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| 05 August, 2020, 04:33 AM IST | E-Paper
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    Market Watch (ETMarkets.com)

    Has Nifty started a trend reversal?

    06:31 Min | July 31, 2020, 7:01 PM IST
    Tune in! Let's talk about what happened in the market today.
    Transcript
    Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Amritesh Malhan and here are the top headlines at this hour.

    • FM says in talks with RBI to extend moratorium
    • Margin rule in cash market from Sept 1
    • SBI Q1 profit jumps 81% YoY to Rs 4,189 cr
    • Zuckerberg aims to expand Jio partnership to other commerce customers
    • Tata Motors Q1 net loss widens to Rs 8,438 cr
    • JSW Energy ends deal to buy GMR Energy

    Let's start with a look at what happened in the market today.

    Domestic blue chip indices closed in the red for a third session on Friday, in visible signs of consolidation and fatigue after a long rally. Weak global cues and fast rising Covid cases dampened sentiment on Dalal Street.

    The benchmark indices closed the session with marginal losses dragged by RIL, which disappointed investors with Q1 numbers, especially petchem numbers. A selloff in the HDFC twins also put pressure on the indices. Some buying in Sun Pharmaceutical and State Bank of India capped the losses. Sensex ended the session 129 points lower at 37,607 while Nifty closes 29 points down at 11,073.

    Midcaps and smallcaps outperformed their largecap peers. Sectorally, BSE Healthcare, Realty, Metal and FMCG indices ended in the green, while Energy, Oil & Gas and Banking indices declined up to 1.64 per cent.

    In the broader market, TVS Shrichakra, Sadbhav Engineering and Future Retail declined over 5 per cent each, while Laurus Labs, IPCA Labs and TTK Prestige each advanced over 8 per cent.

    On a weekly basis, the indices closed the earnings-heavy week with slight losses. So is it a mere consolidation after the long bull run, or have we started a downturn? We caught up with Paras Bothra of Ashika Stock Broking to try and understand the market undercurrent.

    Welcome to the show, Mr Bothra

    Nifty snapped its 6-week winnig streak. Has the market started reversing?
    Paras Bothra Byte 1

    Post Q1 results, what’s your outlook for RIL?
    Paras Bothra Byte 2

    How are the current set of earnings triggering downgrade or upgrades?
    Paras Bothra Byte 3

    On the technical charts, Nifty formed a bearish candle on the weekly chart. On daily chart, Nifty has broken a crucial rising trendline drawn from the March low.

    We have with us Nilesh Jain from Anand Rathi Shares and Stock Brokers to do the chart reading.

    Do you think last three days' consolidation is temporary?
    Nilesh Jain Byte 1

    What is your reading from Nifty open interest data?
    Nilesh Jain Byte 2

    What are the momentum indicators telling us about Nifty?
    Nilesh Jain Byte 3

    Globally, Asian peers ended mixed, while European markets traded lower in early deals. US stock futures traded higher after four big tech companies reported better-than-expected results for the latest quarter.

    That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Good bye!
    The Economic Times