Market ends flat but at 6-month high; small midcaps outperform

On a volatile day of trading, Indian markets that flitted in and out of the green ended flat but still at a six-month high on August 25.

The S&P BSE Sensex, which had a touch-and-go moment with 39,000, closed 44 points higher at 38,843. The Nifty50 reclaimed 11,500 only to slip and end the day 5.8 points higher at 11,472.

“Indian markets exhibited characteristic volatility, trading undecidedly before ending flat with a slight positive bias. This was in spite of positive global cues after the US and China reaffirmed their commitment to a previous trade deal and also due to the progress in virus vaccine development,” Vinod Nair, Head of Research at Geojit Financial Services told .

In the Indian market, the positivity was offset by losses in the blue chips. The market was uncertain due to a lack of domestic triggers. Investors should remain cautious and keep booking profits whenever possible, he said.

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Sectorally, action was seen in banks, finance, auto, and consumer discretionary while profit-taking was seen in realty, utilities, FMCG and healthcare.

On the broader markets front, the S&P BSE Midcap index rose 0.5 percent and the S&P BSE Smallcap index closed with marginal gains of 0.1 percent.

Top Nifty gainers included like SBI, Bajaj Finance and Tata Motors.

Top Nifty losers included Sun Pharma, NTPC, Shree Cements and GAIL.

Stocks & Sectors

Sectorally, the S&P BSE Bankex rose 1.2 percent followed by the S&P BSE Finance index that was up 1 percent and the S&P BSE Auto index gained 0.4 percent.

Profit-booking was seen in the S&P BSE Realty index that fell 2 percent followed by the metal index that slipped 0.53 percent and utilities closed with losses of 0.6 percent.

A volume spike of more than 100 percent was seen in Tata Motors, RBL Bank and Aurobindo Pharma.

Long Buildup was seen in stocks like Canara Bank, Indiabulls Housing Finance and Havells India.

Short Buildup was seen in stocks like Aurobindo Pharma, SBI Life, and Nestle India.

Atul, IndiaMart InterMESH, and Aarti Drugs were among more than 200 stocks to hit a 52-week high on the BSE.

Stocks in news

Tata Motors rose nearly 5 percent after N Chandrasekaran in the AGM said the company had a net automotive debt of Rs 48,000 crore and “we have a target of reducing this to near-zero levels in three years”.

Allcargo Logistics was locked in 20 percent upper circuit after the company’s promoters proposed to delist the company from the stock exchanges.

LIC Housing Finance share price jumped 8 percent on August 25, a day after the company declared its June quarter numbers. The mortgage lender on August 24 reported a 34 percent jump in net profit to Rs 817.48 crore for the quarter ending June.

Max Financial Services share price surged over 12 percent intraday after global research firm CLSA upgraded the stock to buy and raised the target price.

Shares of Future Retail jumped 4 percent after the company averted a default by making an interest payment of $ 14 million or about Rs 105 crore to its coupon holders for $ 500 million senior secured notes.

Technical View

The Nifty formed a bearish candle on the daily scale.

The index found support near 5-day EMA placed at 11,414

It continued to form higher highs – higher lows for the third consecutive session and supports gradually shifted higher with the scope for further upside. The major trend is positive and follow-up buying activities could commence the next leg of the rally, experts said.

“Now, it has to continue to hold above 11,350 zone to witness an upmove towards 11,600 while on the downside, the medium-term support shifted to 11,300-11,250 zones,” Chandan Taparia, Motilal Oswal Financial Services Limited said.