India’s benchmark indices ended lower for the second consecutive session on August 25, as investors waited for the US Federal Reserve chair’s speech at the annual Jackson Hole conference later in the day for rate cues.
The Sensex closed 365.83 points, or 0.56 percent, down at 64,886.51, and the Nifty declined 120.90 points, or 0.62 percent, to 19,265.80.
The market opened lower on weak global sentiment and remained in the red throughout the session, with the Sensex slipping below 65,000 and Nifty testing 19,200 amid selling across the sectors.
For the week, the Sensex and the Nifty ended flat.
Bajaj Finserv, Asian Paints, Bajaj Finance, ONGC and Bharti Airtel were among the top Nifty gainers, while losers included Dr Reddy's Laboratories, Adani Ports, JSW Steel, Power Grid and Larsen and Toubro.
All sectoral indices ended in the red, with capital goods, FMCG, PSU bank, metal, realty and power down a percent each.
The BSE midcap index was down nearly a percent and the smallcap index 0.2 percent.
A short build-up was seen in Syngene International, L&T Finance Holdings, Ambuja Cements, while a long build-up was seen in Vodafone Idea, Sun TV Network and Escorts Kubota.
SAIL, Zee Entertainment Enterprises and Ipca Laboratories witnessed a volume spike of more than 800 percent in today's session.
Nearly 200 stocks touched their 52-week high on the BSE, including Balaji Telefilms, Genus Power Infrastructures, Titagarh Rail Systems, Gateway Distriparks, Vimta Labs, Texmaco Rail & Engineering, Sun TV Network, Escorts Kubota, Ramky Infrastructure, Mphasis, KPI Green Energy, Atul Auto, Indiabulls Housing Finance.
Outlook for August 28
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.
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.
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