Dear
Trader…
At the closing bell, the Sensex was up 626 points or 0.78 per
cent at 81,343, and the Nifty was up 166 points or 0.67 per cent at 24,808.Sensex
touched 81,522 and Nifty Future climbed to 24,838 during the intra-day trading
– all-time highs.
TCS, LTIMindtree, ONGC, Bajaj Finserv, and Wipro were among
the top gainers on the Nifty, while losers included Asian Paints, Hero
MotoCorp, Grasim, Coal India, and Bajaj Auto.
Among sectors, bank, auto, IT, FMCG and telecom rose 0.3-2 %,
while capital goods, metal and power stocks were down 1-3.5 %. The BSE midcap
and smallcap index shed around 1% each.
Here are 5 factors that pushed Sensex, and Nifty higher
today:-
FII
buying – After being net buyers to the tune of Rs 26,565
crore in June, FIIs have invested more than Rs 24,000 crore so far in the
month. A survey of Asian fund managers by brokerage BofA shows that the triad
of Japan, India, and Taiwan continue to be at the top of investor mindshare,
while China and Thailand lag at the bottom from an allocation perspective.
Buying
in the IT stocks – In recent days, Dalal Street has been renewing its vows for
old-favourite software stocks. The Nifty IT index jumped over 2%, with
LTIMindtree, TCS, Wipro, Infosys, Coforge, and HCL Tech rallying between 2-4%
each. The results of Infosys today will give greater clarity to the movement in
IT stocks.
Value buying –
Amid worries related to valuations in the bull
market, which is showing no signs of peaking out, seasoned investors have been
cherry-picking stocks that are relatively cheaper and with healthy earnings
growth outlooks. On top of this list is mostly bluechips, many of which have
been underperforming.
Rate
cut hopes – Dovish comments from Fed chief
Jerome Powell on the inflation trajectory ahead of US retail sales data
increased the likelihood of a rate cut in September. Moody’s Ratings expects
the world’s most powerful central bank to begin policy easing with a 25 basis
points (bp) cut as early as in the upcoming 30-31 July meeting. It expects the
Fed funds rate to be reduced by a cumulative 50-75 bps in 2024 and another
100-125 bps through 2025.
Nifty futures opened at 24565 points against the previous
close of 24644 and opened at a low 24510 points. Nifty Future closed with an
average movement of 300 points and a rise of around 165 points and closed 24808
points…!!
At the start of intra-day trading, August gold opened at Rs.74364,
fell from a high of Rs.74538 points to a low of Rs.74260 with a rise of 181 points,
a trend of around Rs.74318 and July Silver opened at Rs.92300, fell from a high
of Rs.92670 points to a low of Rs.92205 with a rise of 165 points, a trend of
around Rs.92306.
Technically, the
important key resistances are placed in Nifty future are at 24808 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 24880 – 25008 levels. Immediate support is placed at 24676 –
24606 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
