Closing Bell: Nifty below 19,450, Sensex down 366 pts; PSU Banks gain

Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty fell for the second consecutive session on August 11, pulled down by weak global cues. At close, Nifty was down 0.59% or 114.9 points at 19428.3. Broad market indices fell less than the Nifty even as the advance decline ratio dipped to 0.65:1.

European and Asian stocks fell on Friday as traders closed out a week marred by geopolitical tensions between China and the US, and softer economic data that dented valuations in China. Hawkish language from a US central banker also put traders in a risk-off mood.

Nifty on August 11, built on the weakness from the previous session. On a weekly basis, it fell for the third consecutive week falling 0.45%. As the Q1 results season has come to an end, we could see a broad based profit taking in the markets even as the global cues are also not helping currently. 19300 could be the next support for Nifty while 19645 could now prove to be a resistance. A breach of 19300 could take the Nifty to 18887 over the next few weeks.

Rupak De, Senior Technical analyst at LKP Securities:

Aside from the first hour, the Nifty remained predominantly rangebound, with the benchmark index slipping below 19500. However, it did not experience a significant correction as traders chose to stay on the sidelines due to the upcoming holidays. From a technical standpoint, the Nifty continues to exhibit a bearish trend as it remains below the 21-day Exponential Moving Average (21EMA).

The Relative Strength Index (RSI) is also indicating a bearish crossover. In the short term, there's a possibility that the index might decline towards the 19300 level. On the upside, there's a resistance level situated at 19500.

Ajit Mishra, SVP - Technical Research, Religare Broking:

Markets traded under pressure and lost over half a percent, in continuation to the prevailing corrective tone. After the initial fall, Nifty hovered in a range but selling pressure in the final hours pushed the index further lower. Eventually, it settled closer to the day’s low at 19428.30 levels. Most sectors traded in sync and ended in the red wherein pharma, financials and FMCG were among the top losers. The broader indices too drifted lower and lost nearly half a percent each.

Apart from the continued underperformance from the banking majors, profit taking in other key sectors is adding to the pressure. Indications are pointing towards the possibility of retesting 19,300 in Nifty again. Traders should align their positions accordingly and focus more on risk management.

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

The Bank Nifty index is currently dominated by bears, as evidenced by the breach of the crucial support level at 44400 on a closing basis.The prevailing sentiment seems to lean towards selling on rallies, with an immediate resistance level observed around 44500.

Looking ahead, the next significant support is positioned at 43700, which might serve as a buying zone for the bulls, potentially triggering a bounce back.

Dilip Parmar, Research Analyst, HDFC Securities:

Although the Indian rupee lost ground for a third consecutive week, it outperformed among Asian currencies after the RBI's status quo by removing extra liquidity. A weaker Asian currency and higher agriculture commodity prices also adversely affected the rupee.

Next week will be a holiday-truncated week for the forex market, with bank holidays on Tuesday and Wednesday on account of Independence Day and Parsi New Year, respectively. The trading activity will remain light, but the direction for the rupee remains downward, and the rupee could see a fall below 82.95 in the coming days.

Vinod Nair, Head of Research at Geojit Financial Services

The domestic market continued to experience selling pressure, with banking stocks extending their decline in reaction to the RBI's liquidity absorption measures. The escalating concerns about inflation further weighed down domestic market sentiments. Despite the US CPI coming in lower than expected and the UK GDP beating estimates, global sentiment remained unfavourable.

Amol Athawale, Vice President - Technical Research, Kotak Securities

Weak European and Asian market cues coupled with concerns that China slipping into stagflation amid slackening demand is making investors jittery and prompting them to offload in domestic equities. With FII flows turning choppy this month so far, markets are struggling to maintain the upward bias amid rise in intra-day volatile trades. Technically, during the week, the market is consistently witnessing selling pressure near the 20-day SMA (Simple Moving Average). On daily and intraday charts, the Nifty has formed a lower top formation, which indicates further weakness from the current levels.

As long as the index is trading below 19560, the weak texture is likely to continue and could retest the level of 19300-19250. On the flip side, above 19560, the chances of hitting 19670-19700 levels are bright.

