Autos and fast moving consumer goods (FMCG) lead market gains as the Sensex and Nifty both close near 19,450.

About 1892 shares rose, 1496 fell, and 117 were unchanged. The midcap and smallcap indices gained roughly 1% each, continuing the overall market’s optimism.

by Akash Jha July 11, 2023, 10:44 PM 12 Views

The markets closed the day of July 11 in the green despite being mostly rangebound. The final Sensex value of 65,617.84 represents a gain of 273. The Nifty finished the day up 83.50 points, at 19,439.40.

Approximately 1892 shares rose, 1496 shares fell, and 117 shares stayed the same. Midcap and small cap indices also gained around 1%, adding to the broader market’s optimism.

Sun Pharma and Eicher were among the top gainers on the Nifty 50 index, each rising by more than 2%. Both UPL and JSW Steel ended the day down. UPL by 2.4% and JSW Steel by 1.6%. Short positions were covered in Deepak Nitrite, Navin Fluorine, and Bandhan Bank while long positions were established in Tata Communications, Dixon Technologies, and Polycab in the F&O market.

Stocks and sectors

Eicher Motors led all Nifty 50 companies in price appreciation, increasing by almost 3 percent. Sun Pharma subsequently increased by around the same percentage. Several other companies saw increases in value, including Tata Consumer, Apollo Hospitals, and Maruti Suzuki.

UPL fell nearly 2%, making it the worst performer. Other companies that did poorly include Bajaj Finance, Axis Bank, HCL Tech, JSW Steel, and Hindalco Industries.

The Nifty Automobile, FMCG, Pharmaceutical, and Healthcare indices all increased by over one percent. The day’s biggest loser was Nifty Financial Services.

OUTLOOK for July 12

Vinod Nair, Head of Research at Geojit Financial Services

Investors are keeping a low profile as they await the first quarter results from the information technology sector, which begins tomorrow. The expected support from China to counteract economic growth and optimism over moderating US inflation figures also contribute to the upbeat outlook. Given the optimistic profits forecast for FY24, India’s current value is reasonable (although slightly over the long-term average).

Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd

India’s excellent direct tax collection results have increased investor confidence even more as the country continues its economic rise despite global economic weakness. Stocks in the auto, cap ex, power, and consumer staples sectors saw buying as optimism was buoyed by positive global cues. However, investors may need to prepare for increased intraday volatility in the days leading up to the FOMC meeting of the US Federal Reserve on July 26. The Nifty has created a double top pattern on intraday charts, a technical indicator of short-term weakness. If intraday traders can get the market to break over 19500, it has the potential to rise to the 19600-19625 zone. Below 19380, however, sellers are likely to gain momentum, and the index may revisit the 19300-19250 area.

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities

Bears have maintained their control over the Bank Nifty index as selling pressure from higher levels has persisted. The index has run into a wall of resistance around 45200, which has been tough to break through thus far.The current index price is very close to a significant support area, which lies between 44800 and 44750. The 20-day moving average (DMA) is located in the 44500-44000 level, thus a break there would likely trigger a continuation lower.Recently, the Bank Nifty index has been trading in a rather tight range of 44500–45500. For traders, the best course of action is to capitalize on any opportunities that arise, whether they be on the upside or the downside, during a range-bound market.