Stock Market Highlights: The Indian equity indices, Sensex and Nifty ended off-day's high Thursday led metals and IT stocks. Broader markets, smallcap and midcap indices underperformed the benchmarks. Among sectors, PSU Bank, financial services and realty indices fell the most, whereas, IT, metal, and FMCG stocks ended in the green.
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Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term trend of Nifty continues to be positive. Having moved up sharply in the last few sessions, there is a possibility of consolidation or minor downward correction from the highs near to its breakout points support around 16,000-16,100 as per the concept of change in polarity. This anticipation is evident after the formation of the Doji pattern on Thursday at the highs. Such anticipated decline could be a buy on dips opportunity in the market as per the concept of change in polarity.
Ajit Mishra, VP - Research, Religare Broking
Market traded volatile and ended marginally in the green amid mixed cues. All eyes are on the RBI monetary policy review outcome which is scheduled on Friday. The decision of status quo on key rates is already priced in however their stance on inflation and commentary of growth will be in focus. We reiterate our view to focus on the selection of stocks as we’re seeing selective participation, largely led by the index majors and other heavyweights. Among the sectors, we suggest giving preference to banking, financials, metal and select IT counters for short term buying.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
Nifty maintained its strong momentum and registered fresh all-time highs of 16,349.45. After a sharp sideways movement intra-day, indices trimmed some gains in the last hour of trade. Technically, the larger texture of the market is positive and is likely to continue in the medium term. However, some profit booking at higher levels is not ruled out near 16,350-16,375 resistance levels. Trade setup suggests that the ideal strategy would be to add long positions near crucial supports. For the swing traders, 16,200 and 16,160 would be the key support level on Nifty to watch out for, and below the same, the index would be vulnerable at the 16,160 levels.
Palak Kothari, Research Associate, Choice Broking
Technically, the index has been trading in the Higher Highs Higher Lows pattern for the 6th consecutive day which suggests further upside movement in the counter. The Nifty50 closed above the previous close, indicating that the trend is bullish, and there are chances for nifty to see levels of 16,500 in the near term. Overall, the index is trading above Upper Bollinger Band & Ichimoku Cloud formation, which suggests a long upward move in the counter. A momentum indicator RSI & MACD is showing positive strength & Stochastic is also trading higher with positive crossover on the daily chart, which indicates a further bullish move. At present, the Nifty50 support shifted up to 16,100 levels while resistance may come around 16,400 levels.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty made a classic Doji after a rise on Aug 05, suggesting indecision at higher levels. Either one or two up gaps made in the course of the journey from 15,885 may come in for filling over the next few sessions. The advance-decline ratio was very bad in the morning session but improved a bit towards the end to look better than the previous day, though very much in the negative. 16,176-16,349 could be the trading band for the Nifty in the next 1-2 sessions.
Rupee At Close | The Indian rupee ended flat at 74.17 per dollar amid buying in the domestic equity market. The local currency opened flat at 74.16 per dollar against previous close of 74.18 and traded in the range of 74.14-74.18.
Rahul Sharma, Co-founder, Equity99
Nifty on the daily charts indicate very strong momentum as we can see six bullish candles consecutively with higher top higher bottom formation, for Friday Nifty has immediate support at 16,260 followed by 16,220 and major support 16,150, Similarly, with closing at 16,294, the next resistance is placed at 16,330 followed by 16,385 and 16,450 as third major resistance. Bank Nifty on Technical charts indicated pressure from the higher levels which was made yesterday near 36,200 levels. For Friday immediate support is at 35,750 followed by 35,600- 35,400 on the lower side and key resistance is placed at 36,000-36,200 & the third resistance at 36,450. For tomorrow, banks will be in focus as RBI will announce Monetary Policy.
Manish Shah, Founder, Niftytriggers.com
Nifty closed the day higher and we see a “Doji” pattern where the open is equal to the close; well almost. The pattern playing out is a Northern Doji which is in the middle of an uptrend as we have not seen any significant extension from the mean. Northern Doji can act as a continuation pattern. Nifty just traded above the R3 Pivot off the weekly at 16,303 and then retraced a bit. Mechanical indicators are pointing that the underlying trend in the markets is bullish. Both the MACD and Directional movement system are in a bullish mode. Nifty saw a gap up two days ago between 16,146-16,176 and the gap could act as a first support zone. The mid-cap index stabilizes after a scare yesterday. No need to press the panic button in this space. Tomorrow's weekly expiry and we expect Nifty could see an uptick. The hero for the day could be Bank Nifty if it trades above 36,155 as there could be a spurt of buying interest.
