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Taking Stock: Market ends lower after 6 days of gains; all eyes on RBI policy tomorrow

Headed by RBI Governor Shaktikanta Das, the MPC is scheduled to announce its decision on August 5 at 10:00 am.

August 04, 2022 / 04:31 PM IST

The Indian equity market ended lower on August 4 snapping its six-day winning streak, a day before the Reserve Bank of India (RBI) announces the monetary policy.

At Close, the Sensex was down 51.73 points or 0.09% at 58,298.80, and the Nifty was down 6.20 points or 0.04% at 17,382.

Headed by RBI Governor Shaktikanta Das, the MPC is scheduled to announce its decision on August 5 at 10:00 am.

Also Read - Moneycontrol Poll | MPC set to hike repo rate by at least 35 bps

"Taking positive momentum from the robust US economic data, the domestic market opened with gains, while worries over the US-China conflict kept investors on the defensive, leading to heavy volatility," said Vinod Nair, Head of Research at Geojit Financial Services.

Close

"Weak PMI and trade deficit data witnessed downside pressure on the Indian rupee & equity market. However, sustained foreign interest in Indian equities is led to buying on dips, resulting in a late recovery," he added.

Cipla, Sun Pharma, Nestle India, Infosys and Apollo Hospitals were among the major gainers on the Nifty. The losers included NTPC, Tata Consumer Products, Coal India, SBI and Reliance Industries.

Among sectors, Nifty Metal, Information Technology and Pharma gained 1-2 percent, while Energy and PSU Bank indices down 1-1.7 percent.

IndexPricesChangeChange%
Sensex58,853.07465.14 +0.80%
Nifty 5017,525.10127.60 +0.73%
Nifty Bank38,237.40316.80 +0.84%
Nifty 50 17,525.10 127.60 (0.73%)
Mon, Aug 08, 2022
Biggest GainerPricesChangeChange%
Coal India215.406.95 +3.33%
Biggest LoserPricesChangeChange%
BPCL325.65-10.75 -3.20%
Best SectorPricesChangeChange%
Nifty Metal5668.0072.15 +1.29%
Worst SectorPricesChangeChange%
Nifty PSU Bank2816.80-12.60 -0.45%

Also Read - India's economic growth on track, but a 'jobless' one': Raghuram Rajan

Stocks and sectors

On the BSE Healthcare, Metal, Information Technology indices rose 1-2 percent, however Realty index shed 1 percent.

The broader indices outperformed the benchmarks with BSE midcap and smallcap indices ended marginally higher.

A long build-up was seen in Zydus Lifesciences, Lupin and Indiamart Intermesh, while a short build-up was seen in Gujarat Gas, Balrampur Chini Mills and Can Fin Home.

Among individual stocks, a volume spike of more than 400 percent was seen in Lupin, PI Industries and Indiamart Intermesh.

Around 100 stocks touched their 52-week highs on the BSE including Karur Vysya Bank, Speciality Restaurants, Adani Power, T D Power Systems, PVR, MRF, Indian Hotels and Eicher Motors

Outlook for August 5

Rupak De, Senior Technical Analyst at LKP Securities:

Nifty remained highly volatile before closing flat for the day. On the higher end, it found resistance around 17500 and slipped lower. The momentum indicator RSI is in bullish crossover.

The trend is likely to remain sideways to negative as long as it remains below 17500. On the lower end, support exists around 17100-17000.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:

Profit taking finally came into play after 6-session gains, as rate-sensitive sectors like banking and realty faltered ahead of the RBI's policy meet on Friday. Key indices pared most of their losses towards the end as strength in other Asian and European indices aided sentiment.

Technically, between 17400 -17450, the Nifty consistently witnessed profit booking. The index has formed a bearish candle which indicates indecisiveness between the bulls and bears. The Nifty has support at 17250 and below the same the index could slip till 17150-17100. On the flip side, a fresh breakout is possible only after 17450 and could move up to 17560-17600 levels.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services:

Volatility has increased in the domestic market in the last 3 days. However strong buying at lower levels have helped Nifty to sustain its positive closing for 6-7 consecutive days. This shows the underlying strength in the Indian markets despite increasing volatility as well as escalating geopolitical tensions. After the sharp run up in the last few days, Nifty now trades at 20x FY23 PE, which is above its 10-year average, thus offering limited upside in the near term.

RBI’s policy outcome on Friday would be the key event that the market would track. Going forward, it could be a tug of war between domestic and global factors which would determine the market direction.

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.
Rakesh Patil
first published: Aug 4, 2022 04:31 pm
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