Indian indices continued their winning run for a third straight session on August 22 amid buying across sectors, barring IT and power. Investors now will keenly watch the unemployment claims, existing home sales and PMI data from the US, ahead of Fed Chair Powell’s speech at Jackson Hole, for confirmation of the rate cut timing.
At close, BSE Sensex was up 147.89 points or 0.18 percent at 81,053.19, and the Nifty was up 41.30 points or 0.17 percent at 24,811.50.
Grasim Industries, Tata Consumer Products, Tata Steel, Bharti Airtel and Apollo Hospitals were among major gainers on the Nifty, while losers were Tata Motors, Dr Reddy's Labs, NTPC, Wipro and M&M.
Among sectors, power index was down one percent, while pharma, oil & gas, auto, IT ended marginally lower. On the other hand, bank, FMCG, metal, realty, telecom indexes were up 0.5-1.4 percent.
The Nifty Information Technology index touched fresh high of 41,834 but ended marginally in red at 41,506.20.
The broader indices extended the gaining momentum for the fifth straight session on August 22, with the BSE midcap and smallcap indices rising 0.6 percent each.
More than 330 stocks touched 52-week high on the BSE including Abbott India, Alembic, Ashok Leyland, Bhansali Engineering, Colgate Palmolive, Coromandel International, Fino Payments, Gillette India, Gufic Bio, Inox Green, Jubilant Foodworks, M&M Financial, Morepen Lab, Mphasis, Persistent Systems, Rane Madras, Sutlej Textiles, Transport Corporation, TVS Electronics, TVS Motor, among others. Click to View Full List
Outlook for August 23
Aditya Gaggar Director of Progressive Shares
Non-directional weekly expiry day ended higher at 24,811.50 with gains of 41.30 points. On a sectoral front, Metal was the top gainer followed by PSU Banks and FMCG while Energy was the major laggard.
Divergence was seen in the broader market performance where midcaps outperformed while smallcaps moved in tandem with the frontline index.
The Index has virtually touched the target of 24,870 (Today's high- 24,867.35). The range of 24,850-25,000 is a bearish gap zone, and considering a one-way rally from the past 5 sessions, a pullback can be anticipated where the index will find support at 24,720.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
Nifty opened on a flat note and consolidated during the day to close with gains of ~41 points. The upmove has been slow steady without any meaningful pullback towards the hourly moving averages. The hourly momentum indicator has a negative crossover along with a negative divergence. Thus, can be a intraday dip and hence caution on longs is advised. The Nifty is also trading close to the 78.6% retracement mark 24830 which shall restrict further upside. Thus, the overall trend remains sideways, and the range of consolidation is 24200 – 24900.
The Bank Nifty witnessed continuation of the positive momentum which started during the second half of the previous trading session. It has managed to close above the key daily moving averages and the daily momentum indicator also has a positive crossover, which is a buy signal. Thus, the Bank Nifty which was underperforming can now witness a upmove towards 51500 – 51900 from short term perspective. A stoploss of 50400 should be maintained for the long positions.
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