Sensex, Nifty end flat as IT stocks lead recovery
Mumbai, July 13
Benchmark equity indices ended little changed on Monday, recovering from their intra-day lows as gains in information technology stocks helped offset weakness in FMCG and metal shares.
The Sensex closed 47.01 points, or 0.06 per cent, higher at 77,616.40, while the Nifty edged up 4.10 points, or 0.02 per cent, to settle at 24,211.
Commenting on Nifty technical outlook, experts said that the 24,300-24,400 region now stands as the immediate resistance zone, with the upper end of this band closely aligned with the 200-day Exponential Moving Average (EMA), making it a crucial hurdle for the index.
"A sustained breakout above this band would reinforce bullish momentum and could pave the way for an advance towards the 24,500-24,600 region," an analyst stated.
"On the downside, the 24,000 psychological level continues to serve as a crucial support zone and will be key to sustaining the broader recovery trend," the analyst stated.
The recovery was led by buying in frontline IT stocks, with Tata Consultancy Services (TCS), HCLTech and Tech Mahindra emerging as the top gainers in the Nifty index.
The broader market also ended on a positive note, though gains remained marginal. The Nifty MidCap index rose 0.01 per cent, while the Nifty SmallCap index advanced 0.03 per cent.
Among sectoral indices, the Nifty IT index outperformed the market, supported by gains in major technology stocks.
In contrast, the Nifty FMCG and Nifty Metal indices were the biggest laggards.
Despite a subdued finish, the benchmark indices managed to recover from the day's lows as late-session buying in IT stocks helped keep the market in positive territory.
Meanwhile, Rupee traded weaker by around 0.26 per cent to 95.60, as a more than 4 per cent surge in crude oil prices increased concerns over India's import bill and weighed on the domestic currency.
"Technically, the rupee is expected to trade in the 95.20-96.00 range in the near term," as per the analyst.
— IANS
Reader Comments
*laughing in long-term investor* Sensex flat at 77,616 is still better than the panic we saw last week. The 24,000 support for Nifty is holding strong. IT recovery is a positive sign for the economy. But honestly, these daily fluctuations give me anxiety 😅
Market is confused just like our politicians! 😂 One day up, next day flat. FMCG and metal stocks falling while IT bounces back. Someone tell me what's the right strategy here? I'm thinking of holding cash and waiting for a clearer direction.
The analyst is right about the 24,300-24,400 resistance. We've seen this pattern before where the market bounces from support but struggles at higher levels. Also, rupee at 95.60 with crude oil surging – this is classic Indian vulnerability to global factors. Need to be cautious.
As a foreign investor, I find the Indian market's resilience interesting. The IT sector bounce is encouraging, but the rupee weakness and crude spike are red flags. Nifty at 24,200 is fair value given the global uncertainties. Will watch for breakout above 24,400 for confirmation.
Yaar ye market ne mera portfolio kharab kar diya! 😩 Mera FMCG aur metal stocks niche hai jabki IT aacha kar raha hai. Kabhi lagta hai ki sab kuch ULTA chal raha hai. Aur rupee bhi gir raha hai aur crude oil bhi upar ja raha hai - petrol wapas badhega kya?
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