Closing Bell: Nifty below 19,300, Sensex down 366 pts; all sectors in the red

Aditya Gaggar Director of Progressive Shares:

On the weekly chart, Nifty50 has formed an Inverted Hammer candlestick pattern which indicates a potential reversal of the trend, and on the daily chart, the Index managed to close above the strong support level of 19,250. The same candlestick pattern was spotted in the weekly chart of BankNifty as well. The immediate support for Nifty is at 19,200 while the higher side is capped at 19,470, and in the case of BankNifty, the support is 43,600 while resistance stood at 44,960. Any uptick in the Nifty and BankNifty will be accompanied by the hidden bullish divergence in the RSI which is an extremely bullish sign.

Except for the pharma sector, all the other sectors are stuck in the range and only breakout on either side will give a proper direction. The ongoing correction in the Pharma sector is likely to continue to the tune of 1-2% before the resumption of an uptrend. Despite the correction in the markets, Mid and Smallcap indices ended the week in green, and a couple of stocks have given a strong breakout while some are on the verge of giving a breakout which indicates a continuation of outperformance by the Broader markets going forward as well.

Amol Athawale, Vice President - Technical Research, Kotak Securities:

There is already great degree of pessimism with regards to slowing global growth due to rising inflation and higher interest rate scenario, and investors taking no chance further resorted to profit taking ahead of the outcome of the Federal Reserve Chairman Jereme Powell’s speech at Jackson Hole symposium. There are fears that the Fed chairman in his speech could highlight worries of rising inflation, and why further rate hike is necessary to bring down the inflation levels.

Technically, the Nifty witnessed profit booking near the 20-day SMA (Simple Moving Average). After a long time, the index has closed below the 50-day SMA which is largely negative. For the positional traders, 19350 could be the trend decider level, above which the market could bounce back till 19450 and 19575 levels. On the other hand, selling pressure is likely to accelerate if the index trade below 19230 and below the same, the market could slip till 19150-19100.
For Bank Nifty, on the lower side 44000 would be the key support zone while 44750 or 50 and 20 day SMA and 45000 could act as immediate hurdle areas for the bulls. Below 44000, it could retest the level of 43750-43500.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

The Nifty opened the gap down today and thereafter witnessed volatile price action throughout the day. It closed in the negative down ~120 points. On the daily charts, we can observe that the selling pressure from the previous trading session continued today as well. It has reached the 38.2% Fibonacci retracement level 19,245 of the rise from 16,828 – 19,992 which makes it a crucial level to watch out for.

On the weekly charts, Nifty has closed negative for the fifth consecutive week which also indicates there is a lack of buying interest. Weekly, daily, and hourly momentum indicators have a negative crossover which is a sell signal. Thus, both price and momentum indicators suggest a continuation of the fall.

Overall, we shall continue to maintain our negative outlook on the index for a target of 19,100. Crucial support is placed at 19,200 – 19,180 while immediate hurdle is placed at 19,360 – 19,400.

The pullback rally in Bank Nifty has fizzled out at the 44,900 – 45,000 zone where resistance in the form of the 50% Fibonacci retracement level was placed. The daily and the hourly momentum indicators provide divergent signal and hence a consolidation is likely. The range of consolidation is likely to be 44,800 – 43,900.

Rupak De, Senior Technical analyst at LKP Securities:

The Nifty index has declined to a significant moving average (55EMA) support level. The sentiment is expected to stay bearish as long as the index remains below 19450, where the 21-day Exponential Moving Average (EMA) is positioned on the daily timeframe. If the index decisively falls below 19240, it could potentially lead the Nifty towards the 19000 mark.

Ajit Mishra, SVP - Technical Research, Religare Broking:

Markets traded under pressure and lost over half a percent, in continuation of Thursday’s decline. Initially, Nifty opened gap-down and remained range bound till the end. It finally settled around the day’s low to close at 19265.80 levels. All sectors traded in sync with the benchmark wherein realty, metal and pharma were the top losers. And, we saw profit taking in the broader indices too.

