Nifty snaps six-week losing streak with over 1% weekly gain

After a range-bound session, the Nifty closed with a minor gain of 11 points at 24631 today, 14^th August. Nifty broke its six-week losing streak, ending a holiday-shortened week with a gain of 1.1%.

Wipro, Eternal, and Infosys led the charge among the Nifty’s top performers, signaling a positive sentiment in the IT and related sectors. Conversely, it proved to be a tough session for heavyweights like Tata steel, Adani ports, and Hero moto corp, which ended as the major losers within the Nifty pack. Trading volumes in the NSE cash market were slightly lower today, down 5% compared to yesterday.

Amongst the sectoral indices, Consumer durables, IT and Financial services emerged as major gainers while Nifty Metals, OIL/GAS, and Realty ended the day as major losers, weighing down the benchmark index.

The Indian rupee exhibited high volatility during the week, ultimately securing its most significant weekly gain since start of July. This appreciation was primarily driven by a decline in crude oil prices and dollar supply from state banks.

Credit rating agency S&P Global upgraded India’s sovereign credit ratings to “BBB” from “BBB-“, citing economic resilience and sustained fiscal consolidation. The agency had revised the outlook on India’s rating in May 2024 to positive from stable on robust growth and improved quality of government expenditure.

The broader market, however, underperformed the benchmark, ending the day in the red. The Nifty Midcap 100 Index fell by 0.31%, while the Nifty Smallcap Index fell by 0.38%. Market breadth also turned negative, with declining shares outnumbering advanced ones, as indicated by an advanced decline ratio on the BSE of 0.76.

From a technical perspective, a strong base has been formed near 24340, which is expected to act as a positional support for the upcoming week.

On the upside, 24812 (50-day DEMA) and 24956 (Swing High) are the key resistance levels to watch in the short term.

Market is keenly awaiting the US–Russia meeting scheduled for tomorrow, with the hope that discussions could lead to a ceasefire and a rollback of the additional penalty imposed on India.

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Source: HDFC Securities Prime Research