FINAL TRADE: Sensex tumbles 542 points to 65,240.68, Nifty cracks 145 points to settle at 19,381.65

Stock market today: The domestic equity benchmark indices saw a heavy correction for the third consecutive day on Thursday, August 3, amid selling in banks, financial services, real estate, and FMCG stocks. Titan Company ended as the top loser on the Nifty50 index, down 2.39 per cent. ONGC, Bajaj Finserv, and ICICI Bank were the other big losers on the index.

At close, Sensex stood at 65,240.68, down 542.10 points, or 0.82 per cent. Nifty settled at 19,381.65, down 144.9 points, or 0.74 per cent from its previous close.

"Taking cues from the global market, Nifty closed on a negative note; most of the sectoral indices closed in red, whereas Nifty Pharma outperformed. Nifty Pharma was up by 1.04 per cent on the back of robust numbers reported by pharma companies, which fueled optimism in the sector," said Vaibhav Vidwani, Sr. Research Analyst, Bonanza Portfolio Ltd.

Broader markets remained resilient, reversing losses from the previous day. Nifty Midcap 100 and Smallcap 100 ended 0.25 per cent and 0.12 per cent higher, respectively.

Technical outlook

"On the daily charts, we can observe that the Nifty has witnessed follow-through selling pressure and closed in the negative for the second consecutive session. On the downside, it has drifted towards a 40-day moving average (19,285), which can act as an immediate support zone to watch out for. On the upside, the key hourly moving average placed in the range of 19,560 – 19,590 shall act as an immediate hurdle zone from a short-term perspective. Considering the sharp fall in the last couple of trading sessions, we can expect a pullback or consolidation over the next few trading sessions. Overall, the trend is still negative, and we expect levels of 19,100 from a short-term perspective," said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

Sectoral watch 

Nifty Bank ended 1.07 per cent lower amid selling in banking stocks and closed at 44513.45. While Nifty Pharma supported the headline index, Nifty Financial Services, FMCG and Realty dragged the index.

"Bank Nifty has also witnessed a continuation of the fall. It has closed below the 40-day moving average (44,861), which is a sign of weakness. On the downside, the fall appears overstretched and hence a pullback cannot be ruled out. It can bounce till 45,000 – 45,200 where the key hourly moving averages are placed. Overall, the trend is still negative, and we expect it to drift lower to 44,000 in the short term," said Gedia.

Buzzing stocks 

Zomato reported a profit for the first time, stock was up nearly 2 per cent.

MRF surged over 4 per cent as the company posted better-than-expected results for the second quarter in a row.

Pharma stocks rose for the second straight session, Lupin, Aurobindo were the top gainers.

Dixon Tech gained over 8 per cent after the government restricted laptop, and computer imports.

Laurus Labs gained for the fourth straight session, has risen 14 per cent this week.

Ambuja announced the acquisition of Sanghi Industries, both stocks were up 3-5 per cent.

On the other hand, Vedanta fell over 6 per cent post-block deal, promoter likely seller.

LIC Housing closes with cuts of more than 4 per cent ahead of earnings. 

Titan missed expectations in the April-June quarter; stock ended over 2 per cent lower. 

Global markets 

The US markets ended lower on Wednesday after Fitch Ratings cut the US government credit rating by one level.

Foreign institutional investors (FIIs) offloaded equities worth Rs 1,877.84 crore on Wednesday, according to exchange data.

Global oil benchmark Brent crude dipped 0.46 per cent to USD 82.82 a barrel.

Meanwhile, India's services sector growth touched a 13-year high in July as a substantial improvement in demand conditions and a pickup in international sales induced the strongest increase in new business and output, a monthly survey said on Thursday.

(With agency inputs)

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.