Taking Stock: Sensex, Nifty end lower as investors turn cautious in data-heavy week
Adani Enterprises, Power Grid Corporation, Hindalco Industries, M&M and Divis Labs were top losers on the Nifty. Gainers included Hero MotoCorp, SBI Life Insurance, Cipla, Tech Mahindra and Wipro
Top losers on the Nifty included Adani Enterprises, Power Grid Corporation, Hindalco Industries, M&M and Divis Labs, while gainers were Hero MotoCorp, SBI Life Insurance, Cipla, Tech Mahindra and Wipro.
The Indian benchmark indices erased some of the previous session's gains to end lower after a volatile session on August 8, as investors turned cautious ahead of the RBI policy outcome.
At close, the Sensex was down 106.98 points, or 0.16 percent, at 65,846.50, and the Nifty was down 26.50 points, or 0.14 percent, at 19,570.80.
On the back of mixed global cues, the indices opened flat and erased early gains to close with moderate losses.
The RBI's Monetary Policy Committee (MPC) began its three-day meeting today and will announce the decision on August 10, the day on which the US CPI inflation numbers for July will be released. While the RBI is expected to hold policy rates, American prices will offer a cue to the US Fed's stance, which has a bearing on global markets.
The market participants also keep an eye on Industrial Production (IIP) data to be release on August 11, which came above expectation and at a three-month high at 5.2 for May 2023.
Top losers on the Nifty included Adani Enterprises, Power Grid Corporation, Hindalco Industries, M&M and Divis Labs, while gainers were Hero MotoCorp, SBI Life Insurance, Cipla, Tech Mahindra and Wipro.
The PSU bank index gained 3.3 percent and the pharma index 0.6 percent, while other sectoral indices ended flat to negative.
BSE midcap and smallcap indices ended with marginally higher.
BIGGEST GAINER PRICES CHANGE CHANGE% Hero Motocorp 3,066.90 112.85 +3.82%
BIGGEST LOSER PRICES CHANGE CHANGE% Adani Enterpris 2,474.55 -75.95 -2.98%
BEST SECTOR PRICES CHANGE CHANGE% Nifty PSU Bank 4540.80 148.00 +3.37%
WORST SECTOR PRICES CHANGE CHANGE% Nifty Metal 6544.80 -77.35 -1.17%
A long build-up was seen in Biocon, Dixon Technologies and SBI Life Insurance, while a short build-up was seen in Tata Chemicals, Adani Enterprises and Power Grid.
Among individual stocks, a volume spike of more than 400 percent was seen in Piramal Enterprises, Chambal Fertilisers and Chemicals and Hero MotoCorp.
More than 250 stock touched their 52-week high on the BSE, including Venus Pipes & Tubes, Torrent Pharmaceuticals, Shyam Metalics and Energy, Syngene International, Religare Enterprises, RailTel Corporation of India, PB Fintech, NLC India, Grasim Industries, Patel Engineering, Muthoot Finance, Lupin, L&T Technology Services, Kolte-Patil Developers, Karnataka Bank, ITD Cementation, GMR Airports Infrastructure, Genus Power Infrastructures, Dr. Reddy's Laboratories, Cipla and Cyient.
Outlook for August 9
Osho Krishan, Sr. Analyst, Technical & Derivative Research, Angel One
The Indian equity market had a subdued start tracking the mixed global cues, wherein the benchmark index stayed in a slender range with some choppy moves. The index has snapped its two days of winning streak and concluded the choppy session in negative terrain, with a mere loss of 0.13 percent at 19571 level.
Technically, there has been no significant change in the technical structure of the benchmark index as it keeps hovering near the 20 SMA from the past couple of trading sessions with no assertive moves. The broader markets kept the trader’s fraternity busy while the indices remained tentative. On the technical front, the resistance of the bullish gap withholds the sturdy hurdle and till we do not surpass it in a decisive manner, we are likely to experience some selling pressure at higher levels. On the downside, 19500 - 19440 - 19380 are to be treated as immediate supports.
Going forward, we would advocate traders to stay fussy with stock selection and keep a close tab on the mentioned levels. Also, global and domestic data are in the pipeline for the week and one needs to stay abreast with the developments, which are most likely to dictate the near-term trend in the market.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
The Nifty opened on a positive note however could not capitalize on the gains. It slipped during the day and closed in the negative. On the daily charts, we can observe that the Nifty has witnessed a counter-trend pullback in the past three trading sessions. It has faced resistance around the 20-day moving average (19645) and the 61.82% Fibonacci retracement level (19605) of the fall from 19795 – 19296. The rise of the past three trading sessions is overlapping and thus we are of the opinion that the Index is undergoing a complex correction and the pullback was an “X” wave pullback.
