Sensex ends 226 pts up; Tata Steel jumps 4.6%, Voda Idea 12%, RIL slips 2%

Stock market updates: Markets started the July F&O series with impressive gains on Friday as hefty buying in metals, financials, and pharma sectors lifted indices for the second day. The Nifty PSU Bank index closed 2.7 per cent higher on the National Stock Exchange (NSE) amid renewed privatisation buzz and fund-raising by banks. 

That apart, the Nifty Metal index zoomed 2.5 per cent after Russian government said it is preparing new export taxes from August 1 for steel products, nickel, aluminium and copper which will cost their producers $2.3 billion.

The Nifty Bank, Private Bank, Pharma, and auto indices, meanwhile, rose between 0.7 per cent and 1.6 per cent.

Overall, the frontline S&P BSE Sensex index added 226 points, or 0.43 per cent, to settle the session at 52,925 levels while the Nifty50 index shut shop at 15,863-mark, up 73 points or 0.46 per cent.

In the broader market, the BSE MidCap and SmallCap indices advanced 1 per cent and 0.4 per cent, respectively. 

Tata Steel (up nearly 4 per cent), Axis Bank, State Bank of India, ICICI Bank, Hindalco, JSW Steel, Maruti Suzuki, and Coal India made it to the list of outperforming stocks in the large-cap segment while Vodafone Idea, Apollo Hospitals, SAIL, Ashok Leyland, Allcargo Logistics, Uttam Sugar Mills, and Ajmera Realty marched ahead in the broader market space.

Global markets

Asian shares rose on Friday, tracking gains on Wall Street overnight that lifted the Nasdaq and the S&P 500 indexes to record highs after U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal.

Japan's Nikkei closed 0.66 per cent higher while South Korea's Kospi rallied 0.5 per cent and Australia's ASX200 was last up 0.45 per cent. China's Shanghai index, too, surged 1.1 per cent.

In Europe, however, shares traded lower as a slide in healthcare-related stocks more than offset a boost from the financial sector. The pan-European STOXX 600 index slipped 0.06 per cent, Germany's DAX declined 0.24 per cent, and France's CAC40 fell 0.2 per cent.

As regards Wall Street, Futures of three main US stock indices gained up to 0.25 per cent, suggesting a flat-to-positive start later in the day.

(With inputs from Reuters)

5:39 PM

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

The underlying short term trend of Nifty continues to be positive with range bound action. The market is now placed to show upside momentum above the hurdle of 15900 levels in the coming few sessions. A sustainable move above this area could open further upside towards 16200 in the near term. Immediate support is placed at 15770

5:39 PM

TECH VIEW :: Ashis Biswas, Head of Technical Research at CapitalVia Global Research

The market witnessed some recovery from the support of 15800. Market suggests, trading above 15800 is positive from a short-term perspective. If the market breached the resistance zone of 15900-15920 and sustain above these resistance zone, the market expects to gain momentum, leading to an upside projection till 16100-16200 level. The momentum indicators like RSI, MACD to further strengthen in favor of a positive outlook.

5:37 PM

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

Technically, the nifty has formed a bullish marabozu candle on weekly charts, which suggests strength for the upside in upcoming days. Moreover, an oscillator Stochastic has also suggested positive crossover, which indicates bullish strength for the near term. The Nifty continued to trade with the support of 21 DSMA i.e.15708 which added strength in the counter. At present, the nifty seems to have resistance at around 15900 levels. Crossing above the same can show 16200 levels while immediate support comes at 15600 levels.

5:32 PM

MARKET STRATEGY :: What will drive the indices next week?

The benchmark is hovering near a record high largely led by a gradual pickup in economic activities, as states start unlocking, the expectation of better earnings and ramp-up of vaccination. On the flip side, the possibility of the third wave of Covid can impact market sentiments. We remain cautiously optimistic on the markets and suggest aligning the positions accordingly.

Views by: Ajit Mishra, VP - Research, Religare Broking 

5:24 PM

Technical set-up for next week

Technical Outlook

 

Nifty 50 index has been trading sideways for almost three weeks now. It seems to be facing a temporary halt after a period of outperformance. Overall market sentiments in global indices look positive and eventually Nifty is also likely to catch up. After a strong bounce back from 15450, this zone is now being established as a crucial short-term support. We suggest traders maintain a bullish bias on the market and remain watchful for any break of the crucial support, as this would lead to weakness in the short term.

