Indian equity markets ended the week's last trading session on a lower note on Friday, August 7, with the newly launched Closing Auction Session (CAS) continuing to create divergence between the benchmark indices, the NSE Nifty 50 and the BSE Sensex.
The Nifty 50 settled at 24,570.65, down 65.35 points or 0.27%, while the BSE Sensex declined 455.59 points or 0.58% to close at 78,499.17.
Broader markets ended on a mixed note. The Nifty Midcap 100 index closed 0.22% higher, while the Nifty Smallcap 100 index ended marginally lower by 0.05%.
On the sectoral front, auto and IT stocks outperformed other sectors, with the Nifty Auto and Nifty IT indices ending higher by 1.84% and 1.42%, respectively.
Here are today’s top gainers on the Nifty
Here are today’s top gainers on the Sense
Here are today’s top losers on the Nifty
Here are today’s top losers on the Sense
The Nifty 50 extended its recent weakness as the index gradually moved down during the session and faced selling pressure at higher levels. The index failed to sustain its early recovery above the 24,600 mark, indicating continued caution and profit booking near higher levels.
However, the broader technical structure remains constructive as the index continues to hold above the key 24,500 support zone, which remained intact despite the intraday decline, said Ponmudi R, CEO of Enrich Money. Technically, the 24,600-24,700 zone remains a crucial resistance area.
On the downside, 24,500, he believes, remains the key immediate support level. "A decisive break below this level could trigger further profit booking and drag the index towards the 24,400-24,300 region."
Momentum indicators remain moderately positive but show signs of easing. The Relative Strength Index (RSI) is around 59, remaining above the neutral 50 mark, although it has tilted slightly lower from recent highs, indicating some moderation in momentum.
The Moving Average Convergence Divergence (MACD) remains in positive territory, with the MACD line above the signal line, keeping the broader momentum structure constructive. However, the narrowing histogram suggests that upside momentum is losing some strength, Ponmudi added.
