Stock Market Highlights 25 Aug 2022: Market erases all gains; Nifty survives 17,500, Sensex slips over 300 points - How it happened
Stock Market Closing: The Indian market managed to close on a positive note on Wednesday amid weaker global cues.
(By: Ravi Kant Kumar)
In a complete U-turn, the Indian market tuned red in the closing hour ahead of Jackson Hole meeting on Thursday. Benchmarks Nifty50 and Sensex took a cut of around half per cent each amid weak global cues and higher oil prices. The Nifty50 survived 17500, while the 30-share BSE index fell by around 300 points to end above 58,700, as volatility persisted in the markets across the globe ahad of crucial Fed meeting in Jackson Hole.
Nifty Midcap ended flat with negative bias, while the small cap index settled with around 0.4% gains.
Sectorally, IT, Metal, Pharma and Financial Services dragged the market the most, while PSU Bank out performed in an otherwise highly volatile market. The banking index rose more than two per cent in a falling market.
Ahead of the Jackson Hole symposium, investors across the world are eagerly expecting the Fed chair's speech to evaluate the outlook for monetary policy and determine whether the central bank can achieve a soft landing for the economy, said Vinod Nair, Head of Research at Geojit Financial Services.
"Crude prices rose as Saudi Arabia suggested that OPEC+ supply may be reduced to address market instability. Although Indian equities are trading at a premium over other emerging markets, the consistent support from FIIs is guiding the domestic market," he added.
Shree Cement, Hindalco, Divi's Laboratories, Maruti Suzuki, State Bank of India, Dr Reddy's were among leading gainers on the benchmarks on Thursday.
Adani Ports, Bajaj Finance, Cipla and Axis Bank were top losers on Thursday.
Speaking on Nifty50 closing, Rupak De, Senior Technical Analyst at LKP Securities, said Nifty formed an engulfing pattern after two days of positive move setting a stage for a bearish reversal. The momentum indicator RSI is also pointing toward a negative momentum in the near term, he said. "On the lower end, 17480 is likely to act as initial support; a fall below 17480 may take the index towards 17350. Below 17350 the Nifty may drift down towards 17000-16950. On the higher end, resistance is visible at 17700," he added.
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India's rice production could fall by 10-12 million tonnes during the Kharif season of this year, due to a fall in paddy sowing area, the government said on Friday. However, Food Secretary Sudhanshu Pandey asserted that the country will have surplus production in rice.- Full Report
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The government on Thursday decided to put restrictions on the export of wheat flour to curb rising prices of the commodity.
The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi here.
The decision of the Cabinet "will now allow to put a restriction on the export of Wheat Flour which will ensure a curb on rising prices of wheat flour and ensure food security of the most vulnerable sections of the society," an official statement said.- PTILIC dilutes 2% stake in Nagpur Power & Industries via open market sales
LIC has diluted its stake in Nagpur Power & Industries by over 2 per cent through open market sales, bringing down its stake to 8.33 per cent.
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"The Bank index witnessed selling pressure from higher levels and failed to surpass the hurdle of 39,500 on the upside. The immediate downside support stands at the 38,500-38,400 zone and if breached will lead to further selling pressure on the downside. The index needs to break the range of 38,500-39,500 for decisive trending moves on either side."- Kunal Shah, Senior Technical Analyst at LKP Securities.
Nifty Outlook: 17700-17750 proved strong hurdle
Continuing with the minor degree pullback that was seen in the last couple of sessions, the Nifty opened gap up on August 25. It traded with a positive bias in the first half of the session. In terms of the Fibonacci retracement, it nearly tested the 61.8% retracement of the recent fall. Fresh selling pressure was seen near this key Fibonacci level. The zone of 17700-17750 indeed proved to be a strong hurdle. From there the index has started the next leg down. The Nifty is set to test the swing low of 17345 below which 17000 will be the short term target to watch out for.-
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
India VIX above 19.5
India Volatility Index (VIX) showed over 5% change as the index traded above 19-mark
Market erase gains: Nifty below 17,500
The Indian market erased all gains as the benchmarks slipped in the red, dragged by IT, FMCG and Metal. Nify50 below 17,500, Sensex drops 400 points to 58,675.98
TVS Motor-backed Ultraviolette Automotive raises undisclosed amount in funding
TVS Motor-backed electric bike maker Ultraviolette Automotive on Thursday said it has raised an undisclosed amount in funding led by Exor Capital. The company said the latest capital infusion, which comes ahead of the launch of its high-speed e-bike F77 in the country, is a part of the ongoing Series-D round of funding with Ferrari-backed Exor Capital as the lead investor.- PTI
SpiceJet Share Price
Shares of SpiceJet trade flat at Rs 46.90 per share in BSE intraday trade even after its chairman and managing director Ajay Singh said the airline working on plans to raise fund. "SpiceJet is looking for investments from external parties, including airlines, and also plans to add seven more Boeing planes to its fleet, the carrier’s chief Ajay Singh said on August 23."