Nifty has breached the crucial support of short term moving average i.e. 50 EMA on Friday, which indicates the tone to remain negative. We are eyeing 19,100 as the next support. However, a mixed trend on the sectoral front would continue to offer trading opportunities on both sides, so plan your trades accordingly.

Jateen Trivedi, VP Research Analyst at LKP Securities:

The rupee experienced a decline of 0.08rs as the dollar index rallied, possibly influenced by the strong performance the rupee had shown in the preceding days. The ongoing Jackson Hole Symposium, where the Federal Reserve's perspective on the overall economic outlook is anticipated, holds the potential to introduce new significant triggers to the market. 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.

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

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 44000, coinciding with significant put writing, which could act as a stronghold against downward movements. Conversely, resistance can be observed around 45000, 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.

Amol Athawale, Vice President - Technical Research, Kotak Securities:

There is already great degree of pessimism with regards to slowing global growth due to rising inflation and higher interest rate scenario, and investors taking no chance further resorted to profit taking ahead of the outcome of the Federal Reserve Chairman Jereme Powell’s speech at Jackson Hole symposium. There are fears that the Fed chairman in his speech could highlight worries of rising inflation, and why further rate hike is necessary to bring down the inflation levels.

Dilip Parmar, Research Analyst, HDFC Securities.  

On Friday, the rupee traded lower as the dollar strengthened into the risk event and a hawkish tone by Powell is now largely priced in at Jackson Hole later today. However, the rupee registered the first weekly gains in five amid the central bank’s intervention and lower crude oil prices. Regional PMI reports and India's GDP will be the highlight of next week.

India's GDP growth in the second quarter may come in at about 7.8% from the previous 6.1%. Spot USDINR is expected to trade between 82.80 to 82.40, in the coming days.

Vinod Nair, Head of Research at Geojit Financial Services:

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.

S Ranganathan, Head of Research at LKP Securities:

Benchmark Indices opened weak in line with global cues ahead of the FED meet and 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.

Rupee Close:

Indian rupee ended lower at 82.65 per dollar on Friday against Thursday's close of 82.57.

Market Close:

Benchmark indices ended lower on August 25 with Nifty around 19,250 amid selling across the sectors.

At close, the Sensex was down 365.83 points or 0.56 percent at 64,886.51, and the Nifty was down 120.90 points or 0.62 percent at 19,265.80. About 1446 shares advanced, 2079 shares declined, and 110 shares unchanged.

Bajaj Finserv, Asian Paints, Bajaj Finance, ONGC and Bharti Airtel are among the top gainers on the Nifty, while losers are Dr Reddy's Laboratories, Adani Ports, JSW Steel, Power Grid and Larsen and Toubro are among the major losers on the Nifty.

All the sectoral indices ended in the red with capital goods, FMCG, PSU Bank, metal, realty, power down 1 percent each.

BSE Midcap index down nearly 1 percent and Smallcap index down 0.2 percent.

Stock Market Live Updates | JPMorgan View On L&T Technology Services

-Underweight rating, target at Rs 2,900 per share
-FY24 CC organic guide bakes in risks of delayed decision making & renewals
-Continue to see risks on delays in ramp-ups limiting revenue conversion
-Company hasn’t seen budget cuts by clients, semis weakness is largely behind
-Company is staying away from margin-dilutive large cost takeout deals
-Company seeing challenges in getting digital engineering talent due to competition

Stock Market Live Updates | Nomura On Bajaj Finserv 

-Upgrade to buy, target raised to Rs 1,815 per share
-Bajaj Finance contributes 80% value in overall SOTP of Bajaj Finserv
-For other subsidiaries, value comapny at 2x FY25F EV, in-line with ICICI Pru Life
-Valuations lower than HDFC Life & SBI Life due to low VNB margin profile

Prateek Singhal, Head Reinsurance - Howden Insurance Brokers India view on recent amendments to reinsurance regulations announced by IRDAI:

With a vision to foster the entire ecosystem around reinsurance, IRDA has brought about a few amendments that aim to boost the overall capacity in India. The minimum required capital for foreign reinsurance branches has been halved from Rs. 100 crore to Rs. 50 crore, enabling more reinsurers to enter the Indian market. The previously six-level preference hierarchy has been simplified to four levels. The amended Order of Preference for IIOs (International Financial Services Centre Insurance Offices) and FRBs will increase competitiveness, benefiting the sector. All these developments demonstrate the regulator's intention to create India as the new Asian reinsurance centre.

