivity agreement with Carbon Resources to evaluatea mutually agreeable mechanism for monetization of identified assets of the company. The proposed asset sale is a one-time settlement of the debt owed by the company to its identified lenders.

-Neutral rating, target at Rs 620 per share
-Overall Q1 volume growth came in a tad weaker than expected
-Weak export & import handling volume partially offset by in-line domestic biz performance
-CONCOR regains some market share, but growth lags Adani Rail

Container Corporation of India was quoting at Rs 677.05, up Rs 5.65, or 0.84 percent.

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