Nifty reclaims 17500 mark, Nykaa, Paytm, Zomato shares gain

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said despite a small blip in early trades, bulls quickly rejuvenated and maintained their stranglehold even as other Asian peers ended mixed.

“FIIs, which were missing from the action over the past few months, have once again started taking exposure to local equities, thus providing a major impetus to the markets,” he said.

Technically, after a muted opening, the market successfully cleared the short term resistance of 17500 which is broadly positive. Further, bullish candle on daily charts and intraday breakout formation is indicating a further uptrend from the current levels, Chouhan said.

“For benchmark Nifty, the key support level is 17400 and above which, the breakout formation is likely to continue till 17650-17700. On the other hand, below 17400, the index could slip till 17325-17300,” he elaborated.

Shares of oil and gas companies traded mixed after a few of them reported earnings in the week gone by while oil prices dropped near multi-month lows.

Shares of FSN E-Commerce Ventures (Nykaa) rose over 4 percent after the company reported a strong set of quarterly numbers for the quarter ended June with consumer demand recovering.

One97 Communications or Paytm shares ended nearly 7 percent higher after the company reported a near 89 percent jump in revenue for April-June, raising hopes of a sooner-than-expected break even.

Zomato's scrip rose about 3 percent as investors bought shares of the food delivery platform after the stock’s weightage in FTSE indices was increased.

A strong US jobs report last week bolstered the case for more super-sized interest rate hikes, while the dollar weakened and government bond yields fell.

MSCI’s broadest gauge of Asia Pacific ex-Japan was down 0.6 percent whereas key indices in Europe were in the positive territory.

S&P futures were up 0.2 percent hinting at a higher start for US equities.