Stock Market Live Updates | Citi View On PB Fintech 

-Buy rating, target at Rs 1,000 per share
-Upbeat stance on growth, management did not rule out 1.5-2x YoY growth in Q2
-Focus on leadership and containing losses in POSP
-Retain margin in near-term & witness gradual upliftment in core business
-Product mix shift will have higher new business drag
-Robust volume growth at Paisabazaar

Sensex Today | Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas:

Indian Rupee depreciated on Friday on strong Dollar and weak domestic markets. However, FII inflows cushioned the downside. The dollar rose on mixed to positive economic data from the US. Weekly unemployment claims declined to 230,000 as compared to 240,000 in the previous week. Core durable goods orders increased by 0.5% in July from 0.5% in June. This raised hawkish expectations. Hawkish comments from Fed officials may also support Yen as they advocated for higher interest rates. However, durable goods orders declined by 5.2% in July versus an increase by 4.4% in June 2023.

We expect Rupee to trade with a slight negative bias on risk aversion in global markets and a strong US Dollar. However, weakness in crude oil prices and inflows by foreign investors may support Rupee at lower levels. Investors remain cautious ahead of US Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium today for cues on the Fed’s path of its Monetary Policy. USDINR spot price is expected to trade in a range of Rs 82.35 to Rs 83.

Stock Market LIVE Updates | Nomura View On Birlasoft

-Initiate buy rating, target at Rs 610 per share
-Significant transformation underway with new leadership
-Expect Birlasoft to head towards industry leading growth in medium term
-Ongoing organisation changes to drive stability and revenue growth
-Expect clarity on USD 1 billion revenue target to come in soon

Sensex Today | Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services:

Gold prices steadied near two-week highs and was headed for their best week in six ahead of mixed economic data from the US and as market participants await comments from Governors of major central banks including Fed Governor Powell that could guide on future interest rates. US 10Y Yield after dropping by more than 2% in the earlier session is inching higher once again; Dollar index also continues inch higher hovering around 10-week high above 104 mark.

Earlier this week, Manufacturing and Services PMI data from major economies were reported well below estimates, supporting an up-move in bullions. However, the number of Americans filing new claims for unemployment benefits fell for a second straight week, US Core Durables goods orders data was also reported better than expectations.

Two Fed officials tentatively welcomed a jump in bond market yields as something that could complement the central bank’s work to slow the economy and get inflation back to the 2% target, while also noting they see a good chance that no more interest rate increases will be needed.

Ahead of the important Jackson hole symposium, probability chart from CME Fed-Watch tool also witnessed a drop in probability for a pause in September meeting by 5% to 80%.

Focus today will also be on the Michigan consumer sentiment data scheduled later in the day. Broader trend on COMEX could be in the range of $1890- 1945 and on domestic front prices could hover in the range of Rs 58,400 – 59,100 could be expected.

Sensex Today | Vishnu Prakash R Pungulia IPO sees 7.48 times booking on bidding Day 2

Investors picked up 16.4 crore equity shares of Vishnu Prakash R Pungulia in the maiden public issue on August 25, the second day of bidding. This was 7.48 times that of the offer size of 2.19 crore shares.

The overwhelming response may be attributed to higher government spending on infrastructure through initiatives such as Atal Mission for Rejuvenation and Urban Transformation, AMRUT and Swachh Bharat, along with healthy financials and fair valuations compared to peers.

