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Taking Stock: Market snaps 4-day winning streak; pharma, infra weigh heavy

The broader indices outperform the benchmarks, with midcap and smallcap indices gaining 0.2 percent each

August 06, 2021 / 04:18 PM IST

The market snapped its four-day winning streak to end lower on August 6 after the Reserve Bank of India (RBI) left key rates unchanged and reiterated its “accommodative” stance.

At close, the Sensex was down 215.12 points, or 0.39 percent at 54,277.72, and the Nifty was down 56.40 points, or 0.35 percent, at 16,238.20.

For the week, though the Sensex and the Nifty added 3 percent each.

The RBI policy was along expected lines with the central banking holding the repo rate steady at 4 percent while maintaining the India’s real gross domestic product at 9.5 percent for FY22.

Also Read: RBI Monetary Policy: Status quo on rates, stance continues, what's the road ahead?

Close

The Nifty took a breather, possibly due to the weekend knocking on the doors. The overall trend of the market continues to be bullish and any dip or correction should be utilised to go long, said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

“…16,300 is the short term resistance which was crossed yesterday and today as well. If we can keep above that level, the index should zoom to 16,500-16,600," he said.

Also read: RBI pegs CPI inflation estimate at 5.7% for FY 2022

On the sectoral front, the metal, auto and IT indices ended higher, while selling was seen in the pharma, FMCG and infra names.

The broader indices outperform the main indices, with midcap and smallcap indices rose 0.2 percent each.

IndexPricesChangeChange%
Sensex60,077.8829.41 +0.05%
Nifty 5017,855.101.90 +0.01%
Nifty Bank38,171.25340.95 +0.90%
Nifty 50 17,855.10 1.90 (0.01%)
Mon, Sep 27, 2021
Biggest GainerPricesChangeChange%
Maruti Suzuki7,403.45451.20 +6.49%
Biggest LoserPricesChangeChange%
HCL Tech1,295.20-63.00 -4.64%
Best SectorPricesChangeChange%
Nifty Auto10765.20336.20 +3.22%
Worst SectorPricesChangeChange%
Nifty IT36034.40-1068.90 -2.88%

Cipla, Reliance Industries, Shree Cements, UltraTech Cement and SBI were the top Nifty losers. IndusInd Bank, Adani Ports, IOC, Bharti Airtel and Tata Consumer Products were among the top gainers.

Stocks & sectors

On the BSE, the realty index shed 1 percent and metal index was down 0.5 percent, while power and auto indices ended in the green.

Among individual stocks, a volume spike of more than 500 percent was seen in Tata Chemicals, Alkem Laboratories and Strides Pharma Science.

A long buildup was seen in Aarti Industries, Tata Chemicals and Astral, while a short buildup was seen in Strides Pharma Science, Gujarat gas and AU Small Finance Bank.

More than 250 stocks, including Tata Consumer Products, Havells, JSW Steel and Tata Power, hit a 52-week high on the BSE.

Technical View

A bearish candle, a follow through to the indecisive Doji of last Thursday may be hinting at a temporary pause in the momentum.

Twin momentum oscillators generated a sell signal after the day’s price action. “Hence, we expect either a sideways move or weakness to continue into the next week as well, said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.

Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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 6, 2021 04:18 pm

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