Where is the market headed?
The market started with hopes of extending yesterday’s bounce, but the optimism faded quickly. After attempting to move higher in the morning, it collapsed sharply, failing to continue the recovery.
Now, attention is back on crucial support levels that could break in the coming days. This is disappointing for those hoping the bounce would turn into a steady uptrend, at least until the end of August when some major global events are scheduled. One possible trigger is the 15th August meeting between President Putin and President Trump, which may bring a resolution to the ongoing war and could lift global markets.
Market Overview
In market action, Nifty attempted a move towards 24,700 but fell about 250 points from there. Without any strong triggers, higher levels are being rejected, and a drop towards the 200-day moving average near 24,000 is possible.
Nifty Next 50
Nifty Mid and Small Cap
Mid-caps and small-caps held relatively well, with only marginal declines, indicating that these segments may already be heavily beaten down.
Bank Nifty
Nifty Bank was weaker, dropping 0.84%, raising the risk of a breakdown.
GOLD
Gold remained flat after being hit earlier by the news of the 15th August peace meet.
Advance Decline Ratio
Heat Maps
The heatmap showed banks and financials mostly in the red, while autos like Mahindra, Maruti, and Tata Motors were among the better performers.
Movers Of The Day
Apex Frozen Foods jumped 12% after strong Q1 results, while MRF weakened on falling profits and narrowing margins.
Sectoral Overview
Sector-wise performance was mixed. Financial services, defense, banks, private banks, real estate, and FMCG sectors all declined, while pharma, media, autos, oil and gas, IT, and metals managed some gains.
Sector of the Day
Nifty Financial Services Index
Financial services continued their downward trend, hitting levels close to new lows seen in recent months. The sector fell 1.02%, with stocks like Piramal, Bajaj, Chola, Muthoot and PB FinTech all losing ground. This weakness brings prices closer to important support zones, making the next few sessions crucial for direction.
Nifty Ind Defence Index
Meanwhile, the India Defense index appeared to be stabilizing within a range of 7,500 to 7,700, but still ended the day 1% lower. Key defense stocks such as Solar, Zen, Bharat, Astra, and Dynamic Tech also slipped, reflecting pressure across the sector despite the recent consolidation phase.
Tweets Of the Day
A key lesson of the day came from the US IPO of Figma, which surged to $140 in two days but then crashed 50% in just five days. This highlights the risk of chasing IPOs immediately after listing, as early sellers—promoters, venture capitalists, and bankers—often aim to extract maximum value. It’s better to either hold with a clear thesis or wait for stability before entering.
On a positive note, equity inflows have surged to ₹42,000 crores from ₹23,000 crores last month. This is a big vote of confidence from investors despite the market’s consolidation phase since September 2024. Without this strong inflow, the markets could have fallen more sharply. It shows that many investors are still focused on the long-term picture, which is a very encouraging sign for the months ahead.