On August 23, the company also informed the Board of Directors of the Company will be held on August 31 to consider and approve the audited standalone and consolidated financial results of the Company for the fourth quarter and to take the unaudited standalone and consolidated financial results for the first quarter ended June 30, 2022.
NHPC share price jumped 3% on Subsidiary's MoU with Rajasthan government
Shares of NHPC jumped over three per cent to Rs 35.20 per share on the BSE on Thursday, tracking a deal of NHPC Renewable Energy Limited, a wholly owned subsidiary of NHPC, with the Rajasthan Government. NHPC Renewable Energy Limited has signed an MoU with the Government of Rajasthan for development of 10,000 MW Ultra Mega Renewable Energy Power Park in the State of Rajasthan.
Bharti Airtel volume topper
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USD INR outlook:dips to 79.60 may prompt an upswing
Expect swings on either side of 79.77 initially, but dips to 79.60 may prompt an upswing aiming to breach the 80 mark. Alternatively if 79.6 fails to hold we would look for a close below 79.45 to signal an outright reversal in trend.
Anand James - Chief Market Strategist at Geojit Financial Services.
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Bharti Airtel jumps 4% on BTL, Singtel share re-structuring plan
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LIC share dividend date 2022
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Stock market opening: Nifty50, Sensex top losers and gainers
Bajaj Finserv and IndusInd Bank led the benchmarks, while Apollo Hospitals and Asian Paints dragged the indices in an otherwise positive market.
Following benchmarks, nifty Midcap jumped 0.44% and Smallcap rose by 0,80% in opening trade.
Nifty PSU Bank led the sectoral indices as all sectors started in green on Thursday
Nifty outlook: Revisit of 17966 on the cards
A revisit of 17966 is on the cards with 17730 and 17800 poised to ask questions. Alternatively, inability to float above 17690 would diminish upside hopes, but we prefer to keep the downside marker at 17550.- Anand James - Chief Market Strategist at Geojit Financial Services.
Bank Nifty Support and Resistance
"The Bank Nifty index witnessed a sharp recovery from the lower level and formed a strong bullish reversal candle. The index downside support stands at the 37,700-38,000 zone and as long as this support is held the index remains in a buy on dip mode. The immediate upside hurdle stands at 39000 where call writers are active and once surpassed will see further short covering."- Kunal Shah, Senior Technical Analyst at LKP Securities.
Nifty above 17,650, Sensex jumps over 200 points.
In line with SGX trends, the broader Nifty 50 and Sensex jumped more than 0.30% to trade above 17,650 and 59,300 respectively in the pre-opening
Nifty support and resistaance
"The index remained choppy during the day as the Nifty moved within bands of 17500 and 17600. The daily RSI is in bearish crossover. However, it has sustained above the important near term moving average during the day. The trend for the short term looks sideward. On the higher end, resistance is visible at 17700; whereas on the lower end, support is visible at 17500/17400." Rupak De, Senior Technical Analyst at LKP Securities
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Singtel to sell 3.3% stake in Airtel
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F&O stocks ban update:
New In Ban: RBL Bank
Out Of Ban: Nil
Already In Ban: NilBulk Deals data on August 24
Lyka Labs Ltd: Rikeen P Dalal HUF bought 3,80,626 shares in the company at the weighted average price Rs 138.25 per share on the NSE, the bulk deals data showed.
Rudrabhishek Enterp Ltd: Wish Well Finance & Leasing sold 2,00,000 equity shares in the company at the weighted average price Rs 176.3 per share on the NSE, the bulk deals data showed.
TVS Electronics Limited: Sudesh Business Ventures bought 1,00,000 equity shares in the company at the weighted average price Rs 287.29 per share on the NSE, the bulk deals data showed.
Akash Infra-Projects Ltd: Sarvagay Textile LLP bought 6,21,311equity shares in the company at the weighted average price Rs 47.1 per share on the NSE, the bulk deals data showed.
FII data on August 24
Foreign portfolio investors (FPIs) remained net buyers for Rs 23.19 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net sellers to the tune of Rs 322.34 crore, provisional data showed on the NSE.
Stocks in News Today
NHPC subsidiary signs Memorandum of understanding with Rajasthan Government for Ultra Mega Renewable Energy Park
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Aban Offshore enters into a one-time debt settlement pact with Central Bank of India for Rs 125 crore.
Full Report
Asian Market update
Japanese Nikkei and Chinese Shanghai Composite each rose around half per cent in early trade. Korea's KOSOI was up 20 points too in early trade, while morning trade remained suspended on Hang Seng Index due to typhoon.
US market in green
The US markets ended in the green after three negative closings. Dow Jones ended 59 points higher, Nasdaq rose 50 points and S&P 500 ended higher by 12 points on Wednesday.
Hang Seng Index trading suspended
Morning session trading on Hang Seng Index at the Hong Kong Exchange was suspended on Thursday due to typhoon. The index closed 1.2% lower on Wednesday.
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