Markets Begins Week On A Cautious Note Amid Global Uncertainty
The top gainers in the Nifty 50 include Sun Pharma, Wipro, ITC, ICICI Bank, and Apollo Hospitals
The stock market began the week on a subdued note as key indices opened lower on Monday.The BSE Sensex fell by 346.25 points, opening at 76,863.65, reflecting a 0.45 per cent decline. Meanwhile, the NSE Nifty 50 dropped by 99.75 points to 23,401.35, marking a 0.42 per cent decrease.
Among the Nifty 50 companies, only 4 stocks advanced while 42 declined, showcasing weak market breadth. The top gainers included Sun Pharma, Wipro, ITC, ICICI Bank, and Apollo Hospitals.
On the other hand, the major losers were CIPLA, IndusInd Bank, Tata Steel, Adani Ports, and Bajaj Finance. The lacklustre performance was influenced by mixed global cues and recent profit booking trends.
Varun Aggarwal, founder and managing director, Profit Idea, said, "A small bearish candle on the weekly chart indicated a formation of a bearish spinning top pattern, pointing towards potential further weakness if confirmed in the coming days. The market is closely watching these technical indicators for signs of direction."
He added, "Globally, market trends were mixed, adding to the cautious sentiment. In the United States, the S&P 500 and Nasdaq closed lower on Thursday due to disappointing economic data and cautious comments from the Federal Reserve regarding interest rate cuts."
Institutional activity played a crucial role in shaping market dynamics. Foreign Institutional Investors (FII) were net sellers, offloading shares worth Rs 1,790 crore.
In contrast, Domestic Institutional Investors (DII) were net buyers, purchasing shares worth Rs 1,237 crore, as per provisional data from the NSE.
He said, "We expect weak sentiment as long as the market is trading below 23,700, and anticipate a retest of 23,400 levels. Further downside may continue, possibly dragging the market towards 23,200. On the other hand, a breakout above 23,700 could lead the market towards 23800-24,000,” said Shrikant Chouhan, Head of Equity Research, Kotak Securities.
He added, "For Bank Nifty, 51,200 will be the trend-deciding level. Below this level, it could fall to 50,750 or 50,500, while moving above it would gradually push it towards 51,750 or 52,000."
As the week progresses, investors remain cautiously optimistic, balancing global uncertainties with domestic opportunities, keeping a watchful eye on technical patterns and institutional activity to navigate the volatile market landscape. (ANI)