High net-worth individuals and retail investors remained ahead in terms of bidding numbers, buying 11.93 times and 9.8 times the allotted quota. Up to 15 percent and 35 percent of the issue portion has been reserved for both categories, respectively.

Qualified institutional buyers, who will get up to 50 percent shares in the issue, have bid 24 percent shares against their reserved portion.

Stock Market LIVE Updates | Suzlon wins a 201.6 MW order from O2 Power Private Limited 

Suzlon Group announced a significantly large new order acquisition for its 3 MW series of wind turbines from Teq Green Power XI Private Limited, part of O2 Power Private Limited. Suzlon will install 64 of its largest wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 3.15 MW each for the 201.6 MW wind power project. The project is expected to be commissioned in 2025.

Stock Market Live Updates | Chennai-based Basilic Fly Studio to launch IPO on September 1

Basilic Fly Studio, a visual effects studio, has decided to launch its maiden public issue on September 1. The offer will close on September 5, while the bidding will be opened for a day for anchor investors on August 31. The firm expected to raise around Rs 65-70 crore via IPO.

The public issue of 68.4 lakh equity shares, which is 29.43 percent of post issue paid-up equity, comprises a fresh issue of 62.4 lakh shares by the company and an offer-for-sale of 6 lakh shares by the promoters.

Promoters Balakrishnan, and Yogalakshmi S, who hold 85.40 percent shareholding in the company, will be offloading 3 lakh equity shares each via OFS.

Public shareholders Umesh Chamdia and Aparna Samir Thakker hold 6.65 percent stake each in the company.

Stock Market Live Updates | Sun TV Network jumps to 21 month high on Q2 earnings optimism

Sun TV Network Ltd's shares surged over 4 percent, to hit nearly 21-month high, marking the third consecutive session of gains. Since 22 August, the stock has risen over 11 percent while so far this year it has jumped nearly 25 percent. Brokerage firm Nuvam said its earnings outlook for the second quarter has brightened after the success of company-produced move Jailer which did Rs 300 crore business in India while it has zoomed past Rs 550 crore gross at the global box office as per media reports.

Stock Market Live Updates | Tatva Chintan gains after fixing floor price of Rs 1704.74 a share for QIP

Tatva Chintan shares were up over a percent in the morning trade on August 25 after the specialty chemical firm set a floor price of Rs 1704.74 a share for its Rs 200 crore QIP.

The floor price is close to the current market price, which is being viewed positively by investors. The firm proposes to raise Rs 200 crore through qualified institutional placement (QIP).

A QIP is a fundraising tool where only qualified institutional buyers can participate unlike in an IPO or FPO.

Tatva Chintan shares have fallen 19 percent since January 1 and 27 percent in the last year, in keeping with the decline in the larger chemical sector.

Stock Market Live Updates | Syrma hits record high, Nuvama sees further 40% upside

Syrma SGS Technology hit a new high of Rs 540 and was trading over 8 percent higher on August 25 afternoon. Nuvama Institutional Equities has retained its “buy” recommendation on the stock with a target price of Rs 760, implying a 40 percent gain from the day’s high.

Its business model’s strength should help Syrma sustain its valuation beyond the present high growth phase, Nuvama Institutional Equities has said, adding it likes the firm’s straightforward execution-focussed strategy.

Syrma is aiming to grow significantly by expanding its size and customer reach.

It is striving for a revenue of $1 billion, a 25 percent return on capital employed (RoCE), and margin in the double digits. Margin will depend on various client sectors but, importantly on greater contribution from the higher-margin Original Design Manufacturing (ODM) segment, the brokerage firm said. Read More

Sensex Today | Market at 2 PM

The Sensex was down 272.52 points or 0.42 percent at 64,979.82, and the Nifty was down 87.40 points or 0.45 percent at 19,299.30. About 1268 shares advanced, 1831 shares declined, and 85 shares unchanged.

Stock Market LIVE Updates | Power Mech Projects board approved raising of funds for an aggregate amount not exceeding Rs 350 crore.