For Bank Nifty, it is trading below the 50-day SMA and holding a lower top formation on daily charts, which is largely negative. For traders, the 50-day SMA or 44700 would act as a key level to watch out for and below the same it could slip till 44000-43700. On the other hand, above 44700, the index could rally till 45000-45200.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:

The Nifty opened on a flat note and has drifted lower throughout the day to close around the lows for the day down ~100 points. On the daily charts, we can observe that the Nifty has witnessed follow-through selling pressure and broken down from the inside bar pattern formed in the previous trading session on the downside. The Nifty is likely to witness continuation of the selling pressure and with both the daily and hourly momentum indicators having a negative crossover, it is likely to be trending moves on the downside. On the downside, we expect the Nifty to target levels of 19100. The crucial support zone on the downside is placed at 19350 – 19290 and on the upside, resistance is placed at 19530 – 19500.

Bank Nifty has decisively broken the 44500 – 45000 range on the downside indicating weakness. The momentum indicator has a negative crossover which is a sell signal. Thus both price and momentum indicators are suggesting a further downside over the next few trading sessions. On the downside 44000 is the short-term target.

Sensex Today | Rupee Close:

Indian rupee ended 14 paise lower at 82.85 per dollar on Friday against Thursday's close of 82.71.

Market Close

: Benchmark indices ended lower for the second consecutive session on August 11 with Nifty below 19,450.

At close, the Sensex was down 365.53 points or 0.56 percent at 65,322.65, and the Nifty was down 114.80 points or 0.59 percent at 19,428.30. About 1491 shares advanced, 1988 shares declined, and 136 shares unchanged.

Top losers on the Nifty were IndusInd Bank, NTPC, SBI Life Insurance, Divis Labs and UPL, while gainers included HCL Technologies, Titan Company, Power Grid Corporation, UltraTech Cement and Reliance Industries.

Among sectors, PSU Bank index gained 1.2 percent and pharma index down 1 percent, while bank, auto, FMCG, metal and oil & gas down 0.5 percent each.

The BSE midcap and smallcap indices also ended with marginally losses.

Stock Market LIVE Updates | Hindustan Aeronautics Q1 Results:

Net profit up 30.3% at Rs 814.1 crore versus Rs 620 crore and revenue up 8.1% at Rs 3,915.4 crore versus Rs 3,622.5 crore, YoY.

Sensex Today | Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas:

We expect crude oil prices to see some consolidation hereon as the data released through the weak send worrying signals from China as the economy is on the deflationary trail on an annual basis. Oil prices jumped around 20% in six weeks fueled by the supply cuts of around 5% of global supplies from OPEC+. WTI prices trade above $82/b on Friday and may see the first weekly decline after six straight weeks. The US headline inflation has shown an uptick of 0.2% in July which is expected to jump further in the coming months which will keep the central bank policymakers on tight ropes.

Outlook: Overall oil prices are set to breach $85 supported by the planned output cuts from OPEC+ but the demand side fundamentally deteriorating faster in China and Eurozone to drag down the global expansion. Expect prices to see some correction to hold around $80.

Stock Market LIVE Updates | Morgan Stanley View On Aarti Industries

-Equal-weight rating, target at Rs 458 per share
-Company did not give any fresh guidance for FY25
-Investors have been focussed on guidance & giving pushback to our conservative view

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

Indian Rupee depreciated on a positive US Dollar and weak domestic markets. However, FII inflows and overnight decline in crude oil prices cushioned the downside. US Dollar gained on elevated US inflation data which raised expectations of one more rate hike by the US Federal Reserve in 2023. However, weekly unemployment claims and budget deficit trailed the forecast.

We expect Rupee to trade with a negative bias on risk aversion in global markets and elevated crude oil prices. However, fresh inflows by FIIs may support Rupee at lower levels.

Traders may take cues from India’s industrial production and US PPI and consumer sentiment data. We expect the USDINR spot to trade in the range of 82.40 to 83.30 in the near term.

Stock Market LIVE Updates | Nomura View On Berger Paints 

-Reduce rating, target at Rs 600 per share
-Earnings above estimate, decorative volume better than peers, raise margin guidance
-Strong volume growth sustained, double-digit growth outlook in FY24

Stock Market LIVE Updates | NCLAT put stay on NCLT order of initiation of Corporate Insolvency Resolution Process (CIRP) against Coffee Day Enterprises' material subsidiary Coffee Day Global Limited. 

