Daily market commentary By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
Nifty opened positive and traded lackluster in a narrow range for most part of the session before plunging almost 240 points from the high towards the fag end. It finally closed near days’ low with loss of 83 points (-0.5%) at 17,522. Broader markets were mixed with Nifty Midcap 100 flat to negative while Nifty Smallcap 100 up +0.5%. Except PSU Bank, Realty and Consumer Durables, all other sectorial indices ended in Red. PSU banks were up more than +2.7%, followed by Realty up +1.5%. India Vix inched up by 6.2% to 19.57 levels.
Global markets were positive ahead of the start of the U.S. Federal Reserve’s annual gathering in Jackson Hole, Wyoming later today (Thursday). Investors will also watch out for the minutes from the ECB's last policy meeting.
Market saw long liquidations and weak rollover on the monthly F&O expiry as there is nervousness ahead of US Fed Jackson Hole meeting wherein the hawkish tone is likely to continue. Nifty seems to be stuck in a range and is consolidating near 17500-17800 zones for the last few sessions. Volatility Index too has been inching higher and needs to cool down below 18 zones for market up-move. In the absence of any domestic trigger, focus remained on global cues. Strong dollar index along with Brent crude above $100/bbl has added to overall concerns, while FII buying is providing some support on the downside to the market.
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