Sensex slides 366 pts, extends losing run to 5-weeks; Nifty tests 19,250

CLOSING BELL ON AUGUST 25, 2023: The BSE benchmark has shed 2.7 per cent or 1,797 points in the last five straight weeks. HDFC Bank, Larsen & Toubro and ITC were the major laggards on Friday.

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Stock Market Highlights: The equity markets succumbed to all-round selling pressure on Friday after minutes of the RBI August meeting revealed that RBI Governor Das expects headline CPI inflation to harden significantly in July-August. Further, investors preferred to stay on the sidelines ahead of the US Federal chief Jerome Powell's speech at the Jackson Hole Symposium later tonight.

The S&P BSE Sensex dropped to a low of 64,733, and ended the day with a loss of 366 points at 64,887. In the process, BSE benchmark has now extended its weekly losing run to 5-weeks, down 2.7 per cent or 1,797 points during the period.

The NSE Nifty 50 hit a low of 19,230, and settled 121 points lower at 19,266. The Nifty has shed 2.4 per cent or 479 points in the last five weeks.

Larsen & Toubro, IndusInd Bank and JSW Steel down around 2 per cent each were the major losers in the Sensex 30 on Friday. HDFC Bank with a loss of a per cent was a major drag, accounting for over 100 points loss on the Sensex alone.

ITC, Power Grid, Mahindra & Mahindra, UltraTech Cement, HCL Technologies, NTPC, Sun Pharma and SBI were the other prominent losers.

Jio Financial Services had bounced back in intra-day deals after hitting its fifth straight lower circuit. The stock finally ended 1.7 per cent lower. BSE today extended the timeline to remove the stock from its indices to September 01.

On the positive front, Bajaj Finance and Asian Paints gained a per cent each.

In the broader market, the BSE MidCap index plunged 0.9 per cent, while the SmallCap slipped 0.2 per cent.

Sectorally, the BSE Capital Goods, Metal, Power and Realty indices declined over a per cent each.

4:12 PM

Currency outlook :: 'Current strength in USD supported by growing possibility of higher interest rates'

The current strength of the dollar seems to be supported by the growing possibility of higher interest rates in upcoming meetings.

Looking ahead, the trading range for the rupee is projected to be within 82.50 to 82.90. If the rupee manages to breach the upper range, it could potentially move towards 82.10 to 82.00. Conversely, a downward break might push the rupee towards the 83.45 mark. These levels will likely be influenced by the outcome of the Jackson Hole Symposium and any subsequent developments in the global financial landscape.

Views by: Jateen Trivedi, VP Research Analyst at LKP Securities

4:08 PM

Tech View :: 'Bank Nifty has strong support at 44,000'

The Bank Nifty index witnessed an ongoing struggle between bulls and bears, resulting in a phase of range-bound trading.The support level is clearly visible around 44,000, coinciding with significant put writing, which could act as a stronghold against downward movements.

Conversely, resistance can be observed around 45,000, where the highest open interest is seen on the call side, indicating potential selling pressure. A decisive break on either side of this range could trigger trending moves. Despite this, the prevailing bias appears to lean towards the bullish side within the range.

Views by: Kunal Shah, Senior Technical & Derivative analyst at LKP Securities

4:04 PM

Tech View :: 'Nifty could break 19,000 if...'

The Nifty index has declined to a significant moving average (55-EMA) support level. The sentiment is expected to stay bearish as long as the index remains below 19,450, where the 21-day Exponential Moving Average (EMA) is positioned on the daily timeframe. If the index decisively falls below 19,240, it could potentially lead the Nifty towards the 19,000 mark.

Views by: Rupak De, Senior Technical analyst at LKP Securities

4:01 PM

Comment :: 'Investor caution is evident globally'

Investor caution is evident globally, as concerns about potential rate hikes dominate the prevailing sentiment ahead of the Jackson Hole meeting. Furthermore, the minutes from the RBI MPC meeting reiterated their dedication to managing inflation within the target range, given the elevated domestic inflation levels. However, the expectation of a rate hike remains subdued, as the current high inflation is perceived as transitory

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

3:56 PM

Comment :: 'Investors await Powell speech, RIL AGM'

Benchmark Indices opened weak in line with global cues ahead of Powell's speech today. Back home, all sectoral indices ended in the red with even the Midcap Index down over a percentage. D-Street bulls preferred to wait until Monday for the big AGM, which probably could be of interest to investors.

Views by: S Ranganathan, Head of Research at LKP Securities

3:53 PM

Bond market :: 10-year bond yield harden on hawkish MPC minutes, ahead of Powell speech

>> US Fed Chair Jerome Powell is slated to speak at the Jackson Hole Symposium later tonight

3:51 PM

Currency check :: Rupee ends at 82.65/$ against Thursday’s close of 82.57/$

3:50 PM

Broader markets end lower; SmallCap index outperforms peers

3:48 PM

Buzzing stock :: Syrma SJS hits record high; 1-year lock-in period ended today

3:47 PM

Buzzing stock :: Shoppers Stop sinks nearly 13% as MD & CEO Nair resigns

3:46 PM

Buzzing stock : Vodafone Idea jumps 9% amid heavy volume towards fag-end

3:45 PM

Buzzing stock :: Universal Auto freezes at 20% upper circuit as Ashish Kacholia picks stake

>> Kacholia bought over 1 million shares on Thursday

3:44 PM

Buzzing stock :: Paytm erases gains after rising 4% post block deal

3:42 PM

Sector check :: Nifty Metal dips over 1% on China slowdown woes

China, which accounts for almost half of the world's metal consumption, is facing headwinds of an economic slowdown, which poses a key threat to global commodities demand including steel. READ MORE