NIFTY OUTLOOK FOR 18 JULY 2024

Overview: Indian benchmark indices extended their gains for the third consecutive session on July 16, albeit with cautious trading amidst global economic cues and anticipation around the upcoming Budget announcement. The markets displayed resilience despite mixed global sentiments.

Key Indices:

• Sensex: Closed at 80,716.55, up 51.69 points or 0.06%.
• Nifty: Ended at 24,613.00, gaining 26.30 points or 0.11%.

Market Performance:

• The Sensex and Nifty showed marginal gains, maintaining a cautious stance ahead of the Budget.
• Sectoral performances varied with Realty leading the gains (up 1.6%), followed by FMCG, IT, Metal, and Telecom sectors showing moderate increases.
• Media sector witnessed a decline of 1%, with Power and Capital Goods indices also slipping by 0.5% each.
• Midcap index dipped by 0.3% while the smallcap index edged up by 0.3%.

Sectoral Highlights:

• Top Gainers: Coal India, BPCL, HUL, Tata Consumer Products, and Bharti Airtel.
• Top Losers: Shriram Finance, Dr Reddy's Labs, Kotak Mahindra Bank, UltraTech Cement, and Reliance Industries.

Market Sentiment:

• Investors adopted a cautious approach amidst global economic uncertainties and subdued expectations for Q1FY25 earnings.
• The upcoming earnings season and the Federal Reserve's dovish stance on inflation were key global factors influencing market sentiment.

Technical Analysis:

• Nifty showed signs of consolidation around the 24,600-24,650 range, with immediate support noted at 24,500.
• Bank Nifty held support near the 20-day moving average, with expectations of potential upside towards 52,800-53,000 levels.

Global Cues:

• Dovish comments from the Federal Reserve Chief and a drop in US 10-year yields hinted at a possible rate cut in September, influencing global market trends.

Conclusion: The Indian equity markets closed higher for the third straight day, displaying resilience amid cautious trading. Sectoral performances varied, with Realty leading the gains and Media facing correction. Investors await further cues from the Budget announcement and the ongoing earnings season to guide future investment strategies.