Taking Stock: Market ends marginally lower amid volatility; loses 0.5% for the week
For the week, BSE Sensex lost 0.78 percent and NIfty50 fell 0.5 percent.
Market Today
The Indian equity indices started the August series on a negative note and also ended lower for the second consecutive session on July 28 amid selling seen in the information technology, banking and oil & gas names.
At close, the Sensex was down 106.62 points or 0.16 percent at 66,160.20, and the Nifty was down 13.90 points or 0.07 percent at 19,646.
Amid mixed global cues, the market started on a negative note and witness further sell-off as the day progressed, however, last-hour buying in the power and realty names managed to erase the losses.
For the week, BSE Sensex lost 0.78 percent and Nifty50 fell 0.5 percent.
Bajaj Finserv, HDFC Bank, BPCL, Tata Motors and HCL Technologies were among the top losers on the Nifty, while NTPC, Power Grid Corporation, Apollo Hospitals, Adani Enterprises and M&M were top gainers.
Among sectors, power and realty indices rose 2 percent each, while metal, capital goods and healthcare added 0.4 percent each. On the other hand, selling was seen in the banking, oil & gas and information technology names.
The BSE Midcap and Smallcap index added 0.5 percent each.
A short build-up was seen in Dr Lal PathLabs, HPCL and IOC, while long build-up was seen in Tata Chemicals, Tata Power and Indiabulls Housing.
| INDEX | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Sensex | 66,160.20 | -106.62 | -0.16% |
| Nifty 50 | 19,646.05 | -13.85 | -0.07% |
| Nifty Bank | 45,468.10 | -211.20 | -0.46% |
| BIGGEST GAINER | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| NTPC | 210.00 | 8.05 | +3.99% |
| BIGGEST LOSER | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Bajaj Finserv | 1,584.85 | -29.70 | -1.84% |
| BEST SECTOR | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Nifty Energy | 26433.70 | 336.00 | +1.29% |
| WORST SECTOR | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Nifty IT | 29490.30 | -254.70 | -0.86% |
Samvardhana Motherson International, HDFC Asset Management Company, Parag Milk Foods, Oil and Natural Gas Corporation, Tata Communications, Marico, GMR Airports Infrastructure, Power Finance Corporation, Apollo Hospitals Enterprise, Ujjivan Small Finance Bank, Intellect Design Arena, Indian Bank, Torrent Pharmaceuticals, Prakash Industries, Shalby, among others touched their 52-week high on the BSE.
Outlook for July 31
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
The Nifty opened on a flat note and witnessed volatile price action. It drifted lower during the first half and witnessed a sharp recovery towards the close which helped it to close off the intraday lows though down ~14 points. On the daily charts, we can observe that the Nifty has closed in the negative for the second consecutive day. It has been trading in a downward-sloping channel and we expect it to consolidate within this channel. It can witness a bounce towards the key hourly moving averages placed in the range 19690 – 19720 from where we expect the selling pressure to resume. On the weekly charts, the Nifty has closed in the negative after rising for four consecutive weeks and which also suggests that the Nifty can consolidate. The momentum indicator has a negative crossover which is a sell signal and thus the pullbacks shall be difficult to sustain. Overall, the short-term outlook remains range bound between 19500 – 20000. Crucial support levels to keep handy are 19540 - 19500 and on the upside, 19700 - 19720 is the immediate hurdle zone.
Bank Nifty opened the gap down and witnessed a weak closing. Though it witnessed a pullback during the last hour of the session, however, the structure still points towards a short-term consolidation. On the weekly chart as well we can observe that the Bank Nifty traded within the range 44700 – 46370 of the penultimate week and thus formed an Inside Bar pattern which makes the extremes of the range crucial levels to watch out for in the short term. A breach of this range on either side shall lead to a move in that direction. Overall, we expect the Bank Nifty to consolidate between 46500 – 45000.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty closed lower for the second straight day on July 28, pulled down by weak global cues and a series of muted Q1 results. At close, Nifty was down 0.07% or 13.9 points at 19646.1. Broad market indices ended in the positive even as the advance decline ratio remained firm at 1.08:1.
Global shares traded mixed on Friday as investors digested monetary policy steps/message from Japan. The Bank of Japan's policy shift could have seismic implications for global money flows, since a cheap yen that's been inexpensive to borrow has been a mainstay of capital market funding for years, and it now faces upward pressure from rising Japanese yields just as global rates seem to peak.
Nifty after falling in the early part of the session, recovered part of the losses on July 28 and formed a high wave doji pattern after a small fall. On weekly chart, Nifty fell 0.5% over the week after gaining for the previous four weeks. 19562 becomes a crucial support for the Nifty below which a fall of another 2% could follow and the 17-week rally from the low of 16828 could be said to have ended. 19748 could be a resistance for the near term.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services:
Nifty remained under pressure throughout the session but witnessed some recovery in the last hour to close with a marginal loss of 14 points at 19646 levels. Sectorially, it was mixed with major buying seen in Realty (+1.8%). Power stocks were in the limelight on the back of attractive valuations and huge investments in the sector.
Overall, we expect sectoral rotation in the market, while Index is likely to remain in the consolidation zone with the ongoing result season. Market will keep an eye on the manufacturing data to be released next week both - globally as well as locally. Also, the Bank of England will announce its rate decision next week on Thursday. Auto sector will be in focus as companies would announce their monthly sales numbers.
SOURCE - MONEY CONTROL
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