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Taking Stock: Sensex up 545 points, Nifty above 17,300; autos, banks in top gear

On the BSE , auto, power, and oil & gas indices gained 2-3 percent, while bank, capital goods and metal indices were up 1 percent each

August 01, 2022 / 04:52 PM IST

Indian equity benchmarks continued to make smart gains for the fourth day on August 1 on positive global cues, improved June quarter earnings and encouraging auto sales data.

The second-highest goods and services mop-up in and improved manufacturing activity in July also spurred the market.

At close, the Sensex was up 545.25 points, or 0.95 percent, at 58,115.50, and the Nifty was up 181.70 points, or 1.06 percent, at 17,340.

"FPIs turning net buyers is the major factor driving the uptick in the domestic market. Record low unemployment rate in the Eurozone and fall in crude oil prices, increased optimism globally," said Vinod Nair, Head of Research at Geojit Financial Services.

"Oil prices took a hit as the deteriorating demand outlook outweighed cues of ongoing supply tightness. Auto stocks were in focus post the release of positive auto sales numbers."

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Also Read: GST collection rises to Rs 1.49 lakh crore in July, up 28 percent YoY

Tata Motors, M&M, Adani Ports, ONGC and UPL were among the major gainers on the Nifty. The losers included Sun Pharma, HDFC Life, HUL, Britannia Industries and Divis Labs.

All sectoral indices ended on a positive note, with Nifty bank, auto, energy, metal and PSU bank indices gaining 1-3 percent.

IndexPricesChangeChange%
Sensex58,222.10156.63 +0.27%
Nifty 5017,331.8057.50 +0.33%
Nifty Bank39,282.85172.80 +0.44%
Nifty 50 17,331.80 57.50 (0.33%)
Thu, Oct 06, 2022
Biggest GainerPricesChangeChange%
JSW Steel674.4531.25 +4.86%
Biggest LoserPricesChangeChange%
Bharti Airtel788.60-20.10 -2.49%
Best SectorPricesChangeChange%
Nifty Metal5956.95187.65 +3.25%
Worst SectorPricesChangeChange%
Nifty FMCG44097.20-189.90 -0.43%

Also Read: Nifty rallies 14 percent in 1.5 months to hit 17,300 points. Is it time to book profits?

Stocks and sectors

On the BSE, auto, power, and oil & gas indices gained 2-3 percent, while bank, capital goods and metal indices were up 1 percent each.

The broader indices outperformed the main indices with BSE midcap and smallcap indices adding over 1 percent each.

A long build-up was seen in IDFC First Bank, Rain Industries and Tata Motors, while a short build-up was seen in Multi Commodity Exchange of India, GMR Infrastucture and Firstsource Solutions.

Also Read: Manufacturing activity improves in July, PMI rises to 8-month high of 56.4

Among individual stocks, a volume spike of more than 100 percent was seen in IDFC, UPL and Gujarat Gas.

More than 100 stocks touched their 52-week highs on the BSE, including Adani Enterprises, Adani Transmission, M&M, PVR, Maruti Suzuki, ITC, Bharat Electronics and Deepak Fertilisers & Petrochemicals.

Also Read: RBI likely to raise key policy rate by 25-35 bps to check inflation: Experts

Outlook for August 2

Rupak De, Senior Technical Analyst, LKP Securities

The uptrend continues in the market as the bulls' invasion of the 17,000-17,500 zone continues. The trend is likely to remain positive as long as the benchmark index sustains above the 200-DMA, which is placed at 17,025.

In the near term, 17,000 is likely to act as crucial support. On the higher end, 17,500 may act as a crucial resistance. Above 17,500, the Nifty may move towards 18,000.

Ajit Mishra, VP-Research, Religare Broking

This week markets will continue to take cues from ongoing earnings as well as global peers. Besides, the RBI monetary policy outcome on August 5 will be crucial for market participants. We would advise investors to focus on maintaining a stock-specific approach.

Shrikant Chouhan, Head, Equity Research (Retail), Kotak Securities

Strong global cues and optimistic vehicle sales numbers from select frontline automobile companies fuelled another round of rally in domestic equities.

The overhang of the US policy rate decision is now behind us and the focus is now on the RBI policy meeting later this week, where traders expect the rate hike could be along expected lines.

The return of FII inflows has also brought some cheer to investors. The Nifty is comfortably trading above the 200-day SMA and is still holding a higher high and higher low formation on intraday charts.

Since the market is in a temporary overbought condition, we could see a quick intraday correction in the near term.

For traders, 17,250 will act as the key support, above which the index can move to 17,450-17,500. On the flip side, a quick intraday correction is possible below 17,250, below which the index would retest 17,150-17,100.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

 
Rakesh Patil
first published: Aug 1, 2022 04:50 pm
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