Stock market benchmarks, the Sensex and the Nifty 50, ended in the red on Friday, 14 August, snapping their two-week winning streak, as uncertainties over a US-Iran peace deal, volatile crude oil prices, rising bond yields, and concerns over inflation flare-up weighed on sentiment.
The Sensex declined 71 points, or 0.09%, to end at 78,009.25, while the Nifty 50 ended at 24,366, down 30 points, or 0.12%.
The mid and small-cap segments underperformed; the Nifty Midcap 100 index dropped 0.53%, while the Nifty Smallcap 100 index fell 0.69%.
For the week, the 30-share pack dropped 490 points, or 0.62%, while the Nifty 50 declined by 205 points, or 0.83%. On the other hand, the Nifty Midcap 100 climbed 0.50%, while the Smallcap 100 dropped 0.65% for the week.
Weak global cues weigh on sentiment
The domestic market ended lower, tracking weak global cues. Elevated oil prices, rising bond yields, and uncertainties over a potential US-Iran deal continue to weigh on investors’ risk appetite.
Brent crude prices traded above the $87 per barrel as US Defense Secretary Pete Hegseth on Thursday warned that Washington can continue with its naval of Iranian ports “indefinitely” and for as long as needed.
The US 10-year bond yield remained near 4.66%, putting pressure on emerging-market equities.
“A sideways trend persisted in the market as investors awaited greater clarity on the outlook for energy prices and global bond yields,” said Vinod Nair, Head of Research, Geojit Investments.
Investors are chasing stock-specific action amid an earnings recovery, even as geopolitical uncertainties remain a key risk for markets.
“Going ahead, investors will track the US Federal Reserve’s July meeting minutes and US crude inventory data, followed by India’s infrastructure output and August flash Purchasing Managers’ Index (PMI) readings later in the week. Developments in West Asia and movements in crude oil prices will remain key variables for domestic equities,” said Siddhartha Khemka, the head of research- wealth management at Motilal Oswal Financial Services.
“Today’s dip looks like routine profit booking rather than a change in trend, provided the key supports hold. The larger picture still favours the bulls. A buy-on-dips approach in quality names, backed by disciplined risk management, remains the sensible way to play this,” said Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.
Top Nifty gainers and losers
As many as 39 stocks ended in the red in the Nifty 50 index, with Tata Motors Passenger Vehicles, Jio Financial Services, and Asian Paints as the top laggards.
Apollo Hospitals, Bharti Airtel, and Adani Ports and Special Economic Zone ended as the top gainers in the index.
Sectoral indices today
Barring Nifty Media (up 0.96%) and Consumer Durables (up 0.76%), all sectoral indices ended in the red.
Pharma, Metal, PSU Bank, and Auto indices declined more than half a per cent. Bank Nifty declined 0.25%, while the Financial Services index slipped 0.43%.
Nifty’s technical outlook
According to Vinay Rajani, Senior Technical Research Analyst, HDFC Securities, the Nifty formed a Doji candlestick pattern on the daily chart, indicating indecision after the recent correction from the highs. The index closed near its 20-day DEMA at 24,363 and 200-day DEMA at 24,385, making the 24,360–24,385 zone crucial for the near-term trend.
“The immediate support remains at 24,265, followed by the psychological level of 24,000. On the upside, 24,630 and 24,750 are likely to act as key resistance zones. A sustained close below the 200-day DEMA could weaken the technical setup, while a move above 24,630 would improve short-term sentiment,” said Rajani.
Sudeep Shah, the head of technical and derivatives research at SBI Securities, said the immediate resistance for Nifty is placed in the 24,500-24,550 zone.
“Any sustainable move above this zone could result in Nifty extending its pullback towards 24,700, followed by 24,850 in the short term. On the downside, the immediate support for Nifty is placed in the 24,230-24,200 zone, which coincides with the 100-day EMA,” said Shah.
Vipin Kumar, AVP-Research at Globe Capital Market, said the Nifty is hovering in a broad consolidation range, with immediate support at the 24,230–24,130 spot levels and resistance at the 24,600–24,700 spot levels.
“A decisive break above the 24,700 spot level is essential for a sustainable move towards 24,850 and higher levels in the near term,” said Kumar.
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