02 Jul , 2024 By : Debdeep Gupta
A fresh rally in the IT and realty stocks helped propel the Nifty and Sensex to scale new record highs on July 2, extending gains from the previous trading session. Auto and FMCG counters slightly dampened the overall sentiment after trading in the red.
At about 9:30 am, the Sensex was up 0.2 percent at 79,614 and the Nifty was up 0.15 percent at 24,178. About 2,098 shares advanced, 735 shares declined, and 98 shares unchanged.
"We would continue the market trading with a positive bias," Ruchit Jain, equity analyst at 5paisa told Sources. He also added that earlier the banking and private sector banks led from the front and now the IT sector assumes leadership. "Some of the oil and gas names such as Reliance Industries, which are heavyweights, are also looking positive," Jain says.
Not just that, FIIs turning net buyers in June is also a positive for the markets experts suggest. Jain believes that FIIs' long-short ratio is now above 80 percent which indicates positivity and a strong buying interest from them and that too into the heavyweights would keep the positivity intact in the index.
Of the 13 sectoral indices, auto, bank, and FCMG were trading lower with auto being the biggest loser. Major stocks such as Tata Motors, Bajaj Auto, and Maruti Suzuki slipped the most. The IT and Realty were the best performers, data showed.
"The worst phase for the IT is over as participants are looking for stocks which have not given high returns in the last couple of quarters and the risk-reward ratio is favorable," Jain added.
The broader market, including midcaps and small-caps, outperformed the headline indices after trading at 0.15 and 0.53 percent, respectively. The former hit a fresh high of 15,886 on the bourses.
The fear gauge, India VIX, was flat to be at around the 13.83 level on July 02.
"Nifty can find support at 24,100 followed by 24,000 and 23,950. On the higher side, 24,200 can be an immediate resistance, followed by 24,300 and 24,400," Deven Mehata, research analyst at Choice Broking, said. "The charts of Bank Nifty indicate that it may get support at 52,300, followed by 52,100 and 52,000. If the index advances further, 52,800 would be the initial key resistance, followed by 53,000 and 53,200," he added.
ONGC, Wipro, Infosys, Coal India, and HCL Tech were the top gainers on the Nifty. Tata Motors, HDFC Life, Bajaj Auto, Bajaj Finance, and ICICI Bank were the major laggards.
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