Domestic equity benchmark indices were overpowered by bears in the final hour of trade, forcing the headline indices to close in the red.
Domestic equity benchmark indices were overpowered by bears in the final hour of trade, forcing the headline indices to close in the red. S&P BSE Sensex slipped 66 points or 0.13% to end at 52,586 points while the Nifty 50 dropped 15 points or 0.10% to close at 15,763. Pharma major Sun Pharma surged 10% after first-quarter results, to close as the top Sensex gainer followed by Tech Mahindra’s 7.11% rally. Bajaj Finance, State Bank of India, Bajaj Finserv, and Tata Steel were the top index drags. Major bank stocks were down in the red. India VIX slipped 1.10%. Bank Nifty was down in the red, closing 0.31% lower at 34,584 points. Broader markets outperformed benchmark indices and closed with gains.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities-
“The week has been volatile for the traders, as benchmark indices corrected sharply after a muted opening. However, once again the Nifty/ Sensex witnessed support near 15500/ 51900 levels and reversed quickly. In the near future, the 15720/ 52500 level could act as a strong support level for traders and below the same correction wave is likely to continue up to 15600/52000. On the flip side, the 15900/53000 level should be the sacrosanct level for the bulls, above the same uptrend formation could continue up to 15960-16050 /53300-53550 levels. On the sectoral front, the texture suggests Metal stocks would continue to outperform in the near term. Any short term corrections would be used to add quality Metal stocks with the medium-term time horizon.”
Vinod Nair, Head of Research at Geojit Financial Services –
“Taking support from pharma, fertilizer and auto stocks, the domestic market attempted to trade positively but failed to stick with the gains amid weak global trend. Eurozone inflation in July rose to 2.2% YoY above European Central Bank’s target impacting the European market and the Chinese market was fragile too. Pharma stocks were back on action beating early worries of weak Q1 results as recent quarterly of major companies were in favor of market expectation. Fertilizer stocks were in focus today as Chinese firms were asked to suspend exports in order to ensure domestic supply”
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments –
“The index is getting nervous at higher levels and today was no different. Every time it goes closer to the 15900 level, it is facing bouts of selling pressures as a result of which it takes a U-turn and collapses. Short term and medium-term supports lie at 15600 and 15400 respectively and as long as these are holding on a closing basis, the propensity of the market continues to be on the upside.”
Sumeet Bagadia, Executive Director, Choice Broking –
“On the technical front, the index has formed a bearish marabozu candle on an hourly time frame which points out weakness for the next trading day. Furthermore, the index has given closing below 50-HMA, which points out weakness for the upcoming session. The MACD indicator is also showing negative crossover on a daily chart which points out a correction in the counter. At present, the nifty has support at 15500 level while resistance comes at 15900 levels.”
S Ranganathan, Head of Research at LKP securities –
“A highly volatile session of trade today with plenty of action across stocks and sectors. Profit Booking was seen in key Pivotals and across high-quality Midcaps to erase the gains for the day. The Pharma Index however bucked the trend with a stellar 3.5% up move today led by the big boy which posted good numbers for the quarter. A day of high volatility amidst a slew of earnings was indeed the highlight for today.”