Stock markets extended their winning streak on Thursday, with the benchmark indices Sensex and Nifty gaining nearly 1 per cent, as softening crude oil prices, following positive developments on the geopolitical front and buying in blue-chip IT stocks lifted investor sentiment. Technical analysts now expect the rally to continue into Friday’s session, with the 78,000 mark emerging as the next key target for the 30-share Sensex.
Sensex at close on Thursday, July 2
The 50-share NSE Nifty rallied 169.85 points, or 0.71 per cent, to settle at 24,175.70.
Sensex top gainers and losers on Thursday, July 2
Sensex outlook for Friday, July 3 by experts
Market analysts expect the Sensex to test key overhead resistance levels on Friday after a powerful rally on Thursday saw the 30-share index surge 579.48 points.
According to Hitesh Tailor, Technical Research Analyst at Choice Equity Broking Private Limited, the index formed a strong bullish candlestick on the daily chart, indicating sustained buying interest and continuation of the ongoing uptrend.
“The index has extended its gains after the recent trendline breakout and continues to trade comfortably above the 20-Day EMA, reinforcing the positive short-term structure. The RSI has moved above the 60 mark, indicating strengthening momentum and improving market breadth, while suggesting further upside potential as long as key support levels remain intact,” he said.
He further stated the Sensex closed at 77,502.12, up by 579.48 points (+0.75%). The index opened at 77,083.14 and remained positive throughout the session after making an intraday low of 77,063.95 near the opening. “Sustained buying interest lifted the index steadily during the day, pushing it to an intraday high of 77,578.93, before witnessing minor profit booking in the final hour. Despite the mild intraday pullback, Sensex closed near the day’s high at 77,502.12, reflecting continued buying momentum,” he added.
Sector-wise, buying interest was witnessed in Information Technology, Focused IT, Consumer Durables, Realty, Auto, Consumer Discretionary, Commodities, Healthcare, FMCG, Oil & Gas, Energy, Financial Services, and Private Banks. On the other hand, Capital Goods, Power, Industrials, PSU Banks, and Telecommunication witnessed mild profit booking, while the remaining sectors ended on a mixed note, Tailor said.
Going forward, Tailor said 76,900-77,000 will act as the immediate support zone. As long as the index sustains above this level, the positive momentum is likely to continue.
On the upside, 78,000-78,200 remains the immediate resistance zone. “A decisive breakout above this range could trigger fresh buying interest and pave the way for the next leg of the rally,” the analyst concluded.
Sensex prediction for Friday, July 3 by Vipin Dixena
SEBI-registered market analyst, Vipin Dixena said the Sensex remains above the 50-EMA, keeping the short-term trend positive.
“The index has reclaimed 77,200 as immediate support and is now moving towards the key resistance zone of 77,700. RSI is around 62, indicating improving momentum without being overbought,” he said.
Overall, Dixena said the bias remains buy on dips as long as the index holds above 77,200.
Broader markets, sectoral indices on Thursday
Sectorally, IT surged 4.37 per cent, Focused IT (4.29 per cent), Consumer Durables (1.45 per cent), Realty (1.43 per cent), Auto (1.33 per cent), Consumer Discretionary (1.11 per cent) and Commodities (1.06 per cent).
Industrials, Telecommunication, Capital Goods and Power were the laggards.
The BSE MidCap Select index jumped 0.94 per cent and the SmallCap Select index climbed 0.68 per cent.
A total of 2,536 stocks advanced, while 1,740 declined and 182 remained unchanged on the BSE.
On Wednesday, the Sensex climbed 443.97 points, or 0.58 per cent, to settle at 76,922.64. The Nifty rallied 140.10 points, or 0.59 per cent, to end at 24,005.85.
(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.)
