Market at a standstill

Weak start to the earning season. TCS led the fall. Market at a standstill.

Market at a standstill. After a firm start to the month of July, the earnings season began on a downbeat note today, owing to a drop in TCS share prices. Today, there was a power balance between bulls and bears. The Nifty is down slightly, primarily led by fall in share price of IT companies. More volatility and action is possible later in the week because of inflation-related data releases.

The Nifty 50 down 5 points or 0.03 percent to close at 16126. It reached a high of 16249 and a low of 16116 during the day. Compared to previous closing prices, the Nifty made a lower-high and lower-low. 

Earlier, Nifty closed the prior gap down around 16200 levels, and as noted previous blog, we may see some volatility around this level as the market attempts to take out the 16200 level and move forward.

Today, the advance-decline ratio was 1.74, and the market breadth was positive. On the other hand, the volatility index India Vix fell marginally 0.14 percent to close at 18.37.

DAILY MARKET ACTION
Advancers – 1351
Decliners – 778
52Wk High – 40
52Wk Low – 20
High Band Hitters – 106
Low Band Hitters – 58
200d SMA – 17116
50d SMA – 16084
20d SMA – 15748

Nifty Top Gainers and Losers – Market at a standstill

The top gainers on the Nifty 50 were Eicher Motors (+4.00%), ONGC (+3.25%), Tata Steel (+3.05%), Dr. Reddy (+2.74%), and M & M (+2.68%).

Meanwhile, the top losers in the Nifty 50 were Bharti Airtel (-5.12%), TCS (-4.70%), HCL Tech (-4.33%), Infosys (-2.90%), and BPCL (-2.87%).

Sectors & Broader Indices

Except for the IT sector, all sectoral indices closed in the green. Today’s biggest gainers were in Metal, Realty and Oil & Gas. The slump in IT companies’ stock prices eclipsed gains in other sectors. However, the broader indices outperformed the benchmarks. The Nifty Midcap 50 was up 0.31 percent, while the Nifty Small cap 50 was up 1.04 percent.

SECTORS – NOTABLE ACTION
METAL +1.97%
OIL & GAS +1.84%
REALTY +1.47%
IT -3.08%

Looking Ahead

The Nifty maintained 16200 level, which is positive for the overall trend. Further, the Nifty is closing above 20-day and 50-day moving average price. Similarly, the positive market breadth and falling volatility index is also positive for the over-all trend.

The 16300 level is technically an immediate resistance on the upside. On the downside, the 16000 level should serve as a firm support.

Daily Pivots

The Nifty trading range for tomorrow is 16140 to 16270

Today’s market action gives contradictory signals, which could be because of the sideways consolidation phase. The more it hovers around 16200 levels, the more likely it may break on the downside.

Read previous -Daily Insights- here
DII keeps momentum going
FII Buying Lifts Market
Braking to go faster?

This article is only for educational purposes and is not an investment advice.