Mumbai (Maharashtra) [India], August 6 (ANI): The stock market again ended in the negative territory on Tuesday after extreme losses faced at the end of Monday trading and then gaining over 1 per cent on Tuesday opening.
The Sensex fell by 166.33 points to settle at 78,593.07, while the Nifty dropped by 63.05 points, closing at 23,992.55.
Among the Nifty companies, 21 stocks advanced while 29 declined. The top gainers included Britannia, JSW Steel, Tech Mahindra, Larsen & Toubro (LT), and Hindustan Unilever. Conversely, the biggest losers were HDFC Life, SBI, BPCL, Shriram Finance Limited, and SBI.
Sunil Shah, a market expert, explained the day’s movements, “On expected lines, today, Sensex opened with gap up because we saw a huge bounce back in Nikkei index, the Japanese market is up by 10 per cent. Our markets were expected to open with a gap up. Whenever there is a correction, the corrections are being brought over and people are confident. So, though the corrections may be a little sharp, but they are being brought over and the corrections may be sharp, but then they are short-lived.”
V.L.A. Ambala, a SEBI-registered Research Analyst and Co-founder of Stock Market Today (SMT), said, “Despite opening with nearly a 1 per cent gap up, the Nifty failed to sustain its momentum and ended below the previous day’s closing, breaching the 24,000 mark to close near 23,992.55. Meanwhile, the Bank Nifty closed at 49,765.15, down by 0.65 per cent.
Currently, the Nifty index is trading about 1,100 points below its all-time high and remains in the overbought zone on a monthly timeframe, suggesting a potential 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 present momentum, this support level is unlikely to hold. Additionally, the dollar is at a record low, reducing global purchasing power, and the high inflation and unemployment rates continue to worry market participants.
Ambala noted the mixed sentiment in global markets. The Nikkei, after a 15 per cent drop in the previous session, rebounded by about 10 per cent on Tuesday.
The Straits Times, however, recorded a near 1 per cent decline. Amid these fluctuations, investors are advised to wait and observe price movements before making fresh investments or averaging existing holdings.
Amid the ongoing political unrest in Bangladesh, sectors like textiles in the Indian market could benefit. Therefore, any dips in high-quality stocks should be viewed as buying opportunities. For the next trading session, Nifty could find support around the 23,850 and 24,600 levels and face resistance between 24,050 and 24,120 levels.
The Indian stock market’s downturn on Tuesday reflects broader economic concerns and mixed global market sentiments. Investors are advised to remain cautious and look for strategic buying opportunities amid the market’s fluctuations. (ANI)
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