Sensex, Nifty 50 rise for third straight session; earnings optimism offset geopolitical headwinds | Stock Market News
Stock market benchmarks, the Sensex and the Nifty 50, ended in the green for the third consecutive session on Friday, 21 July, amid mixed global cues and a downtick in crude oil prices.
The Sensex ended 166 points, or 0.21%, to end at 78,094.64, while the Nifty 50 settled at 24,383.60, up 66 points, or 0.27%.
Broader markets also mirrored positive sentiment; the Nifty Midcap 100 and Smallcap 100 indices rose by 0.44% each.
The overall market capitalisation of the BSE-listed firms rose to nearly ₹486 lakh crore from ₹4,83 lakh crore in the previous session, making investors richer by about ₹3 lakh crore in a single session.
Both the Sensex and the Nifty 50 rose more than 2% in July, extending gains for the second consecutive month.
However, year-to-date, the Nifty is down 7%, and the 30-share pack is down over 8%.
Better-than-expected Q1 earnings are driving the market higher. However, US-Iran tensions, volatility in crude oil prices, and rising US yields keep gains limited.
Crude oil prices inched up to trade above $89 per barrel. Meanwhile, the Indian rupee rose 9 paise to settle at 95.41 per dollar on Friday. The currency rose 1% for the week- its strongest weekly gain since March- amid reportedly persistent central bank interventions.
"Positive momentum continued, although some profit booking emerged at higher levels as caution persisted amid elevated yields and potential rate-hike concerns. The sustainability of the recovery will depend largely on the ongoing earnings season, which is currently outperforming forecasts, and on a reduction in global risks," said Vinod Nair, Head of Research, Geojit Investments Limited.
"A rebound in global chipmakers, supported by strong earnings and spending plans, eased concerns over AI valuations, putting pressure on domestic technology stocks. As the earnings season gathers pace, markets will seek confirmation that the recent improvement in earnings is broad-based rather than concentrated in a few sectors," said Nair.
The US-Iran conflict is intensifying and expanding, with Egypt and Saudi Arabia becoming increasingly drawn into regional hostilities.
Bajaj Finance, Bajaj Finserv, and Jio Financial Services ended as the top gainers in the Nifty index. On the other hand, TCS, Eternal, and Infosys ended as the top laggards in the index.
Nifty IT (down 1.56%), FMCG (down 1.05%), and Consumer Durables (down 0.44%) ended in the red.
On the other hand, Media (up 2.09%), Nifty Auto (up 1.64%), Financial Services (up 1.31%), and Oil and Gas (up 1.08%) clocked strong gains.
Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, said the immediate resistance for Nifty is placed in the 24,450-24,500 zone.
"Any sustainable move above this zone could result in Nifty extending its pullback towards 24,650, followed by 24,800 in the short term. On the downside, the immediate support for Nifty is placed in the 24,150-24,100 zone," said Shah.
As per Vipin Kumar, AVP-Research at Globe Capital Market, going ahead, sustenance above the 24,400 mark would be a positive development, potentially opening the doors for an upside towards the 24,530–24,600 spot levels.
On the flip side, a slip below the immediate support of 24,200 spot could drag the index lower toward 24,000 spot or deeper support zones in the near term, said Kumar.
"Given this setup, a cautious approach is recommended as long as the index continues to trade below the 24,400 level on a closing basis. Traders should consider keeping position sizes light and maintaining a stock-specific trading approach until a clear breakout or breakdown emerges from this critical range," said Kumar.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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