Markets recover from intra-day lows! Nifty holds 24,300 but Bank Nifty slides over 400 points; HDFC Bank sees deep cuts

The benchmark equity indices ended Friday’s trading session in the mixed territory. The NSE Nifty 50 gained 21.70 points or 0.09% to settle at 24,323.10, while the BSE Sensex dipped 53.07 points or 0.07% to 79,996.60. Bank Nifty index ended lower by 443.35 points or 0.83% to settle at 52,660.35.

The broader indices ended in mixed territory, with gain led by Largecap and Midcap stocks. Energy and Pharma stocks outperformed among the other sectoral indices while Financial Services and Banking stocks shed.

ONGC, Reliance Industries, State Bank Of India, Britannia Industries, and Cipla were the top gainers on the NSE Nifty 50, while the laggards includes HDFC Bank, Titan Company, LTIMindtree, Tata Steel, an IndusInd Bank.

Markets fall on recession fears in US; Nifty plunges over 200 points and the Sensex ends below 79,000; banks deep in the red Markets snap three-day losing streak! Nifty closes comfortably near 24,300, Sensex rises 875 points August starts on a positive note! Nifty ends session above 25,000, Sensex surpasses 81,850 led by energy and FMCG stocks on August 01 Markets end at intra-day highs! Nifty at 24,950, Sensex over 81,700 led by metal and pharma on July 31

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The Indian Volatility Index (India VIX) closed down by 1.49 % at 12.66.

“The domestic market traded with a mixed bias, with the heavy-weight banking sector acting as a laggard. Adding to the worry are the top lending banks, which recorded a sequential decline in deposit growth in the June quarter,” said Vinod Nair, Head of Research at Geojit Financial Services

Nair also said that, While Midcap and Small Cap outperformed and the respective BSE indices hit an all-time high. Globally, investors now await the US non-farm payroll data to be released later today to gauge the trajectory of the US Fed’s potential rate cuts.

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Commenting on the Bank Nifty outperformance Rahul Ghose, CEO of Hedged.in said that The Bank nifty Index saw increased writing of the call OI at 52500 levels & the short covering of the put OI at 53000 levels, indicates Bank nifty likely to trade in a narrow range for the week. The Bank nifty PCR opened at 1.06 levels and dropped to 0.69 levels in first half of the session & traded steadily around that throughout the day.

Ghose further added indicating this index has fading momentum at the resistance zone, however at lower levels value buying is emerging. Market participants must exercise extreme caution on the long side especially seeing the price action emerging out of HDFC Bank in the past few days.

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