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Market Closing Commentary

Benchmark indices extended their winning streak to a third consecutive session, settling above the 23,400 mark and closing near the day’s highs. Reliance Industries led the rally following its Q2 results, while broad-based buying across sectors and sustained participation in large-cap stocks supported the positive momentum.

The Nifty 50 gained 1.68% to close at 23,440, while the Sensex advanced 1.66% to 75,692.

On the sectoral front, Energy, Metal, PSU Banks and Auto were the key gainers, while Media, IT and Pharma remained the major laggards.

The broader market also witnessed healthy buying interest, with the Nifty Midcap 100 rising 1.19% and the Nifty Smallcap 100 gaining 0.71%

Nifty Outlook

Index formed a strong bullish candle with a higher high and a higher low and a bullish gap below its base at 23,118-23,207 signaling extension of the up move for the 3rd session in a row. Nifty started the session on a positive note and gained momentum as the session progressed. Index closed the session near the high at 23,440 levels.

Index in the process closed above the 50 days EMA and the last month high (23,175) signaling strength and continuation of the up move.

Index sustaining above Monday’s gap area of 23,118-23,207 will signal extension of the current up move towards 23,700-23,800 levels in the coming sessions being the 61.8% retracement of the previous entire decline from 24,774-22,180.

The short-term support in Nifty is revised higher towards 22,800 levels being the confluence of the recent breakout area and the key retracement of the current up move from 22,372- 23,440.

Bank Nifty Outlook

Bank Nifty formed a small bullish candle which remained enclosed inside previous session price range signaling consolidation with positive bias. Nifty started the session on a positive note. It faced resistance around 55,000 levels and gave up its gains in the midsession. However, buying demand at lower levels saw the index rebounded near previous session low and closed near the day’s high around 55,000 levels.

Going ahead, index sustaining above 55,100 will signal extension of the pullback towards 55,600 and 56,000 levels in the coming sessions. Failure to do so will lead to consolidation in the range of 54,000-55,100.

Weakness below 54,000 will signal extension of decline towards key short-term support at 53,200-53,000 being the confluence of the trendline support joining previous major lows and key retracement of the previous major up move.

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