The market continued its record rally and also extended the winning streak on the third consecutive session on July 17 led by buying across the sectors barring auto, which helped Nifty to comfortably close above 19,700.
At close, the Sensex was up 529.03 points or 0.80 percent at 66,589.93, and the Nifty was up 147 points or 0.75 percent at 19,711.50.
Despite mixed global cues, the market opened marginally higher and extended the gains as the day progressed, hitting fresh record levels. BSE Sensex and Nifty50 touched their fresh record levels of 66,656.21 and 19,731.85, respectively.
Sectors and stocks
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 nearly 1 percent.
Barring auto, all other sectoral indices ended in the green with the PSU Bank index up 2 percent and the Nifty Bank index up 1 percent.
A long build-up was seen in Zee Entertainment Enterprises, Indus Towers and Vodafone Idea, while a short build-up was seen in Godrej Properties, Bandhan Bank and Exide Industries.
Among individual stocks, a volume spike of more than 400 percent was seen in Grasim Industries, Zee Entertainment Enterprises, India Cements.
More than 250 stocks touched their 52-week high on the BSE, including Zydus Lifesciences, Ashok Leyland, ICICI Bank, Jindal Steel & Power, Coforge, MRF, Just Dial, RBL Bank, Sonata Software, VST Tillers Tractors.
Outlook for July 18
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
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.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
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.
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