Heavyweights HDFC Bank, ICICI Bank, and Reliance Industries contributed significantly to the Nifty’s gains. Among Nifty 50 stocks, 42 advanced, with BEL, ONGC, Shriram Finance, and L&T emerging as the top gainers.
HDFC Bank shares hit a record high on Monday and were the top contributor to both the Nifty and Nifty Bank indices. The uptick followed the second tranche of MSCI adjustments, which flowed into the stock. HDFC Bank reached a new high of ₹1,803, surpassing its previous high of ₹1,794, recorded on July 3. This earlier high was seen after the lender disclosed its shareholding pattern for the June quarter, making it eligible for a weightage increase in the MSCI Global Standards Index.
Meanwhile, foreign institutional investors (FIIs) turned net buyers in the equity market on Monday, purchasing ₹9,947.55 crore worth of equities. This marks a significant shift, ending a 38-session streak of net selling.
Domestic institutional investors (DIIs) net sold equities worth ₹6,907.97 crore (provisional), according to the data.
What do the Nifty50 charts indicate?
After witnessing a sharp upside momentum on Friday, the Nifty continued with strong upside today and closed the day with handsome gains of 314 points.
Nagaraj Shetti of HDFC Securities said the present opening upside gap as per daily and weekly chart is going to be a crucial in the short term. Normally, such opening upside gap formations after reasonable declines are considered as bullish breakaway gaps, which signal significant trend reversal for the underlying on the upside, he said.
According to Shetti, the near-term bottom reversal has been confirmed and the underlying trend of Nifty is strongly up. “Having placed near the overhead resistance of 24500 levels, there is a possibility of consolidation/minor dip in the next 1-2 sessions before showing another round of upside. The next upside target to be watched (above 24500) around 25000 in the next 1-2 weeks. Immediate support is at 23900.”
Over the last two sessions, Nifty has staged a robust recovery, retesting its 100-day EMA near 24,350. A decisive close above this level could pave the way for further upside toward the 24,550-24,750 zone. On the downside, the 23,850-24,000 range is expected to provide strong support in case of any pullback, said Ajit Mishra of Religare Broking.
Deepak Jasani of HDFC Securities expects an upside breakout for the Nifty with unfilled opening upside gap. “If this gap remains unfilled for the next few sessions, it may mean formation of an important bottom reversal for Nifty around 23263 levels. In the near term 24500 could still pose some resistance for the Nifty while 23900 could offer support,” he said.
What do the Nifty Bank charts indicate?
Nifty Bank ended the session with a strong gain of 2.10%, closing at 52,207.50.
Nifty Bank showed strength by reclaiming its 10-day, 20-day, and 50-day moving averages, indicating a revival of positive momentum. The daily RSI is edging closer to the 60 mark, indicating improving
However, the unfilled gap from today’s session could act as a short-term overhang, potentially leading to a mild pullback in the coming days, said Om Mehra, Technical Analyst at SAMCO Securities.
According to Mehra, Nifty Bank faces resistance around 52,600, which, if surpassed, could pave the way for further upward movement. The support range remains slightly wider, at around 51,270.
These are the stocks to watch ahead of Tuesday’s trading session:
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