Palak Kothari, Senior Technical Analyst at Choice Broking:
On a monthly expiry day, the Nifty opened on a green note and made an intraday high at 17,726.50 level but in the dying hour of the session witnessed profit booking from a higher level and closed at 17,522.45 level with a loss of 82.50 points.
On the technical front, the Nifty has faced resistance from the 17700 zone and showed supply which led to a bearish candle on the daily time frame suggesting weakness in the counter. Furthermore, Nifty has given a breakdown of the rising trend line which adds weakness to the price.
On the Open Interest (OI) Data, on the call side, the highest was witnessed at 17700 level while on the put side was at 17400 level followed by 17200. The momentum indicator stochastic was traded with a negative crossover on an Hourly time frame which suggests weakness in the counter.
The support for Nifty has shifted around 17300 levels while on the upside 17750 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 38500 levels while resistance at 39500 levels.
Overall, sector specific momentum can be seen as the PSU Bank & Realty stocks are looking good for the upcoming session.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Amid heightened volatility, investors pruned their long positions on the F&O expiry day due to the uncertain global economic scenario. There are concerns that the Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium on Friday would focus on more rate hikes to rein in inflation.
Also, benchmark indices had come close to slipping into negative zones in the last two sessions, and hence correction was on expected lines.
Technically, lower top formation on intraday charts and bearish trend reversal candle on daily charts is indicating further correction from the current levels. In the short term, 17700 would be the key resistance zone and below which, the Nifty could slip till 17400-17300. On the flip side, a fresh uptrend is possible only after 17700. Above the same, the index would move up to 17800-17850.
Vinod Nair, Head of Research at Geojit Financial Services:
Ahead of the Jackson Hole symposium, investors across the world are eagerly expecting the Fed chair’s speech to evaluate the outlook for monetary policy and determine whether the central bank can achieve a soft landing for the economy.
Crude prices rose as Saudi Arabia suggested that OPEC+ supply may be reduced to address market instability. Although Indian equities are trading at a premium over other emerging markets, the consistent support from FIIs is guiding the domestic market.
Rupak De, Senior Technical Analyst at LKP Securities:
Nifty formed an engulfing pattern after two days of positive move, setting a stage for a bearish reversal. The momentum indicator RSI is also pointing toward a negative momentum in the near term.
On the lower end, 17480 is likely to act as initial support; a fall below 17480 may take the index towards 17350. Below 17350 the Nifty may drift down towards 17000-16950. On the higher end, resistance is visible at 17700.
Kunal Shah, Senior Technical Analyst at LKP Securities:
The Bank index witnessed selling pressure from higher levels and failed to surpass the hurdle of 39,500 on the upside. The immediate downside support stands at the 38,500-38,400 zone and if breached will lead to further selling pressure on the downside.
The index needs to break the range of 38,500-39,500 for decisive trending moves on either side.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
Continuing with the minor degree pullback that was seen in the last couple of sessions, the Nifty opened gap up on August 25. It traded with a positive bias in the first half of the session.
In terms of the Fibonacci retracement, it nearly tested the 61.8% retracement of the recent fall. Fresh selling pressure was seen near this key Fibonacci level.
The zone of 17700-17750 indeed proved to be a strong hurdle. From there the index has started the next leg down. The Nifty is set to test the swing low of 17345 below which 17000 will be the short term target to watch out for.
Market Close: Benchmark indices ended lower in the highly volatile session with Nifty around 17500.
At Close, the Sensex was down 310.71 points or 0.53% at 58,774.72, and the Nifty was down 82.50 points or 0.47% at 17,522.50. About 1865 shares have advanced, 1462 shares declined, and 132 shares are unchanged.
Adani Ports, Bajaj Finance, Infosys, Power Grid Corporation and NTPC were among the major Nifty losers.
The gainers included Shree Cements, Hindalco Industries, Divis Laboratories, Eicher Motors and Grasim Industries.
Realty and PSU Bank rose 1-2 percent, while selling was seen in the IT, auto, bank, oil & gas, pharma and FMCG names.
BSE midcap and smallcap indices ended on flat note.
Indian rupee ended lower at 79.88 per dollar versus previous close of 79.81.
Nifty Pharma index fell 0.5 percent dragged by the Lupin, Abbott India, Zydus Lifesciences
BSE Fast Moving Consumer Goods index shed 0.5 percent dragged by the Vadilal Industries, Emami, Kokuyo Camlin
Dreamfolks Services IPO Subscription Update
Shares of PB Fintech (PolicyBazaar) rose over five percent intraday on August 25 after the company made a slew of investments in subsidiaries and incorporated a new subsidiary in Abu Dhabi.
The company in an exchange notification on August 24 said its board has considered and approved the incorporation of a stepdown wholly owned subsidiary called PB Fintech FZ-LLC in Abu Dhabi.
The new subsidiary aims to extend group technology hubs in the UAE and provide end to end solutions. “Through this technology hub, we will make it easier for insurers to integrate with our policibaazar.ae business, bringing in direct benefit to our core business,” PB Fintech said.
PB Fintech will also acquire a Dubai-based marketing management company YKNP Marketing Management through PB Fintech FZ-LLC. It will buy 45 to 51 percent in the target firm for $4 million.