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Nifty ends flat to positive after volatile trading

14 Aug 2024 Evaluate

After witnessing volatile session, Indian equity benchmark -- Nifty -- ended with minor gains on weekly F&O expiry day. Traders remained on sidelines ahead to the release of U.S. CPI data later in the day for further direction. After making positive start, soon index turned volatile in morning session, as traders were cautious with a private report stating that the RBI is unlikely to consider softening rates this fiscal year even after the consumer inflation gauge declined below the mandated 4% target for the first time in five years, with street attributing the fall to a statistical base effect and might not indicate a durable victory against sticky prices just yet. 

However, index traded higher in afternoon session, as traders got some encouragement with government data showing that India's wholesale inflation, measured using the Wholesale Price Index, eased by 2.04 per cent on an annual basis in July as against a 16-month high of 3.36 per cent in June. Traders took support as India and the US have signed a ‘landmark’ agreement that provides a framework for both sides to explore cooperation in the micro, small and medium enterprises (MSME) sector. External Affairs Ministry Spokesperson Randhir Jaiswal said the Memorandum of Understanding (MoU) would enable MSMEs of the two countries to foster trade. In last leg of trade, index erased most of its gains and ended just above its neutral line.

Most of the sectorial indices ended in red except IT, Consumer Durables and Auto stocks. The top gainers from the F&O segment were Laurus Labs, ABB India and Cholamandalam Investment and Finance Company. On the other hand, the top losers Piramal Enterprises, NMDC and Hindustan Copper. In the index option segment, maximum OI continues to be seen in the 24400 - 24600 calls and 23900 - 24100 puts indicating this is the trading range expectation.

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