Where is the market headed?
The week and the month of August have ended, but sadly there is no good news for the markets. The Indian markets continue to reel under selling pressure and are now very close to key support levels. Unless some fresh announcement comes in, it looks like these supports may break soon.
The only small positive is that the government has finally opened the door for talks. It seems like the realization has come that India cannot afford to go against the U.S. completely and must agree to a middle path. This is at least some relief for investors as negotiations may bring stability.
Market Overview
The Nifty closed down 0.3% today. There was some recovery during the day, but by closing, the index was again near the lows. After being beaten down for the last five-six sessions, the absence of late recovery is a worrying sign. Nifty is now near the 24,400 zone, which should act as support next week.
Nifty Next 50
Nifty Next 50 also fell 0.3%.
Nifty Mid and Small Cap
Midcaps slipped 0.55%, and Smallcaps ended 0.32% lower.
Bank Nifty
Nifty Bank attempted a comeback but still closed down 0.31%.
GOLD
While equities stayed weak, gold once again proved its strength. Gold in INR terms touched ₹10,239.
Advance Decline Ratio
Heat Maps
In short, there was no sector or pocket that could escape the selling pressure. Reliance, HDFC Bank, Infosys, Tata Motors, and Mahindra & Mahindra were among the large stocks dragging the market down. On the other hand, ITC gained 2.2%, Bharat Electronics rose 1.5%, and Shriram Finance also added 1.5%.
Mover Of The Day
CG Power stood out with a sharp 4.5% rally, breaking out of a long flag pattern and showing strong momentum.
Sectoral Overview
Among sectors, FMCG managed to stay positive with a 0.95% gain, helped by ITC’s move. Media was also slightly higher at 0.35%. But the biggest pain was in the Capital Market stocks. This index has fallen 7.5% in the last one week and the same amount in the last one month, making it the worst performer.
Sector of the Day
Nifty Capital Market Index
Nifty Realty Index
Tweets Of the Day
Gold in INR terms touched ₹10,239, marking an all-time high on daily, weekly, and monthly charts. In dollar terms too, gold hit fresh highs as USDINR crossed 88.2 and is now headed towards 90. Experts point out that on monthly charts, gold has shown incredible strength, with 18 out of the last 19 months closing in green.
This is a reminder for investors about asset allocation. If the rupee falls sharply against the dollar, all INR-based assets like houses, stocks, and bank deposits may not protect your purchasing power. Since India depends heavily on imports, especially oil, the impact of a weak rupee will be felt in day-to-day life. Gold remains the best natural hedge in such a scenario, as it is priced in dollars but available to buy locally.
