Taking Stock: Markets end flat, Nifty below 19,700; ITC, Asian Paints top losers

The Sensex closed 29.07 points down or 0.04 percent at 66,355.71

It was a lacklustre day for markets as the Nifty and the Sensex ended near the flatline, ahead of Federal Open Market Committee's policy meeting beginning today.

The Sensex closed 29.07 points down or 0.04 percent at 66,355.71, and the Nifty was up 0.04 percent at 19,680.60. About 1674 shares advanced, 1768 shares declined, and 133 shares were unchanged.

The Street is now eyeing the Fed's rate outcome, scheduled to be out by midnight of July 26. Market expectations are hinting towards a 98 percent probability of a quarter-point hike, data from the CME FedWatch Tool showed.

Back home, Asian Paints and ITC were the top losers on the indices, falling 4 percent and 2 percent respectively.

Asian Paints reported consolidated revenue for the June quarter at Rs 9,182.31 crore, rising 6.68 percent from Rs 8,606.94 crore in the year-ago quarter. However, the topline fell short of Street expectations of Rs 9,341 crore.

Meanwhile, ITC continued its downtrend for a second day in a row as investors remained disappointed with the conglomerate's decision to demerge the hotel business but still hold 40 percent in it.

Among gainers, Hindalco, Tata Steel, JSW Steel and NTPC took charge on the Nifty 50. In fact, Tata Steel's earnings beat helped Nifty Metal gain 2.9 percent in the day.

On the other hand, broad market indices rose more than the Nifty even as the advance-decline ratio ended in the positive at 1.02:1. Both midcap and smallcap indices ended 0.4 percent higher.

In the F&O segment, Zee Entertainment Enterprises, TVS Motor Company, and Jindal Steel were among the stocks that saw long build-up while Can Fin Homes, Asian Paints and Navin Fluorine saw short build-up.

Outlook for July 26

Deepak Jasani, Head of Retail Research, HDFC Securities

The Nifty made a near hammer-like pattern after a two-day fall, suggesting the possibility of a short-term upward reversal. The Nifty could stay in the 19,783-19,567 band for the near term.

Om Mehra, Equity Research Analyst, Choice Broking

The Nifty would face resistance at the 19,820-19,850 zone. Nifty Put Call Ratio stands at 0.84. On the other hand, the Bank Nifty has support at 45,200 levels while resistance is placed at 46,300. The long-term investor can look at selective mid-cap and small-cap stocks currently while intraday traders are suggested to book with small profits following strict stop loss.

Disclaimer: The views and investment tips expressed by investment 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.​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​