Nifty extend losing streak for 3rd session as metal stocks drag market lower
Mumbai, Aug 13
The benchmark equity indices extended their losses for a third consecutive session on Thursday, ending modestly lower after trading within a narrow range throughout the day amid subdued investor sentiment.
The Sensex increased 113.61 points, or 0.15 per cent, to close at 78,079.96, while the Nifty shed 40.10 points, or 0.16 per cent, to settle at 24,395.85.
Commenting on Nifty technical outlook, experts said that on the daily chart, the index is approaching a key technical support zone around 24,325, where the 20-day Simple Moving Average (SMA) coincides with the 38.2 per cent Fibonacci retracement level.
"As long as the 24,325 support remains intact, the broader uptrend is likely to resume, with the index expected to retest the immediate resistance around 24,775," an analyst stated.
"A decisive move above that level could open the door for a further advance towards 24,900," as per the expert.
Selling pressure in heavyweight stocks weighed on the benchmarks, with Hindalco Industries, UltraTech Cement and Grasim Industries emerging as the top losers on the Nifty index.
Despite weakness in the frontline indices, broader markets displayed resilience. The Nifty MidCap index ended 0.15 per cent higher, while the Nifty SmallCap index gained 0.27 per cent.
Among sectoral indices, the Nifty Metal index was the worst performer, falling more than 1 per cent amid weakness in metal stocks.
In contrast, the Nifty Chemical index outperformed its peers and ended as the top sectoral gainer for the session.
Experts said that the market participants largely remained cautious throughout the day, keeping benchmark indices confined to a tight trading range.
"In the near term, market direction is likely to be shaped by developments in energy markets, geopolitical risks and the sustainability of foreign capital inflows," a market expert stated.
Meanwhile, the Indian rupee experienced steady depreciation throughout today's session, driven by strong dollar demand from importers.
"In the near term, spot USDINR is expected to head higher with support at 95.10 and resistance at 95.60," an analyst stated.
— IANS
Reader Comments
Midcap and smallcap still going up while Sensex and Nifty are flat - this is the real story here. Retail investors are smart, they're picking quality stocks instead of chasing the index. Good sign for the broader market.
The rupee falling to 95 levels is worrying. Importers will face higher costs, which could hit manufacturing sectors. Market might be ignoring this for now, but it will matter in the coming weeks.
Metal stocks falling 1% is linked to global slowdown fears. But chemical sector doing well shows our manufacturing is diversifying. Mixed signals but nothing to panic about. SIP continues as usual! 💪
One small criticism - markets are getting too focused on technical levels instead of fundamentals. 24,325 support, 24,775 resistance - it's all noise. What matters is whether companies are making profits. Let's talk about earnings, not Fibonacci.
This selloff is actually healthy - market was overheated after the recent run-up. FIIs will come back when geopolitical tensions ease. 78,000 level for Sensex is still a good base. Looking forward to a rebound soon.
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