scorecardresearchMarket Wrap: Market extends rally into 4th consecutive session; nearly

Market Wrap: Market extends rally into 4th consecutive session; nearly 150 stocks hit 52-week high

Updated: 01 Aug 2022, 04:40 PM IST
TL;DR.

  • All sectoral indices ended in the green with power, auto and utility indices rising more than 3% each while energy, industrials, telecom and oil & gas rose more than 2% each.

The fresh spell of buying by foreign portfolio investors (FPIs) is also helping the market sustain its gains. Photo: Pixabay

The fresh spell of buying by foreign portfolio investors (FPIs) is also helping the market sustain its gains. Photo: Pixabay

Positive global cues, a fall in crude oil prices and the rupee's rise against the dollar helped the domestic market stay in the green for the fourth consecutive session on August 1.

Major markets across the globe saw decent gains as sentiment remained upbeat in hopes that the aggressive rate hikes will be less likely while the strong corporate earnings also boosted sentiment.

Crude oil prices fell on a weak demand outlook. Brent Crude traded near the $100 a barrel mark. The rupee rose 24 paise to close at 79.03 per dollar.

Sensex ended 545 points, or 0.95%, higher at 58,115.50 with 24 stocks in the green and 6 stocks in the red. Nifty closed the day with a gain of 182 points, or 1.06%, higher at 17,340.05. BSE Midcap and Smallcap indices closed 1.51% and 1.47% higher respectively.

Shares of Mahindra and Mahindra, Reliance Industries, Maruti Suzuki, Kotak Mahindra Bank and Bharti Airtel ended as the top gainers while those of Sun Pharma, Hindustan Unilever, IndusInd Bank, Nestle, Asian Paints and TCS ended as the laggards.

All sectoral indices ended in the green with power, auto and utility indices rising more than 3% each while energy, industrials, telecom and oil & gas rose more than 2% each.

Nearly 150 stocks, including ITC, Mahindra & Mahindra, Maruti Suzuki, Adani Enterprises, Adani Transmission and Coal India, hit their fresh 52-week highs on BSE.

The fresh spell of buying by foreign portfolio investors (FPIs) is also helping the market sustain its gains.

"FPIs turning net buyers is the major factor driving the uptick in the domestic market. Record low unemployment rate in the Eurozone and fall in crude oil prices increased optimism globally. Oil prices took a hit as the deteriorating demand outlook outweighed cues of ongoing supply tightness. Auto stocks were in focus post the release of positive auto sales numbers," said Vinod Nair, Head of Research at Geojit Financial Services.

As per Ajit Mishra, VP - Research, Religare Broking, this week the market will continue to take cues from ongoing earnings as well as global peers. Besides, RBI monetary policy outcome scheduled on August 5 will be crucial for market participants.

"We would advise investors to focus on maintaining a stock-specific approach," said Mishra.

On the technical front, Rupak De, Senior Technical Analyst at LKP Securities pointed out that the uptrend continues in the market as the bulls' invasion of the 17,000-17,500 zone continues.

"The trend is likely to remain positive as long as the benchmark index sustains above 200 DMA, placed at 17,025. Over the near term, 17,000 is likely to act as crucial support, whereas on the higher end, 17,500 may act as a crucial resistance. Again, above 17,500, the Nifty may move up towards 18,000," said De.

"Going by the current momentum, Nifty could test the 17,457-17651 band over the next few days. A lot of up-gaps on the way up also raise the possibility of these gaps being filled after Nifty makes an intermediate top," said Deepak Jasani, Head of Retail Research, HDFC Securities.

Disclaimer: The views and recommendations made above are those of individual analysts and not of MintGenie.

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First Published: 01 Aug 2022, 04:40 PM IST