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Sensex, Nifty rise for third straight session; IT, metals top gainers

Benchmark indices ended higher for the third straight session on Friday led by heavy buying in metal, consumer durables and IT stocks. Sensex jumped 712 points to end at 57,570 and Nifty advanced 228 points to 17,158. Tata Steel, Sun Pharma, Bajaj Finserv, and IndusInd Bank were the top Sensex gainers, rising up to 7.27 per cent.

Dr Reddy’s, Kotak Bank, SBI, ITC and Axis Bank were the only Sensex losers, falling up to 1.19 per cent.

Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities said, “The benchmark Nifty ended on a bullish note as jubilant investors took heart from this week’s signs that the Federal Reserve will slow down the pace of monetary tightening. The street is betting that rate hikes could slow down soon. The positive takeaway was that the benchmark Nifty comfortably ended well above its 200 DMA at 17025. Many a momentum stocks too shined all-throughout the day. The buying stampede simply continued. Nifty ends the month of July with spectacular gains of 8.73%.”

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Mid cap and small cap indices rose 239 points and 367 points, respectively. Metals, consumer durables and IT stocks were the top sectoral gainers with their BSE indices zooming 798 points, 574 points and 494.65 pts, respectively.

All 19 BSE sectoral indices ended in green. Market breadth was positive with 2,100 stocks ending higher against 1,227 stocks falling on BSE. 144 shares were unchanged.

Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities Ltd said, “Technically, after a long time, the market hit the level of 200 day SMA (Simple Moving Averages). It also successfully cleared the 17,000 resistance mark and succeed to close above the same. In addition, on weekly charts, the index has formed long bullish candle which indicating further uptrend from the current levels. We are of the view that, the short term texture of the market is bullish but due to temporary overbought situation we could see some profit booking at higher levels. For traders now, 200 day SMA or 17000 / 57100 and 16900/ 56750 would act as a key support zones and on the higher side 17300-17400 / 58100-58400 could act as a profit booking zone for the short term traders. Buying on dips and sell on rallies could be the ideal strategy for the short term traders.”

Foreign institutional investors turned net buyers on Thursday, offloading shares worth Rs 1,637 crore, as per NSE data.

Rupee rises

Meanwhile, rupee climbed 45 paise to close at 79.24 against the US dollar as heavy buying in domestic equities and weakness in the greenback bolstered investor sentiment.

Besides, fresh foreign capital inflows also supported the domestic unit, forex dealers said.

Global markets

Germany’s DAX added 0.6% to 13,366.52, while France’s CAC 40 rose 1.3% in early trading to 6,423.56. Britain’s FTSE 100 gained 0.6% to 7,390.79. The future for the Dow Industrials was up 0.2% while that for the S&P 500 rose 0.7%.

Hong Kong’s Hang Seng index dropped 2.4% to 20,156.51 and the Shanghai Composite index declined 0.9% to 3,253.24. Japan’s benchmark Nikkei 225 inched down less than 0.1% to finish at 27,801.64, while Australia’s S&P/ASX 200 gained 0.8% to 6,945.20. South Korea’s Kospi added 0.7% to 2,451.50.

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