Expectations for the Week 

 

In the coming week, domestic indices are expected to mirror global equities. June auto sales numbers would give investors a fair idea around the revival of ground-level sentiment. However, it would be important to remember that markets have already started pricing in a strong rebound in volumes on expectations of pent-up April-May demand because of an accelerated inoculation drive, strong line-up of launches, life-time low auto loan rates and a favourable monsoon. Investors can closely watch the unlock theme stocks as they could see knee jerk reactions depending on the development in the delta variant. Nifty50 closed the week at 15860.35, up by 1.13%.

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

5:12 PM

MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Sec

The market started on a weak note but closed higher for the week. However, it failed to move past the previous highs of 15901/52900 and remained in a tight trading range. The market spent time trading between 15500/51740 and 15900/52900, led by technology, PSU banks and select metal companies. The Energy and FMCG sectors closed in the negative territory.

 

The market has spent almost two weeks below the 15902 levels, however, if this level is broken, the Nifty will have to move to the 16050/16150 (53750) level. According to options statistics and retracement levels, the Nifty / Sensex will find support at 15800/52800 and 15670/52300. The Nifty will derail below 15670/52300 and could fall to 15550/51800 or 15450/51500. Our strategy should be to reduce the position between the levels of 16050/16150 (53750).

 

The Nifty 50, Sensex and Nifty IT indices have reached new levels but the Bank Nifty is still lagging behind. If the Bank-Nifty crosses the 35800 level, it will be able to push back to 37710 but all this should happen in the next one week. The focus should be on selecting Technology companies, Auto and Financial stocks

5:01 PM

NIFTY OUTLOOK :: Index may hit new record high next week

ndian benchmark equity indices rose higher for the second consecutive day on June 25 supported by metal and financials. Nifty opened higher, fell in the initial minutes of trade and made a intra day bottom at 1005 Hrs. It later started to rise and closed almost at the intra day highs.  At close the Nifty was up 69.90 points or 0.44% at 15860.40.

 

Volumes on the NSE were low but in line with the past 4 days volumes. Among sectors, Metals, Capital Goods, Banks, Telecom and Healthcare rose the most while Oil & Gas and FMCG fell the most.

 

Nifty once again rose gradually, this time pulled up by Banks and Metal shares. After one negative week, it closed the current week with a gain of 1.13%. The Nifty could remain in the 15901-15761 band for the near term. However it seems likely that a new high in Nifty may be made in the coming week. Action seems limited to a few stocks/sectors on rotational basis and the overall mood in the markets is still not euphoric. This is a good sign that may prevent a fast reversal. 

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

4:51 PM

TECH VIEW :: 15,900 will act as make or break level

>> Nifty index has formed a bullish candle on the weekly chart.

>> Going forward, 15,900 will act as make or break level as any decisive close above the said level may take the index towards 16000-16100 zone. On the contrary, failure to sustain the resistance may see some profit booking towards 15,800-15,700 zone (immediate support zones)

>>Trend reversal signal will come only below 15500 zone

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

4:40 PM

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

Domestic equities rose in today’s session mirroring an upbeat mood in the global markets after US President Joe Biden embraced Senate infrastructure deal to help stimulate the economy. The overall mood in Wall Street was lifted since the US jobless claims ticked down as the economy heals. On the domestic front, recovery was seen in banks and metal stocks following its consolidation during the past few days.

4:30 PM

Markets this week :: Top gainers on NSE

>> Maruti Suzuki: 10%

>> Tata Steel: 6.7%

>> Infosys: 4.7%

>> Bajaj Finserv: 4%

>> SBI: 3.8%

4:17 PM

Markets this week

>> Indices post weekly gains

>> Sensex, Nifty each add 1.1% during the week

>> Nifty MidCap 100 up 1.5%, SmallCap 100 gains 1.2%

4:06 PM

IPO Alert :: India Pesticides subscribed 25x till 3:45 PM on Day 3 of the issue

3:59 PM

Volatility Alert

India VIX ends 11.2% lower at 13.44 level

3:56 PM

BSE Snapshot :: M-cap of all BSE listed firms climbs above Rs 230-trillion mark

3:54 PM

NSE Snapshot :: Top Nifty50 gainers of the day