The Indian stock market experienced a volatile session today, with the Sensex and Nifty 50 closing lower, tracking mixed global cues. The Sensex dropped 636 points to settle at 80,738, while the Nifty 50 fell 174 points to end at 24,543. Despite an initial positive opening, profit booking at higher levels led to a sharp decline, with large-cap stocks underperforming. The Nifty Bank index, which hit a record high of 56,161 early in the session, also succumbed to selling pressure, closing 303 points lower at 55,600. The Midcap index followed suit, declining 259 points to 57,517.
Sectoral Performance: Private Banks Lag, Realty and Defense Shine
Among sectors, the Private Bank index was the hardest hit, shedding 1.25% as investors locked in profits. In contrast, the Realty and Defense indices defied the weak market sentiment, each rallying over 1%. This divergence highlights selective buying in specific sectors despite the broader market downturn.
Technical Analysis: Bearish Signals Emerge
From a technical perspective, the market’s failure to hold key levels signals potential weakness. The Nifty slipped below its 20-day Simple Moving Average (SMA) of 24,700, while the Sensex breached the 81,300 mark, intensifying selling pressure. Daily charts reveal a long bearish candle, and intraday charts show a lower top formation, both indicating a negative outlook.
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Key Support Levels: A breach below 24,450 for the Nifty or 80,500 for the Sensex could trigger a fresh sell-off, potentially dragging the indices to 24,320–24,300 (Nifty) or 80,100–80,000 (Sensex).
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Resistance Levels: A move above 24,600 (Nifty) or 81,000 (Sensex) could spark a quick pullback rally towards the 20-day SMA at 24,700/81,300. Sustained momentum may push the indices further to 24,760/81,500.
Market Outlook: Cautious Approach Advised
The current market texture appears weak, driven by profit booking and mixed global cues. Investors should remain vigilant, particularly around the critical support levels of 24,450/80,500. A break below these could signal deeper corrections, while a recovery above 24,600/81,000 may offer short-term opportunities for a pullback rally. Sector-specific opportunities in Realty and Defense may provide some respite amid the broader market’s underperformance.
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