Indian benchmark equity indices extended their gaining streak to a fourth straight session on Monday, with the BSE Sensex climbing more than 500 points to close at its highest level in over two months, driven by buying in blue-chip bank and oil shares and lower crude oil prices. Technical analysts now expect the momentum to continue into Tuesday’s trade, with the index likely to test the 78,900-79,000 zone as long as key support levels remain intact.
Sensex at close on Monday, July 6
In four consecutive trading days, the BSE benchmark has jumped 1,806.4 points, or 2.36 per cent, and the Nifty by 564.6 points, or 2.36 per cent.
Sensex top gainers and losers on Monday, July 6
Technical experts indicate that the market’s underlying framework remains firmly structured in favour of buyers heading into the July 7 trading session, pointing toward a ‘buy on dips’ trend.
According to Hitesh Tailor, Technical Research Analyst at Choice Equity Broking, the benchmark index has formed a strong bullish candlestick on the daily chart, indicating sustained buying interest at lower levels.
“The index is trading above its 100-Day EMA and is gradually approaching the 200-Day EMA, reflecting an improving medium-term price structure. The daily RSI is placed around the 66 mark, suggesting strengthening momentum while remaining below the overbought zone,” Tailor stated.
On the intraday chart, Tailor said the index maintained a higher high-higher low formation and traded above its key moving averages for most of the session, highlighting sustained buying interest despite some profit booking near the day’s high.
Tailor said, “The BSE Sensex ended Monday’s trading session on a strong note, closing at 78,285.07, up 521.16 points (+0.67%). The index opened with a gap-up at 77,940.90, around 177 points above the previous close. After making an intraday low of 77,879.70 during the initial minutes of trade, the index witnessed sustained buying throughout the session, gradually advanced to touch an intraday high of 78,398.06, and finally settled at 78,285.07.”
Sector-wise, buying interest was witnessed across Auto, Private Banks, Capital Goods, Financial Services, Consumer Durables, Oil & Gas, Metals, Consumer Discretionary, Energy and Realty, which supported the market’s upward move. However, Information Technology, PSU Banks, Utilities, Hospitals and Services ended the session in the red, limiting broader gains, he said.
Going to Tuesday’s session, Tailor said 77,600–77,800 will act as the immediate support zone for Sensex. As long as the index holds above this range, the overall trend is likely to remain positive, with the potential to extend the rally towards 78,900–79,000 in the coming sessions.
“However, any decisive breach below 77,600 may invite profit booking and lead to short-term consolidation,” the analyst concluded.
SEBI-registered analyst Vipin Dixena also maintained a positive outlook, stating the market structure remains favourable despite some consolidation near resistance.
“The Sensex remains in a short-term bullish trend, trading comfortably above the 50-EMA. After a strong rally, the index is currently consolidating just below the 78,300 resistance, suggesting healthy profit booking rather than a trend reversal,” he said.
The immediate support lies at 78,150, and as long as this level holds, the bullish structure remains intact. A decisive breakout above 78,300 could open the door for a move towards 78,550–78,700. On the downside, a break below 78,150 may trigger a pullback towards the 50-EMA near 77,750.
“The RSI at 62.8 has cooled from overbought territory, indicating easing momentum but still remaining in bullish territory. Overall, the bias remains buy on dips,” Dixena added.
Broader markets, sectoral indices on Monday, July 6
Broader markets also advanced as the BSE MidCap Select index climbed 0.71 per cent and SmallCap Select index went up by 0.47 per cent.
Sectorally, Realty jumped the most by 1.82 per cent, followed by MidSmall Private Banks Quality Tilt (1.40 per cent), Private Banks index (1.50 per cent), Top 10 Banks (1.24 per cent), Capital Goods (1.19 per cent) and Auto (1.14 per cent).
IT, Utilities, PSU Bank, Focused IT and Services were the laggards.
On Friday, the Sensex climbed 261.79 points, or 0.34 per cent, to settle at 77,763.91. The Nifty went up 95.15 points, or 0.39 per cent, to end at 24,270.85.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
