Sensex, Nifty continue to climb up for the fourth day straight; factors that fueled the rally today

From Friday’s closing investor’s wealth increased by Rs 1.82 lakh crore as equity markets continue to surge.

Extending their gains for the fourth consecutive trading session, domestic benchmark indices Sensex and Nifty inched higher yet again on Monday. S&P BSE Sensex jumped 465 points to reach 36,487 points, while the 50-stock Nifty after breaching the 10,800 mark settled down at 10,763. With today’s surge, domestic equity markets have now recovered over 40% from their March lows. “Indian indices ended higher for the fourth straight session on July 6 on the back of positive global cues and despite no positive news on Covid-19 front. At close, Nifty up 156.30 points or 1.47%  at 10763.70. Nifty closed at the highest level since March 2020,” said Deepak Jasani, Head – Retail Research, HDFC Securities.

Easing border tension: During the day’s trading session news came in of easing border tensions with China as some level of de-escalation was witnessed across the Galwan Valley and some marginal withdrawal from Pangong Tso. “Disengagement in the Galwan Valley fired up the Bulls today as Reliance, Maruti & Bajaj Finance notched up smart gains. The key highlight of the day was the participation seen in the broader market in select PSU stocks,” said S Ranganathan, Head of Research at LKP securities.

Investor wealth increases: From Friday’s closing investor’s wealth increased by Rs 1.82 lakh crore as equity markets continue to surge. The market capitalization of all BSE-listed firms stood at Rs 142 lakh crore at the end of Friday’s trading session and it zoomed to Rs 144 lakh crore at the end of Monday’s trading session.

RIL shares hit a fresh high: Oil-to-telecom major Reliance Industries Ltd saw its share price surge 3.57% to trade at Rs 1,851 per share. Brokerage firms expect the price to inch up even higher.

Asian-peers scale-up: While the revival of Chinese economic activity pushed CSI 300 and Shanghai Composite up over 5.5%, Nikkei 225 and TOPIX were also in the green. “Asian shares scaled four-month peaks on Monday as investors counted on a revival in Chinese activity to boost global economic growth. Also better than expected regional economic data and elevated liquidity levels boosted positive sentiments,” Deepak Jasani said.

What do the charts say?
“The markets might want to take support around the 10650-10750 area and then resume its uptrend. If we close below 10650 we might fall to levels closer to 10400. Until then the trend remains positive and we could attempt 11000 on the Nifty,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.