Today’s Action:
Despite extreme volatility observed today, the benchmark indices ended in green.
Daily Market Review
Amidst volatility during the entire trading session, equity indices edged higher by erasing some of its previous day losses. Frontline indices started the day on a good outing, tracking from its Asian peers. However, as the market approached the closing bell, both the Sensex and the Nifty ended the day with gains of 0.11% each.
The Nifty touched a high of 9,828.45 after opening at 9,815.75 and finally settled at 9,765.55 for the day. The Sensex displayed a similar performance today, after opening the day at 31,393.93 it traded in the wide range of 31,484.28- 31,241.50 and finally ended at 31,291.85
Broader markets continue to disappoint as they failed to track the major indices. The Nifty Midcap and Smallcap both posted a loss of 0.76% and 0.57%, respectively.
The MarketSmith IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, declined 0.71% in today’s trading session.
On the Sectoral Chart, most of the sectors had something to take home barring Nifty Realty, Auto and PSU Bank which slid 0.89%, 0.85% and 0.41% in today’s trade. While today’s gain could be attributed to the top three performing sectors which were Nifty Pharma, Media and Pvt Bank which gained 0.90%, 0.35% and 0.23%, respectively.
Lower volumes in the exchanges today compared to the yesterday’s trading session serves as a testament to the subdued interest among investors. The distribution day count for the Nifty and the Sensex currently stand at 6.0 and 8.0, respectively. The market status is currently “Uptrend Under Pressure”.
The market witnessed yet another IPO today brought by Apex Frozen Foods, the Company plans to raise INR 152 crore through the issue that will close on August 24. Apex Frozen Foods is one of the integrated producer and exporter of shelf stable quality aquaculture products. The price band fixed for the issue ranges from INR 171-175 per share and approximately 87 lakh equity shares will be offered through the book building route. The Company proposes to use the proceeds for setting up a new shrimp processing unit with a capacity of approximately 20,000 MTPA.
The inter-ministerial group on telecom, which was set to ease the financial stress for the telecom sector, is expected to finalise its recommendations to deal with issues such as an extension of deferred payment schedule, migration from prime lending rate to the marginal cost of funds-based lending rate regime for interest payments.
Current Outlook:
– Be cautious with any new purchases.
– Form a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules.
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