Taking Stock: Bulls back in action; Sensex jumps 351 points, Nifty above 19,750

Also, the company’s board has approved the proposal to buy back 3.33 crore shares, representing 2.4 percent of the total paid-up equity share capital, at a maximum price of Rs 3,000 apiece, it said in a statement.

Tata Motors reported a consolidated net profit of Rs 3,203 crore for the first quarter of fiscal year 2023-24 (Q1 FY14), boosted by the improved margin of its passenger vehicle (PV) business and robust sales at its luxury car unit, Jaguar Land Rover (JLR).

The company’s board of directors approved a Scheme of Arrangement for the cancellation of ‘A’ Ordinary Shares, and issue of seven Ordinary Shares for every 10 ‘A’ Ordinary shares held by shareholders.

The biggest gainers for the day on the Nifty were L&T, ITC, Britannia Industries, Reliance Industries and Sun Pharma, while losers were Bajaj Finance, M&M, Bajaj Finserv, Tech Mahindra and Apollo Hospitals.

Among the sectors, Capital Goods, FMCG and realty were up 1 percent each.

The BSE Midcap and Smallcap indices ended in the green.

A long build-up was seen in Vodafone Idea, Piramal Enterprises and Indus Towers while a short build-up was seen in Can Fin Homes, HDFC Asset Management Company and Bajaj Finance.

Among individual stocks, a volume spike of more than 500 percent was seen in Punjab National Bank, Indiabulls Housing Finance and Delta Corp.

More than 200 stocks touched their 52-week high on the BSE, including Oil and Natural Gas Corporation, TVS Motor Company, Larsen & Toubro, BHEL, Sun Pharmaceutical Industries, Hindustan Petroleum Corporation, Grasim Industries and CSB Bank.

Outlook for July 27

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

The Nifty opened on a positive note and traded with a positive bias and closed with gains of around 90 points. On the daily charts, we can observe that the Nifty managed to bounce from the Fibonacci support level (19,650). However, the upside got restricted by the hourly upper Bollinger band which was placed around 19,830. The daily and the hourly momentum setup is providing divergent signals which can lead to a consolidation in the short term. The daily Bollinger bands are also contracting, which points towards consolidation in the short term. In terms of levels, 19,615–19,560 shall act as a crucial support zone, and on the upside 19,830–19,850 shall act as an immediate hurdle zone.

The Bank Nifty also witnessed a bounce from the cluster of 45,670–45,700 where support parameters in the form of the 38.2 percent Fibonacci retracement level and the 40-hour moving average were placed. The fall as well as the rise on the hourly time frame are overlapping in nature which gives us a sense that the Bank Nifty is undergoing a corrective phase that is not over yet. Once this consolidation phase is over, we can expect the uptrend to resume and expect it to target levels of 46,500.

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities

The Nifty opened with a gap-up and rose sharply but consolidated for the major part of the day around 19,780-19,820 zones before breaking down in the one last hour of the trade to close at 19,778, up 98 points.

The Nifty has formed a shooting star-like candle with a higher close on the daily chart, which suggests that the bears fought the bulls valiantly. The Nifty Futures Open Interest (OI) indicated a build-up of fresh long positions after three losing trading sessions.

The Nifty will find strong support around 19,700 zones as short covering was observed today, indicating that the downside support is getting stronger. The option activity at 19,800 Strike will provide additional cues about the Nifty’s direction on the last day of the July Series Expiry.

The Bank Nifty continued to move in a range for the fifth consecutive day, forming an inside candle on the daily chart. Both the call and put writers are battling it out at the 46,000 Strike in the Bank Nifty with the bears leading the race at today’s close. The max pain, which is the strike with most open option contracts, is placed at 45,800.

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