Markets ended higher led by gains in banks; what should investors do on Wednesday ?
All eyes will be on widely anticipated Zomato IPO. The company has raised over Rs 4,196 crore from anchor investors
Indian equity benchmarks ended higher on Tuesday, following a rally in Asian peers, mainly boosted by banking and financials. Gains in metals, pharma and heavyweight RIL also lifted the sentiment. A lesser-than-expected rise in June retail inflation also helped put stimulus pullback worries at ease.
BSE Sensex closed 397 points, or 0.76%, higher at 52,769.73 while the Nifty ended with a gain of 120 points, or 0.76%, at 15,812.35.
However, mid and small-caps failed to mirror the gains of front-line stocks.
HDFC, ICICI Bank, Sun Pharma, NTPC and Axis Bank were among the top Nifty gainers. Adani Ports and HCL Tech dropped 1% each.
All eyes will be on Zomato IPO tomorrow. The most widely anticipated mega IPO is already seeing huge investor interest. Ahead of the IPO, the anchor portion has seen a strong response. Zomato has raised over Rs 4,196 crore from anchor investors.
Sumeet Bagadia, Executive Director, Choice Broking
The Nifty index has formed a bullish candle on a daily chart which suggests buyers are active. Moreover, the stochastic & MACD has indicated a positive crossover on an hourly chart which adds bullish momentum in the index. Furthermore, the index has moved above the 21&50 HMA, which suggests an upside rally in upcoming sessions. At present, the nifty seems to have resistance at 15,915, crossing above the same can show 16,100-16,200 levels while immediate support comes at 15,700.
Ajit Mishra, VP – Research, Religare Broking
Markets traded upbeat and gained over half a percent, tracking favourable global cues. After the gap-up start, it hovered in a narrow range in the first half and inched marginally higher as the day progressed. Global cues are upbeat however support from the banking pack is critical for any sustainable up move in the Nifty index. Besides, participants will also be eyeing the results of the IT major, Infosys Ltd, scheduled on Wednesday i.e. July 14. Amid all, we feel it’s prudent to maintain focus on the selection of stocks and managing overnight risk until we see the resumption of the uptrend.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
In the contrast to Monday’s trade, Nifty sustained today after the initial round of profit-taking and quickly reversed back to 15,800 levels, which is an ultimate resistance for the market. Purely under the leadership of financials stocks, the market has managed to close above the levels of 15,800. It’s a bullish continuation pattern and with the help of it, the Nifty would again hit the tall wall of 15,900-15,930. On a daily basis, 10 and 20 days SMA offer significant support to the short-term trend of the market that would act as the final stop loss for holding any long positions. For Wednesday, 15,900-15,930 would be major hurdles on the Nifty and supports would be at 15,730 and 15700 levels. Keep a strategy of buying on dips.