Nifty eyes record highs as late rally sparks optimism; All eyes on US trade deal
Nifty 50 ends strong on July 9 after late surge in largecaps, led by financials. Key breakout above 25,669 may push index towards all-time highs.
After a sluggish start on July 9, the Nifty 50 rebounded impressively, closing near the day's high and gaining 61 points to end at 25,522. A late-session rally—fueled by renewed interest in largecap financials—helped the index break out of a narrow trading range, with analysts now eyeing a potential push towards record highs.
Financial giants like Kotak Mahindra Bank, which surged over 3% following a strong Q1 update, were instrumental in lifting market sentiment. Other top gainers included Eternal and Asian Paints, while Titan, Dr. Reddy’s, and Bajaj Auto dragged the index, with Titan tumbling nearly 6% on weak jewellery segment performance.
The broader markets mirrored the recovery. Despite early losses, the Nifty Midcap 100 slipped only 0.17%, while the Smallcap 100 fell by just 0.29%, signaling a broad-based bounce-back.
Sectoral performance was mixed. Nifty Realty, Financial Services, and Private Banks led the gainers, while Consumer Durables, Pharma, and Healthcare saw profit booking.
In thematic plays, textile stocks gained sharply after the US imposed a 35% tariff on Bangladesh, raising hopes for increased Indian exports. AMC stocks also saw action following SEBI's proposal to ease mutual fund norms under tighter regulations.
Foreign institutional investors (FIIs) continued to sell in the cash market, while domestic institutional investors (DIIs) stepped in as net buyers, cushioning the fall.
Market experts remain bullish. Siddhartha Khemka of Motilal Oswal highlighted improving sentiment driven by trade deal hopes and the upcoming earnings season.
Technically, analysts see key resistance levels ahead. HDFC Securities’ Nandish Shah noted that Nifty has been forming higher highs and lows, with resistance at 25,669. A breakout could target the 26,000 mark, while 25,331 is the support.
LKP Securities’ Rupak De pointed to a bullish setup on the charts, citing a green candle forming after a hammer and doji pattern—often a signal of further upside. He placed resistance at 25,600–25,800 and support around 25,400.
Angel One’s Rajesh Bhosale added that a move above 25,700 could trigger fresh highs, with 25,300–25,450 acting as a buffer zone on the downside.
Nagaraj Shetti of HDFC Securities echoed the positive trend, saying a breakout above 25,700 may push Nifty towards the 26,000–26,200 zone. Immediate support lies at 25,425.
As global cues, especially the US trade negotiations, remain pivotal, traders are advised to watch key levels for the next leg of market movement.
