19th August Market Report

Daily Market Report: Fear Grips Markets as Global Indices Show Mixed Performance

Market Sentiment Overview

The Fear & Greed Index closed at 37.59 today, firmly in the “Fear” territory and showing a significant increase from last week’s reading of 19.67. This shift indicates growing caution among investors, suggesting it may be time to “wait for market direction” according to traditional sentiment indicators.

“Speculators often prosper through ignorance.” – Benjamin Graham

The current fear sentiment reflects broader market uncertainty as investors await key economic developments and navigate mixed global performance across major indices.

Global Market Performance Summary

Asian Markets – Mixed Results with Notable Declines

Asian markets showed a predominantly negative performance, with major indices posting significant losses:

Nikkei 225 (Japan): 42,845.36 (-700.93, -1.61%)
Hang Seng (Hong Kong): 25,032.04 (-90.86, -0.36%)
KOSPI (South Korea): 3,082.88 (-68.68, -2.18%)
ASX 200 (Australia): 8,943.6 (+47.4, +0.53%) – Only major gainer

European Markets – Showing Resilience

European indices demonstrated positive momentum across the board:

DAX (Germany): 24,423.07 (+108.30, +0.45%)
CAC 40 (France): 7,979.08 (+95.03, +1.21%) – Best performer
FTSE 100 (UK): 9,189.22 (+31.48, +0.34%)

US Markets – Tech Weakness Dominates

US markets showed divergent performance with technology stocks under pressure:

Dow Jones: 44,922.27 (+10.45, +0.02%) – Nearly flat
S&P 500: 6,411.37 (-37.78, -0.59%)
Nasdaq: 21,314.95 (-314.82, -1.46%) – Significant decline

Indian Markets – Positive but Cautious

Indian markets continued their bullish streak despite global headwinds:

Sensex: 81,644.39 (+370.64, +0.46%)
Nifty 50: 24,980.65 (+103.70, +0.42%)
Bank Nifty: 55,865.15 (+130.25, +0.23%)
India VIX: 11.79 (-0.55, -4.46%) – Reduced volatility
USD/INR: 87.11 (+0.03, +0.03%)

The GIFT Nifty at 24,965.5 (-46.0, -0.18%) suggests a cautious opening for Indian markets.

Market Snapshots & Key Movers

Top Gainers (Nifty 500)

Raymond Lifestyle Ltd: +10.23%
Ola Electric: +8.71%
Devyani International: +7.49%
Raymond: +6.93%
Hyundai Motor India: +6.52%

Top Losers (Nifty 500)

Bajaj Holdings: -5.08%
Cholamandalam Finance: -4.51%
Neuland Laboratories: -3.61%
Bharat Dynamics: -3.52%
Intellect Design Arena: -3.46%

Volume Shockers

Stocks showing volume above 1.5x weekly average:

Inox Wind: 144.48 (CMP)
Devyani International: 167.09 (CMP)
Exide Industries: 392.8 (CMP)
Ola Electric: 44.83 (CMP)
Motherson Sumi Wiring: 41.89 (CMP)

52-Week Highs

Companies hitting yearly highs:

CCL Products: +1.97%
Hyundai Motor India: +6.52%
JK Cement: +1.27%
Indian Bank: -0.69% (despite hitting 52-week high)
JSW Steel: -0.59% (despite hitting 52-week high)

Sectoral Performance Analysis

Daily Gainers by Sector

Nifty Oil & Gas: +1.66%
Nifty Media: +1.34%
Nifty Auto: +1.31%
Nifty FMCG: +1.05%
Nifty PSU Bank: +0.98%

Weekly Performance Leaders

Nifty Auto: +8.44% (outstanding weekly performance)
Nifty PSU Bank: +3.51%
Nifty Realty: +3.45%
Nifty Metal: +3.39%
Nifty Consumer Durables: +3.36%

Note: Only Nifty Pharma showed negative performance in daily trading at -0.34%.

Nifty 50 Technical Analysis

Current Status

Close: 24,980.65 (+103.70, +0.42%)
Fourth consecutive session of gains
RSI: 55.12 with bullish crossover
MACD: Positive but below zero line
India VIX: Dropped 4.46% to 11.79, showing reduced volatility

Technical Levels

Resistance Levels:

25,009 (immediate)
25,042
25,095
Strong resistance at 25,000 (highest Call OI: 1.18 crore contracts)

Support Levels:

24,903 (immediate)
24,870
24,817
Strongest support at 24,900 (highest Put OI: 1.13 crore contracts)

Options Activity

Call writing heavy at 25,500 strike
Put writing highest at 25,000 strike
Weekly PCR trend: Moving between 0.66-1.11, currently showing balanced sentiment

