Nifty Closes Below 22,500 Amid Market Volatility
The Indian benchmark indices ended the day lower, with Nifty closing below the 22,500 mark amid a volatile session. This downturn was driven by selling pressure across sectors, with the notable exception of metals, which performed well.
Market Recap
- Closing Numbers: At close, the Sensex fell 732.96 points or 0.98% to 73,878.15, while the dropped 172.40 points or 0.76% to 22,475.80.
- Biggest Losers: Key underperformers in the market included L&T, Maruti Suzuki, Reliance Industries, Nestle India, and Bharti Airtel.
- Top Gainers: Coal India, Grasim Industries, ONGC, Dr. Reddy’s Laboratories, and Hindalco Industries bucked the trend and posted gains.
- Sectoral Performance: All sectoral indices, except metals, closed in the red. Capital goods, realty, telecom, and PSU banks led the declines with a 1% drop each, while oil & gas, auto, IT, and media sectors also experienced declines.
Key Insights and Market Predictions
- Volatility: The session saw significant fluctuations, ultimately ending the day with losses nearly reaching 1%. Though the session began positively due to strong global cues, profit-taking in heavyweight stocks pushed the indices into negative territory.
- Nifty’s Range: Aditya Gaggar, Director of Progressive Shares, predicts that may trade between 22,160 and 22,770. This range is indicated by a negative divergence in RSI, signaling a possible trend reversal.
- Bank Nifty Reversal: Bank reversal from the higher end of the rising channel may lead to further corrections. Auto and metal counters are expected to remain bullish.
- Market Guidance: Religare Broking’s Ajit Mishra suggests keeping a selective approach and considering hedged positions if fails to hold above 22,400.
Market Performance This Week
- Weekly Gains: The market posted gains for the second consecutive week, with Sensex and Nifty up 0.3% each.
- Broader Market: Broader markets outperformed this week, with Bank up 2% and the Midcap index up 1%.
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Closing Thoughts
The market experienced a volatile session today, with a decline across most sectors. Despite the day’s losses, broader market trends suggest a cautious but resilient outlook. Stay tuned for next week’s updates and potential market shifts as global and domestic factors continue to influence trading.
