The last day of the August Futures & Options series was exactly what an expiry day is supposed to be. After trading higher for most part of the day, the benchmark indices saw selling pressure in last hour of trade.
At close, Nifty settled around 17,500 and Sensex was down 310.71 points, or 0.53%, at 58,774.72. the Nifty was down 82.50 points, or 0.47%, at 17,522.50.
The market opened on a firm note and remained positive for most part of the session, however, selling in the final hour erased all the intraday gains and closed near the day's low.
"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.
Adani Ports, Bajaj Finance, Infosys, Power Grid Corporation and NTPC were among the major Nifty losers.
The gainers included Shree Cements, Hindalco Industries, Divis Laboratories, Eicher Motors and Grasim Industries.
| Index | Prices | Change | Change% |
|---|---|---|---|
| 58,774.72 | -310.71 | -0.53% | |
| Nifty 50 | 17,522.45 | -82.50 | -0.47% |
| Nifty Bank | 38,950.75 | -87.75 | -0.22% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Shree Cements | 21,712.60 | 364.60 | +1.71% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Adani Ports | 816.00 | -20.30 | -2.43% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty PSU Bank | 2946.30 | 78.50 | +2.74% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty IT | 28608.70 | -251.10 | -0.87% |
Nifty PSU Bank index rose 2.7 percent, while selling was seen in the IT, auto, bank, metal, pharma and FMCG.
Stocks and sectors
On the BSE, except Realty (up 1.5 percent) all other sectoral indices ended in the red with Information Technology index fell nearly 1 percent.
BSE midcap and smallcap indices ended on flat note.
A short build-up was seen in Coromandel International, Adani Ports and Lupin, while a long build-up was witnessed in L&T Finance Holdings, Crompton Greaves Consumer Electrical and BHEL.
Among individual stocks, a more than 200 percent volume spike was seen in Coromandel International, L&T Finance Holdings, Crompton Greaves Consumer Electrical
Cola India, Bank of Baroda, Hubtown, ITD Cementation India, Federal Bank, Eicher Motors, NDTV, Vadilal Industries, Thermax, KEI Industries are among the stocks that touched 52-week highs on the BSE.
Outlook for August 26
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
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.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd
Amid heightened volatility, investors pruned their long positions on the F&O expiry day due to the uncertain global economic scenario. There are concerns that the Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium on Friday would focus on more rate hikes to rein in inflation.
Also, benchmark indices had come close to slipping into negative zones in the last two sessions, and hence correction was on expected lines.
Technically, lower top formation on intraday charts and bearish trend reversal candle on daily charts is indicating further correction from the current levels. In the short term, 17700 would be the key resistance zone and below which, the Nifty could slip till 17400-17300. On the flip side, a fresh uptrend is possible only after 17700. Above the same, the index would move up to 17800-17850.
Palak Kothari, Senior Technical Analyst at Choice Broking:
On a monthly expiry day, the Nifty opened on a green note and made an intraday high at 17,726.50 level but in the dying hour of the session witnessed profit booking from a higher level and closed at 17,522.45 level with a loss of 82.50 points.
On the technical front, the Nifty has faced resistance from the 17700 zone and showed supply which led to a bearish candle on the daily time frame suggesting weakness in the counter. Furthermore, Nifty has given a breakdown of the rising trend line which adds weakness to the price.
On the Open Interest (OI) Data, on the call side, the highest was witnessed at 17700 level while on the put side was at 17400 level followed by 17200. The momentum indicator stochastic was traded with a negative crossover on an Hourly time frame which suggests weakness in the counter.
The support for Nifty has shifted around 17300 levels while on the upside 17750 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 38500 levels while resistance at 39500 levels.
Overall, sector specific momentum can be seen as the PSU Bank & Realty stocks are looking good for the upcoming session.
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