Indian stock markets have hit all-time highs for the fifth consecutive day with an unrelenting rally. Sensex managed to cross 85200 level for the first time, Sensex and Nifty are moving slowly after opening lower. Sensex rose by 333 points intraday to hit an all-time high of 85247 and finally closed by 256 points at 85169. Nifty rose by 83 points to hit an all-time high of 26027 and finally closed at 25998 after rising by 53 points. Bank Nifty rose 76 points to close at 54102.
China has taken all possible measures to revive its economy, announced a stimulus package after cutting short-term interest rates, reducing outstanding mortgage rates and reducing down payments for second homes, with expectations of global funds disinvesting after hitting new highs in Indian markets. The boom had a break.
Funds bought aggressively in metal-mining stocks on expectations that Chinese demand, including steel, would pick up after China announced a stimulus package and use of steel, including steel, in domestic infrastructure projects. Shares of automobile companies continued to see selective buying today. Investors' wealth i.e. aggregate market capitalization of BSE listed companies also increased marginally in a day with profit booking after record rally in Sensex, Nifty with selling in many stocks.
Top gainers in today's trade include Godrej Property, Reliance, Mahindra & Mahindra, HDFC Bank, Lupine, Muthoot Finance, Grasim, Oberoi Realty, Sun Pharma, Cipla, Voltas, Bharti Airtel, ITC, ICICI Bank, Tata Chemicals. Top losers include TVS Motors, Larsen, DLF, Tech Mahindra, Indigo, Mahanagar Gas, Glenmark Pharma, Adani Ports, Havells, Infosys, Hindustan Unilever.
Out of the total 4065 scrips traded in BSE, the number of decliners was 2256 and the number of gainers was 1697, 112 stocks were unchanged. While 02 stocks had only seller's bearish lower circuit, 09 stocks had only buyer's bullish upper circuit.
Nifty Future Technical Levels Nifty Future Close :- ( 25998 ) :- The next move is likely to see Nifty futures touch the all-important level of 26088 points to 26108 points, 26288 points with respect to the first of 25808 points and the all-important strong stoploss of 25676 points. Cautious positioning around 25808 points.
Bank Nifty Future Technical Levels Bank Nifty Future Closed :- ( 54102 ) :– The next fluctuation is likely to touch the all-important levels of 54202 points to 54373 points, 54404 points with respect to the first of 53808 points and the all-important strong stoploss trading of 53676 points. Cautious positioning around 54404 point.
Specific technical level regarding future stock Balakrishna Industries (3035) :- The share price of this leading Balakrishna Group company is currently trading around Rs.2970. Buyable with a stoploss of Rs.2950, the stock is likely to touch Rs.3074 to Rs.3088 in the short term, bullish focus on Rs.3103. Reliance Industries (2989) :- According to the technical chart, a positive breakout around Rs.2929, buyable from the support of Rs.2909, this stock is likely to register a price of Rs.3003 to Rs.3023. Havell's India (2063) :- According to the technical chart, this stock from the consumer electronics sector has the possibility of a target price of Rs.2033 to Rs.2017 with a profitable sell-off around Rs.2097. Consider a trading stoploss of Rs.2120. Muthoot Finance ( 2043 ):- Registering an overbought position around Rs.2088, the stock is sellable with a stoploss of Rs.2097, likely to show a price of Rs.2027 to Rs.2008 in a phased manner, look bullish above Rs.2108.
Future direction of the market… Friends, moving forward with the fastest emerging economy in the world. After all the global agencies including the International Monetary Fund and the World Bank have expressed their confidence on the fast pace of the country's GDP growth, one more rating agency has also given a positive outlook. Most of the global rating agencies, including the World Bank, IMF, and now Moody's, have expressed confidence in India's economy. The World Bank has raised its GDP growth forecast for FY 2024-25 to 7% from 6.6% on the back of a focus on infrastructure, increased domestic investment in real estate and a good monsoon.
IMF has revised the GDP growth estimate by 20 basis points to 7%. S&P Global has also expressed optimism that the GDP growth estimate will remain at 7% and said interest rates are likely to decrease in October. Reserve Bank of India is likely to cut interest rates. Following the Fed's dovish stance, the chances of RBI also taking a dovish stance and cutting interest rates have increased. The Moody's report mentioned the country's inflation, which had earlier pegged the inflation estimate at 5%. Which has been reduced to 4.7%. Retail inflation in July and August will remain below RBI's target rate of 4%. While inflation is likely to be in the range of 4.5% and 4.1% in 2025-26.
Sensex and Nifty have created new history as Indian markets continue to post record highs. While the returns in small, mid cap stocks have declined, it is clear that funds, players have eased their investments by taking chances in many stocks.
The author is a SEBI registered research analyst and proprietor of Investment Point.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
