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After The Bell: Weak global cues weigh on Indian market, here’s what investors should do on Monday

Pharma stocks were back in action, beating early worries about a weak first quarter, with the recent earnings of major companies meeting market expectations

July 30, 2021 / 04:48 PM IST

Weak global cues amid concerns over sluggish economic growth and rising inflation kept the mood of the market sombre as headline indices the Sensex and the Nifty ended in the red on July 30.

The 30-share pack Sensex closed 66 points, or 0.13 percent, down at 52,586.84, while the Nifty settled 15 points, or 0.10 percent, lower at 15,763.05.

Mid and smallcaps outperformed the frontline stocks. The BSE midcap and smallcap indices closed 0.52 percent and 0.69 percent higher.

Among sectoral indices, BSE metal and energy fell about a percent. On the other hand, BSE healthcare climbed 2.25 percent followed by utilities, auto and industrials indices, which rose up to a percent.

"Taking support from pharma, fertiliser and auto stocks, the domestic market attempted to trade positively but failed to stick with the gains amid weak global trend," Vinod Nair, Head of Research at Geojit Financial Services, said.

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Eurozone inflation in July rose to 2.2 percent year-on-year (YoY), above European Central Bank’s target, impacting the European market and the Chinese market was fragile too, he said.

“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. Fertiliser stocks were in focus today as Chinese firms were asked to suspend exports in order to ensure domestic supply," Nair said.

Here’s what experts suggest investors should do on August 2:

IndexPricesChangeChange%
Sensex60,298.0037.87 +0.06%
Nifty 5017,956.5012.25 +0.07%
Nifty Bank39,656.15194.45 +0.49%
Nifty 50 17,956.50 12.25 (0.07%)
Thu, Aug 18, 2022
Biggest GainerPricesChangeChange%
Kotak Mahindra1,904.5064.80 +3.52%
Biggest LoserPricesChangeChange%
ONGC135.55-4.10 -2.94%
Best SectorPricesChangeChange%
Nifty Metal5977.1554.35 +0.92%
Worst SectorPricesChangeChange%
Nifty IT30018.90-238.00 -0.79%

Expert: Ashis Biswas, Head, Technical Research, CapitalVia Global Research

The market witnessed some positive movements and an attempt to hold the support around 15,800. It is going to be crucial for the market to sustain above 15,800, which will help it gain momentum, leading to an upside till 15,900-15,950. Technical indicators suggest a volatile movement in the market in a small range.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities

The Nifty made a bearish bar on July 30. It gave up all its gains and ended in the negative zone. It made an inverted hammer pattern, which is a bearish formation.

Any fall below 15,700 can take the Nifty to 15,600 and 15,450. Traders in long positions need to keep strict stop loss to protect capital and profits. Fresh longs in the Nifty should be considered only on a closing above 16,000 with higher than average volumes.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The index is getting nervous at higher levels and July 30 was no different. Every time it goes closer to 15,900, it comes under selling pressures, takes a U-turn and collapses.

Short and medium-term supports lie at 15,600 and 15,400 and as long as these levels are held on a closing basis, the propensity of the market continues to be on the upside.

Mazhar Mohammad, Chief Strategist–Technical Research & Trading Advisory, Chartviewindia.in

The bulls once again disappointed as the market witnessed selling pressure in the later part of the session from an intraday high of 15,863, which depicted a shooting star formation.

However, on the weekly charts, a hammer patter was formed as the market swiftly recovered from the intraweek low of 15,513.

If we closely observe the price action of the last five weeks, it appears that the Nifty is stuck in a narrow range out of which four are negative candles.

Hence, the hammer formation on the weekly chart may not have much significance. Monthly charts also registered two back-to-back indecisive candle formations with a narrow range of around 450 points hinting at a pause in momentum.

Therefore, it seems the index may be positioning itself for a make or break kind of level, forcing us to focus on lower timeframe charts where the trading range is prevalent between 15,900 and 15,600 levels.

For any sustainable action, the index needs to breakout out of this range, till then, traders have no option but to remain neutral.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

 

 
Nishant Kumar
first published: Jul 30, 2021 04:48 pm
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