Positive global clues and reducing risk of large interest rate hike helps Nifty reclaim 16200 levels.
Nifty above 16200. The benchmark indices began the week on a firm note and closed in the green, aided by positive global clues. The market anticipates better-than-expected earnings, stable economic data, and reduction in the risk of larger-than-expected interest rate hike.
The shares of beaten-down sectors such as IT, metals, and consumer durables led today’s rise. The Nifty ended above 16200 by a comfortable margin; earlier on July 8, it closed at 16221 but could not hold the gains. The big question is if it can maintain above 16200 levels?
Today Nifty opened with a gap up of 102 points, remained in the green throughout the trading session. It closed at 16278.50, up 229 points, or 1.43 percent. During the day, it reached a high of 16288 and a low of 16142. The Nifty made a higher high and higher low compared to previous closing values and closed near the day’s high.
The advance-decline ratio was 2.79 today, while market breadth was positive. The volatility index India Vix, on the other hand, decreased 2.48 percent to settle at 17.16. This is the lowest reading of volatility index since April. Furthermore, FIIs were net buyers today.
DAILY MARKET ACTION
Advancers – 1578
Decliners – 565
52Wk High – 49
52Wk Low – 26
High Band Hitters – 125
Low Band Hitters – 50
200d SMA – 17073
50d SMA – 16027
20d SMA – 15891
Nifty Top Gainers and Losers
The top gainers were Hindalco (+4.75%), IndusInd Bank (+4.29%), Infosys (+4.22%), Tech Mahindra (+3.72%), and Bajaj Finserv (+3.50%).
Meanwhile, the top losers were Dr. Reddy (-1.85%), Britannia (-1.82%), HDFC Bank (-1.02%), M & M (-0.90%), and Nestle India (-0.72%).
Nifty Sectors & Broader Indices
On the sectoral front, most of sectoral indices closed in the green. IT, metal, consumer durables, and financial services were the biggest gainers, while pharma and FMCG were the biggest losers, registering marginal losses. The broader indices followed the benchmarks. The Nifty Midcap 50 was up 1.64 percent, while the Small cap 50 was up 1.90 percent.
SECTORS – NOTABLE ACTION
CONSUMER DURABLES +1.45%
Nifty closed the prior gap down around 16200 levels. We may see some volatility around this level as the market attempts to move forward. The more it hovers around 16200 levels, the more likely it may break on the downside.
There is firm support at 16100 level and the Nifty trading range for tomorrow is 16180 to 16330.
Today’s long bullish candle formation, positive market breadth, moderate volatility, FII’s being net buyers, and market above 20-day and 50-day simple moving averages are all necessary ingredients for the Nifty to reach the 16500-16600 level in the short term.
This article is only for educational purposes and is not an investment advice.