Stock market closing: Sensex inches over 800 points, Nifty also closes 1.27% up

Sensex and Nifty closed the day in green, with Sensex climbing 874.94 points to close at 79,468.01, while Nifty rose 1.27% to 24,297.50 points on August 7th, 2024.

ONGC (up by 7.45%), Coal India (6.24%), Adani Entertainment (up by 3.70%), Adani Ports (up by 3.35%) and Power Grid Corporation of India (up by 3.20%) were the top gainers during the day. On the other hand, IndusInd Bank (down by 2.45%), Tech Mahindra (down by 0.63%), Britannia (down by 0.32%), Hindustan Unilever (down by 0.26%) and Titan (down by 0.15%) were the day's leading laggards.

Out of the 2,801 stocks traded during the day, 2,204 saw advances, while 519 saw declines, and 78 remained unchanged. 76 stocks hit their 52-week high price, while 37 stocks hit their 52-week low prices as well. 162 stocks hit the upper circuit during today's trading, while 51 stocks hit the lower circuit during the day.

Ajit Mishra – SVP, Research, Religare Broking Ltd explains that markets experienced a breather after the recent decline, gaining over a percent, driven by strong global cues. After an initial gap-up start, the Nifty oscillated within a range and finally settled near the day's high at 24,297.50. Most sectors contributed to the upward movement, with metals, energy, and pharma being the top performers. The broader indices also saw a notable rebound, gaining between 2.5% and 3%.

"Although volatility has significantly cooled-off after the sharp surge, there remains potential for further decline. On the index front, a decisive close above 24,500 in the Nifty is needed to ease pressure and trigger a sustained rebound. Given the current conditions, we maintain a cautious outlook and recommend continuing with a hedged approach", he continued.

Says Shrikant Chouhan, Head Equity Research, Kotak Securities, "Today, the benchmark indices bounced back sharply, the Nifty ends 305 points higher while the Sensex was up by 875 points. Among Sectors, all the major sectoral indices were traded in to the positive territory but Oil and Gas index outperformed, rallied 3.10 percent. Technically, after a positive opening the market held the positive momentum throughout the day. It also holding double bottom formation on intraday charts, which indicating continuation of pullback rally in the near future".

"We are of the view that, 24,200/79,100 would be the sacrosanct support zone for the day traders. As long as market is trading above the same, the pullback formation is likely to continue. On the higher side, it could bounce back till 24,400-24,475/80,000-80,200. On the flip side, below 24,200/79,100 the sentiment could change, below same, it could retest the level of 24,100-24,000/78,800-78,500", he explained.

All broad market indices made a sharp rebound, with the exception of India VIX, which dipped by 13.72%. Nifty Next 50 rallied over 3%, while all other indices rose between 1% and 3% each. Amidst sectoral indices, oil and gas jumped by 3.06%, while media, metal, pharma and healthcare inched up over 2% each to close the day in green today.

Aditya Gaggar Director of Progressive Shares notes that after a strong opening, the Index oscillated in a well-maintained thin range and finally ended the session higher at 24,297.05 with gains of 304.95 points. All the sectors ended in green with metal and media being the top performers.

"Mid and small caps advanced by 2.45% & 2.86% respectively and outperformed the Benchmark Index. After 2 days of correction, Nifty50 has formed a green candle but its long-legged DOJI pattern indicates indecisiveness still. We believe that as long as the Index holds its support level of 23,960, there is a chance to soar higher to 24,550 followed by 24,700", said Gaggar.