Table of Contents
Market Overview
- Flat Opening Expected: Both Sensex and Nifty 50 are likely to open flat.
- Record High on July 18: Sensex surged by 626.91 points to reach 81,343.46, while Nifty climbed 187.85 points to 24,800.85.
- Sector Leaders: IT, banking, and FMCG sectors led the gains.
Global Market Trends
- Asian Markets: Trading lower as investors take profits from tech stocks.
- US Markets: Major indices fell as investors moved away from high-priced megacap growth stocks:
- Dow Jones: Dropped 533.06 points.
- S&P 500: Lost 43.68 points.
- Nasdaq: Decreased by 125.70 points.
Key Indicators
- US Treasury Yields: 10-year yield increased to 4.19%, while 2-year yield remained flat at 4.47%.
- Dollar Index: Stayed flat in early trading.
- Commodity Prices: Asian currencies, gold, and oil prices were down.
Market Optimism
- SEBI Proposal: Introduction of a new asset class.
- Foreign Institutional Investors (FII): Continued buying.
- GDP Forecasts: Increased by IMF and ADB.
- RBI Report: India’s natural rate of interest has risen since the pandemic.
Corporate Earnings
- Infosys Q1 Results: Net profit dropped by 20% to ₹6,368 crore, but revenue increased by 3.7% to ₹39,315 crore.
Stocks in Focus
- Securities in Ban Period:
- Balrampur Chini Mills
- Bandhan Bank
- GMR Infra
- GNFC
- HAL
- Hindustan Copper
- India Cements
- PEL
- RBL Bank
- SAIL
- Vedanta
Technical Analysis
Nifty Levels:
- Resistance: 24,842, 24,920, 25,042
- Support: 24,587, 24,508, 24,382
Bank Nifty Levels:
- Closed above 52,500, driven by ICICI Bank, SBI, and Kotak Mahindra Bank.
- Key resistance at 52,800 before a slight reversal.
- Up 0.6% for the week, with bullish momentum indicated by MACD.
- Fibonacci Levels: Support at 51,639 and 50,576; Resistance at 53,233 and 54,261.
- Analysts expect bullish momentum if Bank Nifty stays above 52,000.
Options Data
- Nifty Call Options:
- Key Resistance: 25,000 strike (1.63 crore contracts).
- Significant call writing at 24,800 strike (72.53 lakh contracts added).
- Major call unwinding at 24,500 strike (11.15 lakh contracts shed).
- Nifty Put Options:
- Key Support: 24,800 strike (2.05 crore contracts).
- Significant put writing at 24,800 strike (1.99 crore contracts added).
- Major put unwinding at 24,300 strike (14.01 lakh contracts shed).
Analysts’ Recommendations
- Caution Advised: Due to extreme overbought technical indicators, short-term traders are advised to book profits.
- Key Milestone: If Nifty reaches 25,000, it will mark the fastest 1,000-point rally, achieved in just 15 trading sessions.
Conclusion
The Indian stock market continues to display robust growth, with the Sensex and Nifty both hitting record highs. Sector leaders in IT, banking, and FMCG are driving this surge, buoyed by optimistic market sentiment fueled by SEBI’s new proposals, positive GDP forecasts, and steady FII inflows. Despite a mixed global market scenario, the resilience of the Indian indices is notable. Investors should, however, remain cautious of potential overbought conditions and be prepared for possible profit booking in the short term.
FAQ
1. What led to the record highs for Sensex and Nifty?
- The gains were driven by strong performances in IT, banking, and FMCG sectors, along with positive market sentiment from SEBI’s new asset class proposal, increased GDP forecasts, and continued FII buying.
2. How did global markets perform recently?
- Asian markets traded lower due to profit-taking in tech stocks, while US markets fell as investors moved away from high-priced megacap growth stocks.
3. What are the key support and resistance levels for Nifty?
- Key resistance levels for Nifty are at 24,842, 24,920, and 25,042, while support levels are at 24,587, 24,508, and 24,382.
4. Which stocks are currently in the ban period?
- Stocks in the ban period include Balrampur Chini Mills, Bandhan Bank, GMR Infra, GNFC, HAL, Hindustan Copper, India Cements, PEL, RBL Bank, SAIL, and Vedanta.
5. What is the outlook for Bank Nifty?
- Bank Nifty has shown bullish momentum, closing above 52,500. Key resistance is at 52,800, with Fibonacci support levels at 51,639 and 50,576, and resistance at 53,233 and 54,261. Analysts expect continued bullish momentum if it stays above 52,000.
Disclaimer:
The information provided in this blog post is for educational and informational purposes only. It should not be construed as financial advice or a recommendation to buy or sell any securities. Always do your own research and consult with a qualified financial advisor before making investment decisions.
Also Read : Mastering Best Option Trading: Unleashing the Power of PCR Ratio in Nifty and Bank Nifty.
