On Friday, Sensex settled at 56,072.23 up by 390.28 points or 0.70% after touching an intraday high of 56,186.05. Meanwhile, the Nifty 50 ended at 16,719.45 higher by 114.20 points or 0.69% after clocking the day's high of 16,752.25. Banking stocks outperformed amid major earnings, while financial stocks also contributed substantially to the upward trend. HDFC, HDFC Bank, Axis Bank, ICICI Bank, and Kotak Bank were among the top gainers. Also, Ultratech Cement, Titan, and HUL lifted the performance.
From July 15 to July 22, Sensex climbed by at least 2,311.5 points and Nifty 50 jumped over 670 points. Overall, the upside is more than 4% each in the benchmarks.
BSE market cap by end of July 22, is at ₹2,61,08,969.27 crore - up by ₹9,13,496.55 crore from ₹2,51,95,472.72 crore valuation as of July 15.
Top 10 most valued stocks are - RIL with a market cap of ₹16,93,245.73 crore, followed by TCS with a valuation of ₹11,60,285.19 crore, HDFC Bank with a capitalisation of ₹7,73,770.09 crore, Infosys with ₹6,33,793.91 crore, and HUL with a cap of ₹6,20,362.58 crore. Other top companies are - ICICI Bank with a cap of ₹5,56,526.81 crore, SBI with ₹4,58,457.30 crore, LIC with ₹4,35,760.72 crore, HDFC with ₹4,16,701.23 crore and Bajaj Finance with ₹3,78,774.69 crore.
The Indian rupee has depreciated by around 8% against the US dollar so far this year and has even breached the 80 mark earlier this week. However, on Friday, the rupee was at $79.90 against the US dollar down by 5 paise due to strong American currency and elevated crude oil prices that offset the impact of gains in domestic equities.
Further, in July, now, FPIs are net buyers with an inflow of ₹1,099 crore in the equities market. Notably, from July 1-15, FPIs outflow in the equity market stood at ₹7,432 crore, as per the NSDL data. That means, FPIs made strong buying in domestic equities from July 18 to 22, 2022. Meanwhile, in the first six months of 2022 (January - June), the outflow in the equities is around ₹2,17,358 crore by FPIs.
What to expect in the upcoming weekly trading session (July 25 to July 29):
Apurva Sheth, Head of Market Perspectives, Samco Securities said, "the forthcoming week will be action-packed with activities. The FOMC meeting and press conference will take centre stage. While the rate hike is anticipated to be aggressive, market participants will attempt to interpret between the lines to assess the economy's route. The Fed would attempt to keep inflation in check without harming the labour market. Besides that, the release of the United States' QoQ GDP figures would have an impact on market sentiment. In Indian markets, one can expect some volatility as we approach the monthly expiry."
On Nifty 50 outlook, said, "the short-term trend remains positive based on other market indicators such as breadth and sentiment, we believe the Nifty will rise to 17,400. The immediate support and resistance levels are presently at 16,350 and 16,830. A break below 16,150 will nullify the bullish outlook."
Anand James - Chief Market Strategist at Geojit Financial Services on Nifty 50 said, "with opening dips reversing exactly from 16485, our turnaround point for yesterday, bears never got any chance for the rest of the day, keeping the trend firmly enroute 16800, the near term target set on Monday. This may get extended to 17000 or beyond in the coming days, but favoured view for the day expects bulls to be challenged on approach to the 16690-710 region. While major falls are not expected unless 16485 gives away, the prospects of the same in the next week may rise, should Nifty find unable to push beyond the 16690-710 region."
In their weekly outlook note, ICICI Direct analysts said, " We reiterate our positive stance and expect Nifty to head towards 17000 mark in coming weeks while we expect 16300 to act as strong support in case of volatility around US Federal meeting and monthly expiry. Meanwhile, we expect midcap and small-cap to catch up and relatively outperform as the small-cap index is expected to head towards its 200dma. The percentage of stocks above 50dma has improved sharply to 77% this week from reading of 22% at the end of June signalling broad-based nature of rally."
On sector-wise, the ICICI Direct analysts expect BFSI, Auto, and Capital goods to remain in the leadership role given their outperformance while IT, metal, and Real estate are expected to witness technical pull back and offer favourable risk-reward.
On stock-wise, ICICI Direct analysts are optimistic on large caps like HDFC, SBI, Bajaj Finance, TCS, L&T, Maruti Suzuki, Marico, Cipla, Hindalco, Titan while in midcaps we like Coforge, Persistent Systems, Phoenix Mills, Caplin points, Thermax, Mahindra Holidays, Shoppers Stop, Coromandel Intl, Federal Bank, and TTK Prestige.
