Stock market opens the week in red amidst global concerns and Gaza tensions

MUMBAI: The stock market began the week on a cautious note as global worries and tensions in Gaza weighed on investor sentiment.

The benchmark Sensex and Nifty indices opened lower on Monday, with declines outnumbering advances among Nifty companies.

At the start of the trading session, the Sensex opened 494.23 points lower, commencing at 65,486.61. Simultaneously, the Nifty opened 161.45 points down, initiating trading at 19,492.05. As the day started, the market saw a struggle to regain positive momentum, with only 6 Nifty companies advancing and 44 declining.

Among the notable gainers were ONGC, HCL Technologies, TCS, Divi's Lab, and Dr. Reddy, while Adani Ports, BPCL, TATA Steel, Adani Enterprises, and JSW Steel registered losses. Global uncertainties, coupled with the ongoing tensions in Gaza, contributed to the market's weak opening.

Nifty opened with a gap down, setting crucial levels for bullish momentum above 19,767. Despite two unsuccessful attempts to breach these levels, the overall market sentiment remained bullish.

Varun Aggarwal, founder and managing director, Profit Idea, said, "Global worries along with tension at Gaza making market sentiments really weak on opening. Nifty opened gap down and crucial levels for bulls to maintain bullish momentum is above 19767.

Market made two attempts but unsuccessful. But overall picture remains bullish. Indian economy stand tall and look quite strong going forward. Major support for index remains at 18887". The Indian economy continues to exhibit strength, providing confidence for the future.

The major support level for the index remains at 18,887, providing a potential buying opportunity for investors. Market experts suggest that investors should consider selectively picking stocks in sectors such as IT, Media, Oil and Gas, Petrochemicals, and Metals. Additionally, there is significant potential for mid and small-cap stocks at current levels.

"This dip look likely opportunity for investors. IT, Media, Oil & Gas, Petrochemicals, Metals stocks looks good. Lot of scope for mid and small cap stocks from current levels. Investors should selectively pick stocks for medium to long term. OI data for Nifty suggests range of 19200-19800. Heavy put writing at 19000-19200 levels. Bias remains positive and these tensions will be temporary. Investors should not panic & think about next few months", said Aggarwal.

Options interest (OI) data for Nifty indicates a trading range between 19,200 and 19,800, with heavy put writing observed at 19,000-19,200 levels.

Despite the temporary tensions affecting market sentiment, the overall bias remains positive. Experts advise investors not to panic and maintain a long-term perspective, focusing on the next few months with optimism about the Indian economy's resilience.