Where is the market headed?
It was another day where the market started well but could not really build on the initial strength. We did manage to end in the green, but there was no major action. On Friday evening, Jerome Powell’s speech gave some hints about possible interest rate cuts in the future. This added some enthusiasm to emerging markets, gold, and other risk-on assets, which likely caused today’s early jump.
But a bigger concern still hangs over the market – the additional 25% tariffs that go into effect on 27th August. If these are not reconsidered, some sectors will face a very tough time because a 50% tariff almost means no business at all.
Market Overview
Looking at today’s charts, the market move was what we call an “inside day” compared to Friday. This means today’s high and low were within the range of the previous session. It usually signals indecisiveness or a pause. A clear direction will only show once the market breaks either above the highs or below the lows of these candles. Despite Friday’s heavy fall, today’s 0.39% gain in Nifty wasn’t bad.
Nifty Next 50
Nifty Junior added 0.25%.
Nifty Mid and Small Cap
Midcaps lost slightly at -0.03% and Small caps were almost flat at 0.06%. Large caps held better, possibly due to some FII activity.
Bank Nifty
Bank Nifty remained weak, losing 0.02%. Unless something changes sharply, the outlook is not too hopeful.
GOLD
Gold rose 0.22% today on expectations of global rate cuts and is now trading at ₹10,053 per gram.
Advance Decline Ratio
Market breadth was even with 254 advances and 247 declines.
Heat Maps
IT stocks were the clear winners with Infosys, TCS, HCL Tech, and Wipro all gaining. Some Banks, Finance companies, and Auto stocks also did well. In the Nifty Next 50, gainers included Hyundai, Zydus Life, Divi’s Lab, Adani Power, Naukri, Pidilite, and LTIM. On the losing side were Bajaj Holding, Chola Finance, Canara Bank, Bosch, and a few others.
Movers Of The Day
Idea was the mover for the second straight day, helped by expectations of AGR relief.
Hyundai also stood out, gaining 4.4% after Crisil reaffirmed its AAA rating. The stock had already rallied from 2100 to 2600 before correcting, and with the small car GST benefit coming soon, it looks positive again.
Sectoral Overview
Sector-wise, Nifty IT jumped 2.37%, making it the strongest sector today. Media and Capital markets were weak, with stocks like Nazara, Zee, PVR, Network 18, and Sun TV all down. The online gaming troubles have spilled into media, as sponsorships and ad spends are shrinking. Media charts are forming a bearish flag, which could mean more downside if it breaks further.
Sector of the Day
Nifty IT Index
Nifty Media Index
Tweets Of the Day
Outside equities, there was also discussion around Bitcoin. Over the last decade, Bitcoin has fallen by 75–80% in every major correction. If such a fall happens again from recent highs, the level could be near $26,000, which may then turn into a low-risk buying zone.
Finally, a quick thought – prices in the market are the ultimate truth. Whether it’s houses, cars, watches, or stocks, if multiple transactions happen at a certain price, that is the reality, even if our personal perception is different. Many times, investors miss opportunities by assuming something is “too expensive,” while the market continues to move much higher.
