On August 18, the benchmark Sensex and Nifty indices are indicating a modest opening decline. GIFT Nifty, specifically, is down by 65 points, pointing towards a subdued start for the broader market. In contrast, the previous trading session witnessed the BSE Sensex dropping by 388 points to conclude at 65,151 points, while the Nifty 50 index declined by 99 points to close at 19,365 points.
The Pivot Point Calculator projects potential support levels for Nifty on this day, suggesting a possible foundation at 19,333, followed by 19,301 and 19,249 as major support thresholds. Conversely, in the event of an upward trend, the initial resistance is estimated at 19,436, with subsequent resistances at 19,468 and 19,520.
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US Market Reaction: Modest Recovery and Varied Moves
S&P 500 futures exhibited a modest upward trend after experiencing a decline over multiple days. Dow Jones Industrial Average futures recorded a minor increase of 11 points (0.03%), while S&P 500 futures and Nasdaq 100 futures depicted marginal declines of 0.02% and 0.12%, respectively. Notably, Applied Materials saw a nearly 2% gain following favorable second-quarter results, while Ross Stores witnessed an approximately 5% surge owing to a better-than-expected Q2 performance.
During regular trading on the prior day, the Dow Jones slipped below its 50-day moving average for the first time since June 1, signaling bearish sentiment. The index concluded with a 290.91-point loss (0.84%), while the S&P 500 and Nasdaq Composite indices reported declines of 0.77% and 1.17%, respectively.
European Market Pressure and Post-Fed Reactions
Following the release of minutes from the US Federal Reserve’s July meeting, indicating the likelihood of forthcoming interest rate hikes, European markets experienced pressure. The pan-European Stoxx 600 index closed down by 0.9%, with industrials and tech stocks experiencing declines of 2.8% and 1.8%, respectively. In contrast, basic resources and oil & gas stocks managed modest gains of 0.8% and 0.3%. The Eurozone’s Q2 GDP data and UK inflation figures left investors unimpressed, contributing to the negative market sentiment. FTSE and DAX indices registered declines of 0.63% and 0.71%, concluding at 7,310 and 15,676 points, respectively.
Crude Oil Recovery Following Consecutive Declines
After witnessing a three-day decline, crude oil experienced a 1% price drop. However, the commodity displayed a modest recovery on the current day as the dollar softened. Brent crude futures exhibited a 0.49% increase, closing at $84 per barrel, while WTI crude futures hovered above $80 per barrel.
Asian Markets: Mixed Trends Prevail
Mixed trends are observed across Asian markets. GIFT NIFTY indicated a gain of 9.00 points, while Nikkei reported a 0.19% decline to approximately 31,565.21. The Strait Times index displayed a 0.73% weakness, Taiwan’s market fell by 0.48% to 16,437.57, Hangseng registered a 0.67% decline to 18,203.03, Kospi reported a 0.49% drop, and the Shanghai Composite exhibited a 0.13% increase at 3,167.74.
Key Investor Meetings on August 18
Several companies have scheduled important interactions with investors on August 18:
Jindal Stainless: Avendus Spark Investors Meet.
V-Mart Retail: Discussions with Nuwama Institutional Equities.
Newland Laboratories: Non-deal roadshow with B&K Securities.
Happiest Minds Technologies, Firstsource Solutions, Computer Edge Management Services, Kalpataru Projects International, CESC: Participation in MK Confluence 2023.
VA Tech Wabag: Analyst or investor meetings.
Indian Energy Exchange: Interaction with Sparx Asset Management.
Bharat Forge: Engagement with Balyasni Asset Management.
Foreign Institutional Investment (FII) and Domestic Institutional Investment (DII) Data
On August 17, Foreign Institutional Investors sold Rs 1,510.86 crore in Indian markets. Simultaneously, Domestic Institutional Investors also sold Rs 313.97 crore worth of assets. Stay informed with the latest market developments and trends to navigate the dynamic landscape effectively.