Market rallied on Tuesday with gains contributed mainly by Non Financials stocks while Bank Nifty struggled to sustain at higher levels. Nifty managed to close above 17050 but the breadth of market turned negative and India VIX surged by 9%, which is an indication of rally driven by major short covering. We can expect 17050 to act as a crucial trend reversal for the current upmove and resistance is seen at 17350. A breakdown in ratio of Bank Nifty to Nifty 50 index is an early indication that Bank Nifty may see major selling in the days to come.
From a fundamental perspective, markets will react to India’s GDP data along with Auto sales number for August that companies will start declaring from today. Final leg of peak margin rules is going to become effective. Its impact on market volumes will be gauged by the investors over the next few sessions as intraday trading is likely to be impacted the most. In addition, rising Delta variant cases and poor monsoon remain some of the concern to the market.
US indices hovered near record highs on Tuesday despite weakness in technology stocks, with the S&P 500 heading for a seventh straight month of gains as fears ebbed over near-term policy tightening by the Federal Reserve. Dow fell 39.11 points, S&P 500 lost 0.13% and Nasdaq Composite slipped by 0.04%. Asia stocks are trading mixed as investors await private survey on Chinese factory activity in August.
Stocks in news
Aviation stocks in focus- Jet fuel (ATF) price cut by Rs 2,608.50/kL to Rs 66,527.97/kL in Delhi
BHEL secures order of Rs 10,800 crore from NPCIL
Asian Paints- Promoter entity Sattva Holding and Trading created a pledge on 21.78 lakh shares.
Mastek- The company partnered with fulfillmenttools to deliver modern omnichannel fulfillment solutions to customers worldwide.
Wockhardt- Promoter entities Humuza Consultants & Themisto Trustee Company Private Limited sold 18 lakh equity shares or 1.62 percent via open market transactions.
Tourism Finance Corporation of India on September 3 will consider fund raising.
Shoppers Stop- The company exited non-core business by selling its subsidiary, Crossword Bookstores at a gross business valuation of Rs 41.62 crore and will focus on expanding core business and strategic growth pillars – First Citizen, Private Labels, Beauty and Omnlchannel business.
Wipro- The company and HERE Technologies partnered to provide location-based services and analytics for customers globally.
India’s gross domestic product (GDP) grew at 20.1 percent in the April-June quarter of the fiscal year 2021-22
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