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Market Likely to be Volatile Ahead of August Series F&O Expiry; Bank of India Approves the Proposal to Raise Rs 3,000 Crore

Posted Date: August 26 2021 | Reading Time: 2 minutes
At 8:15 am IST, SGX Nifty Futures were trading at 16,660, compared with Nifty’s close of 16,634 yesterday.

Market Pulse: 

Global stock markets: Dow 30, +0.1%; Nasdaq, +0.2%; S&P 500, +0.2%; Nikkei, -0.1%; Kospi, -0.3%; Shanghai Composite, -0.7%.

Yesterday, after a flat opening, Nifty hit a fresh high of 16,716 in the first half of the session. However, the index staged a reversal in the second half. It pared all the gains for the day and closed flat. Volume was lower than in the previous session. The broader markets continued their outperformance. Midcap was up 0.3% while Smallcap advanced 0.8%.

On the sectoral front, Nifty Metal (+0.5%) extended its gain. Nifty FMCG and Nifty IT posted smart recovery, gaining 0.6% and 0.7%, respectively. On the flip side, Nifty Realty, Nifty Pharma, Nifty Auto, and Nifty Bank were down 0.3–0.8%. The advance-decline ratio was in favor of advancers. Of 2,004 stocks traded, 957 stocks advanced, 539 stocks declined, and the remaining closed flat.

The distribution day count currently stands at four. Nifty is trading near its all-time high. If the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important. Further, in the broader market, we recommend that investors be selective when investing in new stocks.

Key News

P&G.Hygiene & Hlth.Care reported its June quarter results. Revenue from operations grew 23.9% y/y to Rs 786.6 crore. While, it reported a 29.2% decline in its profits to Rs 48.9 crore.

Bank Of India approves the proposal to raise Rs 3,000 crore via qualified institutional placement (QIP). The company has set a floor price of Rs 66.19 per share. The stock closed at Rs 64.95 yesterday.

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