Daily Market Recap - 17 August 2023

Market Overview -

The Sensex was down by 388.40 Points, to 65,151.02 declining 0.59% comparing last trading session. Nifty follows the same trend declined by 99.75 points to19,365.25, 0.51% comparing last trading session. About 7 shares advance, 23 shares declined in Sensex and 17 shares advance, 33 Declined in Nifty 50. India VIX up by 0.91% to12.24, showing increasing volatility in the market

Indian Rupee fell to a fresh 10-month low on a strong Dollar and weak domestic markets. India’s inflation rose sharply above expectations at 7.44% in July vs 4.87% in June and forecast of 6.4%. It is expected to rise Inflation in next month below 7% FM Sitharaman stated. The dollar gained on hawkish FOMC minutes. FOMC minutes showed all members of the rate-setting committee support higher interest rates to fight inflation. Upbeat housing, industrial production, and capacity utilization rate data from the US also supported Dollar.

Key Highlights :-

1.?Sector Performance:

The market saw varying performances across different sectors. Diamond and Jewelry increased by 1.85%, Household and personal product increased by 1.59%, Automobile industry Increased by 1.45% followed by Transport Infrastructure increased by 1.18% in Nifty.

Bank Nifty declined by 55.05 points to 43,891.35, shed 0.13% from previous close. 7 shares advances between 0 - 3% and 3 shares declined -3 - 0%

2. Top Movers:

Among individual stocks Amber enterprises India Ltd stole the show, rising 8.79% to reach 2837.20. Followed by Cochin shipyard rises 8.40% to 875.70; Shipping Corporation of India increased 8.16% to 117.35; Ashoka Buildcon Increased to 102.05 , 8.11%.

Top Loser for todays session are Johnson controls- Hitachi Air conditioning India by 5.65% to 1285.10 ; Followed by AKI India Ltd. by 4.98% to 13.35; Motilal Oswal financial services declined by 4.65% to 904.80.

Top Gainers for the day -

Top Loser for the day -

Market Sentiments -

"The mounting influence of weak global cues hindered the domestic market's ability to recoup, resulting in sustained selling pressure. The release of Fed minutes unveiled a divided stance among its members regarding the necessity of additional rate hikes, contrasting the previously anticipated rate pause. Concurrently, the Indian rupee experienced a decline due to the dollar index surpassing 103.5; however, likely intervention from the RBI offered a degree of support. Moreover, the escalation of US bond yields is expected to limit the influx of foreign investments into the Indian market, further impacting market dynamics."~ Vinod Nair, Head of Research at Geojit Financial Services

Outlook for Tomorrow

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:

The Nifty witnessed a weak day of trade today. It opened on a negative note and continued to drift lower throughout the day to close in the negative down ~100 points. On the daily charts, we can observe that the Nifty has been range bound between 19250 – 19500 since past three trading sessions. On the downside, the zone of 19300 – 19400 where support in the form of the 40-day moving average and the daily lower Bollinger band is placed is acting as crucial support while 19450 – 19500 where the falling resistance trend line is placed is acting as a resistance. Thus, the Nifty is consolidating between these two parameters.

The daily and the hourly momentum indicator has a negative crossover which is a sell signal. Overall, there a no signs of a trend reversal, and hence the short-term outlook is negative. On the downside we expect the Nifty to target levels of 19100.

Bank Nifty has closed in the negative for the sixth 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 which indicates that a pullback is possible over the next few trading sessions. The pullback can stretch higher till 44400 – 44500.

Shrikant Chouhan, Head of Research (Retail), Kotak Securities:

Profit taking came to the fore amid weak global cues, as rising US bond yields and fall in the currency levels weighed on the equity market sentiment. Investors are also worried about further rate hikes coupled with deflation and slowing demand in China, which has been prompting investors to flee equity markets amid choppy trends. Technically, the market is consistently facing selling pressure near the 19480 level while regularly taking support near 19320.

In addition, on daily charts, the index has formed a bearish inside candle which indicates that non-directional activity is likely to continue in the near future.

We are of the view that, 19320 could be the sacrosanct support zone for the market, below which, the index could slip till 19250-19200, while any fresh uptrend rally is possibly only after the dismissal of 19480. Above the same, the market could move up till 19535-19585.

Disclaimer: The information provided in this report is for informational purposes only and does not constitute financial advice. Learn Briller shall not be held responsible for any trading decisions based on the information herein. Always consult with a qualified financial advisor before making any investment decisions.

For more updates and in-depth analysis, stay tuned to?Learn Briller. Thank you for joining us, and we'll be back tomorrow with another market recap.

[email protected]