The Indian stock market indices concluded with a downturn, relinquishing their early advances. The Nifty 50 witnessed a decline of 17 points, representing a 0.08% decrease, settling at 22,200.55 by the end of the trading day. Meanwhile, the Sensex endured a slip of 118 points, marking a 0.16% descent, culminating below the 73,000 mark at 72,987.03. HDFC Bank, Tata Motors, Reliance Industries, Asian Paints, and Sun Pharma were among the prominent entities dragging down the Nifty 50, whereas Asian Paints, Tata Motors, Bajaj Auto, Eicher Motors, and HDFC Bank found themselves among the significant decliners. The volatility index observed a 0.35% uptick, signaling modest fluctuations in the market’s trajectory ahead. An analyst attributed the prevailing market sentiment to the continuous divestment by Foreign Institutional Investors (FIIs).
Moreover, according to NSDL data, foreign institutional investors withdrew Rs 3,782.55 crore from the Indian equity markets. Despite this, the Nifty Midcap 100 saw an upswing of 483 points or 0.96%, reaching 50,707.75 by the session’s close. However, the Nifty Bank concluded in the negative, witnessing a dip of 172 points or 0.36% to settle at 47,687.45.
In terms of sectors, the FMCG and auto segments exerted downward pressure on the indices. Conversely, the small-cap and mid-cap stocks outperformed the benchmark indices.
Concerns regarding delayed rate cuts by the US Federal Reserve, compounded by intensified FII divestment, have stirred apprehension among investors, prompting a cautious approach amid escalating uncertainty. The Nifty faces immediate obstacles at the 22,551 mark, with major hurdles at its all-time high of 22,795, while immediate downside risks are perceived at the crucial support levels of 22,000 and 21,710.
Technical Analysis of the Nifty:
“We maintain a cautious stance on the Nifty index, emphasizing resistance in the 22,300-22,400 range, and advocate a stock-specific trading strategy. Alongside domestic factors, close vigilance on the US markets for guidance is advisable,” remarked Ajit Mishra, Senior Vice President of Research at Religare Broking.
Bank Nifty:
Following the broader market trend, the Bank Nifty witnessed subdued trading activity on the weekly expiry day. “To sustain upward momentum, the index must decisively breach this level, aiming for targets around 48,500. On the downside, support lies at 47,200, presenting favorable buying opportunities on pullbacks to this level,” suggested Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Impact on Rupee:
The Indian Rupee remained stagnant, ensnared within a lateral range around 83.50, amidst tepid market participation. Traders await the US Consumer Price Index (CPI) data, anticipated to influence the Dollar index and, consequently, the Rupee-Dollar exchange rate. The Rupee is expected to trade within the confines of 83.45-83.60, bolstered by the Reserve Bank of India’s (RBI) efforts to uphold stability. Furthermore, the stabilizing effect of crude oil prices around $78 per barrel is reinforcing the Rupee’s resilience, as noted by Jateen Trivedi, Vice President and Research Analyst of Commodity and Currency at LKP Securities.
