Stock Market
As the index moved lower within a comparatively small range, the Nifty maintained its corrective spell for the sixth consecutive week, marking a losing run not seen in more than five years. The Nifty fluctuated 398 points over the week, ranging from 24,736 on the upper side to 24,337 on the lower side, indicating little volatility and a lack of directionality.
The India VIX increased by 0.48% to 12.03, suggesting that despite the extended decline, sentiment is still stable. The index had lost 202.05 points, or -0.82%, by the conclusion of the week.
As the index moved lower within a comparatively small range, the Nifty maintained its corrective spell for the sixth consecutive week, marking a losing run not seen in more than five years. The Nifty fluctuated 398 points over the week, ranging from 24,736 on the upper side to 24,337 on the lower side, indicating little volatility and a lack of directionality.
The India VIX increased by 0.48% to 12.03, suggesting that despite the extended decline, sentiment is still stable. The index had lost 202.05 points, or -0.82%, by the conclusion of the week.
Experts believe that there may be a significant shift in indices on August 12, therefore stock market traders are being encouraged to remain vigilant. This date has been marked as a possible turning point by Wealthview Analytics director Harshubh Shah, who cautions that momentum could surprise both bulls and bears.
A combination of economic data releases, geopolitical events, foreign investor activity, business profits, and technical indications may influence the next trading week, which begins on August 11.
The Significance of August 12
Similar to August 8, when the Sensex dropped 765 points and the Nifty plunged 232 points to close at 79,857, falling below the 80,000 mark for the first time in four months, Wealthview Analytics has identified August 12 as a day of possible significant volatility.
Five Elements That May Influence Markets This Week
Data on Inflation
Key factors will be wholesale inflation (Aug. 14) and retail inflation (Aug. 12).
Wholesale inflation dropped to a 20-month low of -0.13% in June, while retail inflation eased to 2.10%, the lowest in 77 months.
Important Market Levels
- Zones of Support: 24,331; 24,143; 23,875; 23,320; 22,868
- Support levels show where a decline might be stopped by purchasing pressure.
- Zones of Resistance: 24,380, 24,450, 24,540, 24,650, 24,808, and 24,850
- Selling pressure may limit gains at resistance levels.
- There may be additional upward impetus if the Nifty breaks above the resistance.
Short-term averages show a slight downward trend, and the market is still trading below this resistance cluster. A clear breach above this confluence would be necessary for any significant upside; on the other hand, persistent trading below the 50-week moving average of 24,200 might quicken the corrective phase.
