The benchmark Indices closed on a positive note with Sensex closing at 52904.05 (+0.25 percent) and Nifty closing at 15853.95 (+0.26 percent). Strong buying was seen in the IT sector with Nifty IT gaining +3.16 percent while some selling pressure is seen in realty, banks, oil & gas and energy stocks. Mindtree gained more than 8 percent after posting very good Q1 results which also led rally in other mid cap IT stocks such as Happiest Minds and Mphasis.
The Zomato IPO opened today and the retail portion has been subscribed more than two times so far. WPI inflation eased slightly to 12.07 percent in June 2021 as compared to 12.94 percent in May, 2021. This marginal ease is majorly due to softness seen in the prices of food products and crude oil compared to previous month. Mohit Nigam, Head, PMS - Hem Securities said, "Immediate support and resistance for Nifty50 are 15,600 and 15,900 respectively."
On the technical chart, the Nifty50 index has been trading in a bullish direction for the last couple of days, said Sumeet Bagadia, Executive Director, Choice Broking. The index has taken good support at around 15,630 levels in the prior trades and moved up towards the positive territory. "A momentum indicator RSI (14) has turned upward from the 50 levels and stochastic suggested positive crossover on the daily timeframe, which indicates further upward momentum in the counter. At present, the Nifty is finding resistance at 15,915 levels, crossing above the same can show 16,100-16,200 levels in the index while immediate support comes at 15,750," he added.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities, said the “Nifty has been consolidating in a narrow range since the past few trading sessions. The medium-term view remains positive with buying on dips advisable. For the short-term, consolidation expected to continue with resistance seen at 15,980 levels. Realty and NBFC stocks expected to trade with a positive bias.”
Nifty outperformed its Asian peers, even as the advance decline ratio turned back to even. This suggests a tendency to keep taking profits by traders/investors in broader markets. Nifty is once again near its earlier top of 15915. On falls 15745 could act as a support, said Deepak Jasani, Head of Retail Research, HDFC Securities.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said the Nifty Technology index had a marvellous run and erased the losses of the last 13 days by closing above the highest level of the previous up move. "On Thursday, on the day of the weekly expiry of Index options and the quarterly results of the index giant Infosys, we would see the levels of 15,950/53,200 in the near-term in case the Nifty/Sensex survive above the levels of 15,800/52,700. On the other hand, below the levels of 15,800/52,700, benchmark indices would find support at 15,760/52,550 and at 15,740/52,450 levels. A close below the level of 15,760/ 52,550 would be negative for the market," he said.