Nifty rises to end above 15,800. Key levels, factors to watch tomorrow

Indian stock markets posted sharp gains today

3 min read . Updated: 13 Jul 2021, 05:15 PM IST Livemint

Among the Nifty stocks, ICIC Bank, HDFC and Axis Bank were up between 2% and 3%
US CPI numbers are due tonight

Indian stock markets ended higher today, led by sharp gains in financial stocks as a lower-than-expected rise in June inflation eased concerns over policy tightening by the central bank. The blue-chip NSE Nifty 50 index ended 0.76% higher at 15,812 while the benchmark S&P BSE Sensex rose 0.76% to 52,769.73. Among the index stocks, ICIC Bank, HDFC and Axis Bank were up between 2% and 3%.

Data released on Monday showed retail inflation less than expected in June at 6.26%. The benchmark 10-year bond yield closed down 2 basis points at 6.20%, while rupee ended higher at 74.49 per dollar.

Deepak Jasani, Head of Retail Research, said positive advance decline ratio also gives bullish signals. "With earnings season underway, investors will turn their attention to Infosys’s results that are expected to be posted on Wednesday and also watch the US CPI number due tonight. 15880-15727 could be the band for Nifty on Wednesday."

Global markets were steady today ahead of release of key US inflation data and second-quarter earnings reports from some of America's biggest banks. Treasuries and the dollar were steady.

"Aided by sharp gains in financials, the market managed to close above the levels of 15800. It’s a bullish continuation pattern and with the help of it, the Nifty/Sensex would again hit the 15900/15930 (53000/53100) levels. On a daily basis, 10 and 20 days SMA offered significant support to the short term trend of the market that would act as the final stop loss for holding any long positions," said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities.

"On Wednesday 15900/15930 (53000/53100) would be major hurdles and supports would be at 15730/52500 and 15700/52400 levels. Keep a strategy of buying on dips," he added.

Commenting on today's market performance, Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said, "Intraday dip of mid part was absorbed and gradual upside continued till the end of the session. Nifty closed near the highs and the opening upside gap remains partially filled. The crucial intraday resistance of 15800 has been broken on the upside and the Nifty closed just above it, as per day's close. This is positive indication and signal more upside in the short term."

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Nifty, he added, is "expected to revisit key overhead resistance of 15900-15915 levels of larger high low range in the next 1-2 sessions. In the last one month, the market has tested this hurdle for the three occasions and slipped into minor weakness from the highs in all the occasions. Technically, such repeated hitting of the hurdle and minor decline from the highs could eventually result in a sharp upside breakout of the resistance."

"One may expect further upside towards 15900-15915 levels in the short term before showing next round of consolidation. The emergence of strength at the hurdle could only open a sharp upside breakout of the resistance in the short term. Immediate support is placed at 15710 levels," said Nagaraj Shetti.

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