POST-MARKET SUMMARY 16th August 2024

On August 16, the Indian markets closed the holiday-shortened week on a high note as investors welcomed easing fears of a US recession. This optimism followed a series of US economic data releases, including inflation, jobless claims, and retail sales, all indicating that the world’s largest economy is likely to avoid a recession, with the US Federal Reserve potentially achieving a soft landing.

All sectoral indices posted strong gains, with information technology, automobiles, banks, metals, and realty sectors leading the way, surging 1.5-3%. Buying was also robust in the broader market, with the BSE Smallcap and BSE Midcap indices rising nearly 2% each.

NIFTY:  The index opened 191 points higher at 24,334 and made a high of 24,563 before closing at 24,541. Nifty has formed a bullish candlestick pattern with a lower shadow on the daily chart. Its immediate resistance level is now placed at 24,600 while immediate support is at 24,475.

BANK NIFTY: The index opened 406 points higher at 50,133 and closed at 50,516. Bank Nifty has formed a bullish candlestick pattern with a lower shadow on the daily chart. Its immediate resistance level is now placed at 50,750 while immediate support is at 50,300.

Stocks in Spotlight

▪  Hindustan Zinc: Stock tanked over 9% as the offer-for-sale, through which promoter Vedanta Ltd will divest a 3.17% stake in the company, opened for subscription.

▪  Paras Defence and Space Technologies: Stock hit a 5% upper circuit at Rs 1,208.35 after the company's associate company, Controp-Paras Technologies Pvt Ltd, secured a Rs 305 crore-order from Larsen & Toubro.

▪  Suprajit Engineering: Stock zoomed 15.6% amid heavy volumes after the company's board announced a share buyback of up to 1.5 million shares at Rs 750/share via tender offer.

Global News 

▪  The yen edged up against the dollar on Friday but looked on course for its biggest weekly decline since June after a slew of U.S. economic data eased fears of a recession and supported bets of gradual easing of monetary policy by the Federal Reserve.

▪  Gold prices rose to an all-time high on Friday as a combination of factors ranging from a weaker dollar, growing expectations for a U.S. interest-rate cut in September to geopolitical tensions in the Middle East bolstered demand for the bullion.

▪  Japan stocks led gains in Asia on Friday to notch their best week in four years, after Wall Street rallied overnight as fresh economic data eased recessionary fears.

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