Domestic headline equity indices closed higher in a highly volatile market on Wednesday, driven by gains in Consumer Durables stocks. The NSE Nifty 50 index rose 0.29% to 24,770, and the S&P BSE Sensex added 0.13% to 80,905. Investors are eagerly awaiting the minutes of the latest Fed policy meeting later in the day and Chair Jerome Powell’s address later this week for clues into the rate cut trajectory.
Analysts are closely monitoring the market pulse to gauge the direction of the market. Jatin Gedia of Sharekhan noted, „On the daily charts, we can observe that Nifty is heading towards 24830-24900 zone. Sector rotation is helping the index to stay at elevated levels. A negative divergence is developing on the momentum indicator so the up move is likely to be slow and might encounter intraday pullbacks.“ Tejas Shah of JM Financial & BlinkX added, „The short-term moving averages are just below the price action and should continue to support the indices on every decline.“
In the US market, the S&P 500 and Nasdaq ticked up on Wednesday as a significant downward revision in U.S. jobs data for the year ending in March suggested a slowdown in the labor market, raising hopes for an interest rate cut by the Federal Reserve next month. Financial markets now see a nearly 70% chance of a 25 basis-point rate cut by the Fed in September. European shares also inched higher on Wednesday, driven by gains in automobile stocks, as investors awaited the minutes from the U.S. Federal Reserve’s July meeting to assess the future of global monetary policy.
In terms of technical analysis, Nifty ended Wednesday’s session 71 points stronger to form a reasonable positive candle on the daily chart. The short term trend of Nifty continues to be positive with range-bound action. The market is now set to challenge another opening down gap resistance of 2nd August around 24960. Stocks showing bullish bias include Nuvama Wealth Management, OFSS, CAMS, Persistent Systems, Bombay Burmah Trading Corporation, and Bajaj Holdings & Investment among others.
On the other hand, stocks signaling weakness ahead include Cera Sanitaryware, V-Mart Retail, Torrent Pharma, Natco Pharma, and Granules India among others. Most active stocks in value terms were Mazagon Dock Shipbuilders, HDFC Bank, Nykaa, ICICI Bank, Angel One, PNB Housing, and SBI among others. Vodafone Idea, Alok Industries, Nykaa, YES Bank, HFCL, Tata Steel, and CESC were among the most traded stocks in volume terms.
Overall, market breadth favored bulls as 2,607 stocks ended in the green, while 1,345 names settled in the red. The sentiment meter currently favors bulls, indicating a positive outlook for the market. Investors are advised to closely monitor key indicators and expert recommendations to make informed decisions in the highly volatile market environment.