Mumbai (Maharashtra) [India], October 20 (ANI): The stock market faced a daunting challenge as it opened in the red on Friday, failing to sustain the initial optimism and slipping into negative territory.
The benchmark Sensex was down by 182.36 points, opening at 65,446.88, while the Nifty dropped 59.60 points, initiating the day at 19,566.80.
At the time of market opening, there were 17 advances and 33 declines among the Nifty companies. Bajaj Auto, LITMindtree, Hero Motocorp, Nestle India, and Ultra Cement emerged as the top gainers, providing some relief amid the overall negative sentiment.
Conversely, Wipro, Tech Mahindra, Sun Pharma, NTPC, and UPL were the top losers, struggling to find footing in the early trading hours.
Varun Aggarwal, founder and managing director, Profit Idea, said, “Head winds from west and tensions over war continues to drag global markets. Impact can be seen on Indian markets as well”.
The market sentiment was heavily influenced by headwinds from the west and ongoing tensions related to global geopolitical conflicts, which continued to weigh down the global markets. Unfortunately, India was not immune to these pressures, and the impact was evident in the domestic market as well.
“Nifty opened gap down. On downside, major OI support lies at 19500-19300. On upside, 19800 continues as strong resistance. It is important for bulls to defend 19500 levels as heavy put writing is seen at that level. Market is expected take cues on crude oil, Gold market movement. Rising crude oil, gold, yield have created pessimistic sentiment. Despite all this, Indian markets look robust and we continue to remains bullish. Selected stocks from IT, Banks, Media, Metal, Pharma, FMCG looks good to add on dips”, added Aggarwal.
Analysts noted a gap down opening for Nifty and highlighted crucial support levels at 19,500-19,300, with a strong resistance at 19,800.
Bulls faced the challenge of defending the 19,500 levels due to heavy put writing observed at this mark. Market dynamics were expected to be influenced by movements in crude oil and gold markets. The rising prices of crude oil, gold, and yields had contributed to a prevailing sense of pessimism among investors.
Despite these challenges, experts remained cautiously optimistic about the resilience of the Indian markets. Selected stocks from IT, Banks, Media, Metal, Pharma, and FMCG sectors were identified as potential opportunities, particularly if they experienced dips in their value.
“Medium term target remains up. Major support for bulls lies at 18887 on Nifty. Risk defined income strategies are good for traders. Investors can continue to add selected mid and small cap stocks on dips. Risk reward looks favourable with medium term objective”, Aggarwal said.
Analysts emphasized the importance of medium-term targets, with major support for bulls noted at 18,887 on the Nifty.
For traders, risk-defined income strategies were deemed favorable, while investors were encouraged to consider adding selected mid and small-cap stocks during market downturns, given the favorable risk-reward ratio in the medium term.
Investors and traders alike remained watchful, navigating the market with caution amidst the challenging global landscape, hoping for signs of stability and positive developments in the coming days. (ANI)
