Will Sensex, Nifty break 8-day losing streak? RIL, Wipro, BHEL, RVNL, Ajax Engineering shares in focus

Indian share market is seen starting the week on a muted note, in sync with mixed global peers, amid looming fears of U.S. tariffs and their impact on global trade. However, the delay in implementing reciprocal tariffs by the U.S. government may provide temporary relief to the equity market, while macroeconomic data and corporate earnings will be key trigger for the market. The trend at Gift Nifty also indicates a flat-to-higher start for Sensex and Nifty, with Gift Nifty futures trading 42.5 points, or 0.19%, higher at 22,974 level, at the time of reporting.

With the corporate earnings reaching in the last leg, foreign investments flow, currency movement, and U.S. trade policies will be key things to watch this week. On the macro front, traders will watch India’s HSBC Manufacturing PMI, HSBC Composite PMI, and HSBC Services PMI data, while the FOMC minutes and the European Central Bank meeting will be key global cues for the market this week. In the absence of key domestic triggers, global developments are more likely to provide impetus in setting up our market tone.

"With the earnings season behind us, market focus will shift to trends in FII flows and currency movements for further cues. Additionally, speculation regarding U.S. tariffs and their impact on global trade will remain a key factor to watch," said Ajit Mishra SVP, Research, Religare Broking Ltd., observing the sentiment of the market.

Market in longest losing streak

The domestic equity benchmark indices Sensex and Nifty have maintained their downtrend for the last eight sessions in a row, marking their longest decline in the last two years. In the past eight trading days, the BSE Sensex has plummeted 2,644 points, or 3.36%, to reach 75,939, while the Nifty tumbled 810 points, or 3.41%, to 22,929 mark. A strong wave of sell-offs, driven by aggressive offloading by foreign portfolio investors (FPIs), dragged the combined market capitalisation of BSE-listed companies below the $4 trillion mark for the first time in over 14 months. The sustained foreign fund outflows, a weakening rupee, the U.S. government's reciprocal tariff plans, subdued domestic growth, and lacklustre management commentary continued to weigh on market sentiments.

Asian stocks follow Wall Street’s mixed trend  

In the overseas market, Asian stocks started the week on subdued note, tracking mixed closing at Wall Street on Friday as uncertainty surrounding U.S. trade policies and tariffs dented sentiments, while weaker-than-expected retail sales data eased inflation concerns. The S&P 500 ended 0.01% lower, while the Dow Jones Industrial Average declined 0.37%. On the other hand, tech-heavy Nasdaq gained 0.41%, led by index heavyweights Nvidia and Apple.  

In the Asia-Pacific region, markets in Hong Kong and China were trading lower, while Japan, South Korea and Singapore were trading marginally higher. Australian market ASX 200 ended 0.66% lower, while Hong Kong’s Hang Sang and China’s Shanghai Composite were down 0.1% each. On the other hand, Japan’s Nikkei 225 was trading flat with marginal gains, while Singapore’s Straits Times and South Korea’s KOSPI rose up to 0.7%. Among others, Indonesia’s Jakarta Composite and Taiwan’s Weighted stock index witnessed firm trading, rising over 1%.

Technical outlook

The current weekly setup in the market raises considerable concerns regarding uncertainty among participants. From a technical standpoint, Nifty’s breakdown below the 22,800-22,700 zone (lower band) could trigger fresh room for 22,500-22,400 in the near period, potentially a decline of nearly 15% from the all-time high, says Osho Krishnan, Sr. Analyst, Technical & Derivatives of - Angel One.

Amol Athawale, VP-Technical Research, Kotak Securities, opines that the current market texture is weak and if Nifty and Sensex break the 22,800 and 75,200 support zone then they could slip till 22,600-22,500 and 74,600-74,300, respectively. “On the other side, 23,000 and 76,500 important levels to watch out. Above 23,000/76500 we could see an extension of technical bounce back till 23,200 -23,300/77,100-77,500.”

For Bank Nifty now, 20 day SMA or 49,300 would be the trend decider level. Below the same, it could retrace till 48,000-47,750. However, above 20 day SMA or 49,300 it cold retest the level of 49,800-50,000, he said.

Stocks to watch

Q3 results: Shares of ABB India and Mahesh Developers will be in focus today as they will announce their quarterly results. Among others, investors will react to Q3 results of Borosil Renewables, Rail Vikas Nigam, Mahanagar Telephone Nigam, Dish TV, Easy Trip Planners, Glenmark Pharma, Aditya Birla Fashion, Samvardhana Motherson International, Dr Agarwal's Health Care, and Dilip Buildcon.

Reliance Industries: The Mukesh Ambani-led company has acquired project SPV “Lakadia B Power Transmission Ltd,” marking its entry in the power transmission development space.

Bharat Heavy Electricals (BHEL): The PSU has secured an order from Singareni Collieries Company (SCCL) for the EPC package for the Singareni Thermal Power Project, Stage II (1x800 MW) at Mancherial, Telangana.

Alembic Pharmaceuticals: The drug maker has received an Establishment Inspection Report (EIR) with a classification of Voluntary Action Indicated from the US FDA for its solid oral formulation facility (F-4) at Jarod.

Shriram Finance: The Reserve Bank of India has imposed a monetary penalty of Rs 5.8 lakh on the company for non-compliance with certain provisions related to know your customer (KYC), and data format for furnishing credit information.

Ujjivan Small Finance Bank: The central bank has slapped a fine of 6.7 lakh for non-compliance with certain directions related to loans and advances, including statutory and other restrictions.

Wipro: The IT heavyweight has appointed Amit Kumar as Managing Partner and Global Head of Wipro Consulting, effective immediately.

Zydus Lifesciences: The pharma company informed exchanges that the U.S. FDA conducted a surveillance inspection at the group’s API manufacturing site at Ambernath in Maharashtra.

IPO news

Shares of Ajax Engineering will make its debut on the stock markets today, while share allotment of Hexaware Technologies IPO is likely to be finalised today. Among others, Quality Power IPO will enter its second day of bidding today.

In the SME space, Chandan Healthcare IPO will be listed today, while share allotments of Maxvolt Energy IPO, Voler Car IPO, and PS Raj Steels IPO will be finalised today. The IPO of Shanmuga Hospital and LK Mehta Polymers will close for subscription today, while Tejas Cargo India IPO and Royalarc Electrodes IPO will open for bidding for second day today.

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