Nifty above 11000, Sensex up 600 points – What’s driving the market sentiment?

The benchmark indices on August 4th got back into momentum after occuring losses and downfall in the past 4 consecutive sessions in the markets.


The benchmark indices on August 4th got back into momentum after occuring losses and downfall in the past 4 consecutive sessions in the markets. The indices were off the record highs from march in the previous session with Broader indices , Sensex hitting down to 36k from 38k and Nifty entering the 10k level from 11k.

Today the market has surged over 500 points with Sensex touching the day’s high at 37,580.63 as recorded at 1 pm IST and Nifty breaking the 11000 wall with reaching the day’s high at 11067.20.

The major weightage stocks were in red territory for the past few sessions and not much of action was noticed, Banking and Financial sector slipped down after the Monthly expiry of the indices in the month on Thursday.

Factors Driving the Market Today:

1) Global Cues

The US markets closed with gains with Nasdaq at record highs after the previous high recorded on July 20. The shares of Microsoft and Alphabet surged higher in the trading session and contributed in the rally on Tuesday.

The Dow Jones Industrial Average DJIA, +0.89% climbed 236.08 points, or 0.9%, to close at 26,664.40. The S&P 500 SPX, +0.71% rose 23.49 points, or 0.7%, touching 3,294.61 at the close. The Nasdaq Composite COMP, +1.46% gained 157.52 points, or 1.5%, to close at 10,902.80. The tech-heavy benchmark earlier set a new intraday record at 10,905.40, putting it in sight of another 1,000-point milestone.(Market watch)

2) Stocks Rally (HDFC & RIL)

HDFC Bank on Tuesday rallied over 4% after the Bank got approval from RBI to appoint Sashidhar Jagdishan as the new CEO of the company after Aditya Puri. The Bank’s stock was among the top gainers of Nifty with the day’s high of Rs 1,061.50 up by 4.44% as recorded at 1:15 pm IST.

Sashi joined the bank in 1996 and currently he is the Group Head of Finance, Human Resources, Legal & Secretarial, Administration, Infrastructure, Corporate Communications, Corporate Social Responsibility & the Strategic Change Agent of the bank.

Reliance Industries being the top gainer of Nifty driving the market one sided by climbing over 5% and 100 points to reach the Day’s high of  Rs 2121.70 also nearing the 52-Week high mark on Tuesday.

Bajaj Finance and Axis Bank gained 1-2 percent with Bank Nifty up 1.5 percent, while auto stocks after July sales data – Hero MotoCorp, Maruti Suzuki, Bajaj Auto, Eicher Motors, M&M  also contribute and rose 1-3 percent.

3) MPC meeting

The monetary policy meeting begins today and might’ve contributed in bringing the market sentiment up today as traders and investors keep a eye on the same in hope of measures to be taken to drive and boost the economy.

4) Technical Analysis – By moneycontrol

The Nifty50 climbed over a percent and formed bullish candle on the daily charts so far after witnessing bearish candle formation in previous four straight sessions.

The bounce back was on expected lines but the index needs to decisively surpass 11,200 levels to bulls with strong strength, otherwise the consolidation may continue, experts feel.

“The short term trend of the Nifty continues to remain bearish – we would need to get past 11,200 for it to turn bullish. The markets would lose further steam if we break 10,900 on an intraday basis as that could take us further south to 10,780,” Manish Hathiramani, Proprietary Index Trader and Technical Analyst at Deen Dayal Investments told Moneycontrol.






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