Sensex Today | TVS Supply Chain Solutions IPO sees 87% booking on 2nd day of bidding

The public issue of TVS Supply Chain Solutions, a part of TVS Mobility Group, has received decent response from investors as the participants have bought 2.19 crore equity shares against an offer size of 2.51 crores, resulting into a 87 percent subscription by August 11, the second day of bidding.

Retail investors remained aggressive, buying 3.20 times the portion set aside for them, which is 10 percent of the offer size. High net-worth individuals have bid 88 percent shares of their portion which is 15 percent of the total IPO size. The company has reserved 75 percent portion of the IPO for qualified institutional buyers who have bought 8 percent shares so far.

The Rs 880-crore public issue was subscribed 55 percent on its first day of bidding. The price band for the offer, which will close on August 14, has been set at Rs 187-197 per share.

Stock Market LIVE Updates | Jefferies View On Samvardhana Motherson International

-Buy rating, target at Rs 115 per share
-EBITDA rose 79 percent YoY while net profit was 4x YoY, both in-line with estimate
-Topline rose 28 percent YoY with double-digit growth across key segments; margin expanded
-Company’s operating performance started to improve in FY23, see EBITDA doubling over FY23-26

Sensex Today | Market at 3 PM

The Sensex was down 321.93 points or 0.49 percent at 65,366.25, and the Nifty was down 106.70 points or 0.55 percent at 19,436.40. About 1383 shares advanced, 1742 shares declined, and 90 shares unchanged.

Stock Market LIVE Updates | Morgan Stanley View On Page Industries

-Overweight rating, target at Rs 43,068 per share
-Weak topline, EBITDA margin was aided by cost optimisation initiatives
-As per management revenue & volume growth remained challenged due to market conditions
-Management remains convinced that this is merely a transient phase

Stock Market LIVE Updates | Rana Sugars Q1 Earnings:

Net profit down 1.3% at Rs 15.4 crore versus Rs 16 crore and revenue up 17% at Rs 500 crore versus Rs 427.4 crore, YoY.

Sensex Today | Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Indian markets held steady despite global ripples, with Nifty and Sensex down 0.5%. Sectors shifted, IT and Healthcare gained (2.7% and 1.3%), while Consumer Durable, Capital Goods, FMCG, Metals, Oil and Gas, and Realty dipped.

RBI's cautious stance and global inflation trends shaped the landscape. Internationally, U.S. inflation eased and the UK beat growth expectations. Singapore adjusted forecasts amidst global economic fragility.

Stock Market LIVE Updates | TTK Prestige reports Q1 earnings

--Net profit down 9% at Rs48 cr vs Rs53 cr (YoY)

--Revenue down 7% at Rs588 cr vs Rs629 cr (YoY)

--EBITDA down 11% at Rs174 cr vs Rs195 cr (YoY)

--EBITDA margin at 29.6% vs 31% (YoY)

Stock Market LIVE Updates | 

BEML reports Q1 earnings

--Net loss at Rs75 cr vs loss of Rs82.4 cr (YoY)

--Revenue down 14% at Rs577 cr vs Rs670 cr (YoY)

--EBITDA loss at Rs50.5 cr vs EBITDA loss of Rs55 cr (YoY)

Stock Market LIVE Updates | 

Dredging Corp reports Q1 earnings

--Net profit at Rs15.2 cr vs loss of Rs14.2 cr (YoY)

--Revenue down 39.4% at Rs204.4 cr vs Rs337.2 cr (YoY)

--EBITDA Rs56.1 cr vs Rs26.8 cr (YoY)

--EBITDA margin at 27.5% vs 8% (YoY)

Stock Market LIVE Updates | Vinati Organics reports Q1 earnings

- Net profit at Rs83.2 cr vs Rs115 cr (YoY)

- Revenue down 14.4% at Rs431 cr vs Rs503.4 cr (YoY)

- EBITDA down 28.4% at Rs109.0 cr vs Rs152.2 cr (YoY)

- EBITDA margin at 25.3% vs 30.2% (YoY)

Stock Market LIVE Updates | Apollo Hospitals Enterprises Q1 Earnings:

Consolidated net profit down 46.5% at Rs 173.4 crore versus Rs 323.8 crore and revenue up 16.4% at Rs 4,417.8 crore versus Rs 3,795.6 crore, YoY.

