The Indian stock market closed in negative territory on Tuesday, following a brief recovery after Monday’s losses. The Sensex declined by 166.33 points to settle at 78,593.07, while the Nifty dropped 63.05 points, closing at 23,992.55. Despite an initial gain of over 1% during Tuesday’s opening, the market failed to sustain its momentum.
Among the Nifty constituents, 21 stocks advanced while 29 declined. The top gainers included Britannia, JSW Steel, Tech Mahindra, Larsen & Toubro, and Hindustan Unilever. Conversely, the biggest losers were HDFC Life, SBI, BPCL, Shriram Finance Limited, and SBI.
“As expected, the Sensex opened with a gap up due to a significant rebound in the Nikkei index, which saw a 10% rise. Our markets followed suit with an optimistic opening. Despite sharp corrections, the market showed resilience, though these corrections were short-lived,” market expert Sunil Shah said.
V.L.A. Ambala, a SEBI-registered Research Analyst and Co-founder of Stock Market Today (SMT), said, “Despite opening with nearly a 1% gap up, the Nifty failed to sustain its momentum, closing below the previous day’s mark and breaching the 24,000 level to close near 23,992.55. Meanwhile, the Bank Nifty closed at 49,765.15, down by 0.65%.”
Ambala pointed out that the Nifty is trading about 1,100 points below its all-time high and remains in the overbought zone on a monthly timeframe, indicating a potential for further decline. “If the Nifty fails to find support at the 50-day EMA, it could test the 23,500 range within the next 2-4 days. Given the current momentum, this support level may not hold. Additionally, the dollar is at a record low, reducing global purchasing power, while high inflation and unemployment rates continue to concern market participants,” she added.
Global market sentiments were mixed. The Nikkei rebounded by about 10% on Tuesday after a 15% drop in the previous session, while the Straits Times recorded a near 1% decline. In this fluctuating environment, investors are advised to wait and observe price movements before making fresh investments or averaging existing holdings.
Ambala also mentioned that ongoing political unrest in Bangladesh could benefit sectors like textiles in the Indian market, suggesting that dips in high-quality stocks should be viewed as buying opportunities. For the next trading session, she indicated that Nifty could find support around the 23,850 and 24,600 levels, with resistance between 24,050 and 24,120 levels.
The downturn in the Indian stock market on Tuesday reflects broader economic concerns and mixed global market sentiments. Investors are advised to remain cautious and look for strategic buying opportunities amid market fluctuations.
(ANI)
