Indian benchmark indices continued their gaining momentum for sixth consecutive day on August 21, but Nifty index failed to hold 25,100 amid profit booking at higher levels.
The investors are now awaiting data on US Jobless Claims, Manufacturing PMI data and also Jackson Hole Symposium outcome.
At close, the Sensex was up 142.87 points or 0.17 percent at 82,000.71, and the Nifty was up 33.20 points or 0.13 percent at 25,083.75.
Biggest Nifty gainers were Dr Reddy's Laboratories, Cipla, Bajaj Finserv, ICICI Bank, SBI Life Insurance, while losers were Bajaj Auto, Coal India, Power Grid Corporation, Eternal, Tata Consumer Products.
On the sectoral front, pharma index rose 1%, realty index added 0.4% each, while auto index shed 0.3% and FMCG index declined 0.6%.
The BSE midcap and smallcap indices ended on flat note.
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In stock-specific action, Jupiter Wagons shares rose 3% as arm got LoI worth Rs 215 crore, Kaveri Seeds share price added 5.7% after IIFL upgraded rating to 'add' from 'sell' with target at Rs 1,140, Nazara Technologies shares were down to their lowest level in 15 weeks, Ola Electric Mobility slipped 8.5% after 0.4% equity changed hands in nine blocks.
India Cements share price added 6% as UltraTech Cement to going sell 6.49% stake via OFS, Clean Science share price down 3% after 20% equity change hands in a block, Concord Biotech share price rose 3% after EU GMP completed its first inspection at Limbasi API facility.
More than 120 stocks touched their 52-week highs on the BSE, including KIOCL, Lemon Tree, India Cements, JM Financial, L&T Finance, Sai Life Sciences, Nippon Life India Asset Management, Asahi India, Apollo Hospitals, HDFC AMC, UltraTech Cement, Godfrey Phillips, Fortis Healthcare, Marico, among others. Click to View More
Outlook for August 22
Rupak De, Senior Technical Analyst at LKP Securities
The Nifty traded in a narrow range of 25,050–25,150 throughout the day, reflecting limited volatility. Sentiment remains positive, with the index comfortably holding above the short-term moving average.
The daily RSI is in a bullish crossover and trending higher. On the downside, support is placed at 24,800; as long as this level holds, a buy-on-dips strategy is likely to prevail. On the upside, resistance is seen at 25,250 and 25,500.
Shrikant Chouhan, Head Equity Research, Kotak Securities
Today, the benchmark indices witnessed narrow-range activity. The Nifty ends 33 points higher, while the Sensex was up by 143 points. Among sectors, Pharma and Healthcare indices gained nearly 1 percent, whereas the Capital Market index lost the most, shed over 2 percent. Technically, after a gap-up open, the market experienced range-bound activity throughout the day. On daily charts, it has formed a small candle, indicating indecisiveness between the bulls and the bears.
We are of the view that, the larger market trend is upward, but for day traders, buying on intraday corrections and selling on rallies would be the ideal strategy.
On the downside, 25,000/81700 and 24,950/81500 would act as key support zones, while 25,150/82300 and 25,250/82500 could be crucial resistance levels for the bulls.
However, below 24,950/81500, the sentiment could change. If the index falls below this level, traders may prefer to exit long positions.
Ajit Mishra – SVP, Research, Religare Broking
Markets traded lackluster on the weekly expiry day and ended largely unchanged amid mixed cues. After a flat start, the Nifty moved in a narrow range throughout the session before settling at 25,080. Sectoral performance was mixed, with gains in pharma, realty, and financials, while FMCG, energy, and auto witnessed profit-taking. The broader indices also remained subdued, closing flat to marginally lower. Overall sentiment, however, stayed constructive, with stock-specific moves driving the market.
Investors are closely tracking developments around recent discussions and approvals on GST reforms, which are prompting sector-specific reactions. In addition, global cues remain in focus, particularly the Jackson Hole symposium, where commentary from central bankers could influence sentiment. The IT space, in particular, may witness further rebound once clarity emerges on the global policy outlook.
Amid this backdrop, we maintain a positive view on the market but advise traders to focus on selective opportunities arising from rotational buying across sectors. At the same time, it is prudent to avoid aggressive positioning in the broader indices and adopt a stock-specific approach in the near term.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
Nifty continued to move higher on Thursday amidst choppy movement and closed the day with gains of 33 points. After opening on a positive note, the market moved up further in the early part of the session. Nifty failed to breach above 25150 levels and later shifted into a narrow range movement till the end.
A small red candle was formed on the daily chart after surpassing the hurdle of down sloping trend line at 25050 levels. Technically this market action indicates lack of strength to witness decisive upside breakout. This could be considered as a short term breather in the market amidst uptrend.
The overall uptrend of Nifty remains intact, but short term consolidation or minor weakness can't be ruled out in the next 1-2 sessions before surging higher towards next hurdle of 25300. Immediate support is placed at 25000 levels.
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