Stock market opens in red; Sensex-Nifty dip at opening bell
This pattern, combined with the proximity to key overhead resistance levels, suggests a potential consolidation or minor pullback in the near term
Representative Image (Photo/ANI)
MUMBAI: The stock market opened on a downward trend, losing the positive momentum from the previous trading day on Tuesday. The Sensex, India's benchmark stock index, began trading 165.44 points lower at 72,548.72, while the Nifty 50 index, which represents the National Stock Exchange of India's top 50 companies, opened down 45.40 points at 22,061.00. This decline at the opening bell signalled a shift from the positive sentiment witnessed in recent sessions.
Among the Nifty companies, there were 17 advances and 33 declines. Notable gainers included Kotak Bank, Power Grid, Apollo Hospitals, UPL, and Dr Reddy, while Eicher Motors, Hero Motocorp, Bajaj Auto, M&M, and HDFC Life were among the top losers.
Despite the opening dip, market analysts anticipate marginal changes in the Indian stock market indices throughout the day, influenced by mixed global cues. The Gift Nifty trends also indicated a subdued start for the primary Indian benchmark index.
In the previous trading session, domestic equity indices had extended gains for the fifth consecutive session, with the Nifty achieving an intraday all-time high. The Sensex had concluded at 72,708.16, marking a rise of 281.52 points, while the Nifty 50 settled at 22,122.25, up by 81.55 points or 0.37 per cent. Varun Aggarwal, founder and managing director, Profit Idea said, "Technical analysis of the Nifty 50 revealed a small positive candle on the daily chart, resembling a high wave or doji pattern.
This pattern, combined with the proximity to key overhead resistance levels, suggests a potential consolidation or minor pullback in the near term. Despite the recent positive trend, the market currently exhibits a lack of strength for a definitive upside breakout beyond the resistance at 22,150 - 22,200 levels".
On the derivatives front, the highest Open Interest (OI) on the call side was observed at 22,500 and 22,600 strike prices, while the maximum OI on the put side was at the 22,000 strike price.
Meanwhile, Asian shares remained subdued, with MSCI's broadest index of Asia-Pacific shares outside Japan retreating 0.1 per cent from its recent peak in January. South Korean shares experienced a decline of 1 per cent. In the U.S., Treasury yields saw a modest uptick, while S&P 500 futures edged lower by 0.2 per cent.
The outlook on U.S. rate cuts has tempered following robust readings on producer and consumer prices. Looking ahead, economic indicators are expected to steer market sentiment, amidst ongoing geopolitical tensions and recovering demand in China, which should keep oil prices stable near three-week highs.
