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Taking Stock | Market ends the week on a high; bank, FMCG, auto stocks gain

UltraTech Cement, Grasim Industries, UPL, HDFC and HDFC Bank were among the top Nifty gainers, while losers included Tata Consumer Products, Infosys, NTPC, Power Grid Corporation and JSW Steel

July 22, 2022 / 04:48 PM IST

The Indian market continued its winning streak for the sixth day in a row on July 22, helped by financials, FMCG and auto stocks.

At close, the Sensex was up 390.28 points, or 0.70 percent, at 56,072.23, and the Nifty was up 114.20 points, or 0.69 percent, at 16,719.50. For the week, Sensex and Nifty gained 4 percent each.

After a positive start, the market remained range-bound but buying in the second half, particularly in banking names, helped the indices to close near the day's high.

"Increased foreign investment and solid quarterly results are increasing domestic demand. Among broad-based buying, banking stocks outshined due to healthy quarterly earnings,” said Vinod Nair, Head of Research at Geojit Financial Services.

European markets traded with modest gains, while investors digested the European Central Bank rate hike as it joined global peers in policy tightening, Nair added.

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Also Read: JSW Steel Q1 Result | Consolidated profit slumps 86% YoY to Rs 838 crore, revenue up 32%

UltraTech Cement, Grasim Industries, UPL, HDFC and HDFC Bank were among the top Nifty gainers, while losers included Tata Consumer Products, Infosys, NTPC, Power Grid Corporation and JSW Steel.

A mixed trend was seen on the sectoral front. The Nifty Bank index gained 1.5 percent, and FMCG & PSU bank indices rose 0.5 percent each. The information technology index, however, shed 0.6 percent.

Also Read: UltraTech Cement Q1 Results | Profit declines 7 percent to Rs 1,584 crore; revenue grows 28 percent

Stocks and sectors

On the BSE, power and information technology indices shed 0.5-1 percent, while the bank index rose 1.5 percent.

The BSE midcap index ended in the red and smallcap index ended marginally higher.

A long build-up was seen in Ultratech Cement, Atul and GSPL, while a short build-up was seen in Syngene International, Indiamart Intermesh and Mahanagar Gas.

Among individual stocks, a volume spike of more than 300 percent was seen in Rain Industries, Atul and GSPL.

On the BSE, more than 100 stocks, including OMAXE, ITC, Butterfly Gandhimathi Appliances, New Delhi Television and TVS Motor Company, touched their 52-week highs.

Also Read: Bandhan Bank Q1 profit jumps 138 percent to Rs 886 crore; asset quality weakens

Outlook for July 25

Prashanth Tapse, Vice President (Research), Mehta Equities 

Investors took heart from the fact foreign funds (FIIs) have begun trickling back into the Indian market. FIIs were net buyers on all the trading days of this week.

Oil prices stabilising near $97 a barrel was a key positive, while the recent declines in the dollar also brought some reprieve for emerging markets like India.

Technically, any close above Nifty’s 200-day moving average (DMA) at 17,051 will confirm strength in the up-move. On the downside, the Nifty has support at 16,571. In case the intraday support of 16,571 collapses, the index will find the next support at 16,250.

Amol Athawale, Deputy Vice President- Technical Research, Kotak Securities

Falling crude prices and a rebound in FII inflows in the domestic market helped Sensex close above the psychologically vital 56,000. The fear of aggressive rate hikes by the US Fed and RBI seems to be moderating, giving investors some room to lap up stocks with good fundamentals.

During the week, the Nifty successfully cleared the short-term resistance of 16,300 and the 100-day SMA. For traders, 16,800 and 16,950 will act as the immediate resistance zone, while 16,500-16,350 could be the key support levels.

Ajit Mishra, VP-Research, Religare Broking

In the early trade on July 25, markets will react to the results of heavyweights like Reliance, ICICI Bank, Infosys and Kotak Bank. Besides, developments on the global front over the weekend will remain on the radar. We recommend continuing with a positive but cautious stance and focusing more on identifying stocks amid the rotational buying.

Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Rakesh Patil
first published: Jul 22, 2022 04:48 pm
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