Taking Stock: Market snaps 4-day fall; Nifty near 25,200, Sensex rises 317 pts

BSE Midcap and Smallcap indices rose nearly 1 percent each, extending the gains on second consecutive day.

Hero MotoCorp, Sun Pharma, Bajaj Auto, Apollo Hospitals, Shriram Finance were among major gainers on the Nifty, while losers were HCL Technologies, HDFC Life, SBI Life Insurance, Eternal and Tata Steel.

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In stock-specific action, Hero MotoCorp shares rallied 5 percent on ambitious global expansion plan and, upbeat guidance, Rallis India shares hit 52-week high as profit nearly doubled in Q1, Tejas Networks shares slipped 6 percent on losses in Q1, Sun Pharma shares rose nearly 3 percent as US patent settlement cleared path for Leqselvi launch.

Power Mech Projects shares gained on orders win worth Rs 551 crore, RailTel Corporation shares gained 2 percent on order win from East Central Railway, Tata Technologies shares rose 2 percent as net profit was up 5% in June quarter, HCL Technologies shares slipped 3 percent on weaker-than-expected Q1 show.

140 stocks on the BSE touched their 52-week highs, including Authum Investment, Nippon Life, HDFC AMC, Godfrey Phillips, Gillette India, UTI AMC, Piramal Enterprises, Anupam Rasayan, Laurus Labs, EID Parry, Global Health, Ceat, JM Financial, among others. Click to View More

Outlook for July 16

Ajit Mishra – SVP, Research, Religare Broking

Markets witnessed some respite and edged marginally higher after four consecutive sessions of decline. Following a flat start, the Nifty attempted a recovery in the early hours, largely driven by buying interest in select heavyweights. However, the upside remained capped near the short-term moving average around the 25,250 level. Eventually, it settled at 25,195.80, up by 0.47%.

On the sectoral front, all key sectors ended in the green, with auto, pharma, and realty emerging as the top gainers. The positive sentiment extended to the broader markets as well, with both midcap and smallcap indices gaining nearly a percent each.

Participants drew comfort from the further easing of CPI inflation, which triggered notable buying in rate-sensitive sectors in hopes of a potential rate cut. However, continued disappointment from the IT space, following HCL Technologies' results, capped overall momentum. With the hurdle at the short-term moving average (20 DEMA) near 25,250 still intact, we suggest maintaining a cautious stance on the index and adopting a selective approach on the sectoral front.

Aditya Gaggar Director of Progressive Shares

The Index began on a flat note but gradually compounded its gains; however, it trimmed some of the gains, and the Index ended the day at 25,195.80 with gains of 113.50 points. Sector-wise, all of them closed in the green, with Auto and Pharma stocks leading the rally. The broader market continued to outperform, as both the Midcap and Smallcap segments rose over 0.90% each.

A hidden bullish divergence in the RSI hints at a potential trend reversal. The 25,000 level remains a strong support area, while resistance is expected around the 25,325 mark.

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