Rohit Singre, Senior Technical Analyst at LKP Securities
Index managed to close a day on a positive note at 16,295 with minimal gains and formed dragon fly Doji candle pattern on the daily chart which represents, indecision in the markets. Going forward 16,300 will be very quick resistance if managed to sustain above 16,300 zone we may see the index to march towards 16,400 zone quickly but if fails to manage then some profit booking may be seen towards 16,200-16,100 zone which are immediate supports on downside & overall support is placed at 16k mark nay dip near 16k mark will be good buying opportunity.
Vinod Nair, Head of Research, Geojit Financial Services
Despite witnessing consolidation in the opening session, large caps managed to continue trading at record high levels with the support from IT, Metal and FMCG stocks. Banking stocks continued to be under pressure ahead of the RBI’s policy announcement. Importantly, the broad market has started to underperform. Investors should be cautious in the short-term regarding.
Market At Close | Market breadth favours declines; advance-decline ratio 1:2
Market At Close | Here are the highlights of today's trading session
-Sensex & Nifty Close With Minor Gains But At Record Highs For 3rd Straight Day
-Financials Underperform With ICICI Bank & SBI Being Top Losers
-Sensex Rises 123 Points To 54,493 & Nifty 36 Points To 16,295
-Nifty Bank Falls 193 Points To 35,835 While Midcap Index Rises 2 Points To 27,930
-Top 5 Nifty Losers Are Financials (SBI, IndusInd, ICICI, Bajaj Fin, Bajaj Finserv)
-Bharti Airtel Closes 4% Higher But Off 6-month High Of 619 Hit Intra-day
-Vodafone Idea Sees A Sharp Recovery Intra-day, Closes 31% Off Lows
-SBI Sees A Profit Booking After Q1 Earnings, Is Top Nifty Loser
-Escorts Closes With A Cut Of 1%, Loses Mkt Shr In Domestic Tractor Segment
-Bosch Amongst Top Midcap Losers On Cautious Outlook For The Year
-HPCL Falls Over 2% Despite Reporting A Healthy Earnings For Q1
-Chola Invst, Dr Lal, SAIL, NALCO, PI Ind, Navin Fluorine Top Midcap Gainers
-Market Breadth Favours Declines; Advance-Decline Ratio At 1:2
Closing Bell | The Indian equity benchmarks ended off-day's high Thursday as gains in metals and IT stocks were capped by losses in banks. The Sensex ended 123.07 points or 0.23 percent higher at 54,492.84, while the Nifty gained 35.80 points, or 0.22 percent, to close at 16,294.60. Broader markets underperformed the benchmarks as the Nifty Smallcap100 index fell over half a percent, while Nifty Midcap closed flat.
Among sectors, buying was seen in metals, IT and FMCG indices, while Nifty PSU Bank, Nifty Financial Services, Nift Media and Nifty Realty indices fell the most. On the Nifty50, Bharti Airtel, Eicher Motors, ITC, Tech Mahindra and Tata Steel were the top gainers, while SBI, IndusInd Bank, ICICI Bank, Bajaj Finance and Bajaj Finserv were the top laggards. Read here.
Retail Investors - A force to Reckon! India’s robinhood moment! Big question is will the trend continue
Indian Retail investors have become a force to reckon with, matching every $ sold by institutional investors ever since the pandemic broke out last year. For records retail ownership is at a 12 year high and they have invested over $12 bln in the last 15 months, reports CNBC-TV18's Nimesh Shah citing a UBS report. Retail investors have become a Force to reckon with their overall ownership in the equity markets hitting a 12-year high of 9.6%. In fact in the last two quarters they have invested more than 8 billion dollars and ever since a pandemic broke out last year, retail investors have put in Over 12 billion dollars into equities. A disproportionate share of retail money has flown into small and midcap stocks in the last 1 year compared to large cap. Retail investors are also participating through futures & options market. So where are they funding from?.. Households have shifted 1% of bank deposits into equities in last 6 months and in the last quarter itself, they have invested nearly $8bn into equities both direct and via MFs.
Amongst large caps, retail investors lapped up stocks like ITC, HDFC BK, BPCL, Adani Ports & Infosys on the other hand they sold few blue chips like TCS, Tata Motors, Vedanta, Wipro, Bajaj Finserv. Their shopping in small & midcap space is even more interesting – Bought stocks like Yes Bk, IDFC First BK, Krishna Inst, Amara Raja , Tata Power and sold stocks including Mindtree, Voltas, Glenmark, IRCTC, Bata India.
