Indian equities bounced back on Thursday snapping earlier losses. Metal stocks gained the most followed by IT, realty, banks and financials while FMCG stocks fell sharply.
At the close, the benchmark 30-share index, BSE Sensex added 209.36 points or 0.40% at 52,653.07 with 10 components registering rise. Meanwhile, the broad based NSE Nifty went up by 69.05 points or 0.44% at 15,778.45 with 18 components registering rise.
State Bank Of India contributed rise of 74.02 points in the Sensex. It was followed by Bharti Airtel (73.22 points), Sun Pharmaceutical Industries (62.88 points).
However, Bajaj Auto contributed fall of 70.89 points in the Sensex. It was followed by Tata Consultancy Services (67.29 points), Hindustan Unilever (52.99 points), ITC (50.33 points) and Hero Motocorp (37.35 points).
Major gainers in the 30-share index were Tata Steel (6.87%), Bajaj Finserv (4.48%), State Bank of India (3.83%), HCL Technologies (2.54%), Sun Pharma (2.28%), Bajaj Finance (2.17%) and Reliance Industries (0.90%).
On the other hand, Maruti Suzuki (2.21%), Power Grid Corporation Of India (2.13%), ITC (1.51%), Bajaj Auto (1.51%), Dr Reddy's (1.25%), Hindustan Unilever (1.17%), Axis Bank (0.76%) and Kotak Mahindra Bank (0.71%) were the major losers in the Sensex.
Market breadth was positive with 1,938 advances against 1,252 declines.
Global markets finally ended its losing streak and stabilized after favourable outcome from US Fed meeting. European stocks hit record high on the back of strong earnings from commodity majors and Airbus. Asian markets too rallied amidst reports that Chinese regulator is likely to be more cautious about market impact before introducing new policies in future.
Taking support from Asian markets, domestic indices opened positive and traded firmly. Momentum in Metal stocked continued today after news reports suggested that China is looking at imposing another export tariff on Steel products. Metal stocks like Tata Steel, Jindal Steel, JSW Steel, SAIL witnessed smart rally. Aluminum stocks too were in limelight today after US Aluminum major Constellium reported strong results and increasing its profitability forecast for the year.
Commenting on today's expiry, Chandan Taparia, Derivative & Technical Analyst, Motilal Oswal Financial Services said, 'Nifty closed the July series on a flattish note at 15,778 compared to the June close at 15,790 levels. It remained in a range bound fashion for most part of the series in a broader trading range of 15,513 to 15,962 levels. During the series, it was finding sustained buying interest on any decline near to 15,550-15,600 zones while absence of follow up was clearly missing beyond 15,900 zones. Now, it has to hold above 15,750 zones to witness an up move towards 15,962 then 16,200 zones while on the downside support key exists at 15,600 and 15,500 levels.
India VIX fell down by 14.27% in this series from 15.10 to 12.94 levels. However, during this week we witnessed a spike towards 15.98 levels but that was swiftly cooled off due to support-based buying activities. Overall lower volatility suggests that meaningful declines could be bought and slow market could head towards to new life time high territory.
Option data is scattered at various far strikes being the start of the series. Maximum Put OI is at 15,000 followed by 15,500 strike while maximum Call OI is at 16,000 followed by 15,800 strike. Option data suggests a broader trading range in between 15,500 to 16,000 zones.
Bank Nifty closed the July series with marginal loss of 0.39% at 34691 levels. It remained in a broader trading range in between 34,100 to 36,000 zones while slight underperformance was seen in this rate sensitive index. Now, it has to hold above 34,750 zones to move up towards 35250 and 35,500 zones while on the downside key support exists at 34,250-34,100 zones.
Sector wise positive rollover activities seen in Metals, IT, selective Private and PSU Banks while shorts are seen in Auto and Pharma stocks.
Index has seen more of time correction in last two months which is healthier sign for broader market. Now overall data and price setup suggests that consolidation seems to end soon to commence the next leg of rally to cheer the new life time on the Dalal street.'
