The Nifty reclaimed 15,800 levels as the bulls remained in control of D-Street throughout on July 13, tracking a positive trend in other Asian markets. The S&P BSE Sensex rose 397 points to close at 52,769, while the Nifty closed with gains of 119 points to 15,812.
“Following favourable economic outcome and positive Asian markets, domestic bourses traded positive today. Asian shares sparked a rally after better-than-expected Chinese economic data and a bounce back in Chinese tech stocks,” Vinod Nair, Head of Research at Geojit Financial Services, said.
Though June CPI inflation remained above the Reserve Bank of India’s tolerance level, it eased to 6.26 percent from 6.3 percent in the previous month, giving some relief to the market. Industrial production (IIP) for May grew 29.3 percent year-on-year essentially due to a lower base, he added.
Sectorally, buying interest was seen in banks, finance, energy, and oil & gas stocks, while profit-taking was visible in IT, FMCG and telecom stocks.
The S&P BSE midcap index closed flat, while the smallcap index ended with gains of 0.4 percent.
India VIX fell 2.83 percent from 12.99 to 12.62 levels. A decline in the VIX after the recent spurt has again given stability to the market to commence the next move.
On the options front, the maximum Put OI is seen at 15,500 followed by 15,000 strikes, while maximum Call OI is placed at 16,000 followed by 15,800 strikes. Options data suggests an immediate trading range between 15,600 and 16,000.
Here’s what experts suggest investors should do on July 14:
Expert: Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services
The Nifty formed a Bullish candle on the daily scale with a long lower shadow, indicating that declines were being bought. The index has been moving between 15,632 and 15,915 from the last 15 sessions and requires a decisive range breakout to commence the next leg of rally.
The index has to hold above 15,800 to witness an up move towards 15,915 and 16,000, while on the downside, support exists at 15,750 and 15,600.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The market is again near the resistance zone of 15,900 and if it manages to get past it on a closing basis, we are in for a treat.
Conquering 15,900 will take the Nifty to 16,100, which will be the next pit stop for the index.
As long as the index doesn’t break 15,400, dips or corrections can be used to accumulate long positions for higher targets.
Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas
The Nifty bounced back nicely on July 13. It broke out from the triangular pattern on the hourly chart, retested the breakout line and moved up. On the way up, it crossed the key daily and hourly moving averages.
On the downside, 15,650-15,600 proved to be a key support zone. Thereon, the index leaped once again and is heading towards the subsequent barrier at 15,900-15,915, which holds the key for a larger upside.
The overall structure shows that the Nifty has the potential to overcome this barrier and march north.
Mohit Nigam, Head, PMS-Hem Securities
The benchmark indices closed on a positive note after favourable economic outcomes and positive sentiments from Asian markets. The immediate support and resistance for the Nifty are 15,600 and 15,900, respectively.
Overall, we are bullish on markets and believe that any significant dip is a good opportunity to buy quality stocks.
Ajit Mishra, VP-Research, Religare Broking Ltd
Global cues are upbeat, however, support from the banking pack is critical for any sustainable up move in the Nifty. Participants will also be eyeing the results of the IT major, Infosys Ltd, scheduled on July 14.
We feel it’s prudent to focus on stock selection and managing overnight risk until we see the resumption of the uptrend.
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