Nifty saved its best for the last day of July

The Nifty saved its best for the last day of July surging more than 1.3 percent on Friday as traders went long on beaten down blue chips and funds played up concentrated stocks holdings in a bid to increase their net asset values. The first trading day of the Futures and Options cycle also boosted sentiment.

The government's move to recapitalize leading PSU banks to the tune of `12,050 crores also boosted sentiment in the banking space, which was already abuzz thanks to ICICI Bank's earnings.

The Nifty jumped 111 points to end the day at 8,533, closing well above its 200-day moving average which is a key support level for the bulls . Its Advance-Decline Ratio stood at 37/13 with Bank of Baroda, State Bank of India and Coal India leading the gainers list. On the losers' side were BHEL, Kotak Bank and Tata Power.

The Bank Nifty leapt 289 points to 18,730 after the government's move to shore up PSU banking balance sheets. The trend in other sectoral indices was equally bullish. CNX Realty, CNX Pharma, CNX Auto and CNX FMCG Indices were the top gainers.

On the Bombay Stock Exchange, the Sensex soared 409 points to close the day at 28,114 points. Dr. Reddy's, Lupin, ICICI Bank and Hero Motors were the top gainers on the Index, while BHEL, NTPC, Tata Steel were stocks that fell. As a consequence, the Advance-Decline Ratio on the Sensex stood at 24/6.

The trend in the wider market favoured the bulls with 1,655 stocks gaining versus 1,214 that closed below Thursday's close.

Trade was overtly bullish as well in the derivatives space on the first day of the new settlement. Media, Banking and Pharma sectors were the top gainers among 18 industries in both price and open interest. The Advance-Decline Ratio was a strong 123/38 in the futures and Options market.

Stocks that hit fresh 52 week highs were Aditya Birla Nuvo, Bombay Burmah and Dr. Reddy's.

Broader indices may have posted strong gains but earnings of companies such as Titan etc, disappointed investors. On the other hand quarterly results of companies such as Force Motors, Sun TV and ICICI Bank soothed investor nerves.

(Image credits: Indiatimes)