Indian benchmark indices ended lower for the second consecutive session amid volatile trade on August 18, with the Nifty closing a tad above 19,300.
At close, the Sensex was down 202.36 points or 0.31 percent at 64,948.66, and the Nifty was down 55.10 points or 0.28 percent at 19,310.15.
For the week, Sensex and Nifty fell 0.5 percent each.
Amid weak global cues the market started on a negative note and remained in red terrain for most of the session. However, it witnessed some recovery in last hour but closed the session with marginal losses.
Major losers on the Nifty included Hero MotoCorp, TCS, Coal India, Hindalco Industries and Tech Mahindra, while gainers were Adani Enterprises, Adani Ports, Eicher Motors, Maruti Suzuki and Nestle India.
Except FMCG and Power, all other sectoral indices ended in the red with Information Technology index shed 1.5 percent and Metal index down nearly 1 percent.
The BSE midcap and smallcap indices ended on a negative note.
A short build-up was seen in Manappuram Finance, Birlasoft and LIC Housing Finance, while a long build-up was seen in Adani Enterprises, Adani Ports and Ambuja Cements.
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 81,904.70 | 355.97 | +0.44% |
| Nifty 50 | 25,114.00 | 108.50 | +0.43% |
| Nifty Bank | 54,809.30 | 139.70 | +0.26% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Bharat Elec | 399.30 | 14.15 | +3.67% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Eternal | 321.40 | -6.70 | -2.04% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Metal | 9883.60 | 90.65 | +0.93% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty FMCG | 56557.15 | -403.45 | -0.71% |
Among individual stocks, a volume spike of more than 400 percent was seen in Balrampur Chini Mills, Manappuram Finance and Page Industries.
D B Realty, CG Power and Industrial Solutions, Jyothy Labs, Patel Engineering, Venus Pipes, Dr. Reddy's Laboratories, Bank Of Maharashtra, TV18 Broadcast, REC, Usha Martin, Minda Corporation, Escorts Kubota touched their 52-week high on the BSE.
Outlook for August 21
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:
The Nifty witnessed yet another weak day of trade. It closed in the negative down ~55 points. On the daily charts, we can observe that the Nifty has closed decisively below the 40-day moving average (19358) which is a sign of weakness. Because of the fall in the last couple of trading sessions, the Nifty has also closed in the negative for the fourth consecutive week and the weekly momentum indicator has also triggered a negative crossover which indicates that weakness is setting in on a higher time frame. The lower top lower-bottom formation is still intact and hence the downtrend is intact. On the downside we expect the Nifty to target levels of 19100.
Bank Nifty has continued with its losing streak and closed in the negative for the seventh consecutive trading session. It has reached the 20-week moving average (43800) and hence the fall may not be severe from current levels. The trend is still negative however, oversold and we can observe divergence on the hourly charts however it needs to be confirmed by the price. Until the Bank Nifty trades below 44000, we can expect the weakness to continue. On the downside, it can slip towards 43500.
Amol Athawale, Vice President - Technical Research, Kotak Securities
World equity markets, including India, are under the grip of a sharp rise in US bond yields which has led to currency depreciation in China and other emerging markets. This has prompted investors to park their funds in safe haven dollar securities by exiting risky equity assets. The consolidation phase in local markets could continue for some more time as worries over further interest rate hikes in the US and other key economies coupled with higher inflation and slowing growth in China would curb appetite for equity as an asset class in the near term. A sharp fall in tech-heavy Nasdaq triggered a sell-off in domestic IT stocks, while other sectors too came under selling pressure due to weak global cues.
Technically, on daily and intraday charts, the Nifty is holding a lower top formation and on weekly charts it has formed a small bearish candle, which is largely negative. However, on the lower side it is consistently taking support near the 50-day SMA or 19250/64750 (Simple Moving Average). A fresh sell off could be seen only after the dismissal of the 50 day SMA or 19250 level, below which the index could slip till 19200-19100. On the flip side, 19400 would act as a key resistance level for the bulls and above the same, the index could rise till 19450-19500. In the case of Bank Nifty, weak sentiment is likely to continue till the time the index is trading below 44100. Below which, it could slip till 43500 – 43200. On the flip side, above 44100 it could move up till 44400-44600.
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