CLOSING BELL ON JULY 26, 2023: The NSE Nifty rallied 98 points to 19,778; IT and bank stocks gained ground, while M&M and Bajaj twins slipped on Wednesday.
COMMENT :: What all happened in the markets today?
Optimism has inched back today after the last three trading days of consolidation ahead of the FOMC meeting. As the market’s ambiguity against the monetary policy is likely to reverse henceforth, going forward we are unlikely to see another Fed rate hike in 2023. This is because inflation has rapidly come down and is forecast to settle down further. However, the interest rate is expected to stay high in the short-term since the rigidity of core inflation remains above the long-term average.
Views by: Vinod Nair, Head of Research at Geojit Financial Services
3:56 PM
Tech View :: 'Technical indicators suggest consolidation in the near-term'
NIfty50 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 a 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.
Bank Nifty
Bank Nifty also witnessed a bounce from the cluster of 45,670 – 45,700 where support parameters in the form of the 38.2% 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.
VIews by: Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
3:50 PM
Comment :: 'Bounce back shows bulls not in mood to loosen their grip'
This bounce shows that bulls are not in mood to loosen their grip citing major support around 19,300-19,500 zone. However, any negative surprise from global front might result in extended consolidation. Meanwhile, traders maintain their focus on sectors showing higher relative strength and preplan their exits as well.
Stock Market Highlights: The key benchmark indices exhibited a firm trading session ahead of the US FOMC meet outcome later tonight backed by strong Q1 earnings from Larsen & Toubro and Tata Motors. Buying was also visible in IT and bank stocks on Wednesday.
The S&P BSE Sensex touched a high at 66,897 and was up nearly 550 points at the high point of the day. However, losses in Bajaj twins saw the BSE benchmark pare gains and eventually settle 351 points higher at 66,707. In the process, the Sensex snapped its 3-day losing streak, wherein the index had shed 1,216 points.
The NSE Nifty 50 hit a high of 19,826 before settling with a gain of 98 points at 19,778.
Larsen & Toubro surged 3.5 per cent a day after reporting strong Q1 performance, and Rs 10,000 crore share buyback. READ MORE
ITC, Sun Pharma and Reliance Industries advanced around 2 per cent each. Kotak Bank, Axis Bank, Infosys and SBI were the other prominent gainers. Whereas, Bajaj Finance and Bajaj Finserv slipped around 1.5 per cent each after the former announced its Q1 results. Mahindra & Mahindra, Tech Mahindra and Asian Paints were the other notable losers.
In the broader market, the BSE MidCap index moved 0.3 per cent higher, and SmallCap index added 0.2 per cent.
Primary Market Update
Yatharth Hospital and Trauma Care Services IPO was subscribed 80 per cent as of 3:30 PM. The Retail and HNIs portion was fully subscribed on Day 1 of the offer period. Here’s what brokerages recommend.
 "Sensex snaps 3-day losing streak, ends 351 pts up; L&T, RIL, ITC shine")
