New Demat Account Openings Records 18-Month High In July, Total Count At Rs 123.5 Mn

In July, 12.35 crore dematerialized (demat) accounts were opened, which was an 18-month high. Around 30 lakh new demat accounts were registered in July with two depositories, CDSL and NSDL, which is an increase of fifty per cent above the 20 lakh average for the prior 12 months and a record number since January 2022.

Data from Central Depository Service and National Securities Depository show that customers opened 2.36 million new demat accounts in June, bringing the total to a 13-month high of 120.50 million.

Thus, the surge in demat accounts follows a strong rally in domestic equity markets, fueled by consistent foreign portfolio investor (FPI) inflows, which are at Rs 74,740.30 Cr from April to July. FIIs purchased shares worth a net of Rs 13,922.01 crore for the month of July, while DIIs sold shares worth a net of Rs 1,184.33 crore.

Sensex and Nifty 50 begin with modest gains on Friday. Sensex began 0.33% higher at 65453.60 while Nifty 50 opened 0.42% higher at 19462.80. Cipla, Hindalco, SBI Life Insurance, LTI Mindtree, and Eicher Motors were among the top gainers on the NSE at 9:30 am, while Power Grid, Sun Pharma, Bajaj Auto, Hindustan Unilever, and BPCL were among the top losers.

Commenting on the Nifty outlook for today, Anand James, Chief Market Strategist at Geojit Financial Services said, "Yesterday, we had pencilled in 19280-19119-18900 as the support region that the ongoing down moves could aim for. Incidentally, the day's carnage stopped just short of 19280, paving way for a retracement. Upside attempts today need to ensure that 19380 is intact, but expect 19415-450 also to be equally critical. With VIX easing towards close, further collapse is less expected today, but it would only mean volatility being postponed for next week, unless 19540 is cleared."

Commenting on the Nifty derivative outlook, Anand James, Chief Market Strategist at Geojit Financial Services said, "Nifty weekly contract has highest open interest at 19400 for Calls and 19300 for Puts while monthly contracts have highest open interest at 19400 for Calls and 19300 for Puts. Highest new OI addition was seen at 19400 for Calls and 19300 for Puts in weekly and at 19400 for Calls and 19300 for Puts in monthly contracts. FIIs increased their future index long position holdings by -8.55%, increased future index shorts by 30.68% and in index options by -43.22% in Call longs, -37.68% in Call short, -50.75% in Put longs and -52.38% in Put shorts."