Markets extend losses into second consecutive session - HDFC Securities

Views on Market Performance: Mr. Devarsh Vakil - Deputy Head Retail Research, HDFC Securities

Indian markets plunged, an all-round sell off on Friday tracking weak global cues. After yesterday's fall from the levels of 19584, Nifty continued its downward journey and fell 0.62% to close at 19265.8. Nifty breached its 50 days SMA for the first time since April 2023. Nifty also breached the previous swing low support. Violation of 50 days SMA indicates higher probability of bearish trend to continue in the Index. Next support for the Nifty is seen in the zone of 19050-19100. On the upside 50 days SMA, placed at 19375 would act as a resistance now. Short term trend of the Nifty is likely to remain bearish till it closed above 19375.

Nifty Midcap Index underperformed the Nifty with a large margin by falling 0.82% in today's session. Nifty Midcap 100 and Small cap 100 Index witnessed massive profit booking from highs, these indices fell by 0.82% and 0.41% respectively on the closing. Declining shares outnumbered the advancing shares as advance decline ratio stood at 0.69 on BSE, lowest since 02-August.

NSE Cash market volumes were higher as compared to recent average. All the sectoral Indices ended in the red. Amongst the sectoral Indices, Nifty PSU Banks, Nifty and Reality and Nifty Healthcare were major losers.

Investors will direct their attention towards the Jackson Hole symposium in search of indications about the future direction of interest rates. Dollar held firm near an 11-week peak while the US Treasury yields stabilised below 14-year highs ahead of the US Federal Reserve Chair Jerome Powell's speech at Jackson Hole.