Daily Market Wrap-Up by Stock Whisperers: 05-AUGUST-2024 Bears are ruling!

Market Wrap-Up Your daily dose of market insights and stock updates

Author

thestock whisperers
August 05, 2024

Bears are ruling

Market Overview:

Summary of the Day's Market Performance

  • Nifty and Sensex plunged 2.7% each, marking the worst single-day fall since the election results.

  • Midcaps fell 4%, while Smallcaps dropped 4.7%, indicating broad-based selling pressure.

Sector Highlights:

Performance of Key Sectors

  • It was a sea of red across sectors:

    • Metals (-4.9%)

    • Real Estate (-4.3%)

    • Auto (-3.9%)

Market Transactions:

• 📉FII Sold: -10,073.75 cr.

• 📈DII Bought: 9,155.55 cr.

Global Market Impact:

International Factors Affecting the Market

  • Global Meltdown: Markets worldwide, including Japan and the US, are experiencing significant downturns, impacting India.

  • US Economic Concerns:

    • New data shows rising unemployment and weak manufacturing growth, raising recession fears.

    • Goldman Sachs increases the probability of a 2025 US recession to 25% (up from 15%).

  • Japan's Economic Situation:

    • The Bank of Japan's interest rate hikes have led to a 10% appreciation of the yen in the past three weeks, creating challenges for global investors.

Stock News:

Key Stock Movements and News

  • Nifty Gainers: HUL, Nestle, Tata Consumer, HDFC Life.

  • Nifty Losers: Tata Motors, Adani Ports, ONGC, Hindalco, Tata Steel.

  • GAIL & Coal India: JV agreement to set up a coal-to-synthetic natural gas project at Eastern Coal Field.

  • PSU Pack: Mazagon, RVNL, and Cochin Ship plunged up to 8% amid the market selloff.

  • Tata Power: Received LoI from PFC Consulting to acquire SPV in Odisha.

  • Cera Sanitaryware: Shares gained on buyback approval.

  • Devyani International: Up 1% after reporting 44% YoY topline growth in Q1.

  • Power Finance Corporation: Dropped 5% following reports of independent directors raising concerns over loans given to the SP Group.

Important Observations and Market Sentiments:

"Today’s significant drop in the market is largely attributed to global economic concerns, particularly the potential for a US recession and Japan's economic policies. The sharp fall in the Indian indices, alongside the depreciation of the rupee and a surge in India VIX, indicates heightened volatility and investor anxiety."

Support and Resistance :

NIFTY

BANKNIFTY

Stocks to Focus On:

  • GAIL & Coal India: Joint venture developments.

  • Cera Sanitaryware: Positive movement on buyback news.

  • Devyani International: Strong Q1 results indicate potential growth.

Conclusion:

"The sharp decline in the markets today underscores the impact of global economic concerns. Investors should stay cautious and consider diversifying their portfolios to mitigate risks amidst the ongoing volatility."

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Disclaimer: The information provided in this newsletter is for informational purposes only and should not be considered financial advice.

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