The stock market declined on Friday, August 8, amidst concerns with foreign institutional investors continuing selling and American tariffs. The BSE Sensex fell 765.47 points or 0.95 percent to close at 79,857.79. NSE Nifty fell 232.85 points or 0.95 percent to close at 24,363.30. The market declined in the sixth consecutive trading week. The BSE Sensex was in a loss of 742.12 points or 0.92 percent and NSE Nifty 202.05 points or 0.82 percent throughout the week.
The broader index made a weak performance compared to the frontline index and continued to decline for the third consecutive week. The BSE Large-Cap and Mid-Cap index declined by 1–1 percent, while the BSE Small-Cap index fell by about 2 percent. Meanwhile, more than 40 smallcap shares fell 10-24%. Also, more than 40 shares jumped up to 6-22 percent.
Foreign institutional investors (FII) continued their selling and sold shares worth Rs 10,652.47 crore in a consecutive week. On the other hand, domestic institutional investors (DII) continued their purchases in the 16th week and bought shares worth Rs 33,608.66 crore. So far in August, FII has sold shares worth Rs 14,018.87 crore and DII has bought shares worth Rs 36,795.52 crore.
Further market instability is estimated to remain
Vinod Nair, a research head of Geojit Investments, says, “Since July, the Indian stock market has been undergoing consolidation, which shows the weak sentiments of investors due to trade-related challenges. Increase in American tariffs and disappointing performance of companies’ disappointing performance of companies has weakened the market confidence. FII has weakened Fi. FII has also worried about the continuous investments.”
In further said, “Despite these adverse conditions, the RBI has reduced negative risk due to the initial signals of confirmation of macroeconomic stability, optimistic trend on domestic growth and reduction in inflation. Further, there is a forecast to continue with the market.
In which direction is the Nifty 50 going?
Ajit Mishra, Senior Vice President-Restrice at Railor’s Broking Ajit Mishra says, “The uncertainty and frequent selling of FIIs on the condition of the tariff has affected the market’s sentiments. 100-Day EMA is close to 24,600. It had previously done support for support, but is now doing the work of amidiate resistance. The closing of the Nifty below 24450 indicates the continuing of correct phase. 200-Day EMA is close to 24,200. This may be a possible retaste. Traders are advised to keep their position according to the risk management according to that.
LKP Securities, Senior Technical Analyst Roopak Dey says that the short term trend remains weak. The Nifty can fall to 24150-24200. Resistance is being seen at 24475-24500 at the upper level. According to Nagraj Shetty, Senior Technical Research Analyst in HDFC Securities, Nifty’s underling trend remains weak. The next lower levels can be seen around 24200-24000 by next week. However, there may be any pullback, a chance of selling on the boom up to 24500 barriers.
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