Benchmark indices touched fresh record highs and ended on a positive note on August 9 amid volatility supported by metal and oil & gas names. At close, the Sensex was up 145.29 points, or 0.26 percent, at 55,582.58, and the Nifty was up 33.90 points, or 0.21 percent, at 16,563.
The domestic market failed to maintain its momentum and traded on a flat note throughout the day, as selling was witnessed in key sectors amid weakness in global markets, said Vinod Nair, Head of Research at Geojit Financial Services.
India’s WPI inflation eased for the second consecutive month to 11.16 percent in July against 12.07 percent in June as food and crude prices softened.
"Metals outshone other indices backed by better quarterly earnings. Due to weaker-than-expected Chinese economic data and surge in virus outbreaks, global indices traded under pressure," Nair said.
Tata Steel, Bajaj Finance, M&M, IOC and Britannia Industries were the top Nifty gainers. Maruti Suzuki, Shree Cements, Power Grid Corp, Bajaj Auto and Eicher Motors were among the top losers.
The broader indices underperformed the main indices, with midcap falling 0.18 percent and smallcap indices shedding 0.5 percent.
Among sectors, the Nifty metal index rose 1.5 percent, while selling was seen in the auto, bank, pharma and IT names.
Stocks & sectors
On the BSE, the metal index added nearly 2 percent and oil & gas index rose 0.8 percent, while capital goods, auto, bank, power and realty indices ended in the red.
Among individual stocks, a volume spike of more than 300 percent was seen in IOC, JSW Steel and Apollo Hospitals.
A long buildup was seen in JSW Steel, Apollo Hospitals and Cummis India, while a short buildup was seen in TVS Motor, Coal India and Amara Raja Batteries.
More than 200 stocks, including Bharti Airtel, Nelco, Tech Mahindra and Star Cement, hit a 52-week high on the BSE.
Technical View
The Nifty formed a bullish candle on the daily scale and formed higher highs, higher lows of the last three sessions.
"It has to hold above 16,450 zones to extend the momentum towards 16,700 and 17,000 zones, while on the downside, support shifts higher to 16,350 then 16,300 levels," said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.
Outlook for August 17:
Ashis Biswas, Head, Technical Research, CapitalVia Global Research
The Nifty witnessed some lacklustre movement and an attempt to hold the support at around 16,500. For the short term, it is crucial that the index sustains above 16,500.
There is a deviation in the Nifty 50, Nifty midcap and Nifty smallcap hence traders should to refrain from building a new buying position until improvement is seen in the market breadth.
Santosh Meena , Head of Research, Swastika Investmart
Technically, bullish momentum continued in the Nifty for which 16,650 is the immediate target and 16,900 the next level. On the downside, 16,500-11,650 is an immediate demand zone, whereas 16,350 will be critical support during a correction.
The Bank Nifty is still consolidating in the 35,800-36,200 zone, while 36,500 is the next critical hurdle, above which a rally towards the 37,200-37,700 can be expected.
On the downside, 35,500 will be the immediate support and 35,200-35,000 critical support zone.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
Despite weak global market conditions, Indian markets maintained bullish momentum despite sharp volatility. On the daily chart, the Nifty formed a breakout continuation formation. The texture of the chart suggests that the 16,450-16,400 level could act as a key support level for the day traders.
As long as the index stays above it, the uptrend is likely to continue to 16,600-16,640. In the near future, the market may consolidate near the resistance level of 16,600.
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