Taking Stock: Market breaks 3-day fall with Nifty above 19,500; Sensex jumps 481 points

Nifty completed the day at 19,500, leading the benchmark indices higher, as the information technology, banking, and pharmaceutical sectors all performed well.

Both the Sensex (which rose 480.57 points, or 0.74%, to 65,721.25) and the Nifty (which rose 135.30 points, or 0.70%, to 19,517) increased as of market close.

The market opened higher and kept rising throughout the day, eventually closing around its high. This occurred despite mixed global indications.

The BSE Sensex and Nifty50 both fell by 0.6% throughout the course of the week.

Top Nifty gainers included Cipla, IndusInd Bank, Tech Mahindra, Wipro, and Bharti Airtel, while top losers included SBI, Bajaj Auto, BPCL, NTPC, and Maruti Suzuki.

Two industries saw gains of 1%: pharmaceuticals and information technology, while financial services, industrial metals, and capital goods all gained 0.5%. Automakers and utility companies were among the biggest sellers.

The BSE mid and small cap indices both saw gains of 0.6%.

LIC Housing Finance, Info Edge, and Jubilant FoodWorks all had significant increases in their buildups, while Aditya Birla Fashion & Retail, Mahanagar Gas, and Cummins India all had negligible increases.

Among individual stocks, a volume spike of more than 300 percent was seen in Indiabulls Housing Finance, Cummins India and Info Edge.

More than 200 stocks touched their 52-week high on the BSE, including Tribhovandas Bhimji Zaveri, SML Isuzu, NBCC, Info Edge, Lupin, Karnataka Bank, JK Tyre, Gravita India, Dixon Technologies and Apollo Tyres.

Outlook for August 7

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:

The Nifty started the day up and continued rising, eventually finishing the day up by about 130 points. The Nifty recovered some of its weeklong losses on Friday after experiencing heavy selling activity earlier in the week. However, on a weekly basis, it has already closed in the red for the second week running. The decline is quite likely to stall in the 19560 - 19600 range, where the 40-hour moving average and the hourly upper Bollinger band are located as resistance. Therefore, this rebound represents a buying opportunity. Even the hourly momentum indicator has hit its neutral line, suggesting the correction has completed its maturation and is ready to start a new cycle to the negative. In general, the trend is still down, and in the near future, we anticipate seeing values around 19100.

The Bank Nifty has also had a correction, although this should not be seen as the beginning of a wider trend reversal. The downturn is quite likely to end where the 40-hour moving average and the hourly upper Bollinger band meet, at around 45100 to 45200. The retreat has reached maturity and can begin a new cycle, as seen by the hourly momentum indicator's crossing of the equilibrium line. We still see a general downward trend, and a drop to around 44,000 seems likely in the near future.

Ajit Mishra, SVP - Technical Research, Religare Broking:

The market recovered from its recent decline and climbed by more than half a percent. Following the gap to the upside at the opening bell, Nifty traded in a narrow range all day until closing at 19,518. Meanwhile, the sectoral front showed a mixed trend, with IT, pharma, and banking all posting decent gains and keeping the traders active. The broader indices also rose, by roughly the same percentage.

Nifty has recovered after touching support at 19,300, although it has not yet regained its position above the 20-day exponential moving average (EMA). For the recovery to continue, we must prioritise sustainability over maintenance of the status quo. Even though global indexes are falling, they have not yet reversed their upward trajectory, which is reassuring. In the face of conflicting data, it's best to proceed with caution and limit the size of your positions.

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Also Read : Technical View | Nifty rebounds, but sustainability above 19,500 key for further sharp upmove