Dear
Trader…
Indian headline indices touched record highs on Wednesday courtesy
banks and financial stocks, especially HDFC Bank, which surged as investors bet
on the possibility of an increase in the stock’s weightage in the MSCI index in
the August review.
The 30-stock S&P BSE Sensex touched a lifetime high of
80,074.3 before ending the session at 79,987, up by 545 points or 0.69% while
the broader Nifty future scaled a peak of 24,376.40 before settling the day at
24,365, gaining by 162 points or 0.67%.
Banking gauge Bank Nifty future also hit its fresh lifetime
high of 53,249.00, before ending the day at 53,094.85, up 726.35 points or 1.39%.
PSU banks,
private banks, metal, and FMCG were major gainers. Buying has also taken place
in small and medium stocks.
The Nifty index was a sea of green with 40 stocks closing the
session on a positive note. There were 9 declines and one stock remained
unchanged. The top gainers at the closing time were Tata Consumer Products,
Adani Ports and Special Economic Zone, Kotak Mahindra Bank, HDFC Bank and Axis
Bank while the top losers were Tata Consultancy Services (TCS), Titan Company,
Reliance Industries (RIL), Tata Motors and Hindalco Industries.
Nifty Media was the only outlier to end in the red out of the
16 sectoral indices. It ended with declines of 0.4%. In the gainers’ pack Nifty
Bank and Nifty Private Bank topped the chart with nearly 2% uptick, each. Nifty
FMCG, Nifty Metal, Nifty Pharma closed with gains up to 2%.
Interbank dollar bids had pushed the rupee to an intra-day
low of 83.4650 earlier in the session but a decline in the dollar index helped
it trim losses.
The market breadth was
skewed in the favour of the bulls. About 2,295 stocks gained, 1,640 declined,
and 86 remained unchanged on the BSE.
Nifty futures opened at 24301.00 points against the previous
close of 24203.15 and opened at a low 24276.25 points. Nifty Future closed with
an average movement of 100.15 points and a rise of around 161.85 points and
closed 24365.00 points…!!
Meanwhile,
A broad-based rally was witnessed in the Indian
market, boosted by largecaps, with financials taking the centre stage. With the
drop in Indian banks GNPAs to a 12-year low, the sector is anticipated to
outperform in the near term. On the global front, the US FED chair’s commentary
on inflation cooling down to 2% by the end of CY25 was sentimentally positive.
FOMC minutes later on Wednesday might give hints on the start of the rate-cut
cycle.
The market has reached another milestone. We believe this is
logical as markets are leading indicators of macro stability and future growth.
We believe that India has strong and sustainable drivers for secular growth,
and thus our view on equities remains constructive.
At the start of intra-day trading, August gold opened at Rs.71713,
fell from a high of Rs.72275 points to a low of Rs.71685 with a rise of 711
points, a trend of around Rs.72275 and July Silver opened at Rs.88286, fell
from a high of Rs.90120 points to a low of Rs.88278 with a rise of 2277 points,
a trend of around Rs.90170.
Technically, the
important key resistances are placed in Nifty future are at 24365 levels, which
could offer for the market on the higher side. Sustainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 24474 – 24606 levels. Immediate support is placed at 24303 –
24180 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory.Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
