Nifty And Sensex Defy Early Losses To Set New Records

After a slow start due to weak guidance from US tech giant Nvidia, the benchmark indices Nifty and Sensex bounced back to reach new all-time highs. This marked the eleventh consecutive day of gains. IT and Bank stocks saw significant rises, helping the indices recover from early losses.

Sectoral Trends

Among the 13 sectoral indices, Nifty FMCG, Nifty IT, and Nifty Bank were the top performers, each rising up to 0.8 percent. Gains in HCL Tech, TCS, and Tech Mahindra boosted the index. Conversely, Nifty Metal was the worst performer with Hindalco, Tata Steel, JSW Steel, and Vedanta dragging it down. Nifty Auto also lagged due to declines in Maruti Suzuki, M&M, and Tata Motors.

At noon, the Sensex had risen by 382.77 points or 0.47 percent to 82,168.33, while the Nifty was up by 99.70 points or 0.40 percent at 25,152.00. The market saw 1,088 shares advancing and 2,212 shares declining with 87 shares remaining unchanged.

Key Market Movements

Bajaj Finance and Bajaj Finserv shares climbed by 3 percent amid reports that Bajaj Housing Finance might launch its IPO as early as September 2024's first half. The company aims to raise Rs 7,000 crore through this issue.

JM Financial experienced a surge of over 11 percent on high trading volumes. Approximately three crore shares of JM Financial changed hands on BSE and NSE combined compared to a one-month average trading volume of 69 lakh shares.

Fundamental View

V K Vijayakumar from Geojit Financial Services noted that weak global cues have led to soft openings but present buying opportunities in the domestic market—a trend expected to persist. He observed that recent accumulation in IT stocks indicates confidence in a soft landing for the US economy which would benefit these companies.

The broader market saw a reversal after mid-small cap indexes fell sharply as investors took profits. These indexes were trading at declines of 0.5 and 0.8 percent respectively.

Technical View

Vaishali Parekh from Prabhudas Lilladher suggested that Nifty is well-positioned for a rise towards the next target of 25,600 if it holds above the 24,900 level. For Sensex, near-term support is at the 20 DMA level of 80,400 with potential for a rise towards 82,500-83,000 if it breaches above 82,130 decisively.

The near-term support levels for today are seen at 81,300 for Sensex and 24,900 for Nifty with resistance levels at 82,300 and 25,200 respectively.

Market Sentiment

Despite some sectors lagging behind like Pharma and Healthcare which fell by about 0.4 percent each; overall market sentiment remains positive driven by gains in key sectors like IT and Banking.

The large-cap segment remains stable without any euphoria while mid-caps are considered overpriced according to multiple market analysts who suggest large-caps are still reasonably priced compared to mid-caps trading at multiples far exceeding their growth rates.

Bajaj Finance and Bajaj Finserv emerged as key gainers along with ITC while Grasim Industries Limited (Grasim), Hindalco Industries Limited (Hindalco), and Mahindra & Mahindra Limited (M&M) were among the top losers on Nifty today.

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FAQs

What triggered the benchmark indices Nifty and Sensex to reach new all-time highs?

The benchmark indices Nifty and Sensex bounced back to reach new all-time highs after a slow start due to weak guidance from US tech giant Nvidia, marking the eleventh consecutive day of gains led by significant rises in IT and Bank stocks.

Which sectoral indices were the top performers, contributing to the market's recovery?

Nifty FMCG, Nifty IT, and Nifty Bank were the top performing sectoral indices, each rising up to 0.8 percent, contributing to the market's recovery.

What was the performance of the Sensex and Nifty around noon according to the report?

At noon, the Sensex had risen by 382.77 points or 0.47 percent to 82,168.33, while the Nifty was up by 99.70 points or 0.40 percent at 25,152.00.

What are the near-term support and resistance levels for Sensex and Nifty?

The near-term support levels for today are seen at 81,300 for Sensex and 24,900 for Nifty, with resistance levels at 82,300 and 25,200 respectively.

Which companies emerged as key gainers in the market update?

Bajaj Finance and Bajaj Finserv emerged as key gainers, with significant contributions also from ITC in the market update.