Closing Bell: Nifty ends above 16,250, Sensex gains 546 pts led by financials

Taking Stock: Sensex, Nifty Again Close At Record Highs Powered By Banking Stocks

On the broader market front, the midcap and smallcap indices lost 1 percent each after hitting fresh record highs... Read More

Nifty has given breakout of the trading range of 15500-15950. An impulsive up-move backed by liquidity has pushed the index towards 16250 mark and is further expected to gain. We continue to remain positive on the broader markets and suggest buying on dips. For the August series range is seen at 15900-16600 with a positive bias. Banking and Auto stocks are expected to gain momentum while Metal stocks could witness profit booking. Mid-cap space is expected to move incremental with pockets of outperformance.

The market continued its surge for the second consecutive session and gained nearly a percent. The benchmark opened the gap up, tracking upbeat global cues which further strengthened with strong buying in banking and financials majors. Finally, the Nifty closed at 16,259 levels, up by 0.8%. On the flip side, most sectoral indices ended in the red due to profit taking at the higher levels. The broader indices too remained under pressure and ended lower in the range of 1-1.2%.

Since the Nifty has almost tested the immediate target of 16,300, we may see a pause in the following session. However, the recent buoyancy in banking and financials would help the index to maintain the positive bias. At the same time, the profit taking in the other sectors and broader indices demands extra caution in the selection of stocks. We advise aligning positions accordingly.

Bulls continue with the positive momentum as benchmark Nifty hit another fresh all time high of 16290.20 after a massive breakout. The uptrend was largely supported by the HDFC twins, private banks and financial stocks. Technically, on daily charts the index has formed breakout continuation formation, which is broadly positive for the market. But intraday charts and momentum indicators suggest temporary overbought situation and traders may take cautious stance near 16300 -16330 level.

We are of the view that in next few trading sessions buying on dips and sell on rallies would be the ideal strategy for the day traders. The trade setup suggests that 16200- 16150 would be the key support level for the bulls. On the flip side, the 16300-16330 level could be the immediate hurdle for the market.

Nifty is trading close to technical resistance from a trendline connecting earlier highs in CY2021 (Feb & Jun) – seen in conjunction with non-confirmation of strength in Mid-cap & Small-cap indices, which had hitherto been out-performing headline indices, this suggests a narrow advance, and potential for a short-term pull-back. Long futures open interest for the Retail segment has seen some unwinding over the last week and net long positions are down to mid-Jun levels; this was also evident in cheap roll spreads during July expiry, and points to reluctance to extend leverage on long positions. High-beta sectors appear most vulnerable to a correction in the near-term.

The markets got off to a flying start but decided to take a breather closer to the 16300 level. If we can get past 16300, the next target for the Nifty should be 16600. The new support for the market is at 15700 and hence any dip or intra day correction can be used to accumulate long positions for higher targets.

Indian rupee ended higher at 74.18, after hitting 6-week high at 74.08, as the buying saw in the domestic equity market, touching fresh record highs.

It opened 13 paise higher at 74.15 per dollar against previous close of 74.28 and traded in the range of 74.08-74.24.

Major equity indices have touched all-time highs today. We have a significant rally in banks, Financials and large cap stocks which made it possible. Although, mid and small cap stocks remained largely muted as leadership was seen from largecap space today. First, the PMI data which came in positive yesterday and comments by FM on GST collection scaling back to 1 lakh crore mark proved sentimentally positive. Also, today's result from PSU bellwhether SBI which were good except higher slippages which was also informed by management that larger part is called back in July also provided much needed push to indices further.

: Benchmark indices posted a fresh record high level and gained for the third consecutive day on August 4 led by the banking names.

At close, the Sensex was up 546.41 points or 1.02% at 54,369.77, and the Nifty was up 128 points or 0.79% at 16,258.80. About 1073 shares have advanced, 2104 shares declined, and 113 shares are unchanged.

HDFC, Kotak Mahindra Bank, ICICI Bank, HDFC Bank and SBI were the top Nifty gainers. Grasim, Titan Company, Tata Motors, Hindalco andAdani Ports were among the top losers.

Except bank, all the other sectoral indices ended in the red. However, the midcap and smallcap indices lost 1 percent each after hitting fresh record highs.

The public issue of Windlas Biotech has been fully subscribed on August 4, the first day of bidding, amid strong interest from retail investors.

The offer has been subscribed 2.56 times as it received bids for 1.56 crore equity shares against the IPO size of 61.36 lakh equity shares, the subscription data available on exchanges showed.

Specialty chemicals manufacturer Chemplast Sanmar has decided to launch its initial public offering for subscription on August 10. The offer will close on August 12.

The company is planning to raise Rs 3,850 crore through public issue which consists of a fresh issue of Rs 1,300 crore and an offer for sale of Rs 2,550 crore by promoters.

Promoters Sanmar Holdings and Sanmar Engineering Services will offload Rs 2,463.44 crore and Rs 86.56 crore worth of shares.

The market witnessed yet another session of strong trend. After overcoming the resistance level around the Nifty 50 Index level of 16000 in yesterday’s session, market has been able to sustain above the previous all-time high. While sustaining above 16200 is the key factor from a short-term perspective, maintaining above this level is important for market to gain momentum and extend the rally until 16500. The momentum indicators like RSI and MACD indicating a positive outlook to continue.

The public offer of Krsnaa Diagnostics, one of the fastest-growing diagnostic chains in India, has seen a subscription of 1.32 times on the first day of bidding, August 4, as it received bids for 94.07 lakh equity shares against offer size of 71.12 lakh equity shares, the subscription data available on exchanges showed.

Retail investors seem to be in a strong position as their reserved portion was oversubscribed by 6 times and that of non-institutional investors 6 percent.

Employees have put in bids 5 percent of their reserved portion and qualified institutional investors bought 48 percent of their reserved portion.