Monday Stock Market Opening: Force Motors Continues To Zoom, Banks Get Bullish

The last trading week was full of drama for the Indian stock market. After a lot of ups and downs, the market finally closed on the red mark. NSE Nifty was down 114.80 points and closed at 19,428.30, while the BSE Sensex was down 365.53 points and closed at 65,322.65. As the new trading week opens today, experts say that this roller coaster ride will continue. 

The Top Gainers 

Here is a look at the top gainers on Friday which gave decent returns to the investors. These included Anand Rathi Wealth, Kalyan Jewellers India, Force Motors, and Jubilant Industries.

Anand Rathi Wealth was up 11.16 per cent and is trading at Rs 1,437. In the last five days, it has gained 13.19 per cent. Kalyan Jewellers India was up by 10.96 per cent and is available at Rs 201.40. In the last one month, it has jumped 10.27 per cent.  

Force Motors continued with its rally and gained 10 per cent, trading at Rs 3,344.10. In the last five days, it has jumped 22.72 per cent. Jubilant Industries jumped 8.82 per cent and is trading at Rs 585. It is nearing the 52-week high of Rs 590. 

Stocks Giving Bullish Signals

According to the momentum indicator MACD, there are some stocks which are showing bullish signs. These include Indian Overseas Bank, UCO Bank, Hindustan Copper, and India Cements.

Indian Overseas Bank has gained 14.29 per cent and is available at Rs 30.80, and UCO Bank is up by 5.05 per cent and is trading at Rs 29.10.

Hindustan Copper is trading at Rs 158.80 following a jump of 7.12 per cent. India Cements gained 4.61 per cent and is trading at Rs 252.

Expert Speak 

Prashanth Tapse, Senior VP (Research), Mehta Equities 

Markets are likely to see a weak opening in Monday trades owing to pessimism across the Asian indices. While intra-day volatility will persist, both CPI and WPI numbers for July to be announced after the market hours will be keenly watched, especially at a time when interest rate levels across the globe remain elevated due to perennially high inflation. Also, the FII camp is in a sell mode this month and have offloaded shares worth Rs 4,702 crore in the previous week, which is making investors jittery in the wake of global economic uncertainty. Investors will pay close attention to the minutes of the Federal Reserve’s July policy meeting to trickle in on August 16. Technically speaking, bears are in total control with immediate downside risk at 19268 mark, while Nifty could see upward momentum only above the 19757 mark.

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

India’s WPI and CPI inflation data, Exports and Imports numbers, Forex reserves will be in focus in the coming days.  RBI projected inflation to be 5.4% in FY24. Major key global events that will drive the market next week are China’s Industrial production, US retail sales, crude oil inventories, building permits, initial jobless claims, FOMC meeting, UK unemployment rates, CPI data, retail sales, Euro inflation and GDP data. We expect the Indian market will continue to remain rangebound and will take further cues from RBI decision, US job data and minutes of the FOMC meeting.

The NIFTY index has witnessed a correction for the third consecutive week following its all-time high at 19,991, forming an inside bar candle on the weekly time frame. NIFTY prices remained well above their short-term moving averages i.e. 21 and 55-day EMAs. 

Contrastingly, the Banknifty appears weaker compared to the NIFTY. It concluded the week below its previous week’s low. The Banknifty has briefly fallen below the neckline support of the Head & Shoulders Pattern on the daily chart. 

Santosh Meena, Head of Research, Swastika Investmart

From a technical standpoint, the Nifty index is exhibiting signs of weakness, characterized by a lower top formation. The challenge lies in surpassing the 20-day moving average (20-DMA), positioned around the 19650 mark. On the downside, immediate support rests at 19300. A breach below this level could expose Nifty to further declines, possibly targeting the 19191 and 18888 levels. The re-establishment of bullish momentum hinges on a rebound above the 20-DMA.

Conversely, Bank Nifty is displaying underperformance and has experienced a breakdown below the crucial support level of 44444. This breach opens the door to a potential support zone ranging from 43500 to 43300. A bullish resurgence would necessitate a successful breach of the 50-day moving average (50-DMA) at 44700.

Furthermore, insights from the derivative market indicate a decline in FIIs' long exposure in index futures to 40 per cent, signifying a short-term bearish bias. Additionally, the put-call ratio stands at 0.91, approaching oversold territory.

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