Sensex jumps 965 points, Nifty tops 24,300 on buying in banks, IT stocks
Mumbai, July 17
Indian equity benchmarks ended sharply higher on Friday, supported by strong buying in private banking, information technology and auto stocks.
The Sensex rallied 964.58 points, or 1.25 per cent, to close at 78,151.45. The Nifty also ended firmly in the green, rising 261.55 points, or 1.09 per cent, to settle at 24,334.30.
Commenting on Nifty technical outlook, experts said that the 24,400 level remains the immediate resistance and coincides with the 200-day Exponential Moving Average (EMA), making it a crucial hurdle for the index.
"A sustained breakout above this zone could reinforce bullish momentum and pave the way for an advance towards the 24,500-24,600 region," as per the expert.
"On the downside, the 24,200 zone is now expected to act as the immediate support, having successfully transitioned from a key resistance level and reinforcing the broader recovery structure, followed by the 24,000 psychological mark, which remains a crucial support zone for preserving the broader recovery structure," the analyst added.
Among sectoral indices, the Nifty Private Bank emerged as the top performer, gaining 2.12 per cent.
The Nifty IT index advanced 1.75 per cent, while the Nifty Realty and Nifty Auto indices climbed 1.34 per cent and 1.24 per cent, respectively.
In contrast, healthcare-related stocks remained under pressure, with the Nifty Pharma and Nifty Healthcare indices ending the session as the biggest sectoral laggards.
Despite the strong rally in the benchmark indices, the broader market underperformed. The Nifty Midcap 100 index declined 0.41 per cent, while the Nifty Smallcap 100 index fell 0.21 per cent by the close of trade.
"Investor sentiment remained resilient despite persistent concerns over elevated AI valuations, ongoing geopolitical tensions in the Middle East, and heightened volatility in global markets," as per an expert.
Market experts further stated that there is a shift in market momentum, with strong traction moving toward large-cap stocks, led by the IT and banking sectors.
"This is supported by optimism around business updates and Q1 earnings expectations," as per an analyst.
— IANS
Reader Comments
But what about the small and midcaps? They fell, and retail investors are heavily invested there. This is a typical large-cap-driven rally, not broad-based. Need to be careful before jumping in.
Finally some green in the market! Portfolio was bleeding last week. Hope the momentum sustains and Nifty crosses 24,400 soon. Jai ho! 🙌
This rally feels artificial. Global tensions and AI valuation fears haven't gone away. Be cautious, don't FOMO into this. Better to wait for Q1 results clarity before adding positions.
Banking and IT leading makes sense with strong earnings expectations. But disappointing that healthcare lagged again. Hope Pharma recovers soon. Overall, a good day for bulls! 🐂
Nice recovery, but the broader market divergence is concerning. Large caps can only take us so far. Need mid and small caps to participate for a sustained rally. Let's see how Monday opens.
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