The profit booking continued on second consecutive session on August 28 as the benchmark indices fell nearly 1% after 50% US tariffs on India came into effect.
The market opened lower, continuing Tuesday's fall, with Nifty falling below 24,500, intraday, amid selling across the sectors. However, buying at lower levels, especially in consumer durables names, capped the losses.
At close, the Sensex was down 705.97 points or 0.87% at 80,080.57, and the Nifty was down 211.15 points or 0.85% at 24,500.90. The BSE midcap index shed 1 percent and smallcap index declined 0.9%.
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Biggest Nifty losers included Shriram Finance, HCL Technologies, TCS, Power Grid Corporation, Infosys, while gainers were Titan Company, L&T, Coal India, Asian Paints, Hero MotoCorp.
Among sectors, except Consumer Durables, all other sectoral indices ended in the red with bank, IT, realty, FMCG, telecom down 1% each.
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In stock-specific action, Interglobe Aviation shares plunged 5% on block deal, Sri Lotus Developers shares were down 4.4% as consolidated profit fell 35%, Shilpa Medicare shares gained 2% after arm partners with Pharma Pharmaceutical Industries, SMS Pharmaceuticals shares were down 4% despite EIR from USFDA, Lemon Tree Hotels shares gained on signing license agreement for a hotel property in Maharashtra, Hero MotoCorp shares gained after Jefferies upgraded stock to 'hold' with target of Rs 5,200.
More than 80 stocks touched their 52-week highs on the BSE, including UNO Minda, Authum Investment, Maruti Suzuki, Nykaa, Eicher Motors, Nuvoco Vistas, TVS Motor, among others. Click to View More
Outlook for August 29
Ajit Mishra – SVP, Research, Religare Broking
Markets extended their decline on monthly expiry day, losing nearly a percent and continuing the corrective trend. After a weak opening, the Nifty staged a swift rebound in the initial hours, but sustained pressure from heavyweight stocks across key sectors dragged the index to fresh lows as the session progressed. It eventually settled near the day’s low at 24,500.9. Sectoral performance was broadly weak, with IT, realty, and banking stocks leading the decline. The broader indices also mirrored this trend, with mid- and small-cap segments slipping close to a percent each.
Sentiment remained under strain from the implementation of additional 25% U.S. tariff, which, combined with weakness in heavyweights such as banks, is exerting steady pressure on the markets. In the absence of major domestic triggers, global developments continue to drive near-term direction.
On the technical front, the Nifty has breached its medium-term support at the 100-day EMA around 24,600. The next support is seen in the 24,250–24,350 zone, which aligns with the previous swing low and the long-term 200-day EMA. On the upside, the 24,650–24,800 region, earlier a support zone, is now likely to act as resistance. Traders are advised to align positions with the prevailing trend and exercise heightened caution in stock selection.
Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities
Technically, the Nifty is showing strong signs of weakness. The index is now trading below its 20-day, 50-day and 100-day EMAs, all of which have started to edge lower, reflecting a build-up of downward momentum. This alignment of key averages turning south indicates that short-term as well as medium-term trends are under pressure.
Adding to the concern, the daily RSI is on the verge of slipping below the crucial 40 mark and continues to remain in a declining trajectory. A breach of this level would further strengthen the bearish undertone, suggesting that momentum is favouring sellers over buyers.
From a technical perspective, unless the Nifty reclaims its short-term moving averages with strong volume support, the bias is likely to remain negative in the near term. Going ahead, the 100-day EMA zone of 24630–24650 is expected to act as a crucial hurdle for the Nifty. As long as the index remains below this zone, the overall sentiment is likely to stay weak. On the downside, the index may first drift towards 24350, and a sustained breach of that support could open the gates for a further slide towards the 24200 level.
A decisive move above 24650 would be needed to negate the bearish momentum and signal the possibility of a short-term recovery. Until then, the market trend remains tilted in favour of the bears.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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