NARROW PRICE ACTION LED TO A SHARP DOWNSIDE MOVE IN THE NIFTY & NIFTY BANK

NIFTY:

The NIFTY opened at 19655.40 with a gap down of 78 points. The index continued its early morning bearish momentum and started drifting downwards from its opening tick. The index recorded its intraday high at 19678.25 in its initial trades and saw a down move of more than 200 points. Prices broke below 19500 and recorded its intraday low at 19423.55.A minor recovery came towards the end of today’s trading session and the index finally closed at 19526.55 with a loss of 207 points or 1.05% down. All the sectoral indices have moved down today and ended with a loss. Except for FMCG, PHARMA, and IT all the other indices have lost over 1% led by METAL which ended 2% down. We have been tracking a narrow trading range inside 19550-19850. This range broke on the downside and gave us a pattern target around 19250 The short-term trend is down now. Support is now visible around 19300 while resistance is now visible around 19700.

BANK NIFTY:

The BANK NIFTY opened at 45234.65 with a big gap down of 364 points. The index continued moving lower from its opening tick and saw a sharp decline of more than 500 points during the day. Prices have recorded its intraday high at 45404.90, its intraday low at 44720.90, and finally closed at 44989.40 with a loss of 609 points. PSU BANK underperformed today, saw a sharp downside move, and ended with a loss of 2.61%. PVT BANK has also moved down today and closed lower by 1.23%. Within the index, in terms of points, AU BANK contributed the highest on the upside while HDFC BANK contributed the lowest. We have been tracking a narrow trading range inside 45300-46300. This range broke down decisively and gave us a pattern target of around 44300. The short-term trend is down now. Support is now visible around 44000 while resistance is visible around 45300-45500.

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News Updates

• Benchmark indices ended lower on August 2 with Nifty below 19,550. At close, the Sensex was down 676.53 points or 1.02% at 65,782.78, and the Nifty was down 207.00 points or 1.05% at 19,526.50. About 1232 shares advanced, 2265 shares declined, and 132 shares unchanged.

• InterGlobe Aviation, the operator of low-cost airline IndiGo, on August 2 posted a profit of Rs 3,090.6 crore for the quarter ended June 2023, as compared to a net loss of Rs 1,064 crore in the same period a year ago. Revenue from operations for IndiGo, the largest airline in the country, rose 29.8 percent to Rs 16,683.1 crore, from the year-ago period when the airline had reported a topline of Rs 12,855 crore.

• India could pick up almost half of the shortfall from slowing demand growth for commodities in China this decade, driven mainly by higher energy purchases, according to ANZ Banking Group Ltd. China will likely grow at a weaker pace in the coming years, while India should remain steady, Soni Kumari, a commodity strategist at ANZ, said

Source: Economic Times,  Indian Express, Business Today, Livemint, Business Standard, Bloomberg Quint

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