The Indian stock markets concluded Friday’s session with minimal gains, as investors maintained a cautious stance ahead of the US Federal Reserve Chair’s speech at Jackson Hole. The BSE Sensex closed at 81,086.21, up 33.02 points or 0.04%, while the Nifty 50 ended at 24,823.15, up 11.65 points or 0.05%. The day’s trading was characterised by a narrow range, with the Sensex opening at 81,165.65 and the Nifty at 24,845.40.
“Markets ended flat in listless trading as investors resorted to caution ahead of the US Fed chair’s Jackson Hole meeting outcome,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd. “Investors are hoping that the US Fed could give some sense on when the rate cut will happen on the back of moderating inflation and subdued jobs data.”
Among the top gainers on the NSE were Bajaj Auto, surging 4.74%, followed by Coal India with a 1.70% increase. Bharti Airtel and Tata Motors also put in a strong performance, rising by 1.59% and 1.58%, respectively. Sun Pharma rounded out the top five gainers, with a 1.39% increase. On the flip side, the top losers included LTIMindtree, which fell by 1.27%, Wipro declining 1.16%, ONGC dropping 1.01%, Asian Paints shedding 0.99%, and Titan decreasing by 0.93%.
In the broader market, the BSE saw 2,064 advances, 1,877 declines, and 107 unchanged stocks. A total of 4,048 stocks were traded, with 333 hitting 52-week highs and 19 touching 52-week lows. The market also witnessed 6 stocks hitting the upper circuit and 3 stocks hitting the lower circuit.
Shrey Jain, Founder and CEO of SAS Online, commented on the day’s trading, saying, “Overall market sentiment remained cautious, mirroring a global wait-and-see stance ahead of the US Fed Chair’s upcoming speech at Jackson Hole.” He added, “We recommend keeping a positive outlook on the Nifty, as long as it remains above the 24,500 level. For the Bank Nifty, following a phase of consolidation, there is potential for a short-term rise towards the 51,500–51,900 range, with a stop-loss advised at 50,400 for long positions.”
The Nifty Realty index was a notable underperformer, declining 2.43% to close at 1,018.10. Among the Sensex stocks, Tata Motors gained 1.53% to close at 1084.90, Sun Pharma rose 1.44% to 1775.75, and Bharti Airtel added 1.33% to end at 1506.05. ICICI Bank and M&M also saw gains of 1.05% and 0.97%, respectively. On the losing side, Tech Mahindra fell 1.17% to 1592.00, Asian Paints declined 0.98% to 3153.55, and Titan dropped 0.97% to close at 3568.55.
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd, provided technical insights, noting, “Nifty started the day on a flat to positive note and remained lacklustre throughout the session, eventually closing on a flat note at 24,823 levels. Technically, the index entered the gap zone of 24,852-24,956 but faced resistance, leading to the formation of an inside bar candle on the daily scale.” He added, “As long as the index holds above 24,500, a ‘buy on dips’ strategy should be employed. On the upside, levels around 24,960 and 25,080 will act as resistance points for Nifty.”
Regarding the Bank Nifty, Yedve observed, “The Bank Nifty opened on a positive note, but encountered trend line resistance, leading to profit-booking, and eventually settled for the day on a negative note at 50,933 levels. Technically, the Bank Nifty has formed a red candle near the trend line resistance around 51,200 levels.”
The market’s performance reflected a week of steady gains, with Osho Krishan, Senior Analyst – Technical & Derivatives at Angel One Ltd, noting, “The Indian equity markets witnessed a steady and gradual move throughout the week, concluding the week near its highest-ever weekly closure of 24835. The consecutive week of recovery from the lows was underpinned by broader participation and favourable global sentiments.”
Investors now await cues from global markets, particularly the US Fed’s remarks, to guide next week’s trading sentiment. As Shrey Jain pointed out, “On Monday, expect the markets to react to global cues in response to the US Fed’s remarks.”
The day’s trading session underscored the market’s current state of cautious optimism, balancing positive domestic factors against uncertainties in the global economic landscape. As the markets enter a new week, all eyes will be on how these factors play out and influence trading patterns.
