Stock market close: Sensex crosses 800 points, Nifty also closes with a plus of 1.27%

Sensex AND Clever closed the day in the green, Sensex rose 874.94 points to close at 79,468.01, while Nifty rose 1.27% to 24,297.50 points on August 7, 2024.

ONGC (up 7.45%), Coal India (up 6.24%), Adani Entertainment (up 3.70%), Adani Ports (up 3.35%) and Power Grid Corporation of India (up 3.20%) were the top gainers on the day. On the other hand, IndusInd Bank (down 2.45%), Mahindra Technology (down 0.63%), Britannia (down 0.32%), Hindustan Unilever (down 0.26%) and titanium (down 0.15%) were the day’s biggest laggards.

Out of 2801 stocks traded on the day, 2204 rose, 519 fell and 78 remained unchanged. 76 stocks touched their 52-week high and 37 stocks also touched their 52-week low. 162 stocks touched the upper circuit during today’s trading session while 51 stocks touched the lower circuit during the day.

Ajit Mishra – SVP, Research, Religare Broking Ltd explains that the markets got some respite from the recent decline, gaining over a percent, driven by strong global cues. After an initial gap up, Nifty hovered in a range and eventually settled near the intraday high of 24,297.50. Most sectors contributed to the upside move, with metals, energy and pharma being the top performers. Broader indices also saw a significant rebound, gaining between 2.5% and 3%.

“Though volatility has cooled down significantly after the sharp rise, there is still scope for further downside. On the index front, a decisive close above 24,500 in Nifty is needed to ease the pressure and trigger a sustained rebound. Given the current conditions, we maintain a cautious stance and recommend continuing with a hedged approach,” he continued.

Shrikant Chouhan, Head Equity Research, Kotak Securities, says, “Benchmark indices rebounded sharply today with Nifty ending 305 points higher and Sensex rising 875 points. Among sectors, all major sectoral indices were trading in positive territory but the Oil & Gas index was the best performer, up 3.10 per cent. Technically, after a positive opening, the market maintained positive momentum throughout the day. It also maintained a double bottom formation on the intraday charts, indicating a continuation of the pullback rally in the near future.”

“We are of the view that 24,200/79,100 would be a sacred support zone for day traders. As long as the market trades above this level, the pullback pattern is likely to continue. On the higher side, it could bounce towards 24,400-24,475/80,000-80,200. On the other hand, below 24,200/79,100 the sentiment could change, below the same, it could retest 24,100-24,000/78,800-78,500 levels,” he explained.

All broad market indices recorded a sharp rebound, except the Indian index VIXwhich fell 13.72%. Nifty Next 50 rose over 3%, while all other indices rose between 1% and 3%. Among the sectoral indices, oil and gas rose 3.06%, while media, metals, pharma and healthcare rose over 2% each to close the day in the green.

Aditya Gaggar, Director, Progressive Shares, notes that after a strong opening, the index traded in a well-maintained tight range and eventually ended the session higher at 24,297.05, up 304.95 points. All sectors ended the session in the green, with metals and media being the top performers.

“Midcaps and smallcaps rose 2.45% and 2.86% respectively and outperformed the Benchmark Index. After 2 days of correction, Nifty50 formed a green candle but its long-legged DOJI pattern indicates still indecision. We believe that as long as the index holds the support level of 23,960, there is a chance of a rally towards 24,550 and then 24,700,” Gaggar said.