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Indian markets surged right this moment to close a five-month excessive, with auto and IT shares main the beneficial properties. Global markets have been largely greater right this moment on hopes of additional US stimulus. The NSE Nifty 50 index ended 1.52% greater at 11,300 whereas the BSE Sensex closed up 558 factors at 38,492. Investors additionally guess that the US Federal Reserve would reaffirm its dovish stance this week.
The Nifty auto index rose 3.5% with Mahindra and Mahindra and Tata Motors rising 4.7% every. India’s second-most helpful inventory Tata Consultancy Services (TCS) rose as a lot as 5.1%. Ultratech Cement, the highest Nifty gainer, rose 7.2% after the corporate reported a better-than-expected revenue for the quarter ended June.
ICICI Bank was the highest laggard, shedding 1.8%.
“Much attention will be focused on a two-day meeting for the Federal Reserve that begins Tuesday as Congress debates another stimulus package. Markets have broken out of near term trading range and could be headed higher in the short term,” mentioned Deepak Jasani, Head Retail Research, HDFC Securities
Here is what analysts mentioned on right this moment’s market efficiency:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
“After shifting right into a broader vary of 11240-11060 ranges in the final 4 classes, Nifty witnessed promising upmove on Tuesday and closed the day greater by 168 factors. The earlier opening upside hole of 11245 (opening down hole of sixth March) has been stuffed fully and Nifty closed above it on Tuesday. The filling of this vital hole at 11245 (as Nifty witnessed sharp trended decline in March 2020, after the formation of this hole) might sign extra upside in the close to time period. The brief time period pattern of Nifty is constructive. Any weak spot from right here might discover essential assist round 11230-11200 in the brief time period.
Ajit Mishra, VP – Research, Religare Broking
“The bulls were back in charge, after a minor pause in yesterday’s session and helped the benchmark to gain over one and a half percent. Initially, favourable global cues led a firm start, followed by healthy buying interest throughout the session. Going ahead, the FOMC meet outcome (on 29th July) would be one of the key events to watch out for. Besides, the key economic data points would provide more clarity on the recovery in the economy. On the domestic front, earnings announcements from companies and auto sales numbers would be on investors’ radar. We advise continuing with a positive yet cautious approach as Nifty is inching closer to the next hurdle at 10,350 levels.”
Vinod Nair, Head of Research at Geojit Financial Services.
“Globally, there is an expectation that the US Fed would continue with its dovish policy stance, which would ensure liquidity, especially into emerging markets like India. Liquidity has been a key driver for the market performance, and the Fed decision is likely to be greeted positively. The advice to remain cautious remains and investors must accumulate only quality stocks.”
Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments
“We were successful in going past the 11300 level. But it can be summarised that we have crossed the range bound movement. The markets should now be headed to 11450-11500 levels. The new support the market needs to respect on the downside is 11100.”
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