Out of the 2,813 stocks traded during the day, 1,031 stocks saw advances, while 1,703 saw declines, and another 79 remained unchanged. 72 stocks hit their 52-week high price, while 51 stocks also hit their 52-week low price today. 108 stocks hit the upper circuit, or maximum permissible price in a single trading session, while 131 stocks remained in the lower circuit.
All broad market indices closed the day in red. India VIX dipped 7.97%, and amidst sectoral indices, financial services and PSU banks dropped over 1% each at the close of day's trade. With the exception of FMCG, IT, media, metal and realty, which managed marginal gains, all other sectors closed in the reds.
Aditya Gaggar, director of Progressive Shares explains that although a strong opening reaching higher levels was seen in the opening trade; the index failed to hold its gains and gradually erased it. In the 2nd half of trading, selling pressure intensified, and the index wiped off all its gains to end the session at 23,992.55 with a loss of 63.05 points.
"A mixed trend was seen across the board, where realty and IT were the top gainers, while PSU Banks corrected the most, followed by auto. From the broader markets, midcaps and small caps corrected by 0.61% & 0.39% respectively, and underperformed the frontline index. The near-term outlook for Nifty50 turned bearish, unless it gives a convincing move above 24,400 while on the downside, 23,880 will be considered as immediate support", Gaggar continued.
Shrikant Chouhan, Head Equity Research, Kotak Securities noted that while today, the markets opened higher due to positive Asian markets, they failed to sustain these levels and closed at the day's lowest point.
"Although the market did not break the previous day's lows, it closed below the closing of the previous day. Apart from Nifty realty, metal, and IT, other indices closed in the red. Based on the short-term market structure, the trend-setting levels are 23,900/78,290. If the market falls below this, it may decline to 23,700 or 23,600/78,000-77,800, where it has support from retracements and long-term averages. It's advisable to consider selective buying around this level. On the upside, the major resistance levels are 24,150/79,000 and 24,400/79,700. It's recommended to reduce weak long positions around 24,300/24,400", he said.
Rajesh Bhosale, Equity Technical Analyst, Angel One highlighted that the momentum favored the bears, and that the possibility of intermittent rebounds cannot be ruled out.
"Therefore, any such bounces, similar to today, should ideally be viewed as selling opportunities. As for key levels, 24,250 appears to be immediate resistance, while the 24,350 - 24,400 range remains a challenging barrier for the bulls. Only a close above this range could potentially revive some positive momentum in the market. On the downside, immediate support is seen at 23,900 - 23,850, below which the Nifty may slip towards the 23,600 - 23,550 levels. Traders are advised to monitor these levels closely and adjust their trades accordingly, while also keeping an eye on global developments, as our markets are particularly influenced by global momentum", Bhosale continued.
On the global front, oil prices rose by over 1% today, bouncing back from yesterday's losses, due to supply concerns stemming from the escalating Middle East conflict and strong U.S. services data. However, the fear of Iran retaliating against recent attacks in the region has increased fears of a broader war, threatening global supply stability and impacting oil forecasts.
Furthermore, the US ISM Services PMI for July came in at 51.4, slightly above the month's forecast (51) and higher than June's reading (48.8). This is a positive sign, since it indicates a rebound in services sector, improvement in business activities, new orders and employment across industries like finance, healthcare and more.
"With the Federal Reserve’s interest rate strategy under scrutiny, any positive US economic data could support the case for rate cuts", continued Chouhan.
In response, global indices were seen trading in green. Nikkei 225 in particular, which had dropped around 12.4% yesterday, witnessing its worst crash since 1987, sharply rebounded about 3,217.04 points, or 10.23% to close at 34,675.46 points.