Stock market: Sensex ends flat, Nifty at 25,212; here’s strategy for Thursday, July 17

Following an initial downward trend, the Indian benchmark indices, the BSE Sensex and NSE Nifty50, rallied on Wednesday, on mixed global cues and prevailing cautiousness amid the US-India trade talks.

The Sensex closed the day with marginal gains at 82,634.48, up 63.57 points or 0.08 per cent. Nifty 50 surged 16.25 points, or 0.06 per cent, to settle at 25,212.05. 

Mahindra & Mahindra (M&M) rose 2.10 per cent to Rs 3195.30 and led the gainers on the Sensex. It was followed by Tech Mahindra, State Bank of India (SBI), Infosys and Adani Ports, which surged up to 1.9 per cent. 

Infosys, M&M, SBI and ITC contributed most to the Sensex’s rise. 

The BSE Bankex rose 0.22 per cent to settle at 63,913.48. The metal index fell 0.6 percent, while the IT sector rose 0.66%, leading the gainers on the BSE. It was followed by realty, auto and FMCG.

Market Outlook:

Shrikant Chouhan, Head Equity Research, Kotak Securities, said, “The benchmark indices experienced narrow-range activity, with the Nifty ends 16 points higher and the Sensex gain 64 points. Among sectors, the PSU Bank index outperformed, rallying over 1.70 percent, while selective profit booking was observed in metal and defence stocks. Technically, a small candle on the daily charts and range-bound intraday activity indicate indecisiveness between the bulls and bears.”

 “We believe that 25,100/82,300 will remain as a key support zone for traders. As long as the market trades above this level, the bullish sentiment is likely to continue. On the higher side, the market could bounce back to the 20-day SMA (Simple Moving Average) or 25,300/83,000. Further upside may also push the market up to 25,450/83,600,” said Chouhan.

Chouhan said that if the market drops below 25,100/82,300, the sentiment might shift. A slip below this level could lead to a decline towards the 50-day SMA or into the 25,000-24,930/82,000-81,800 zone.

While Senior Technical Analyst at LKP Securities, Rupak De, said the Nifty continues to face resistance at the crucial level of 25,260, which is the 38.20 per cent Fibonacci retracement of the recent decline from 25,669, indicating indecision among investors at the higher level. On the daily chart, the index has been sustaining above the 50-day moving average (50DMA), signifying a positive short-term trend.

“As long as it remains above 25,000 on a closing basis, the sentiment is likely to stay bullish, with a ‘buy on dips’ strategy appearing favourable. On the higher side, a decisive move above 25,260 could trigger a rally towards 25,500 and beyond,” Rupak said.

On BSE, 4,218 stocks traded today, of which 2,338 advanced, 1,718 declined, and 162 remained unchanged.