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Nifty 50 today: upward momentum is slowing down, say analysts

02:46, 8 August 2022

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On Friday, Nifty closed up 0.09% at 17,397.50 – Photo: Shutterstock

The NSE Nifty 50 (India 50) could lose its momentum through this week after its sustained rally, said analysts.

“After a remarkable comeback from the bottom of the 15,200-mark in June, it appears like the bulls are running out of steam,” Apurva Sheth, head of market perspectives at Samco Securities said.

Reliance Industries share price and HDFC Bank share price could react to news flow from those counters, which in turn could influence the National Stock Exchange index.

Key stocks to declare their June numbers include Adani Ports & Special Economic Zone, Bharti Airtel and Power Grid Corporation of India.

Nifty 50 (India 50)

“On the hourly charts, the Nifty is forming a bearish divergence with the Relative Strength Index, indicating that the upward momentum is slowing.

Throughout the week, the index encountered resistance around 17,500. This level is also expected to act as a resistance in the next week too. On the downside, 17,000 is anticipated to provide significant support for the index,” Sheth said.

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US inflation figures out this week 

India will announce Consumer Price Index and Index of Industrial Production data on August 12, while US inflation numbers will be released on August 10. The markets will remain closed on the account of Muharram on Tuesday.

“Nifty has been taking a breather after the sharp surge and it’s healthy. It’s more of a time-wise correction so far as it’s still holding around the upper range of the consolidation zone.

A decisive close above 17,400 would further fuel the momentum towards the 17,700-17,800 zone, else range-bound move would continue. On the downside, the 16,800-17,150 zone holds major support.

TSLA

275.33 Price
+0.050% 1D Chg, %
Long position overnight fee -0.0308%
Short position overnight fee -0.0137%
Overnight fee time 21:00 (UTC)
Spread 0.25

AAPL

150.75 Price
-0.080% 1D Chg, %
Long position overnight fee -0.0064%
Short position overnight fee -0.0059%
Overnight fee time 21:00 (UTC)
Spread 0.24

AMC

6.89 Price
-14.660% 1D Chg, %
Long position overnight fee -0.0308%
Short position overnight fee -0.0137%
Overnight fee time 21:00 (UTC)
Spread 0.08

AMZN

115.06 Price
+0.780% 1D Chg, %
Long position overnight fee -0.0064%
Short position overnight fee -0.0059%
Overnight fee time 21:00 (UTC)
Spread 0.41

Since we’re seeing rotational buying across sectors, participants should continue with a stock-specific trading approach and utilise dips to add quality names,” Ajit Mishra, vice president (Research) at Religare Broking said.

US Crude Oil Spot Price

Hot stocks

Reliance Industries

Reliance Industries has convened its annual general meeting on August 29 and has fixed August 19 as record date to determine shareholders eligible for FY22 dividend. The dividend, if declared at the AGM, will be paid within a week from the conclusion of the AGM, the company informed the stock exchanges.

HDFC

On Saturday, mortgage lender HDFC said it filed an application with the National Company Law Tribunal for merger of HDFC Investments and HDFC Holdings with HDFC Bank.

This is part of the proposed merger of HDFC Bank, the country’s largest private sector bank, with its parent, mortgage lender Housing Development Finance Corporation. The merger is subject to various statutory and regulatory approvals, including NCLT, Competition Commission of India and shareholders among others.

HDFC Bank

Nifty on Friday

On Friday, Nifty closed up 0.09% at 17,397.50, with telecom and information technology indices rising the most, and power and auto indices recording the highest fall.

“Nifty once again recovered from afternoon weakness on Friday to end marginally in the positive.

The Nifty opened higher and remained in the positive territory for the better part of the day. It later dipped to form an intra- day low at 1430 Hrs, but recovered soon. Volumes on the NSE were on the higher side compared to recent averages,” Deepak Jasani, head of retail research at HDFC Securities said.

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