The Indian equity market ended lower for the second consecutive session on August 11 amid selling across the sectors barring PSU banks. At close, the Sensex was down 365.53 points, or 0.56 percent, at 65,322.65 and the Nifty ended 114.80 points, or 0.59 percent, lwoer at 19,428.30.
After a negative start, the benchmark indices extended the losses as the day progressed. They recovered a bit in the afternoon but failed to build on it and finished the session near the day's low.
For the week, the Sensex shed 0.6 percent and the Nifty 0.45 percent.
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, the PSU bank index gained 1.2 percent. The pharma index was down a percent, while bank, auto, FMCG, metal and oil & gas were down 0.5 percent each.
BSE midcap and smallcap indices also ended marginally lower.
A long build-up was seen in India Cements, BHEL and REC, while a short build-up was seen in Apollo Tyres, Alkem Lbaoratories and Info Edge.
Among individual stocks, a volume spike of more than 300 percent was seen in Apollo Tyres, HCL Technologies and Info Edge.
More than 100 stocks touched their 52-week high on the BSE, including NCC, Jindal Steel & Power, Jindal Steel & Power, Exide Industries, Coforge, Cupid, Wonderla Holidays, NBCC, Raymond, Suzlon Energy, Texmaco Rail & Engineering, Welspun India and Ashok Leyland.
Outlook for August 14
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.
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.
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