Nifty, Sensex hold steady amid cautious trade ahead of Fed’s Jackson Hole speech, smallcaps see buying

Hindalco, BPCL, Shriram Finance, Tata Steel and LTIMindtree were among the major gainers on the Nifty.

Benchmark indices Nifty, Sensex closed flat on August 19, settling near the flatline as investors awaited fresh cues from the US Federal Reserve. On August 23, Federal Reserve Chairman Jerome Powell will deliver a speech at the Jackson Hole Economic Symposium, which will be watched with bated breath for any indication of monetary policy easing.

At close, the Sensex was down 12.16 points or 0.02 percent at 80,424.68, and the Nifty was up 31.50 points or 0.13 percent at 24,572.70.

About 2,464 shares advanced, 1,090 shares declined, and 96 shares remained unchanged.

Among sectors, Nifty Metal was in the driving seat, gaining almost two percent in today's session after the recent sell-off. Nifty PSU Bank and Nifty Media also ended over a percent higher each.

In sharp contrast to its public-sector counter parts, the Nifty Private Bank index suffered, with private lenders dragging the Bank Nifty index into the red as well. However, Nifty Auto led the gains among indices, falling almost a percent in trade.

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The broader markets saw a mixed trend, where midcap indices eked out minor gains of 0.2-0.3 percent, and Nifty Smallcap indices jumped over 1.7 percent in trade with IIFL, surging over 11 percent; Firstsouce Solutions and Angel One trailed closely.

India VIX, an index to assess market anxiety, continued its downward trend, to settle around the 14.4 level.

Hindalco, BPCL, Shriram Finance, Tata Steel, and LTIMindtree were among the major gainers on the Nifty, while losers included private banks and auto players, such as M&M, IndusInd Bank, Bajaj Auto, Axis Bank, and ICICI Bank.

"The recovery in global markets is supporting the index's positive tone, but the underperformance of banking majors is limiting momentum. Amid all, we recommend maintaining a 'buy on dips' strategy, with a focus on stock selection. Our preference remains for the IT and FMCG sector, and we suggest being selective in others," said Ajit Mishra – SVP, Research, Religare Broking.

On the technical front, Nifty can find support at 24,500 followed by 24,450 and 24,350. "On the higher side, 24,700 can be an immediate resistance, followed by 24,750 and 24,800," said Hardik Matalia, Research Analyst, Choice Broking.

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