Monday At Stock Market: Adani Green, Adani Power Back In Race, Tata Steel Bullish

The Indian market continues with their roller coaster ride. Last week, the trading closed on the red mark with both BSE and NSE declining. NSE NIfty was down 55.10 points, closing at 19,310.15, while the BSE Sensex was down 202.36 points and closed at 64,948.66. Experts say that markets may see a subdued opening in Monday trades amid weakness in other Asian indices but some stocks may remain stable. 

The Top Gainers 

Here are some of the top gainers on Friday, fetching good returns for their investors. These included Welspun Enterprises, Loyal Textile Mills, Technocraft Industries (India) and Adani Green Energy.

Welspun Enterprises was up 9.41 per cent and is trading at Rs 305.20. In the last five days, it has gained 8 per cent. Loyal Textile Mills was up by 9.18 per cent and is available at Rs 666. However, in the last one month, it has been fluctuating and saw a decline of 2.92 per cent.  

Technocraft Industries (India)  gained 7.82 per cent, trading at Rs 2,039. In the last five days, it has jumped 24.41 per cent. Adani Green Energy jumped 7.02 per cent and is trading at Rs 999. It is still far from its 52-week high of Rs 2,572.

Stocks Giving Bullish Signals

As per the momentum indicator MACD, there are some stocks which are showing bullish signs. These include South Indian Bank, Adani Power, Lemon Tree Hotels, and Tata Steel.

South Indian Bank has gained 6.16 per cent and is available at Rs 22.40, and Adani Power is up by 6.30 per cent and is trading at Rs 304.60.

Lemon Tree Hotels is trading at Rs 102.40 following a jump of 6.67 per cent. Tata Steel gained 0.30 per cent and is trading at Rs 116.40.

Expert Speak 

Prashanth Tapse, Senior VP (Research), Mehta Equities 

Markets may see a subdued opening in Monday trades amid weakness in other Asian indices, as investors are worried that more rate hikes by the US Fed and other key central banks could worsen the global macroeconomic situation and hamper revival in growth going ahead. Another factor hurting the sentiment has been the offloading of domestic shares by foreign investors this month, and if this trend continues downward spiral may extend. In the month of August, FIIs have sold shares worth Rs 10,926 crores. Today, all eyes will be on the Jio Financial Services (JFS) listing, which has a market capitalisation of over Rs 1.66 lakh crore. While the sentiment on the Chinese economy has taken a negative turn, investors will watch for the Jackson Hole Annual Symposium on Thursday. Technically, if the Nifty slips below 19251, there could be more downside risk.

Shrikant Chouhan, head of equity research retail, Kotak Securities

In the past week, the benchmark indices witnessed narrow-range movement, with Nifty closing down 0.60 per cent after a roller coaster ride while Sensex was down 322 points. Across sectors, Media and PSU Bank indices fared better, with Media gaining over 2 per cent while the PSU Bank index up nearly 1 per cent, while Metals index recovered sharply and gained by over 2.5 per cent. 

Technically, on the daily and intraday charts, the index is forming a lower top and on the weekly chart, it has formed a small bearish candle, which is an indication of a pause. However, on the lower side, it takes support near the persistent 50-day SMA or 19250/64750 (Simple Moving Average). We are of the view that the market structure is weak, but fresh selling is possible only after rejection of 50-day SMA or 19250/64750, below which the index may slide towards 19200-19100/64500-64200. On the other hand, 19400/65250 would act as a major resistance level for the bulls. Above 19400/65250, the index may travel till 19450-19500/65500-65700. The current market structure is non-directional; Therefore, level-based trading would be the ideal strategy for short-term traders.

Regarding Bank Nifty, the bearish sentiment is likely to continue till it is trading below 44100. Below which, it may slip till 43500-43200. On the other hand, above 44100 it may move towards 44400-44600.  The Bank Nifty is on the verge of completing a corrective pattern between 43500 and 43200.  Our advice is to collect select stocks with a medium-term view.  

Arvinder Singh Nanda, Senior Vice President, of Master Capital Services

The market will react to some key global and domestic events such as US existing Home Sales, Building permits, S&P Global US manufacturing and services PMI data, New Home sales, Initial Jobless claims, Core durable goods orders, Crude oil inventories, Eurozone S&P global composite PMI, India’s forex reserves, RBI MPC Meeting minutes will be in focus.

The NIFTY index has been on a downtrend since reaching its all-time high. Due to some mounting global headwinds like China’s housing crisis, and expectations of further rate hikes in the U.S., prices eased by around 0.60% to settle the week at 19310. Prices are currently forming a descending triangle pattern on the daily chart, a decisive fall below the lower range value will confirm the bearish scenario. Despite this, NIFTY prices have remained higher than their short-term moving averages i.e., the 21 and 55-week EMAs. 

In contrast, the Bank Nifty seems to be exhibiting greater weakness compared to the NIFTY. It concluded the week below the previous week's low. Furthermore, the Bank nifty briefly trades below the neckline support of a Head & Shoulders Pattern on the daily chart.

Pravesh Gour, Senior Technical Analyst, Swastika Investmart

As we approach a new week, several key factors will influence market dynamics. Macroeconomic indicators, trends in global stock markets, and FII activities will be pivotal in shaping market trends in the coming days. Domestically, the movement of the rupee against the dollar and the share of Jio Financial Services will be listed on the stock exchange on August 21. Jio Financial Services shares were credited to eligible RIL shareholders as of the record date of July 20 in the ratio of 1:1.

In global markets, investors will closely monitor the movement of crude oil prices, the dollar index, and US bond yields. On the Marco front, the BRICS Summit will be held between August 22 and August 24. China will announce the loan prime rate for 1 year and 5 years on August 21. US Flash Manufacturing PMI, Flash Services PMI, and unemployment claims will be scheduled between August 23 and August 24.

(All views expressed by experts are personal. Investments are subject to market risks and this article suggests you to invest wisely)