The hourly momentum indicator has a negative crossover which is a sell signal and with the daily momentum indicator already in the sell mode further supports our bearish outlook on the index. Overall, we still shall continue to maintain our negative stance on the Nifty, and we expect levels of 19100 from a short-term perspective.
Bank Nifty traded closed in the positive however it could not surpass the 40-hour moving average indicating selling pressure. It traded within the range of the penultimate trading session (44520 – 45120). Until the extreme of the range are not breached on either side, we can expect the consolidation to continue. The daily momentum indicator has a negative crossover which is a sell signal. Thus, this pullback should be used as a selling opportunity. On the downside, we expect 44000 from a short-term perspective.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
Caution prevailed in the market ahead of the RBI's monetary policy announcement, while weak European and Asian cues saw the local benchmarks linger in negative territory for the majority of the trading session.
Listless trading could be seen till the MPC meeting outcome and global cues will continue to dictate trends in the local market. Technically, after a reversal formation, the market has been witnessing a range bound activity near the 20 day SMA (Simple Moving Average).
For bulls, a fresh uptrend rally is possible only after the dismissal of 19635, and above the same the index could move till 19700-19735. On the flip side, below 19525 the selling pressure is likely to accelerate and could retest the level of 19480-19450.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty snapped a two-day gain and ended marginally in the negative on Aug 08. At close Nifty was down 0.13% or 26.5 points at 19570.9. Smallcap index ended in the positive even as the advance decline ratio remained firm at 0.97:1.
Global stocks mostly ticked lower on Tuesday as investors assessed the latest weak economic data out of China and looked ahead to a key inflation reading from the U.S. on Thursday. China's imports contracted by 12.4% in July, far more than forecasts for a 5% drop. Exports fell by 14.5%, compared with a fall of 12.5% tipped by economists. Italian banks came under pressure after the cabinet approved a 40% windfall tax on lenders. Moody's cut the credit ratings of several small and mid-sized U.S. lenders.
Nifty formed a bearish Engulfing pattern on Aug 08, however a fall below 19524 could result in faster down move. 19634-19678 could be the resistance band for the Nifty in the near term.
SOURCE - MONEYCONTROL
The Indian benchmark indices erased some of the previous session's gains to end lower after a volatile session on August 8, as investors turned cautious ahead of the RBI policy outcome.
At close, the Sensex was down 106.98 points, or 0.16 percent, at 65,846.50, and the Nifty was down 26.50 points, or 0.14 percent, at 19,570.80.
On the back of mixed global cues, the indices opened flat and erased early gains to close with moderate losses.
The RBI's Monetary Policy Committee (MPC) began its three-day meeting today and will announce the decision on August 10, the day on which the US CPI inflation numbers for July will be released. While the RBI is expected to hold policy rates, American prices will offer a cue to the US Fed's stance, which has a bearing on global markets.
The market participants also keep an eye on Industrial Production (IIP) data to be release on August 11, which came above expectation and at a three-month high at 5.2 for May 2023.
Top losers on the Nifty included Adani Enterprises, Power Grid Corporation, Hindalco Industries, M&M and Divis Labs, while gainers were Hero MotoCorp, SBI Life Insurance, Cipla, Tech Mahindra and Wipro.
The PSU bank index gained 3.3 percent and the pharma index 0.6 percent, while other sectoral indices ended flat to negative.
BSE midcap and smallcap indices ended with marginally higher.
| BIGGEST GAINER | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Hero Motocorp | 3,066.90 | 112.85 | +3.82% |
| BIGGEST LOSER | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Adani Enterpris | 2,474.55 | -75.95 | -2.98% |
| BEST SECTOR | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Nifty PSU Bank | 4540.80 | 148.00 | +3.37% |
| WORST SECTOR | PRICES | CHANGE | CHANGE% |
|---|---|---|---|
| Nifty Metal | 6544.80 | -77.35 | -1.17% |
A long build-up was seen in Biocon, Dixon Technologies and SBI Life Insurance, while a short build-up was seen in Tata Chemicals, Adani Enterprises and Power Grid.
