Daily Markets Wrap - August 20, 2022 - HDFC Securities

Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty fell on Aug 19, snapping an eight day uprun. Nifty opened higher but started to fall post 1045Hrs. Recovery attempts during the day were feeble and Nifty closed almost at the intra day low. At close Nifty was down 1.10% or 198.1 points at 17758.5.

Volumes on the NSE were the highest since April 29, 2022, suggesting aggressive selling after a sustained rise. Among sectors, Power and Capital Goods indices rose the most, while Realty, Oil & Gas, Metals and Bank indices fell the most. Midcap index (-1.3%) fell more than the Nifty. Advance decline ratio reflected the bearish sentiments in the market ending at 0.53:1.

Asian stock markets were trading mixed on Friday, following the broadly positive cues from global markets overnight while European markets were modestly higher.

Nifty gained for the fifth week in a row (up 0.34%) despite the losses on Friday. The high low bar of Friday has engulfed the previous three candles forming a bearish engulfing pattern. Hence till Nifty manages to cross the high of Friday (17992), the trend will be bearish or sell on rises. On falls, the first support can come in at 17725.

India VIX rose 5.4% on Friday to 18.29 even as the Nifty fell sharply with volumes. This may be due to large protective put buying and square-up of calls sold earlier.

Source : Equity Bulls

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