Nifty's six-day winning streak continues, pharma & healthcare sectors shine

Nifty rose for the sixth consecutive session by rising 33 points or 0.13%, to close at 25083. After opening of 92 points higher, Nifty extended its rise towards 25153 during the session. Post 2.20 P.M., Nifty witnessed profit booking and saw a fall of 85 odd points from the day’s high to close near day’s low.

Leading the charge among the Nifty’s top performers were Pharma heavyweights Cipla and Dr. Reddy’s Laboratories, along with Bajaj Finserv. On the other hand, it proved to be a tough session for names like Tata Consumers, Bajaj Auto, and Eternal, which ended as the major losers within the Nifty pack. On the liquidity front, trading volumes in the NSE cash market were slightly higher today, up 1% compared to yesterday.

Amongst the sectoral indices, Nifty Pharma, Healthcare and Realty emerged as major gainers. Conversely, sectors such as Nifty FMCG, PSU Banks, and Auto were the major losers for the day, indicating a rotation out of these segments.

Indian Rupee depreciated for the second day in a row, falling by 20 paise against the dollar to close at 87.27 levels. This fall can be primarily attributed to a combination of factors, including bargain buying from importers, a continuation of foreign fund outflows, and a rise in global crude oil prices.

After a strong rally for three consecutive days, the broader market witnessed some profit booking at higher levels. The Nifty Midcap 100 Index fell by 0.38%, while the Nifty Smallcap Index ended mildly in the red. However, market breadth remained mildly positive, with advancing shares outnumbering declining ones, as indicated by an advance-decline ratio on the BSE of 1.06.

Nifty seems to have found resistance near 61.8% Fibonacci retracement (25160) of the fall seen from 25669 to 25337. A sustainable level above 25160 could push the Nifty towards 76.4% retracement level of 25355. On the downside, 24852 would continue to serve as a support.

Disclaimer : This article is only for informational purpose. It does not make any recommendation to act or invest.

Source : HDFC Securities Prime Research