EXCLUSIVE | Sources say Kumar Mangalam Birla Chairman of the Aditya Birla Group has stepped down as Vodafone Idea Chairman to protect personal reputation.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed the continuation of a positive trend and an attempt to hold above the support level above the Nifty50 Index level of 16,200. Sustaining above 16,200 is the key factor from a short-term perspective, maintaining above this level is important for the market to gain momentum and extend the rally until 16,500. The momentum indicators like RSI and MACD indicating a positive outlook to continue.
Aptus Value Housing Finance IPO to open on Aug 10 at a price band of Rs 346-353 per share
Aptus Value Housing Finance has fixed the price band for its Rs 2,780-crore initial public offering IPO) at Rs 346-353 a share. The initial share sale will be open for public subscription on August 10 and conclude on August 12. The IPO comprises a fresh issue of equity shares aggregating to Rs 500 crore and an offer-for-sale of up to 64,590,695 equity shares by the promoter and existing shareholders, the company said. Promoters Padma Anandan, and investors Aravali Investment Holdings, JIH II LLC, GHIOF Mauritius, and Madison India Opportunities IV will be participating in the OFS. Read here
SBI Q1 strong, but how good is bank in recovering bad loans?
The market has cheered State Bank of India’s first-quarter earnings, with the bank managing to contain the stress in its loan book better than what most analysts had estimated. But how good has the bank been when it came to recovering its non-performing assets. From FY17 to Q1FY22, SBI has seen incremental slippages of Rs 3,78,802 crore vs incremental loan growth of Rs 4,47,799 crore. Slippages here mean good loans going bad, writes CNBC-TV18's Abhishek Kothari. In short, cumulative slippages in that period were roughly 85 percent of the bank’s incremental loan growth! This is much lower for other banks like ICICI Bank at 42.2 percent and Axis Bank at 46.5 percent. Read full report here.
Bharti Airtel | The company has partnered with Google Cloud and Cisco to launch ‘Airtel Office Internet’ to accelerate the digital transformation of small businesses.
Dollar holds gains after hawkish Fed comments
The dollar held most gains against a basket of currencies on Thursday after hawkish comments from the US Federal Reserve led markets to move forward the likely timing of a policy tightening. The euro ticked higher at $1.1848, having recoiled from a top of $1.1899 overnight after failing to crack resistance around $1.1910. The dollar also reached 109.75 yen, from a trough of 108.71 on Wednesday, negating what had been a bearish break to the downside.
Oil drops towards $70 as virus concerns weigh
Oil prices declined towards $70 a barrel on Thursday as more countries imposed fresh movement restrictions to counter a surge in COVID-19 cases, though Middle East tensions offered support. Japan is poised to expand emergency restrictions to more prefectures while China, the world's second-largest oil consumer, has imposed restrictions in some cities and cancelled flights, threatening fuel demand. Brent crude oil futures dropped by 38 cents, or 0.54 percent, to $70 a barrel after dipping below that threshold for the first time since July 21. US West Texas Intermediate (WTI) crude futures fell by 34 cents, or 0.5 percent, to $67.81. Both benchmarks fell by more than $2 a barrel on Wednesday.
Heena Naik, Research Analyst - Currency, Angel Broking
The three-day RBI Monetary Policy Meeting is likely to end tomorrow with expectations of no change in the repo and reverse repo rates amid fear of the third Covid-19 wave. The inflation outlook for FY22 could also see a revision from the predicted levels of 5.1 percent. RBI is likely to watch the developing macroeconomic situation for some more time before taking any decisive action on monetary policy. The fear of the third wave would also force the RBI to continue with the growth supporting measures. Inflation rates, liquidity concerns, and Governor Shakitkanta Das’ commentary will be in more focus during this policy.
Chemplast Sanmar IPO to open for subscription on Aug10; price band fixed at Rs 530-541
Chemplast Sanmar, a specialty PVC paste resin manufacturer, will launch its initial public offering (IPO) on August 10 with a price band of Rs 530-541 per equity share. The Rs 3,850-crore public offer, which will close on August 12, comprises a fresh issue of shares worth Rs 1,300 crore and an offer for sale of shares worth Rs 2,550 crore by promoters Sanmar Holdings and Sanmar Engineering Services. At present, the company is 100 percent owned by the promoters. The anchor book may open one day before the issue opening date, i.e. August 9. The IPO market lot size is 27 shares and a retail-individual investor can apply for up to 13 lots. Read full details here.