Among individual stocks, a volume spike of more than 400 percent was seen in Piramal Enterprises, Chambal Fertilisers and Chemicals and Hero MotoCorp.
More than 250 stock touched their 52-week high on the BSE, including Venus Pipes & Tubes, Torrent Pharmaceuticals, Shyam Metalics and Energy, Syngene International, Religare Enterprises, RailTel Corporation of India, PB Fintech, NLC India, Grasim Industries, Patel Engineering, Muthoot Finance, Lupin, L&T Technology Services, Kolte-Patil Developers, Karnataka Bank, ITD Cementation, GMR Airports Infrastructure, Genus Power Infrastructures, Dr. Reddy's Laboratories, Cipla and Cyient.
Outlook for August 9
Osho Krishan, Sr. Analyst, Technical & Derivative Research, Angel One
The Indian equity market had a subdued start tracking the mixed global cues, wherein the benchmark index stayed in a slender range with some choppy moves. The index has snapped its two days of winning streak and concluded the choppy session in negative terrain, with a mere loss of 0.13 percent at 19571 level.
Technically, there has been no significant change in the technical structure of the benchmark index as it keeps hovering near the 20 SMA from the past couple of trading sessions with no assertive moves. The broader markets kept the trader’s fraternity busy while the indices remained tentative. On the technical front, the resistance of the bullish gap withholds the sturdy hurdle and till we do not surpass it in a decisive manner, we are likely to experience some selling pressure at higher levels. On the downside, 19500 - 19440 - 19380 are to be treated as immediate supports.
Going forward, we would advocate traders to stay fussy with stock selection and keep a close tab on the mentioned levels. Also, global and domestic data are in the pipeline for the week and one needs to stay abreast with the developments, which are most likely to dictate the near-term trend in the market.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
The Nifty opened on a positive note however could not capitalize on the gains. It slipped during the day and closed in the negative. On the daily charts, we can observe that the Nifty has witnessed a counter-trend pullback in the past three trading sessions. It has faced resistance around the 20-day moving average (19645) and the 61.82% Fibonacci retracement level (19605) of the fall from 19795 – 19296. The rise of the past three trading sessions is overlapping and thus we are of the opinion that the Index is undergoing a complex correction and the pullback was an “X” wave pullback.
The hourly momentum indicator has a negative crossover which is a sell signal and with the daily momentum indicator already in the sell mode further supports our bearish outlook on the index. Overall, we still shall continue to maintain our negative stance on the Nifty, and we expect levels of 19100 from a short-term perspective.
Bank Nifty traded closed in the positive however it could not surpass the 40-hour moving average indicating selling pressure. It traded within the range of the penultimate trading session (44520 – 45120). Until the extreme of the range are not breached on either side, we can expect the consolidation to continue. The daily momentum indicator has a negative crossover which is a sell signal. Thus, this pullback should be used as a selling opportunity. On the downside, we expect 44000 from a short-term perspective.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
Caution prevailed in the market ahead of the RBI's monetary policy announcement, while weak European and Asian cues saw the local benchmarks linger in negative territory for the majority of the trading session.
Listless trading could be seen till the MPC meeting outcome and global cues will continue to dictate trends in the local market. Technically, after a reversal formation, the market has been witnessing a range bound activity near the 20 day SMA (Simple Moving Average).
For bulls, a fresh uptrend rally is possible only after the dismissal of 19635, and above the same the index could move till 19700-19735. On the flip side, below 19525 the selling pressure is likely to accelerate and could retest the level of 19480-19450.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty snapped a two-day gain and ended marginally in the negative on Aug 08. At close Nifty was down 0.13% or 26.5 points at 19570.9. Smallcap index ended in the positive even as the advance decline ratio remained firm at 0.97:1.
Global stocks mostly ticked lower on Tuesday as investors assessed the latest weak economic data out of China and looked ahead to a key inflation reading from the U.S. on Thursday. China's imports contracted by 12.4% in July, far more than forecasts for a 5% drop. Exports fell by 14.5%, compared with a fall of 12.5% tipped by economists. Italian banks came under pressure after the cabinet approved a 40% windfall tax on lenders. Moody's cut the credit ratings of several small and mid-sized U.S. lenders.
Nifty formed a bearish Engulfing pattern on Aug 08, however a fall below 19524 could result in faster down move. 19634-19678 could be the resistance band for the Nifty in the near term.
SOURCE - MONEYCONTROL
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