Sensex Today | TVS Supply Chain Solutions IPO sees 84% booking on 2nd day of bidding

The public issue of TVS Supply Chain Solutions, a part of TVS Mobility Group, has received decent response from investors as the participants have bought 2.10 crore equity shares against an offer size of 2.51 crores, resulting into a 84 percent subscription by August 11, the second day of bidding.

Retail investors remained aggressive, buying 3.03 times the portion set aside for them, which is 10 percent of the offer size. High net-worth individuals have bid 86 percent shares of their portion which is 15 percent of the total IPO size. The company has reserved 75 percent portion of the IPO for qualified institutional buyers who have bought 8 percent shares so far.

The Rs 880-crore public issue was subscribed 55 percent on its first day of bidding. The price band for the offer, which will close on August 14, has been set at Rs 187-197 per share.

Stock Market LIVE Updates | Vinati Organics Q1 Results:

Net profit at Rs 83.2 crore versus Rs 115 crore and revenue down 14.4% at Rs 431 crore versus Rs 503.4 crore, YoY.

Stock Market LIVE Updates | Marine Electricals Q1 Results:

Net profit up 38.5% at Rs 3.6 crore versus Rs 3 crore and revenue up 22.4% at Rs 101.1 crore versus Rs 82.6 crore, YoY.

Stock Market LIVE Updates | Jyoti Structures Q1 Results:

Net profit at Rs 2.4 crore versus loss of Rs 0.1 crore and revenue at Rs 185.2 crore versus Rs 15.6 crore, YoY.

Sensex Today | Market at 2 PM

The Sensex was down 176.51 points or 0.27 percent at 65,511.67, and the Nifty was down 59.10 points or 0.30 percent at 19,484. About 1460 shares advanced, 1641 shares declined, and 93 shares unchanged.

Stock Market LIVE Updates | Morgan Stanley View On Grasim Industries

-Overweight rating, target at Rs 1,985 per share
-Standalone EBITDA better than estimate led by both viscose & chemical businesses
-B2B e-comm business is now live, paints business launch timelines are on track

Stock Market LIVE Updates | Info Edge Q1 Results

Net profit up 34.7% at Rs 200 crore versus Rs 148 crore and revenue up 15.1% at Rs 584.2 crore versus Rs 507.6 crore, YoY.

Stock Market LIVE Updates | Macquarie View On Container Corporation of India

-Neutral rating, target at Rs 620 per share
-Weaker realisation and higher land license fee led to an all-around miss
-Balance between market share and profitability key
-Net income came in 10 percent/15 percent below estimates
-Despite volume growth, price decline was an offset leading to revenue decline

Stock Market LIVE Updates | GVK Power Q1 Results:

Net profit at Rs 118.7 crore versus loss of Rs 356.7 crore and revenue down 18.6 percent at Rs 500.4 crore versus Rs 614.7 crore, YoY.

Stock Market LIVE Updates | Godrej Industries Q1 Results:

Net profit down 12.7 percent at Rs 178.1 crore versus Rs 204 crore and revenue up 12 percent at Rs 4,505.7 crore versus Rs 4,024.6 crore, YoY.

Stock Market LIVE Updates | Cochin Shipyard Q1 Results:

Net profit at Rs 98.7 crore versus Rs 42.2 crore and revenue up 7.9% at Rs 475.9 crore versus Rs 440.9 crore, YoY.

Stock Market LIVE Updates | Kiri Industries Q1 Results:

Net loss at Rs 2.5 crore versus profit of Rs 53.5 crore and revenue down 18 percent at Rs 227 crore versus Rs 276.7 crore, YoY.y

Stock Market LIVE Updates | TTK Prestige Q1 Results:        

Net profit down 9 percent at Rs 48 crore versus Rs 53 crore and revenue down 7 percent at Rs 588 crore vs Rs 629 crore, YoY.

Stock Market LIVE Updates | NIIT Q1 Results:

Net profit at Rs 2.2 crore vs loss of Rs 6.5 crore and revenue down 33.5 percent at Rs 62.5 crore versus Rs 94 crore, YoY.