The market continued to make a record high on July 20, marking the sixth consecutive day of a winning streak, led by FMCG, banking, oil & gas, and healthcare stocks.
At the close, the Sensex was up 474.46 points or 0.71 percent at 67,571.90, while the Nifty was up 146 points or 0.74 percent at 19,979.20.
Amid mixed global cues, the market started the day on a negative note and extended losses in the initial hours. However, a recovery in the second half helped the Nifty50 index inch closer to the 20,000 mark.
As for sectors and stocks, the top gainers on the Nifty included ITC, Kotak Mahindra Bank, Dr Reddy’s Laboratories, ICICI Bank, and Cipla, while the losers were Reliance Industries, Infosys, UltraTech Cement, HCL Technologies, and Bajaj Finserv.
Among sectors, FMCG, bank, and pharma indices rose 1 percent each, with the Oil & Gas index up 0.5 percent. On the other hand, the Information Technology index was down 0.8 percent, and the power index fell 0.4 percent.
The BSE Midcap and Smallcap indices ended on a flat note.
A long build-up was seen in ICICI Lombard General Insurance Company, HDFC Asset Management Company and Aurobindo Pharma, while a short build-up was seen in ABB India, Shree Cement and Vodafone Idea.
Among individual stocks, a volume spike of more than 300 percent was seen in Balrampur Chini Mills, Container Corporation of India and HDFC Asset Management Company.
More than 200 stocks touched their 52-week high on the BSE, including Punjab National Bank, Lupin, Titagarh Rail Systems, Saregama India, HDFC Asset Management Company, DB Corp, Bharat Heavy Electricals, Ashok Leyland and Prakash Industries.
Outlook for July 21
Shrikant Chouhan, Head of Research (Retail), Kotak Securities:
The market is witnessing frenzied buying support from foreign investors, and it's just a matter of time that the benchmark Nifty will top the 20K mark. Such has been the rally that some of the mild negative flows too are getting discounted in this bull run. Technically, after a muted opening the index took support near 19750 and reversed. On daily charts, it has formed a bullish candle and on intraday charts it is holding higher bottom formation, which is largely positive. However, the short-term texture of the market is overbought, hence we could see some profit booking at higher levels.
For the trend following traders, 19850 would be the key level to watch out for and above the same, the market could move up till 20100-20150. On the flip side, below 19850 traders may prefer to exit from long positions, as any further correction could see the index retest the level of 19750-17700.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
The Nifty broke out of the two-day consolidation on the upside and closed with gains of ~146 points. On the daily charts, we can observe that the Nifty has resumed its upmove after a brief consolidation. On the upside we expect Nifty to target levels of 20200 from a short-term perspective.
The daily and hourly momentum indicators are having a positive crossover and are in sync with the price action. Thus, both price and momentum indicators are suggesting a continuation of the current upmove.
We shall continue to maintain a positive outlook on the index. In terms of levels, 19880 – 19850 shall act as a crucial support zone as per the principle of role reversal, and on the upside 20150 – 20200 shall act as an immediate hurdle zone and our short-term target zone.
Bank Nifty witnessed a breakout from the inside bar pattern on the upside and also witnessed follow-through buying interest. The daily and the hourly momentum indicator also have a positive crossover. Thus, both price and momentum indicators are suggesting a continuation of the upmove and expect the Bank Nifty to target levels of 46500.
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Taking Stock: Nifty inches closer to 20,000, Sensex up 474 pts; IT underperform - Moneycontrol
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