Gains in pharma, auto, and energy offered some cushion, while retail sentiment on the Nifty stayed bullish on Stocktwits.
Indian equity markets failed to hold on to Monday’s recovery and ended lower, with the Nifty index giving up the 24,500 level. Selloff in financials led the markets to the day’s low. Investors await July inflation data due after market close.
On Tuesday, the Sensex closed 368 points lower at 80,235, while the Nifty 50 ended down 97 points at 24,487. Broader markets were mixed, with the Nifty Midcap index ending up 0.2% lower and the Smallcap index flat.
And the retail investor sentiment surrounding the Nifty 50 remained ‘bullish’ by market close on Stocktwits, amid ‘high’ message volumes.
Stock Moves
Sectorally, it was a mixed bag with financials and real estate under pressure, while pharma, auto, and energy indices saw some buying.
Alkem Labs surged nearly 7% on Q1 earnings beat.
On the other hand, Praj Industries fell to a 2-year low, dragged by a dismal June quarter earnings show. Other earnings movers include stocks such as Astral (-8%) and RVNL (-4%).
Hyundai Motor India shares ended 2% higher after international brokerage firm Goldman Sachs initiated coverage on the stock with a ‘Buy’ rating and a target price at ₹2,600 per share.
Inox Green gained 2% after the company bagged an operations and maintenance (O&M) contract..
Stock Calls
Analyst Priyank Sharma shared a bullish call on MCX as it has been in a strong uptrend over the past 5 months. He identified a target price at ₹8,443, and believes that the stock may continue to rally to make a new all-time high between ₹9,100 and ₹10,000. If the stock drops near ₹7,600, it would invalidate this view. He suggested keeping a stop loss at ₹7,595 for this short-term swing trade.
Markets: What Next?
Globally, European markets traded mixed, while US stock futures indicate a subdued start on Wall Street.
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