Benchmark equity indices snapped a two-day fall with Nifty closing above 25,000 in a volatile session on July 21 that saw leadership from auto, realty, metal and private banks.
The Nifty 50 initially slipped below 24,900 for the first times since June 23, however, recovered smartly to trade higher early on and ended near day's high.
At close, the Sensex was up 442.61 points or 0.54 percent at 82,200.34, and the Nifty was up 122.30 points or 0.49 percent at 25,090.70. BSE Midcap index rose 0.5 percent, while Smallcap index ended flat.
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On the sectoral front, auto, capital goods, private bank, power, realty, metal up 0.5-1 percent, while IT, PSU Bank, oil & gas, FMCG down 0.4-1 percent.
Eternal, ICICI Bank, HDFC Bank, HDFC Life and M&M were among major gainers on the Nifty, while losers were IndusInd Bank, Reliance Industries, Wipro, HCL Tech and Eicher Motors.
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Sona BLW shares gains on signing binding term sheet with Chinese firm, Tilaknagar Industries extend gains for a sixth day to rise to its highest level in six months, MRPL shars fell 6.6 percent on reporting losses in Q1, AU Small Finance Bank shares declined more than 5 percent despite reporting profit in Q1 profit, and ICICI Bank along with HDFC Bank rose 2 percent each on better Q1 earnings.
IRCON International shares rose 2 percent on bagging order from RVNL, Mastek shares jumped 7 percent as Q1 consolidated profit, revenue rise, Bandhan Bank shares slipped 2.5 percent as Q1 profit declines 65%, Reliance Industries shares shed 3 percent despite reporting 77 percent gain in net profit led by one-time gain.
More than 150 stocks on the BSE touched their 52-week highs, including UTI AMC, UPL, Authum Investment, Dalmia Bharat, Aadhar Housing, Muthoot Finance, UltraTech Cement, EID Parry, HDFC AMC, Vishal Mega Mart, Cholamandalam Financial Holdings, among others. Click to View More
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Contract research firm Anthem Biosciences' shares ended with 28 percent gain after listing with a premium of about 27 percent to its initial public offer (IPO) price. The Rs 3,395 crore public offer was priced in the band of Rs 540-570 per share, and received strong investor interest with about 64 times subscription during the offer period from July 14 to 16.
Outlook for July 22
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
After showing weakness in the last couple of sessions, Nifty shifted into a sizable bounce back on Monday and closed the day higher by 122 points. Nifty showed knee jerk action soon after the opening but was managed to display strength on the upside in the mid to later part of the session and closed at highs.
A reasonable positive candle was formed on the daily chart with lower shadow. Technically, this market action indicates pullback rally in the market after the downside breakout of immediate support at 25000 levels on Friday.
The negative chart pattern like lower highs and lower lows continued on the daily chart and Monday's swing low of 24882 could be considered as a new lower low of the pattern. Hence, any further upside could be a sell on rise opportunity.
The short-term trend of Nifty remains weak, but a decisive move above the key overhead resistance of 25250 levels is likely to negate the bearish sentiment in the near term. Any weakness from the lower highs could revisit the recent swing low of 24882 levels.
Rupak De, Senior Technical Analyst at LKP Securities
The Nifty remained volatile during the day as traders awaited more clarity on the US-India deals. During the session, Nifty found support around the 50 EMA on the daily timeframe, leading to an intraday recovery. The RSI continued to show a bearish crossover on the daily chart, indicating weak momentum.
Going forward, 24,900 remains a crucial support level for the index; a decisive fall below this level is likely to empower the bears. On the other hand, resistance is placed at 25,200–25,260.
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