The market concluded on a high note on July 14. The Nifty index closed around 19,600, witnessing a widespread buying spree. TCS, Infosys, Tech Mahindra, LTTS, and HCL Technologies emerged as the top gainers in the Nifty.
On the other hand, HDFC Life, M&M, Power Grid Corporation, Titan Company, and Dr. Reddy’s Laboratories remained the top losers in the Nifty. Both the BSE Midcap and Smallcap indices also witnessed a 1% increase. All sectoral indices ended in the green. The IT index observed a growth of over 4%, while the Metal and Realty indices closed with a 1% increase.
At the close of business, the Sensex stood at 66,060.90, marking a gain of 502.01 points or 0.77%. The Nifty closed at 19,564.50, registering a rise of 150.70 points or 0.78%. Approximately 2,158 shares closed with gains, while 1,161 shares experienced a decline. No significant change was observed in 142 shares.
Vinod Nair from Geojit Financial Services stated that inflation control in the United States has generated new optimism among investors. The market now believes that there will only be a marginal increase of 25 basis points in the US. As a result, despite weak quarterly results, Indian IT shares witnessed strong buying. Additionally, consistent buying from FIIs and a continuous decline in wholesale inflation for the third consecutive month have provided support to the market.
19450 Level as a Trend Decider
Amol Athavale from Kotak Securities mentioned that the expectation of a slowdown in interest rate hikes by the US Federal Reserve due to declining inflation has increased. The better-than-expected results of IT companies have also supported the market. Consequently, the Sensex closed above the 66,000 level today. The continued buying by FIIs has also boosted the market. As a result, the Nifty has formed a bullish candlestick pattern on the daily and weekly charts, indicating a further upward movement from the current levels.
For trend-following traders, the level of 19,450 will be a trend decider. If the Nifty stays above this level, it may witness an uptrend towards 19,800. Conversely, if it falls below 19,450, a decline towards 19,400-19,300 levels may be expected.
44500 Level Crucial for Bank Nifty
For Bank Nifty, the 20-day SMA (Simple Moving Average) level of 44,500 will be a decisive level. Above this level, the index can reclaim the 45,250-45,600 range. On the other hand, if it goes below 44,500, the Bank Nifty may slip towards the 50-day SMA or 44,000.
Ajit Mishra from Religare Broking noted that the market closed on a positive note with significant gains on the last trading day of the week. Today, it witnessed nearly 1% growth. After an initial surge, there was a slowdown during the mid-session, but a sharp surge in the last half-hour completely changed the market’s direction. As a result, the Nifty closed at a new high of 19,564.50. Most sectors closed at higher levels, with the IT pack performing exceptionally well. Metal and realty sectors also witnessed good momentum. Small and mid-cap stocks remained upbeat today.
The market ended with strength today. However, for this momentum to continue, the Nifty must sustain above 19,550. Positive cues from global markets and rotational buying across all sectors suggest that the market may continue its upward trend. Traders are advised to focus on quality shares across all sectors.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Sharedhan. We advise investors to check with certified experts before taking any investment decisions.