Senses, Nifty, stock market today: Frontline indices, the Sensex and Nifty 50, ended flat on Friday, 21 August, extending losses for the second consecutive week, pressured by elevated oil prices, stalled US-Iran talks, and rising US bond yields.
The Sensex ended 3 points up at 77,540.83, while the Nifty 50 settled 20 points, or 0.08%, higher at 24,252. The Nifty Midcap 150 index climbed 0.08%, while the Nifty Smallcap 250 rose by 0.41%.
For the week, the 30-share pack slipped 0.60%, while the Nifty 50 declined 0.50%.
The Sensex and the Nifty 50 are down over half a per cent this month, looking set to snap their two-month winning streak amid stalled US-Iran talks and concerns about the impact of higher oil prices on India's fiscal health and growth-inflation dynamics.
Brent crude futures are up 4% this month after surging 24% in July as the US-Iran conflict remains unresolved. Brent crude now traded above $93 per barrel.
US Vice President JD Vance on 20 August (local time) said that the war with Iran has entered a ‘new phase,’ with the Trump administration increasingly relying on economic pressure rather than further large-scale military action. On the other hand, Iran's Foreign Minister Abbas Araghchi slammed the latest threats from Washington.
US bond yields, after declining on Wednesday, climbed again as fiscal concerns intensified following the US debt surpassing $40 trillion.
"The elevated global bond yields continue to cause worry in the market. The recent US Treasury’s move to ease the bond yields failed to provide lasting comfort, given surging crude prices and persistent inflation fears. Domestically, the RBI’s hawkish meeting minutes have pushed India's 10-year yield to a two-month high, driven by local inflation risks and tighter liquidity," Vinod Nair, Head of Research, Geojit Investments, noted.
In terms of index contribution, Maruti, Infosys, ITC, HCL Tech, and Trent ended as the top drags on the Nifty index.
However, Maruti, Trent, HCL Tech, IndiGo, and ONGC ended as the top losers in the index.
On the other hand, Power Grid, HDFC Life, Kotak Mahindra Bank, and Nestle ended as the top gainers in the index.
Amol Athawale, VP of technical research at Kotak Securities, said the short-term market outlook remains weak. However, the 50-day SMA, or the 24,150 level, is expected to act as a crucial support zone for traders.
"As long as the market trades above this level, a pullback formation is likely to continue. On the higher side, the market could bounce back to the 20-day SMA or around 24,400. A successful breakout above 24,400 could push the market towards the 24,500-24,700 range," said Athawale.
"On the flip side, if the market falls below 24,150, sentiment could turn negative. Below this level, selling pressure is likely to accelerate, and the index could retest the 24,000 level. Further downward movement could also continue, potentially dragging the index to the 23,850-23,800 range," Athawale said.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, pointed out that the opening upside gap of Thursday remains unfilled. This is positive indication and signals short term bottom reversal for the Nifty at the key trendline support of 24000 levels.