Advance/Decline Ratio: 28 advances vs 22 declines

Top Nifty 50 Performers:

Tata Motors: +3.59%
Adani Ports & SEZ: +3.18%
Reliance Industries: +2.78%

Worst Nifty 50 Performers:

Dr Reddy’s Laboratories: -1.47%
Bajaj Finserv: -1.07%
Hindalco Industries: -1.04%

Bank Nifty Analysis

Performance Overview

Close: 55,865.15 (+130.25, +0.23%)
Bullish candle formation staying above 20-day and 50-day EMAs
RSI: 49.55 showing bullish crossover
10-day EMA: Rising trend

Key Levels

Resistance: 55,950 | 56,034 | 56,170 | 56,278 | 56,600 Support: 55,676 | 55,592 | 55,455 | 55,627 | 54,396

Options Data

Maximum Call OI: 57,000 strike (23.23 lakh contracts)
Maximum Put OI: 57,000 strike (12.92 lakh contracts)
Strong Call writing: 56,500 strike
Strong Put writing: 55,700 strike

Advance/Decline: 09 advances vs 03 declines

Top Bank Performers:

Federal Bank: +2.18%
Canara Bank: +2.13%
IDFC First Bank: +1.99%

Underperformers:

HDFC Bank: -0.62%
AU Small Finance Bank: -0.4%
IndusInd Bank: -0.4%

Futures Activity: Long & Short Buildup

Long Buildup (Rising OI & Prices)

Exide Industries: +31.63% OI change
Sona BLW Precision: +7.95% OI change
Suzlon Energy: +6.46% OI change
One 97 Communications (Paytm): +5.89% OI change
Delhivery: +4.96% OI change

Short Buildup (Rising OI, Falling Prices)

Mahindra & Mahindra: -6.08% OI change
HDFC Bank: -4.3% OI change
Hindalco Industries: -4.06% OI change
AU Small Finance Bank: -3.25% OI change
IndusInd Bank: -2.51% OI change

Corporate News & Developments

Major Corporate Actions

IDFC First Bank: Board approved preferential allotment raising approximately ₹2,623 crore through convertible preference shares, significantly strengthening the bank’s capital position.

Lloyds Metals and Energy: Successfully secured the Tandsi-III and Tandsi-III Extension coking coal mine with a 10.5% premium bid, adding 23 million metric tonnes of estimated reserves across 338 hectares.

Servotech Renewable Power: Secured substantial ₹28.84 crore order for grid solar power plant supply, installation, testing and commissioning for Northwestern Railway’s Jaipur Division.

Dynamic Cables: Received BIS license for manufacturing specialized conductors and cables, with production capacity increase enabling monthly turnover growth from ₹100 crore to ₹135 crore.

HDFC Bank: Received credit rating upgrade from S&P Global to BBB/Stable/A-2 from previous BBB-/Positive/A-3 rating.

NTPC: Two projects declared commercially operational – 212.5 MW solar project and 52.8 MW wind project, both in Gujarat.

Regulatory & Legal Updates

Vedanta: Subsidiary Bharat Aluminium Company received ₹80.96 lakh penalty from Income Tax Department for assessment year 2012-13.

Tata Steel: Faces ₹1,902.73 crore demand notice from Deputy Director of Mines regarding alleged mineral dispatch shortfall, prompting legal challenge in Orissa High Court.

Medplus Health: Subsidiary Optival Health Solutions received three drug license suspension orders for stores in Karnataka and Maharashtra.

Key Market Developments

Policy & Economic Updates

Cabinet approved purchase of 97 LCA Mark 1A jets worth ₹62,000 crore from HAL.
Online Gaming Bill 2025 proposes a ban on money-based online games, with heavy fines for violations.
India-China Relations: Both countries restart ties with border trade reopening, direct flights returning and easier visas.
Global Focus: UK and Eurozone inflation data and US Fed minutes due on Wednesday.

Market Dynamics

Treasury yields for both 10-year and 2-year bonds moved higher
Dollar index extended its rise, ahead of the Federal Reserve’s Jackson Hole symposium
Asian currencies dropped against the US dollar, with Philippine Peso leading the fall
Crude oil prices steadied after reports of lower US stockpiles and news around Ukraine-Russia truce talks
Gold prices held slightly lower as traders awaited Powell’s speech later this week

FII & DII Activity

Foreign Institutional Investors (FII)

Last 30 Days: Net sales of ₹54,985.9 crore
Last 2 Weeks: Net sales of ₹18,319.6 crore
Last Week: Net sales of ₹5,654.7 crore
Tuesday, Aug 19: Net sales of ₹634.3 crore
Monday, Aug 18: Net purchase of ₹550.8 crore

Domestic Institutional Investors (DII)

Last 30 Days: Net purchase of ₹1,01,205.9 crore
Last 2 Weeks: Net purchase of ₹50,746.7 crore
Last Week: Net purchase of ₹15,884.4 crore
Tuesday, Aug 19: Net purchase of ₹2,261.1 crore
Monday, Aug 18: Net purchase of ₹4,103.8 crore

Analysis: DIIs continue to provide strong support to Indian markets, offsetting consistent FII selling pressure.

