Geopolitical jitters from West Asia cast a shadow over Indian equities as markets opened lower on the final trading day of the week. The benchmark Sensex tumbled 356.91 points or 0.45% to 79,658.99 at the opening bell, reversing Thursday’s robust gains. The Nifty too mirrored the sentiment, dropping 109.50 points or 0.44% to 24,656.40.
As trading progressed to 9:30 AM, losses moderated slightly with Sensex at 79,699.81 (down 316.09 points or 0.40%) and Nifty at 24,679.30 (down 86.60 points or 0.35%). Midcap and smallcap segments outperformed, with Nifty Midcap 100 up 0.48% and Nifty Smallcap 100 advancing 0.64%.
IT stocks stole the show, with Nifty IT surging 1.23%, offering a bright spot. However, auto, FMCG, and banking sectors faced headwinds, declining 0.60%, 0.02%, and 0.85% respectively. This follows a day of strong rebound on Thursday, where Sensex closed up 1.14% at 80,015.90 after four sessions of declines, and Nifty ended 1.17% higher at 24,765.90.
Choice Broking’s technical research analyst Akash Shah points to critical support for Nifty at 24,500-24,550, and resistance at 24,850. RSI reading of 37.55 indicates the market is emerging from oversold conditions, signaling possible stabilization.
FIIs persisted with sell-offs, dumping Rs 3,752 crore worth of equities for the fifth session in a row. DIIs countered this by purchasing over Rs 5,000 crore continuously for seven days, cushioning the market.
In this environment of heightened volatility and global risks, advisors recommend patience. Stick to quality stocks with solid fundamentals during corrections. Investors eyeing new positions should hold off until Nifty decisively breaks 25,000, paving the way for a bullish phase.