Sensex down for 2nd day, dips 365 pts; Nifty near 19,400; all but PSBs fall

CLOSING BELL ON AUGUST 11, 2023: 14 out of the Sensex 30 stocks declined over a per cent each, while HCL Tech gained 3 per cent on Friday.

Stock Market Highlights: The key benchmark indices extended losses on Friday as investors preferred to stay on the sidelines ahead of the key inflation data on Monday.

The RBI, while holding rates steady in the policy review, had revised its inflation forecast upward to 5.4 per cent for FY24, and said it expects a ‘substantial increase’ in headline inflation in the near term due to the recent spike in vegetable prices.

The S&P BSE Sensex ended near the lows of the day, down 365.53 points at 65,322.65 dragged by weakness in private banking, pharma and metal shares. In the process, the BSE benchmark ended the week with a loss of 398 points.

Meanwhile, the NSE Nifty 50 shed 115 points to settle at 19,428 on Friday.

Among the Sensex 30 shares 14 stocks declined over a per cent each. IndusInd Bank and NTPC slipped over 2 per cent each. Tech Mahindra, Bajaj Finance, Sun Pharma, Hindustan Unilever, Asian Paints, JSW Steel, Infosys, Wipro, Bajaj Finserv, HDFC Bank, Nestle and ICICI Bank were the other p prominent losers, down 1 – 2 per cent each. On the other hand, HCL Technologies rallied 3 per cent on inking $2.1 billion deal with Verizon. Power Grid Corporation of India and Titan were the other visible gainers.

The broader indices also turned negative towards the end of the day. The Nifty MidCap index slipped 0.5 per cent, while the SmallCap was down 0.2 per cent.

Sectorally, the Nifty Media index plunged nearly 2 per cent, and the Pharma index shed 1.5 per cent. Nifty Private Bank and FMCG indices were the other loser losers. The Nifty PSU Bank index was the sole gainer, up 1.3 per cent.

That apart, shares of companies that were either added or deleted to/from the MSCI India and SmallCap indices as part of the MSCI Global Standrd Indices review for August 2023 were in focus on Friday. Supreme Industries, REC and Sula Vineyards were among the top movers. READ MORE

Primary Market Update

The Rs 880 crore TVS Supply Chain Solutions was subscribed up to 92 per cent as of 3:45 PM on Day 2 of the offer period. The issue closes on Monday. Retail portion was subscribed 3.4 times, HNIs 91 per cent.

4:09 PM

Comment :: What strategy should traders adopt now?

Apart from the continued underperformance from the banking majors, profit taking in other key sectors is adding to the pressure. Indications are pointing towards the possibility of retesting 19,300 in Nifty again. Traders should align their positions accordingly and focus more on risk management.

Views by: Ajit Mishra, SVP - Technical Research, Religare Broking

3:55 PM

Tech View :: 'Nifty headed towards 19,100, Bank Nifty 44,000'

Nifty50
On the daily charts, we can observe that the Nifty has witnessed follow-through selling pressure and broken down from the inside bar pattern formed in the previous trading session on the downside. The Nifty is likely to witness continuation of the selling pressure and with both the daily and hourly momentum indicators having a negative crossover it is likely to be trending moves on the downside. On the downside we expect the Nifty to target levels of 19,100. The crucial support zone on the downside is placed at 19,350 – 19,290 and on the upside, resistance is placed at 19,530 – 19,500.

Bank Nifty

Bank Nifty has decisively broken the 44,500 – 45,000 range on the downside indicating weakness. The momentum indicator has a negative crossover which is a sell signal. Thus both price and momentum indicators are suggesting a further downside over the next few trading sessions. On the downside 44,000 is the short-term target.

Views by: Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

3:54 PM

Comment :: What's dragging the markets?

The domestic market continued to experience selling pressure, with banking stocks extending their decline in reaction to the RBI's liquidity absorption measures. The escalating concerns about inflation further weighed down domestic market sentiments. Despite the US CPI coming in lower than expected and the UK GDP beating estimates, global sentiment remained unfavourable.

Views by: Vinod Nair, Head of Research at Geojit Financial Services.

3:52 PM