Ending three-day losing streak, the Indian market closed with around half per cent cuts on Monday. Aided by banking, financial and FMCG stocks, the broader Nifty50 surged by 83 points or 0.53% to close above crucial resistance of 15,800. Similarly, the Sensex gained 326 points or 0.62% to settle above 53,200.
Support came from the broader market, while FMCG and banking sectors too led the recovery in the closing hours. Nifty midcap and smallcap rose higher by 0.65% and 0.95% respectively as India Volatility Index (India VIX) settled near 21-mark.
Meanwhile, among the sectoral indices, Nifty FMCG gained 2.66%, while Nifty Bank, PSU Bank, Private Bank gained 1.2% to 1.66%, while Nifty Metal, IT, Pharma, Oil & Gas, Healthcare dragged the market amid volatility. The auto index too marginally dropped my 0.17%.
Meanwhile, Foreign Institutional Investors remained net sellers on the first day of the month, offloading equities to the tune of Rs 2,324.74 in the Indian Market.
The market breadth turned positive with 2020 stocks advancing and 1365 declining on the BSE Sensex. Of the total 3566 stocks that traded on Monday, as many as 181 remained unchanged.
As Nifty managed to end above the crucial hurdle of 15,800 on Monday, here is what experts make of the current trends in the market.
Rupak De, Senior Technical Analyst at LKP Securities
Nifty remained volatile before closing above the crucial resistance of 15800. The index moved above the very short-term moving average indicating rising bullishness. The daily RSI is in the bullish crossover. Over the short term, the index may move towards 16000/16200. On the lower end, support is visible at 15700/15500.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
Post a negative start on July 4, the Nifty witnessed a brief consolidation in the range of 15650-15800. Towards the end of the session, the bulls managed to cross the hurdle of 15800. The hourly chart shows that the index is trading near a falling trendline beyond which the upside momentum will pick up further. Structurally, the Nifty is inching towards 15900-16000 on the upside. The level of 16000, however, is a key barrier where the index can stumble again. On the other hand, 15650 & 15500 are the short term supports to provide cushion on the downside.
Vinod Nair, Head of Research at Geojit Financial Services
With support from banking stocks, the domestic market recouped its opening gains as provisional business data for Q1 indicated a strong credit growth. Changing investor preference from growth to value stocks is clearly visible, resulting in selling across sectors like IT. As we step towards the new earnings season, the prime focus of the market will turn towards quarterly numbers and updated guidance for the new financial year.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Towards the end of June FPI selling has been showing a declining trend. If the market rises in July anticipating or responding to good Q1 results, FPIs may again sell. This trend will be halted only when the dollar stabilises and US bond yields decline.
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)