With some buying interest among investors, the Indian market hit a fresh record close on Wednesday. The S&P BSE Sensex closed above 53000 while the Nifty50 ended above 15850 on a closing basis.
Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 193 points to 53,054 while the Nifty50 was up 61 points to close at 15,879.
All eyes are now on the FOMC minutes and on the domestic front, Tata Consultancy Services (TCS) will declare its results for the June quarter on Thursday.
“Amid mixed global cues and ahead of Q1FY22 earnings data, domestic equity indices traded flattish with a positive bias towards the end of the day,” Vinod Nair, Head of Research at Geojit Financial Services said.
“Global markets traded mixed ahead of the FOMC minutes as investors preferred safe-haven bonds and dollars. Healthy pre-sale numbers boosted buying interest in realty stocks while metal stocks followed the trend,” he said.
Sectorally, the action was seen in metals, realty, capital goods, as well as banks while selling pressure was seen in consumer durable, energy, oil & gas, and auto stocks.
On the broader markets front – the S&P BSE Mid-cap index rose 0.58 percent, and the S&P BSE Small-cap index rose 0.38 percent.
India VIX fell down by 0.55% from 12.27 to 12.21 levels. Lower volatility indicates a range-bound move but at the same time decline could be bought.
On the options front, the maximum Put OI is placed at 15500 followed by 15000 strikes while the maximum Call OI is at 16000 followed by 16500 strikes. Options data suggests an immediate trading range in between 15700 to 16000 zones, suggest experts.
Here’s what experts suggest investors should do on July 8:
Expert: S Ranganathan, Head of Research at LKP securities
Markets bounced back into the green in afternoon trade led by metal stocks. Cabinet reshuffle later today created interest amongst market participants as we saw some hectic activity in smaller private sector banks. Paper stocks too displayed strength in the broader markets.
Expert: Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services
The Nifty50 index formed a Bullish candle with a long lower shadow on a daily scale which indicates that declines were being bought.
Now, the index has to hold above 15800 zones to witness an up move towards 16000 and 16200 zones while on the downside support can be seen at 15700 and 15600 zones.
Expert: Rohit Singre, Senior Technical Analyst at LKP Securities.
The index closed a day on a positive note at 15880 with gains of half a percent and formed a bullish candle on the daily chart.
The index is on the verge of giving breakout from its ascending triangle pattern on the daily chart which will happen above 15920 zone.
Ascending Triangle is a continuation pattern by nature which means once we sustain above 15920, we may see a good up move in the near term, support for the index is coming near 15830-15780 zone & resistance is coming near 15920-16000 zone.
Expert: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets managed to close in the green but were unable to cross 15900 on a closing basis. If we can manage to do that, we should be heading to 16100.
Good support lies at 15400 and as long as that holds, we are in bullish territory and corrective waves can be strategically utilized to buy this market.
Expert: Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.
The Nifty formed a base for itself near the key hourly moving averages in the first half of the session. Thereon the index took a leap on the upside towards the end of the session. Consequently, the index is once again approaching the key barrier of 15900.
Once that gets taken out on a closing basis, the Nifty will open up a significant upside potential for itself & will be set to target 16400 on the upside.
The daily & hourly momentum indicators are starting new cycles on the upside, which is in favor of the bulls. On the flip side, today’s low of 15779 will act as near-term support with the crucial support at 15635.
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