Current IPO Pipeline

Active IPOs

Company	Open Date	Close Date	Price Range (₹)	Size (₹ Cr)
Studio LSD Ltd	Aug 18, 2025	Aug 20, 2025	51-54	74.25
LGT Business Connextions	Aug 19, 2025	Aug 21, 2025	107-0	28.09
Patel Retail Ltd	Aug 19, 2025	Aug 21, 2025	237-255	242.76
Shreeji Shipping Global	Aug 19, 2025	Aug 21, 2025	240-252	410.71
Gem Aromatics Ltd	Aug 19, 2025	Aug 21, 2025	309-325	451.25
Vikram Solar Ltd	Aug 19, 2025	Aug 21, 2025	315-332	2079.37
Mangal Electrical Industries	Aug 20, 2025	Aug 22, 2025	533-561	400

Banned Securities

Currently, Titagarh Rail Systems and RBL Bank are in the ban list for derivatives trading.

Market Outlook & Trading Strategy

Key Technical Observations

Nifty 50 showing fourth consecutive session of gains with bullish technical indicators
Bank Nifty maintaining bullish stance above key moving averages
India VIX decline suggests reduced market volatility
Strong DII support continues to offset FII selling pressure

Critical Events to Watch

Fed Minutes Release (Wednesday) – Could impact global sentiment
Jerome Powell’s Speech at Jackson Hole Symposium
UK and Eurozone inflation data
India-China trade developments

Risk Factors

Continued FII selling pressure
Global tech stock weakness spillover
Geopolitical tensions (Ukraine-Russia developments)
Rising US Treasury yields

Educational Segment: Understanding Limit Orders

What is a Limit Order?

A Limit Order is an instruction to buy or sell a financial instrument at a specific price or better. Unlike market orders, limit orders allow investors to set a precise price at which they are willing to trade, providing more control over the execution price at the cost of potentially slower or incomplete trade execution.

Example

If a stock is currently trading at ₹100, an investor might place:

Buy limit order at ₹95: Order executes only if price drops to ₹95 or lower
Sell limit order at ₹105: Order executes only if price rises to ₹105 or higher

Benefits & Trade-offs

Benefits: Greater precision, risk management, potentially improved costs Trade-offs: May not execute if specified price isn’t reached, slower execution

Traders typically use limit orders when they have specific price targets or want protection from unfavorable price movements.

Today’s Economic Calendar

India Economic Events – Wednesday, August 20, 2025

Based on available information, no major economic data releases are scheduled for India today. Markets will be focusing on global cues and corporate earnings.

United States Economic Events – Wednesday, August 20, 2025

Key Events:

FOMC Minutes Release (Expected timing: 2:00 PM ET / 11:30 PM IST)
- Minutes from the latest Federal Reserve meeting
- High impact on USD, bonds, and equity markets
- Focus on interest rate outlook and economic assessment

Market Impact: The US Dollar (USD) had a positive day on Tuesday, as traders remained cautious ahead of the release of the FOMC Minutes on Wednesday and the pivotal Jackson Hole Symposium later this week

Other Notable Events:

Various Federal Reserve officials may have speaking engagements
Weekly inventory data from energy sector
Regional manufacturing surveys

Looking Ahead:

Thursday: Jerome Powell’s speech at Jackson Hole Symposium
Friday: Key inflation data from UK and Eurozone

Conclusion

Markets today reflected a cautious sentiment with the Fear & Greed Index at 37.59, indicating investor hesitation amid mixed global performance. While Indian markets continued their positive momentum with the fourth consecutive session of gains, global headwinds from tech stock weakness and anticipation of Fed minutes kept sentiment subdued.

The strong DII support of over ₹1 lakh crore in the past month continues to offset FII selling pressure, providing stability to Indian markets. Key technical levels for Nifty 50 remain 25,000 resistance and 24,900 support, with reduced volatility (VIX at 11.79) suggesting range-bound trading in the near term.

Investors should closely monitor the Fed minutes release today and Jerome Powell’s speech at Jackson Hole for directional cues on global monetary policy and market sentiment.

Disclaimer: This report is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Please conduct your own research before making investment decisions.