Indices snap 4-day losing run; Sensex up 166 pts; small-caps outperform

Stock market updates: Equity markets snapped their four-day losing run and ended near day's high on Friday as gains in pharma and banking counters, and select heavyweights lent support to the indices. Breaking away from a lackluster trade, the frontline indices picked pace in the second half of the session as ICICI Bank, Reliance Industries, SBI, and HDFC gained between 0.7 per cent and 1.6 per cent.

The S&P BSE Sensex closed with gains of 166 points, or 0.32 per cent, at 52,485 levels while the NSE's Nifty50 settled at 15,722 levels, up 42 points or 0.27 per cent.

However, trading action was skewed towards small-cap stocks as hefty buying in Mangalam Cement, Omaxe, OnMobile Global, Route Mobile, and Indoco Remedies, pushed the BSE SmallCap index up 1 per cent. Gains in mid-cap index remained capped amid sell-off in Adani Transmission, Adani Enterprises, Adani Green Energy, JSW Energy, SAIL, and Vodafone Idea. The BSE MidCap index ended little changed.

Sectorally, the Nifty Pharma index was the top gainer, up 0.6 per cent, followed by the Nifty Bank index, up 0.4 per cent. Conversely, the Nifty Metal index was the top sectoral loser on the NSE, down 1.5 per cent.

Global markets

European shares rose on Friday on a boost from semiconductor makers, while investors awaited a closely watched monthly jobs report from the United States later in the day. The pan-European STOXX 600 index rose 0.5 per cent, with technology stocks rising 1 per cent.

In Asia, Japan's Nikkei added 0.3 per cent and Australia's ASX 200 advanced 0.6 per cent.

(With inputs from Reuters)

5:46 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst at HDFC Securities

The bulls seems to have come back gradually from the lower support on Friday. Confirmation of bullish reversal by the way of follow-through upmove is likely to open further upside towards 15900 levels again in the near term. Immediate support is placed at 15650 levels.

5:28 PM

MARKET OUTLOOK :: Events that will guide the indices next week

Large and mid cap IT companies will remain in focus the next week as Q1 FY22 result season commences in India. USA’s IT services companies registered exemplary earnings performance with upward revision in their outlook propelled by strong tailwinds. Hence, in a similar fashion, IT stocks in India have been witnessing a strong push over healthy earnings expectations. Investors are therefore advised to look for any short pullbacks post earnings as an opportunity to enter the IT sector. Nifty50 closed the week at 15722.2, down by 0.87%.

Views by: Nirali Shah, Head of Equity Research, Samco Securities

 

5:15 PM

MARKET VIEW :: Volume surge in the markets is awaited for the uprun to sustain

Indian benchmark equity indices broke a four day losing streak on Jul 02 and ended mildly in the positive. The Nifty opened up, fell initially to make an intraday bottom and later kept rising gradually through the day. It closed almost at the intra day high. At close, the Nifty was up 42.20 points or 0.27% at 15722.20.

 

Volumes on the NSE were higher than the previous day but short of the recent averages. Among sectors, Consumer Durables, Healthcare and Energy were the main gainers while Power and Metals were the main losers. The BSE midcap ended flat, while smallcap index added 1 percent.

 

Nifty gained after a four day fall. On daily charts it has formed a bullish hanging man after a fall. For the week, the Nifty ended 0.87% lower after forming a new high early in the week. Advance decline ratio has improved and volume surge in the markets is awaited for the uprun to sustain/gain momentum. In the near term, 15635 could be a support for Nifty while 15772 could be a resistance. Over the next week, the band for Nifty could be 15839-15505. 

Views by: Deepak Jasani, Head of Retail Research, HDFC Securities

5:04 PM

MARKET VIEW :: Banking space needs to come out of the slumber

We managed to hold crucial support of 15,650. As long as 15,650 – 15,450 are being held, the bulls have no reason to worry for. On the upside, reaching the new milestone of 16,000 has become challenging and the market clearly seem to be waiting for some sort of trigger to reach there. Before this, 15,800 followed by 15900 are to be seen as immediate hurdles.

 

With Friday’s some positivity, the hopes have certainly built for benchmark index to head higher towards the millstone in the forthcoming week. But we reiterate, if that has to happen, the banking space certainly needs to come out of its slumber phase. Let’s see how things pan out going ahead and till then it’s better to keep a close tab of all the mentioned levels.

Views by: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking

4:53 PM

TECH VIEW :: Sumeet Bagadia, Executive Director at Choice Broking

Technically, the Nifty index has taken good support at Lower Bollinger Band formation and pulled back further. Moreover, the stochastic has indicated positive bias although the MACD is still showing some weakness with negative crossover. On an hourly chart, the index has moved above the 21 HMA & also formed like Rounding Bottom, which points to further recovery for the near term. At present, the nifty seems to have resistance at 15915 levels while immediate support comes at 15600.

4:41 PM

TECH VIEW :: Nifty forms bearish candle on weekly chart

Nifty index closed at 15,722 with mild gains and formed a hammer sort of candle pattern after consecutive four bearish candles.

On the weekly chart, the index has formed a bearish candle with loss of nearly one per cent.

The index has showed some bounce from its demand zone of 15,600-15,500, which will be act as immediate supports for next few sessions.

Dips will be suggested around said levels while resistance is seen near 15,800-15,900 zone.

Views by: Rohit Singre, Senior Technical Analyst at LKP Securities

4:25 PM

MARKET RECAP :: Vinod Nair, Head of Research at Geojit Financial Services

Amid lack of domestic triggers, main indices traded flattish and ended with minor gains, while broad market maintained its optimism driven by Mid & Small caps. Domestic banking stocks gained although RBI in its Financial Stability Report indicates that Gross NPA percentage could climb to a baseline of 9.8% by March 2022. The rapid increase of covid cases globally is having an effect on the international market. Also on the global front, bourses are closely awaiting the release of the US job data to take clues regarding the US Fed’s monetary policy stance.

4:13 PM

Markets this week :: Top losers on NSE

>> Shree Cement: 5.84%

>> Bajaj Finserv: 5.77%

>> Britannia: 3.4%

>> UltraTech Cement: 3%

>> IOC: 2.6%

4:03 PM

Markets this week :: Top gainers on NSE

>> Divis Labs: 6.5%

>> Dr Reddy's Labs: 4.7%

>> Cipla: 2.2%

>> Tata Motors: 1.55%

>> HUL: 1.48%

3:56 PM

Markets this week

Sensex & Nifty slip neatly 1% each during the week

 

Midcap Index gains for second straight week, up 0.5% 

 

3:52 PM

Sector of the day :: Metal stocks decline; Adani Ent, Tata Steel top laggards

3:50 PM

Sector of the day :: 7 of 10 index constituents end higher

3:49 PM

NSE Snapshot :: Top Nifty50 gainers of the day

3:48 PM

Index contributors :: These heavyweights lifted Sensex from lows

3:46 PM

Broader market :: BSE MidCap index closes up 0.05%