Where is the market headed?
The week ended on a weak note as the top end of the market completely gave up. Nifty has almost surrendered all the gains it had made over the last four sessions, at least from Monday’s open. Adding to this nervousness is the talk of new tariffs on the 27th of August. The additional tariffs that were earlier announced for India have not been rolled back, and the US administration has been hinting that they will be applied.
Over the last few days, we have also seen several meetings with the Russian government and more interaction with China. This is sending a strong message to the US, though a lot of it may just be posturing. It is still uncertain how much collaboration will really happen with China. But such a combative setup is not good for the market as it increases uncertainty.
Market Overview
Nifty gave up all gains of the last four sessions, and a big gap remains in the charts. Any negative news over the weekend could close that gap as well. Fortunately, this weakness was mostly in large caps.
Nifty Next 50
The junior Nifty was down 0.64%.
Nifty Mid and Small Cap
Mid Caps and Small Caps were down only 0.18% and 0.16% respectively.
Bank Nifty
The Nifty Bank index looked even weaker as it not only covered its gap but also went lower, unlike Nifty which still has some gap left.
GOLD
Gold remained flat at ₹9931 per gram.
Advance Decline Ratio
Market breadth was weak from the start of the day, with declines staying higher throughout and ending at 164 advances against 337 declines.
Heat Maps
The Nifty heat map was red all over, especially in Banks. No sector was spared except Autos and Pharma which looked muted. Big falls were seen in ICICIGI, Lodha, PNB, Hyundai, Naukri, MCX, Adani ensol and Cement stocks, while Pharma showed small gains.
Movers Of The Day
Among movers, Idea stood out as its net loss narrowed and there was news that government dues may be slashed.
On the other hand, Nazara halted its real money online games, with Poker Bazi being stopped, leading to a 25–30% fall in market cap. This decision has shaken the gaming ecosystem, including big names like Dream11 which had signed sponsorship contracts worth nearly ₹3000 crore. Opinions remain divided, with some welcoming the moral policing by the government and others calling it harsh.
Sectoral Overview
Sector-wise, only Media, Pharma, and Defense ended in the green, up 0.95%, 0.39%, and 0.29% respectively. Capital Market stocks, which looked weak yesterday, stabilized today. Autos too held up after a strong run over the past few sessions. The weakest areas were Metals, PSU Banks, FMCG, Commodities, and Financial Services, all losing 1% or more.
Sector of the Day
Nifty Metal Index
Metals have been stuck for months with no real progress, while PSU banks like PNB, Central Bank, Punjab & Sind Bank, and Union Bank gave up recent gains.
Nifty PSU banks Index
Tweets Of the Day
On a positive note, the government launched a semiconductor design innovation scheme with design-linked incentives. It shows the urgency to push growth by all possible means. This is encouraging as it signals strong intent.
Ending with a nice quote from James Clear: “The person who learns the most in any classroom is the teacher.” This feels very true because every time I write or record videos, I learn more as I go deeper into each subject. Teaching others actually becomes a way of teaching yourself too.
