Stocks experience a dip: Nifty approaches 24,400, Sensex descends by 550 points; Midcap stocks plummet by a percentage point.
On August 8, 2021, the Indian stock market witnessed a significant downturn, with major indices hitting three-month lows. The NSE Nifty 50 closed at 24,363.30, down by 232.85 points (-0.95%), and the BSE Sensex fell 765 points (-0.95%) to 79,857.79. This marked the sixth consecutive week of market decline, influenced by geopolitical concerns and continued foreign fund outflows.
The Bank Nifty also followed the downward trend alongside the broader markets, although specific Bank Nifty index points for the day are not detailed. In the Nifty Midcap segment, while exact index movement figures for August 8 are not explicitly mentioned, the Nifty Smallcap 100 index underperformed, dropping 1.49% to 17,428.20, indicating pressure on mid and small-cap stocks as well.
Despite the overall market weakness, some stocks showed positive technical momentum. Top movers with an increasing Relative Strength Index (RSI) crossing above 50 (signaling strengthening price momentum) included Max Financial Services, Titan Company, General Insurance Corporation of India, Sai Life Sciences, Kalpataru Projects International, Saregama India, Network 18 Media & Investments, and Life Insurance Corporation of India. These eight stocks posted gains over 2% on that day and were identified as showing an uptrend signal.
| Index | Closing Value (Aug 8, 2021) | Change | Notes | |------------------|----------------------------|--------------|-----------------------------------| | NSE Nifty 50 | 24,363.30 | -232.85 (-0.95%)| Three-month low | | BSE Sensex | 79,857.79 | -765.47 (-0.95%)| Three-month low | | Bank Nifty | Not specified | Downtrend | Followed market decline | | Nifty Midcap | Not specified | Under pressure| Smaller and midcap indices down |
Key stocks with positive momentum on Aug 8 included Max Financial Services and Titan, among others, as they showed strengthening technical indicators and posted notable gains despite index declines. This day reflected a risk-off sentiment influenced by international trade concerns and foreign fund outflows, impacting the overall market adversely while select stocks bucked the trend with RSI-supported recoveries.
Additional news: - Jefferies has raised its target on Trent but remains cautious. - In early trade, Trent is one of the top gainers in the Nifty 50. - Tata Motors, Bajaj Finance, Hero MotoCorp, and Bajaj Finserv are also among the top gainers in the Nifty 50. - Shrikant Chouhan, Head of Equity Research at Kotak Securities, mentioned that a reversal formation has appeared on intraday charts, which is a positive sign. - Prashanth Tapse, Senior Vice President of Research at Mehta Equities, stated that volatility and choppiness are expected in today's trade. - No new facts about FIIs selling in August were mentioned. - President Trump doubled US tariffs on India to 50%. The extra 25% of US tariffs on India will be effective from 27 August. - FIIs (Foreign Institutional Investors) have sold a total of Rs 15,950 crores in August, till now. - Bharti Airtel, Zomato (Eternal), Infosys, Bharat Electronics, and HDFC Bank are the key laggards in the Nifty 50. - Reliance Industries and Reliance Industries remained under pressure in the morning trade. - VK Vijayakumar, Chief Investment Strategist at Geojit Investments, stated that the market continues to be technically and fundamentally weak. - No new facts about the market being technically and fundamentally weak were mentioned.
- Despite the overall market decline in India on August 8, 2021, certain stocks such as Max Financial Services, Titan, and others demonstrated positive technical momentum, showing strengthening price momentum and gaining over 2% on that day.
- The continued foreign fund outflows and geopolitical concerns contributed to the six-week market decline, as seen in the downturn of major indices like the NSE Nifty 50 and BSE Sensex, which hit three-month lows.
- In addition to the broader market declines, the Nifty Midcap segment, in particular, was under pressure, with the Nifty Smallcap 100 index dropping 1.49% on that day.
- In the realm of finance and investing, volatility and choppiness in the market are expected, as stated by Prashanth Tapse, Senior Vice President of Research at Mehta Equities.
- Shrikant Chouhan, Head of Equity Research at Kotak Securities, identified a reversal formation on intraday charts, suggesting a positive sign for the market, although no new facts about the market being technically and fundamentally weak have emerged.