Stock Market Live Updates | HSBC On Banks 

-Base case is that rate cuts will start from Q1FY25

-Pressures to hike repo rates have increased lately

-If rate cuts get pushed out from Q1FY25, banks would see earnings upgrades

-Preferred picks are IndusInd, HDFC Bank, Cholamandalam Investment and Finance Company , Bajaj Finance, ICICI Bank & Axis Bank

European markets were muted on Friday morning as traders await signals from Federal Reserve officials on the likely path of monetary policy.

Sensex Today | BSE Capital Goods index shed 1 percent dragged by GMR Airports Infrastructure, SKF India, Thermax:

Stock Market Live Updates | Citi View On Mphasis 

-Sell rating, target at Rs 2,120 per share
-Mphasis will likely come back to QoQ growth in Q2
-Growth will further improve in Q3 & Q4
-EBIT margin to be in the narrow range, guidance remains unchanged at 15.25-16.25%
-Valuations are at 25x 1-year forward cons EPS
-Risk-reward looks relatively better versus others

Stock Market LIVE Updates | Lupin receives USFDA approval for Pirfenidone Tablets

Lupin has received approval from the United States Food and Drug Administration (USFDA) for its Abbreviated New Drug Application for Pirfenidone Tablets, 267 mg and 801 mg, to market a generic equivalent of Esbriet Tablets, 267 mg and 801 mg of Hoffmann La Roche Inc. This product will be manufactured at Lupin’s Pithampur facility in India.

Stock Market LIVE Updates | Indus Towers' chief information officer Vinod Sivarama Krishnan resigns

Mr Vinod Sivarama Krishnan, Chief Information Officer, designated as Senior Management Personnel of Indus Towers, has decided to pursue opportunities outside the Company and has tendered his resignation today.

His resignation has been accepted and he will be relieved from his duties by September 30, 2023.

Stock Market LIVE Updates | Quinag Acquisition (FPI) exits Manappuram Finance

Foreign portfolio investor Quinag Acquisition (FPI) exited Manappuram Finance by selling entire 8.38 crore equity shares or 9.9% stake via open market transactions at an average price of Rs 140.5 per share. However, BofA Securities Europe SA bought additional 62.6 lakh shares or 0.74% stake in the company at an average price of Rs 140.17 per share, and Chartered Finance and Leasing purchased 50 lakh shares at an average price of Rs 140.3 per share.

Mansi Share & Stock Advisors net bought 36 lakh shares in Manappuram at an average price of Rs 140.29 per share, and F3 Advisors net purchased 35.83 lakh shares at an average price of Rs 140.53 per share.

Stock Market LIVE Updates | Nomura View On Bajaj Finance

-Initiate buy rating, target at Rs 8,700 per share
-Concerns overdone, strong business momentum to continue
-Consistently delivering strong numbers, execution will be key in new segments
-Well diversified liabilities, exit of HDFC limited positive for company
-Fears concerning Jio Fin overdone, things to play out in medium term
-Expect company to deliver AUM CAGR of 27% over FY23-26 & average NIM Of 10%
-Expect average credit cost of 1.6%, should drive CAGR of 25% EPS over FY23-26
-Conversion into bank & inability to scale up new biz remain the key risks

Stock Market LIVE Updates | Promoter offloads 2.55% stake in Sapphire Foods India

Promoter Sapphire Foods Mauritius has sold 16.25 lakh equity shares or 2.55% stake in Sapphire Foods India via open market transaction, at an average price of Rs 1,355 per share. However, Wtcnam Common Trust Funds Trust Emerging Markets Opportunities Portfolio bought 11.14 lakh shares or 1.75% stake at same price.

Stock Market LIVE Updates | Morgan Stanley View On Reliance Industries

-Overweight rating, target at Rs 2,821 per share
-Stake sale in retail to QIA & ramp up in rev from new projects highlight shortening investment
-See earnings picking up pace by 2024
-Wireless broadband launch, rise in gas production & solar module manufacturing to aid earnings