Procter and Gamble’s Decline, Tata Power-Zoomcar Partnership, IPCA Labs’ Positive Response

Technical Overview – Nifty 50

The Benchmark index on the weekly expiry day witnessed a gap up opening above 19,500 levels and recording an intraday high at 19,584 levels in the first hour of the trade. Post recording an intraday high Nifty witnessed an immersed profit booking and traded in a lower low formation throughout the day.  

The Nifty index on the daily chart has formed a bearish engulfing candle stick pattern and closed near the cluster of the 9 & 21 –21-day exponential moving averages.  The initial move in the index indicated a breakout of the last seven days’ consolidation range but prices witnessed a whipsaw and again drifted below in its consolidation zone.

The lower high lower bottom formation is well intact on the daily chart which clearly indicates a sell-on-rise scenario. The momentum oscillator RSI (14) has been hovering below 50 levels for the past seven trading days suggesting weak momentum on the cards.

On the downside, the 50 EMA at 19285 levels may perform as crucial support. Below this, a gap between 19200-19234, on a weekly and monthly chart could act as a strong demand zone. A sustainable breakout above 19,500 – 19,550 levels will create a bullish move towards 19,700 levels.

Technical Overview – Bank Nifty

The Banking Index on the weekly expiry day witnessed a gap up opening above 44,700 levels and recording an intraday high at 44,949 levels in the first hour of the trade. Post recording an intraday high Bank Nifty witnessed an immersed profit booking and traded in a lower low formation throughout the day.  

The Bank Nifty broke below a significant technical pattern known as the head and shoulders at the 44,500 level. The breakdown has led to a dip towards 43,600, suggesting potential downside pressure. The momentum oscillator RSI (14) has been hovering below 50 levels for the past seven trading days suggesting weak momentum on the cards.

The zone between 44,700 and 44,850 now presents a potential opportunity for the bears as this area could act as a resistance turned support. A sustained move within this range might signal further downward movement till 44,200 – 44,100 levels.

Indian markets:

• The domestic stock markets ended their three-day winning streak, closing on Thursday.
• The Nifty index began the day by touching a morning session high of 19,584.45 but closed below the 19,400 mark.
• The fluctuations in trading were mainly due to the expiry of weekly index options on the NSE.
• Global economic uncertainty led investors to be cautious, refraining from significant financial commitments.
• Amid the market ambiguity, IT and FMCG stocks saw gains, contrasting with losses in the pharma and healthcare sectors.

Global Markets

• Markets in Europe and Asia advanced on Thursday, driven by technology stocks gaining on Nvidia Corps better-than-expected quarterly earnings. However, concerns over China and high interest rates restricted market gains.
• U.S. stocks surged on Wednesday, driven by Nvidias strong quarterly earnings and positive after-hours trading for tech companies like Microsoft. Investors were hopeful that Nvidias performance would further boost the rally in tech stocks.
• The slight decline in 10-year U.S. Treasury yields and weak business activity data from the U.S. and eurozone also contributed to the market. Investors are eagerly awaiting comments from U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole conference for insights into interest rates.

Stocks in Spotlight

• Procter and Gamble saw a 5 percent decline in its stock as it released disappointing financial results for the June quarter. The fast-moving consumer goods company recorded a net profit of Rs 29.8 crore in Q4FY23, marking a 28 percent drop from the same period last year. This decline was attributed to increased material expenses and one-time employee costs. Despite this, the company’s revenue showed a modest growth of 1.8 percent year-on-year, reaching Rs 301.2 crore during the quarter.
• Tata Power Company Ltd rose by over 2 percent to reach Rs 252.25 following the company’s announcement of a partnership with car-sharing platform Zoomcar. Tata Power’s subsidiary, Tata Power EV Charging Solutions Limited (TPEVCSL), has collaborated with Zoomcar to promote electric vehicle (EV) adoption and provide convenient charging solutions for EV users across India, aiming to enhance the overall EV experience.
• IPCA Labs witnessed a 1 percent increase in its stock value following its announcement of receiving the Voluntary Action Indicated (VAI) classification from the USFDA for its Piparia (Silvassa) manufacturing unit. This classification underscores the facility’s adherence to the minimum acceptable compliance standards for current good manufacturing practices. The positive market response indicates investor confidence in IPCA Labs’ regulatory standing and operational excellence.

News from the IPO world🌐

• Heating Equipment firm JNK India files draft IPO papers with SEBI 
• CPS Shapers IPO to hit Dalal Street on August 29
• Arkade Group to file IPO papers next week with SEBI to raise Rs. 450 crore

Day Leader Board

Sectoral Performance

Advance Decline Ratio

Numbers to track

Please visit www.fisdom.com for a standard disclaimer.