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Buying in IT stocks takes Nifty to newer high

18 Jul 2024 Evaluate

Nifty witnessed recovery in late afternoon session and ended above psychological 24750 level led by buying in IT stocks. Index surpassed 24,800 mark for the first time. After making negative start, market wavered between gains and losses amid negative cues from Wall Street overnight as well as weakness in Asian counterparts. Investors fretted about rising oil prices and heightened U.S.-China tensions. Investors overlooked the report that that the International Monetary Fund in its World Economic Outlook raised India’s growth forecast for FY25 to 7 percent from 6.8 percent projected in April. It noted the forecast for growth in India has been revised upward, with the change reflecting carryover from upward revisions to growth in 2023 and improved prospects for private consumption, particularly in rural areas. Sentiments turned in afternoon session and market held the gains as investors took some support after Asian Development Bank (ADB) said India’s stronger-than-expected fiscal position could provide a further boost to its growth, while keeping the Gross Domestic Product (GDP) growth projection for the current financial year (FY25) unchanged at 7 per cent. Further, market marched towards fresh high levels as investors continued to hunt for fundamentally strong stocks. Finally, Nifty ended session with gains of above half a percent. 

Most of the sectorial indices ended in green except Media, Metal and Realty stocks. The top gainers from the F&O segment were India Cements, LTIMindtree and ONGC. On the other hand, the top losers Asian Paints, Coal India and Hero Motocorp. In the index option segment, maximum OI continues to be seen in the 24500 - 25600 calls and 22900 - 23050 puts indicating this is the trading range expectation.

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