Sensex ends 1% up on weekly F&O expiry, Nifty support at 17450, D-St gains for 4th day straight; CPI, IIP eyed

BSE Sensex and NSE Nifty 50 ended nearly 1 per cent higher on the day of weekly F&O expiry, as lower-than-expected inflation in the US bolstered equities across the globe. Ahead of India’s inflation data, BSE Sensex jumped 515 points or 0.9 per cent to end at 59,333, while NSE Nifty 50 gained 124 points or 0.7 per cent to settle at 17,659. Index heavyweights such as HDFC, HDFC Bank, ICICI Bank, TCS, and Infosys contributed the most to the indices gain in today’s session. Broader markets also ended in green. S&P BSE Midcap index jumped 0.83 per cent or 203 points to settle at 24,727, while S&P BSE Smallcap finished trade at 27,798, up 0.5 per cent or 143 points. Analysts say 17600 would be the key level to watch out for.

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Investors cheered the US inflation data for July, which came in below the estimate and raised hopes that the Federal Reserve may not be that aggressive in hiking interest rates in its next meeting. Hence, the optimism spread across Asian markets, including India where investors lapped up banking, IT & realty stocks. Traders have also been drawing comfort from the falling crude oil prices and FII inflows into the local shares in the last few sessions. Technically, the Nifty is trading near its important resistance level and has also formed a small bearish candle. For traders, 17600 would be the key level to watch out for, while the overall chart structure suggests that if the market sustains above the same then breakout continuation formation could continue till 17700-17750. On the flip side, a sharp intraday correction is possible if the index trades below 17600. Below which, the index could slip till 17540-17450.

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Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty ended higher for the fourth consecutive session on Aug 11 aided by positive global cues. Global shares edged higher on Thursday as investors bet on the pace of interest rate hikes slowing after data pointed to inflation peaking. European shares however gave up early gains as investors digested comments from Federal Reserve officials who remained resolute on the need for further interest-rate hikes. Nifty showed some signs of sell-on-news as the morning gains could not be sustained. There are no new data points on the horizon which can impact the Nifty in the near term. We are getting close to end of results season and hence micro moves may also be fewer and far between from now on. Given the upward momentum, Nifty could now rise to 17779-17842 band in this upmove.

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty continued to remain above the consolidation on the daily chart, suggesting a continuation of the up trend in the market. On the higher end, however, Nifty had faced a bit of selling pressure that led to a close around the day’s low. The current rally may extend towards 17750-17800, where crucial trendline resistance is placed. On the lower end, support is there at 17450-17500.

Kunal Shah, Senior Technical Analyst, LKP Securities

The Bank Nifty index continued its strong up move on the back of positive global cues. The index surpassed the immediate hurdle of 38400 which will now act as support on the downside. The upside resistance is placed at 39000 and if breached on a closing basis will see further upside towards the 40000 level. The index is trading in overbought territory and a profit booking scenario cannot be ruled out from the current levels.

Vinod Nair, Head of Research at Geojit Financial Services

As softer than expected US inflation data suggested a slower pace of rate hike, the global market encouraged optimism. US CPI inflation smoothened to 8.5% in July as lower energy prices offset increase in food and shelter cost. Domestic investors await the release of India’s inflation data due today, which is expected to show a decline in inflation trend on a MoM basis