Weekly Update – 09 August 2024

NIFTY50

This week, as expected, the week started on a weak note with the Nifty opening gap down on Monday at 24302, breaking the crucial support level of 24400 continuing its weakness through day. The next three day saw the Nifty move in a flat range with a sudden sharp upward move on Friday, closing the week 1.42% lower than the previous week at 24367.

In the coming week, there is a high probability that the Nifty may continue to remain weak and head to its lower support levels. There is a news item that Hindenburg is likely to play its “interference” again which may cause a fall in the markets. However, we believe that based on previous experiences, the markets can give a more mature response in case of this kind of interference. The support level for this week would be 23800 while a positive move during the week may see the Nifty test levels of 24700.

BANKNIFTY

The Banknifty index also displayed similar movement to the Nifty in this week. Starting out on a weak note, opening gap down on Monday at 50586, weakness continued for the next three days. Friday saw the index opening gap up and largely sustain this move to close the weak at 50484, which was a 1.69% fall this week from the previous weeks close.

For the coming week, if weakness persists across the board, the Banknifty is also likely to correct further. However, it has a strong support at 49500, which may be tested this week. Most likely we may see further weakness, at least for the start of the coming week. A change in sentiment may see an upward movement in Banknifty, and it has the potential to test levels of 51350 in such a scenario.

Top Performing Sector of the Week

The Nifty Pharma index was the top performing sector this week

Major gainers from this sector includes

Alkem Laboratories: up by 9.5%

Lupin: up by 7.8%

Mankind Pharma: up by 6.8%

Natco Pharma: up by 5.3%

Worst Performing Sector of the Week

The Nifty Private Metal index was one of the worst performing sectors this week.

Major losers from this sector include:

SAIL: down by 11.5%

Jindal Stainless: down by 8.9%

Hindustan Zinc: down by 8.9%

NMDC: down by 6.1%

Important News

Ola Electric’s shares make a flat debut on the bourses at Rs 76, but surges 20% post listing
NBCC bags a Rs 15,000 crore contract from Srinagar Development Authority for a 406-acre township
Amara Raja inaugurates EV battery pack plant, to commence cell manufacturing nextyear
Mahindra & Mahindra eyes Kerala for new EV manufacturing hub amidst growing market
ONGC gets govt approval for additional investment of Rs 18,365 cr into OPaL
Hindenburg Research, the US-based short seller known for its exposé on the Adani Group, has hinted at another significant disclosure involving India.

Results Corner

Siemens consolidated revenues rise by 6.78% YoY to Rs 5,203.5 crore and net profits rise 26.83% YoY to Rs 577.7 crore in Q1FY25.
Balkrishna Industries consolidated revenues rise by 25.71% YoY to Rs 2,714.5 crore and net profits rise by 47.64% YoY to Rs 489.99 crore in Q1FY25.
MapmyIndia consolidated revenues rise by 13.51% YoY to Rs 101.49 crore and net profits rise 11.17% YoY to Rs 35.82 crore in Q1FY25.