Equity benchmark Sensex rallied 364 points on Monday, driven by gains in index majors Reliance Industries, Infosys and TCS amid a positive trend in global equities.
The 30-share index ended 363.79 points or 0.69 per cent higher at 52,950.63, while the broader NSE Nifty surged 122.10 points or 0.77 per cent to 15,885.15.
After a gap-up opening, the Nifty index traded higher for the day to close at 15885.15 levels with more than half a percentage gain while BankNifty closed at 34,710 levels with 125 points gains. All the sectoral indices closed at green note followed by Nifty Realty, infra, auto and IT index. Stocks like Sree Cement, Titan, BPCL, Eicher Motors were among the gainers while UPL, Tata Steel, Bajaj Finserv were the top losers for the day.
According to Sumeet Bagadia, Executive Director, Choice Broking, "Technically, the Nifty index has taken support at the Middle Bollinger Band formation and settled above it. Moreover, the index is continuously trading above 50- days SMA, which suggests bullish strength in the counter. An indicator Stochastic has indicated positive crossover, which supports the bullish trend. At present, the Nifty has support at 15750 levels while resistance comes at 15,960 levels," he said.
The Nifty opened with a gap-up and was able to sustain in the positive territory for the entire day. It ended with positive 125 points since yesterday's close. Volumes were less than average volume of the past few days which is not a good sign for bulls.
The Nifty has resistance in 15,900 and 15,950 range and support at 15,750-15830 range. Fresh longs should be considered only on Nifty closing above 16000 levels with higher than average volumes, said Gaurav Udani, CEO and Founder, ThincRedBlu Securities.
Deepak Jasani, Head-Retail Research, HDFC Securities, "The Nifty has opened the week on a strong note with sharply higher advance decline ratio. A follow through upmove is likely over the next few days and Nifty could remain with an upward bias in the 15,817-15,962 band."
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said, "Technically, the daily intraday charts suggest the market is consolidating near the important resistance level of 15900. The strong breakout formation is not ruled out, if the index succeeds to trade above 20 day SMA or 15800. Above the same, the uptrend texture is likely to continue up to 15930-15975 levels. On the flip side, a close below 20 day SMA may increase further selling pressure till 15,745-15,700."
Markets continue to face resistance on important levels of 15,900 in Nifty 50. Nifty Energy and Nifty IT surged by +1.56 percent and +1.06 percent. "Auto stocks were in demand today as July monthly sales data showed a good recovery with Nifty Auto index up by 1.34 percent.
"Krsnaa Diagnostics IPO to open on August 4: Price band set at Rs 933-954/share. RBI monetary policy committee to meet on August 4-6, likely to maintain status quo on interest rate. In the 50-share pack Nifty, Shree cements was the biggest gainer, up 3.64 per cent. Titan, Eicher and BPCL were among other gainers. UPL was the top loser in the pack, down 2.16 per cent. Tata Steel, Bajaj Finserv and Bajaj Finance were other losers in the pack," said Mohit Nigam, Head-PMS, Hem Securities.
(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)