Taking Stock: Market flashes red again; Sensex down 542 points, Nifty below 19,400
UPL, Titan Company, Bajaj Finserv, ONGC and ICICI Bank were among the top Nifty losers. The gainers included Adani Enterprises, Eicher Motors, Divis Labs, Infosys and Adani Ports
Market Today
The Indian equity benchmarks extended the losing streak to a third day on August 3 as the meltdown in global stocks that followed Fitch’s surprise downgrade of US credit ratings continued. Bank, metal, oil & gas and realty names were the biggest losers, while buying in pharma stocks helped trim losses.
At close, the Sensex was down 542.10 points, or 0.82 percent, at 65,240.68, and the Nifty was down 145 points, or 0.74 percent, at 19,381.70.
Amid weak global cues, the market started gap down. Extended profit booking in the second half dragged the Sensex and the Nifty below the crucial 65,000 and 19,300 levels but buying in the last hour of trade helped them recover from the day’s low.
UPL, Titan Company, Bajaj Finserv, ONGC and ICICI Bank were among the top Nifty losers. The gainers included Adani Enterprises, Eicher Motors, Divis Labs, Infosys and Adani Ports.
Among sectors, the pharma index gained a percent, while bank, metal, oil & gas and realty were down 1-2 percent each.
BSE midcap and smallcap indices ended flat.
Adani Enterprises shares rallied more than 2 percent after the ports-to-power conglomerate's flagship company reported a 44 percent year-on-year jump in consolidated net profit of Rs 674 crore in the June quarter.
Revenue, however, was down 38 percent at Rs 25,438 crore amid a correction in coal prices.
| INDEX | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Sensex | 65,240.68 | -542.10 | -0.82% |
| Nifty 50 | 19,381.65 | -144.90 | -0.74% |
| Nifty Bank | 44,513.45 | -482.25 | -1.07% |
| BIGGEST GAINER | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Adani Enterpris | 2,532.60 | 59.05 | +2.39% |
| BIGGEST LOSER | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| UPL | 600.45 | -18.70 | -3.02% |
| BEST SECTOR | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Nifty Pharma | 15099.20 | 155.80 | +1.04% |
| WORST SECTOR | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Nifty Bank | 44513.40 | -482.30 | -1.07% |
A long build-up was seen in Dixon Technologies, Laurus Lab and MRF, while a short build-up was seen in Vedanta, Godrej Properties and Delta Corp.
Among individual stocks, a volume spike of more than 200 percent was seen in Sun Pharma, MRF and Vedanta.
Poonawalla Fincorp, MOIL, IDBI Bank, Lupin, Zomato Sun Pharma, Autobindo Pharma, RateGain Travel Technologies, Hindustan Copper, Dr Reddy's Laboratories touched their 52-week high on the BSE.
Outlook for August 4
Jatin Gedia, technical research analyst, Sharekhan by BNP Paribas
The Nifty opened gap down and closed 145 points lower. On the daily charts, we can observe that the Nifty saw follow-through selling pressure and closed in the negative for the third consecutive session.
On the downside, it has drifted towards the 40-day moving average (19,285), which can act as immediate support. On the upside, the key hourly moving average 19,560–19,590 shall act as an immediate hurdle in the short term .
Considering the sharp fall in the last couple of trading sessions, we can expect a pullback or consolidation over the next few sessions. Overall, the trend is still negative and we expect levels of 19,100 from a short-term perspective.
Bank Nifty, too, has continued to fall. It closed below the 40-day moving average (4,4861), which is a sign of weakness.
On the downside, the fall appears overstretched and hence a pullback cannot be ruled out. The index can rise to 45,000–45,200, where key hourly moving averages are placed. Overall, the trend is still negative and we expect the index to slip to 44,000 in the short term.
Ajit Mishra, SVP - Technical Research, Religare Broking
The recent drift in global indices is putting pressure on Indian markets and we expect the negative tone to continue.
On the index front, the breakdown of the trend line support added to the negativity but support at 19,300 capped the downside. We reiterate our view to keep a check on positions and focus on risk management.
SOURCE - MONEYCONTROL
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