The stock market mood took a sharp turn on Friday, July 18th. While a slight uptrend was expected in the morning, both Nifty and Bank Nifty were seen sliding by the afternoon. Nifty broke the crucial 25,000 level and closed at 24,968, down by 143 points. Bank Nifty also fell by 575 points, closing at 56,254. Axis Bank's disappointing results significantly dampened market sentiment.
Axis Bank Shocks the Market
The quarterly results of Axis Bank, released on Friday, disappointed investors. The company's performance led to significant disappointment in the market, causing the bank's share price to fall by more than 5 percent. Axis Bank was the biggest loser of the day, dragging both Nifty and Bank Nifty downwards.
Market experts say that Axis Bank's results overshadowed all other positive signals. Bank Nifty not only broke a crucial support level but also fell below the 20-Day Exponential Moving Average (20-DEMA), which is a technically weak signal.
Market Direction to be Determined on Monday
The market's focus is now on Monday's session, primarily due to the quarterly results of major companies like Reliance Industries, HDFC Bank, and ICICI Bank. The market direction appears to depend on these results. If these companies report better-than-expected figures, there is a b possibility of market recovery. However, if the figures are weak, further declines may be seen.
Analysis by Anuj Singhal of CNBC Awaaz
According to Anuj Singhal, Friday was one of the worst days for the market. Nifty lost the psychological level of 25,000 and failed to regain it throughout the day. He believes that the market overreacted due to Axis Bank's weak figures. If HDFC Bank and ICICI Bank report good figures on Monday, there could be a sharp recovery in the market.
Kotak Securities Research Report
According to Shrikant Chauhan, Head of Research at Kotak Securities, the market is currently in a corrective phase. This correction could be 350 points or even 500 points. If the correction in Nifty is 350 points, it may stop at 24,900, but if there is a fall of 500 points, it could go down to around 24,750.
According to him, the market may remain in the range of 24,500 to 26,000. This means that the decline is not completely over, and after a slight improvement, there may be a further decline.
Relief in IT and Metal Stocks
On this day of decline, the IT and metal sectors brought some relief. The IT index remained flat, and some stocks showed slight gains. The metal index, however, rose by 0.37 percent. However, small and mid-sized stocks remained under pressure. The Nifty Midcap 100 and Smallcap 100 indices fell by more than 0.7 percent.
Expectations Hinged on Reliance, HDFC, and ICICI
Now, the entire market is looking towards the results of Reliance, HDFC Bank, and ICICI Bank. These three companies will play a key role in giving a new direction to the market. Investors are expecting good figures from these companies because their businesses have shown strength in recent days.
Atmosphere of Panic in the Market
The decline in the market on Friday created an atmosphere of panic among investors. In particular, Nifty falling below 25,000 is considered a major psychological blow.
Experts say that the market's movement next week will depend on the quarterly results. If the results are good, the market may once again cross 25,500. If the results are bad, Nifty may fall to 24,500.
Stock Market Status - In Figures
- Nifty: Down by 143 points, Closing level - 24,968
- Bank Nifty: Down by 575 points, Closing level - 56,254
- Axis Bank: Fell by 5.2 percent, Biggest loser
- Metal Index: Up by 0.37 percent
- IT Index: Almost flat
- Midcap and Smallcap Index: Down by more than 0.7 percent
