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Stock Market Today, August 7: Market sentiment remains cautiously optimistic, dampened by persistent volatility and mixed global cues, says Choice Broking in its note.
Sensex Today.
Stock Market Today, August 7: The domestic equities markets on Thursday opened in red marginally after the US’ additional 25% tariffs on India, extended losses, but then finally saw a sharp recovery towards the fag end to reclaim the green territory. The BSE Sensex recovered nearly 925 points or 1.1% from the day’s low to close at 80,623.26, which is 79.27 points or 0.1% higher than the previous close. The NSE Nifty also recovered losses sharply and closed near the 24,600 mark, at 24,596.15, which is 21.95 points or 0.1% higher.
With this, the Indian equity market has snapped its two-day falling streak.
During the afternoon trade around 1 pm, the NSE Nifty fell below the 24,350 mark to hit the day’s low of 24,344.15 and the BSE Sensex had declined below the 80,000 mark to trade at 79,811.29.
Vinod Nair, head of research, Geojit Investments Limited, said, “Domestic equities recovered sharply from the intraday lows amid a volatile weekly expiry day. Although the earlier trade was weighed down by broad-based selling following steep US tariff hikes on India, sentiment improved toward the close as reports of potential peace talks involving Trump, Putin, and Zelensky, which raised hopes of a softer US stance on trade.”
This renewed optimism triggered a strong rebound in the auto, pharma, metals, and energy sectors and aided the market in recalling its trajectory and concluding in the green, he added.
Among the Sensex pack of 30 shares, a total of 18 stocks ended the day in green, against just five in the morning. Among the top gainers were Tech Mahindra, Eternal, HCL Tech, Axis Bank, and HDFC Bank rising up to 2.11%.
On the other hand, Adani Ports, Trent, Hindustan Unilever, Mahindra & Mahindra, and Kotak Mahindra Bank closed in red with losses up to 1.55%.
In the broader market, the BSE Midcap Index closed 0.30% higher, whereas the BSE Smallcap ended the day marginally lower by 0.18.
“Market sentiment remains cautiously optimistic, dampened by persistent volatility and mixed global cues,” Hardik Matalia, derivative analyst (research) at Choice Equity Broking Private Limited.
Stock-Specific Action
Godfrey Phillip India closed lower by 7.89% on Thursday, after surging over 24% in the previous two days. BHEL also fell 4.95%, Adani Enterprises slipped by 2.2%, and Adani Green Energy declined 2.18%.
On the other hand, Bajaj Holding jumped 1.27% following its Q1 results. Hero MotoCorp also rose 4.15% after its Q1 earnings.
IT pack saw the biggest buying during the end of the session with Coforge, Persistent, TCS, Tech Mahindra, HCL Tech closing in green with decent gains.
US President Donald Trump on Wednesday announced an additional 25% tariffs on Indian goods. This is over and above the 25% tariff plus penalty he imposed on India earlier.
Technical Analysis
“The Nifty index opened with a gap-down around the 24,460 zone and came under sustained selling pressure during the first half of the session, dragging the index lower towards 24,350. Bears remained in control for most of the day. However, in the last hour, bulls made a strong comeback, with the index recovering over 250 points from the day’s low and reclaiming the 24,600 zone,” said Chandan Taparia, head of derivatives & technical (wealth management) at Motilal Oswal Financial Services.
After sharp intraday selling, this sharp recovery brought much-needed relief for the bulls. On the daily chart, Nifty formed a Hammer candle, indicating support-based buying and a potential reversal from the lower levels. On the weekly chart, a Doji candle has formed once again, highlighting ongoing indecision and a tug of war between bulls and bears, he added.
“Throughout the week, Nifty faced selling pressure from higher levels and failed to see sustained momentum. Going forward, Nifty needs to hold above the 24600 zone to extend the recovery towards 24750 and then 24900. On the flip side, a move below 24600 could trigger weakness again with support seen at 24442 followed by 24350,” Taparia said.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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