Mumbai (Maharashtra) [India], The stock market started the week on a subdued note as key indices opened lower on Monday.
The BSE Sensex fell 346.25 points, opening at 76,863.65, reflecting a decline of 0.45 per cent. Meanwhile, the NSE Nifty 50 fell 99.75 points to 23,401.35, down 0.42 per cent.
The early hours of trading indicated bearish sentiment, driven by broader market concerns amid global economic uncertainty.
Among the 50 Nifty companies, only 4 stocks advanced while 42 fell, showing weak market breadth. The top gainers were Sun Pharma, Wipro, ITC, ICICI Bank and Apollo Hospitals.
On the other hand, the top losers were CIPLA, IndusInd Bank, Tata Steel, Adani Ports and Bajaj Finance. The lackluster performance was influenced by mixed global signals and recent trends in profit booking.
In last Friday's session, the Sensex closed 269.03 points lower at 77,209.90, and the Nifty settled at 23,501.10, down 65.90 points.
The market was hit by selling pressure, leading to a cautious start to this week. The Bank Nifty index also opened lower, falling 381.20 points or 0.74 per cent to 51,280.25, indicating a broad-based decline across sectors.
Technically, the Nifty 50 showed possible bearish signals with a bearish engulfing pattern on the daily chart, suggesting indecision among traders.
Varun Aggarwal, Founder and CEO of Profit Idea, said: "A small bearish candle on the weekly chart indicated the formation of a bearish top pattern, pointing towards possible further weakness if confirmed in the coming days. The market "is closely watching these technical indicators for directional signals."
He added: "Globally, market trends were mixed, adding to cautious sentiment. In the United States, the S&P 500 and Nasdaq closed lower on Thursday on disappointing economic data and cautious comments from the Fed. Federal on Interest Rate Cuts."
In Asia, market moves were mixed, with the Asia Dow marginally up 0.88 percent, Japan's Nikkei 225 slightly down 0.03 percent, Hong Kong's Hang Seng up 1.67 percent and China's Shanghai Composite fell 0.24 percent.
Institutional activity played a crucial role in shaping market dynamics. Foreign Institutional Investors (FIIs) were net sellers and offloaded shares worth Rs 1,790 crore.
On the contrary, domestic institutional investors (DIIs) were net buyers and bought shares worth Rs 1,237 crore, according to provisional data from the NSE.
This divergence in buying and selling activity underscores the cautious stance of international investors amid local confidence in domestic stocks.
In commodity markets, crude oil prices showed minor declines, with WTI crude oil down 0.26 percent at $80.38 and Brent crude oil also down 0.26 percent at $84.85.
The US dollar index rose 0.06 percent to 105.88, indicating mixed sentiment in global currency markets and reflecting a cautious economic outlook.
Shrikant Chouhan, head of equity research at Kotak Securities, noted that benchmark indices saw selling pressure at higher levels last week, with the Nifty and Sensex closing lower.
He said: "We expect weak sentiment as the market trades below 23700/77800, and anticipate a retest of 23400/76700 levels. Further declines are likely to continue, possibly dragging the market towards 23200/76100. On the other hand On the other hand, a break above 23700/77800 could take the market towards 23800-24000/78000-78500."
He added: "The prudent strategy would be to buy between 23000 and 23200 levels with a stop loss at 23000 at close. Continue reducing positions if indices move towards 23600/23700 levels. For Bank Nifty, 51200 will be the decisive trend Below this level, it could fall to 50750 or 50500, while if it is broken, it would gradually push it towards 51750 or 52000."
As the week progresses, investors remain cautiously optimistic, balancing global uncertainties with domestic opportunities and keeping a close eye on technical patterns and institutional activity to navigate the volatile market landscape.
The BSE Sensex fell 346.25 points, opening at 76,863.65, reflecting a decline of 0.45 per cent. Meanwhile, the NSE Nifty 50 fell 99.75 points to 23,401.35, down 0.42 per cent.
The early hours of trading indicated bearish sentiment, driven by broader market concerns amid global economic uncertainty.
Among the 50 Nifty companies, only 4 stocks advanced while 42 fell, showing weak market breadth. The top gainers were Sun Pharma, Wipro, ITC, ICICI Bank and Apollo Hospitals.
On the other hand, the top losers were CIPLA, IndusInd Bank, Tata Steel, Adani Ports and Bajaj Finance. The lackluster performance was influenced by mixed global signals and recent trends in profit booking.
In last Friday's session, the Sensex closed 269.03 points lower at 77,209.90, and the Nifty settled at 23,501.10, down 65.90 points.
The market was hit by selling pressure, leading to a cautious start to this week. The Bank Nifty index also opened lower, falling 381.20 points or 0.74 per cent to 51,280.25, indicating a broad-based decline across sectors.
Technically, the Nifty 50 showed possible bearish signals with a bearish engulfing pattern on the daily chart, suggesting indecision among traders.
Varun Aggarwal, Founder and CEO of Profit Idea, said: "A small bearish candle on the weekly chart indicated the formation of a bearish top pattern, pointing towards possible further weakness if confirmed in the coming days. The market "is closely watching these technical indicators for directional signals."
He added: "Globally, market trends were mixed, adding to cautious sentiment. In the United States, the S&P 500 and Nasdaq closed lower on Thursday on disappointing economic data and cautious comments from the Fed. Federal on Interest Rate Cuts."
In Asia, market moves were mixed, with the Asia Dow marginally up 0.88 percent, Japan's Nikkei 225 slightly down 0.03 percent, Hong Kong's Hang Seng up 1.67 percent and China's Shanghai Composite fell 0.24 percent.
Institutional activity played a crucial role in shaping market dynamics. Foreign Institutional Investors (FIIs) were net sellers and offloaded shares worth Rs 1,790 crore.
On the contrary, domestic institutional investors (DIIs) were net buyers and bought shares worth Rs 1,237 crore, according to provisional data from the NSE.
This divergence in buying and selling activity underscores the cautious stance of international investors amid local confidence in domestic stocks.
In commodity markets, crude oil prices showed minor declines, with WTI crude oil down 0.26 percent at $80.38 and Brent crude oil also down 0.26 percent at $84.85.
The US dollar index rose 0.06 percent to 105.88, indicating mixed sentiment in global currency markets and reflecting a cautious economic outlook.
Shrikant Chouhan, head of equity research at Kotak Securities, noted that benchmark indices saw selling pressure at higher levels last week, with the Nifty and Sensex closing lower.
He said: "We expect weak sentiment as the market trades below 23700/77800, and anticipate a retest of 23400/76700 levels. Further declines are likely to continue, possibly dragging the market towards 23200/76100. On the other hand On the other hand, a break above 23700/77800 could take the market towards 23800-24000/78000-78500."
He added: "The prudent strategy would be to buy between 23000 and 23200 levels with a stop loss at 23000 at close. Continue reducing positions if indices move towards 23600/23700 levels. For Bank Nifty, 51200 will be the decisive trend Below this level, it could fall to 50750 or 50500, while if it is broken, it would gradually push it towards 51750 or 52000."
As the week progresses, investors remain cautiously optimistic, balancing global uncertainties with domestic opportunities and keeping a close eye on technical patterns and institutional activity to navigate the volatile market landscape.
