NIFTY OUTLOOK & TRADING TIPS FOR 29 JULY 2023

 

Market Summary Report - July 26, 2024

Key Highlights

• Sensex and Nifty 50 Performance:
  • Sensex jumped 1,292.92 points (1.62%) to settle at 81,332.72.
  • Nifty surged 428.75 points (1.76%) to close at an all-time high of 24,834.85.
  • Both indices snapped a five-day losing streak.

Market Drivers

• Heavy Value-Buying:
  • The rebound was driven by value-buying at lower levels.
  • Blue-chip stocks like Infosys, Bharti Airtel, and Reliance Industries led the recovery.
• Positive Global Cues:
  • Better-than-expected US GDP growth bolstered global demand outlook.
  • US CPI data showed moderate inflation, fueling hopes for Federal Reserve rate cuts.

Sector Performance

• Broad Market Rally:
  • BSE midcap gauge rose 2.12%, and the smallcap index rallied 1%.
  • Gains observed across sectors, with Metals and IT leading.
  • Midcaps outperformed broader indices.

Investor Sentiment

• Market Capitalisation:
  • Investors' wealth soared by ₹7.10 lakh crore.
  • Market cap of BSE-listed firms hit an all-time high of ₹4,56,92,671.33 crore ($5.46 trillion).
• Buy on Dip Strategy:
  • Investors refocused on quarterly earnings and stock-specific trends.

Technical Analysis

• Nifty 50:
  • Experienced a downward consolidation breakout on the daily chart.
  • Closed above the 21 EMA, signaling a bullish trend.
  • Potential rise towards 25,250 if sustained above 24,500.
• Bank Nifty:
  • Recovered 857 points from the day's low to close at 51,295.95.
  • An outside day pattern suggests a possible price expansion.
  • Reclaimed the 50-period EMA, indicating a short-term bullish reversal.
  • Resistance at 51,500 could lead to a rally towards 52,500; support at 51,000.

Global Market Context

• US Markets:
  • Dow Jones up nearly 2% at 40,694.
  • S&P 500 rallied 1.43% to 5,476; Nasdaq Composite up 1.22% at 17,392.
  • Positive economic data with US GDP exceeding expectations.
• GIFT Nifty:
  • Traded flat at 24,944 after a bullish run in Indian markets.

Conclusion

The domestic equity markets showed a strong recovery, driven by strategic buying and positive global economic signals. Technical indicators suggest a continuation of the bullish trend, with potential upside in both Nifty and Bank Nifty indices. Investors are encouraged by the overall economic data and market dynamics, pointing towards a positive outlook in the near term.