The domestic equity benchmarks, Sensex and Nifty 50, ended a five-day losing streak, marking their best session in seven weeks on Friday, July 26. This rebound was driven by substantial value-buying at lower levels and a recovery rally in blue-chip stocks such as Infosys, Bharti Airtel, and Reliance Industries, bolstered by positive global cues.

The BSE Sensex jumped 1,292.92 points or 1.62% to settle at 81,332.72. It soared 1,387.38 points or 1.73% during the day to reach 81,427.18. Similarly, the NSE Nifty surged 428.75 points or 1.76% to settle at an all-time closing high of 24,834.85, hitting a record high in the final minute of the trading session.

In the broader market, the BSE midcap index rose 2.12%, and the small-cap index rallied 1%. Investors' wealth increased by ₹7.10 lakh crore following the sharp rally. D-Street analysts noted that Tuesday's Union Budget 2024, which announced tax hikes on capital gains in equity investments and derivatives trading, also negatively impacted market sentiment.

Despite post-budget losses, Sensex and Nifty 50 added 0.9% and 1.24%, respectively, for the week, posting their eighth week of gains—the best weekly winning streak in 14 years (since 2010).

Religare Broking highlighted in its derivatives monthly rollover report that Nifty 50 closed above 24,400 after volume-weighted average price (VWAP)-based buying activity was witnessed throughout the session. The realty sector witnessed the highest rollover at 97%, while the media sector had the lowest at 86%.

Nifty and Bank Nifty Derivatives Summary:

Nifty futures rolled at around 70% compared to 72% previously, with the new contract's open interest (OI) lower by around 14 lakhs, implying fewer long positions. Bank Nifty futures saw rollovers of 62%, with an open interest addition of around five lakh, indicating higher short positions during the July expiry.

Top Stock Picks for August Series by Religare Broking:

1. Mahanagar Gas Ltd (MGL) - CMP: ₹1,770

Gained over 16% in price with an OI addition of 67%.

Rollovers were at par with the previous series at 87%.

Technicals show the stock holding above key moving averages with rising volumes.

Expected to reach ₹1,820-1,840 in the near term.

2. SBI Cards and Payment Services Ltd - CMP: ₹721

Marginal loss in the July series but substantial OI addition of 35%.

Higher rollovers at 98% compared to previously.

Signs of accumulation suggest good traction in the August series.

Recommended stop at ₹685.

3. Punjab National Bank (PNB) - CMP: ₹117.5

Flattish performance with significant OI addition.

Rollovers picked up from 65% to 96%.

Supports at ₹112-113; expected to test ₹130 in the August series.

4. SRF - CMP: ₹2,405

Added 25% in OI with decent cash-based accumulation.

Expected to perform well in August, with a recommended stop at ₹2,280.

Outlook for August:

Nifty Futures contract OI started with around 138 lakh vs. 151 lakh in July. Banknifty futures saw an OI of around 32 lakh vs. 27 lakh in July.

Disclaimer: The views and recommendations in this analysis are those of individual analysts or broking companies. Investors are strongly advised to consult certified experts before making any investment decisions.