Fag-end buying in Reliance Industries (RIL) stocks, pushed equity markets to close over half a per cent higher on Tuesday. S&P BSE Sensex closed 379 points or 0.64% higher at 59,842. Nifty 50 ended 127 points or 0.72% in the green at 17,829, owing to positive global trends. Index heavyweights such as HDFC Bank, Reliance Industries, Housing Development Finance Corporation (HDFC), Hindustan Unilever (HUL), and ICICI Bank among others contributed the most to the indices’ gain today. Broader markets outperformed the equity frontliners. S&P BSE Midcap jumped 1.03 per cent or 256 points to settle at 25,021. S&P BSE Smap index too jumped 1.03 per cent or 288 points to finish trade at 28,194.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Markets maintained their upward bias through the trading session aided by positive global cues and few domestic factors that triggered a rally in realty, automobile and banking stocks. Moderating domestic inflation level has raised expectations that interest rate hike by the central bank may slow down going ahead. While strong FII fund infusion has certainly bolstered the sentiment of investors. Technically, the Nifty has held the higher bottom formation on intraday charts and 17750 would be the trend decider level. Above which, the index could hit the level of 17900-17925. On the flip side, a quick intraday correction is possible if the index trades below 17750 and below it could retest 17700-17650.
Rupak De, Senior Technical Analyst, LKP Securities
Nifty has given a falling trend line breakout on the daily chart suggesting a rise in optimism. The momentum oscillator RSI is in the overbought zone; however, no bearish crossover is visible in the indicator. The trend is likely to remain positive as long as it remains above the falling trendline. The profit booking in the market may come once Nifty falls below the trend line. Support on the lower end is visible at 17700. On the higher end, resistance is seen at 18000.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty rose on Aug 16, rising for six days in a row, equalling the longest winning streak in 2022, so far. Nifty opened gap up and rose through the day barring a small correction around noon. At close, Nifty was up 0.72% or 127.1 points at 17825.3. Volumes on the NSE was on the higher side compared to recent averages. India’s inflation based on the Wholesale Price Index (WPI) declined to 13.93 percent in July, the lowest in 5 months. The WPI inflation was 15.18 percent in June and 11.57 percent a year back. Nifty rose with another upgap and closed near the intra day high. Sentiments have improved across the board post encouraging macro news locally. 17921 is the next resistance while 17719 could be the support in the near term.
Vinod Nair, Head of Research, Geojit Financial Services
The easing of inflationary pressures has encouraged domestic investors to remain optimistic about the pace of economic recovery. Better-than-expected CPI numbers, aided by slower increase in food and fuel prices, may limit the pace of rate hikes by the RBI. In the Asian market, the Chinese central bank surprised the market by cutting its interest rates after a weak set of economic data. Following that, oil prices slumped on demand worries.
Kunal Shah, Senior Technical Analyst, LKP Securities
The Bank Nifty index formed a Doji candle on the daily chart which indicates indecisiveness at the current level. The index after a stupendous rally is showing signs of exhaustion however a profit booking scenario will be confirmed only on a close below 38,700 level. The index if it surpasses the level of 39,500 on a closing basis will see extension of the rally towards 40,000-41,000 levels.