The Indian stock market closed lower on Tuesday, despite a brief recovery following Monday’s sharp declines. The Sensex fell by 166.33 points, ending at 78,593.07, while the Nifty dropped 63.05 points to close at 23,992.55. Although the market saw an initial gain of over 1% at the start of the trading session, it struggled to maintain this momentum throughout the day.
Out of the Nifty stocks, 21 saw gains while 29 experienced losses. Leading gainers included Britannia, JSW Steel, Tech Mahindra, Larsen & Toubro, and Hindustan Unilever. In contrast, major decliners were HDFC Life, SBI, BPCL, Shriram Finance Limited, and SBI.
Market expert Sunil Shah commented on the market’s performance, noting, “The Sensex initially surged due to a notable rebound in the Nikkei index, which saw a 10% increase. Our markets mirrored this optimistic start but struggled to maintain their gains, experiencing brief corrections.”
V.L.A. Ambala, a SEBI-registered Research Analyst and Co-founder of Stock Market Today (SMT), observed, “Despite a nearly 1% gap up at the opening, the Nifty failed to hold onto its gains, closing below the previous day’s level at 23,992.55. The Bank Nifty ended at 49,765.15, down by 0.65%.”
Ambala highlighted that the Nifty is currently trading about 1,100 points below its all-time high and remains in the overbought zone on a monthly basis, suggesting the potential for further declines. “If the Nifty does not find support at the 50-day EMA, it may test the 23,500 level within the next few days. Additionally, with the dollar at a record low impacting global purchasing power, and ongoing concerns about high inflation and unemployment, the market faces several challenges,” she added.
Global market sentiments were varied, with the Nikkei rebounding by approximately 10% after a 15% drop the previous session, while the Straits Times Index recorded a nearly 1% decline. In this volatile environment, investors are advised to observe price movements carefully before making new investments or adjusting existing positions.
Ambala also mentioned that political unrest in Bangladesh could benefit Indian textile sectors, suggesting that declines in high-quality stocks could present buying opportunities. For the upcoming trading session, she indicated that the Nifty might find support around the 23,850 and 24,600 levels, with resistance expected between 24,050 and 24,120 levels.
The decline in the Indian stock market on Tuesday reflects broader economic uncertainties and mixed global market signals. Investors should proceed with caution and seek strategic buying opportunities amid ongoing market fluctuations.