Table of Contents
- Indian Markets Open in Red
- Key Technical Levels for Nifty
- Global Market Trends and Key Influences
- FII and DII Activity
- Key Insights for Investors
Indian Markets Open in Red
Indian equity indices opened on a weaker note on Thursday. The BSE Sensex dropped by 406 points (0.52%) to trade at 77,172.19, while the Nifty50 fell by 140 points (0.59%) to trade at 23,378.60 as of 9:18 AM.
Ajit Mishra, SVP at Religare Research, noted,
“Bears continue to dominate the market, using any rebound as a shorting opportunity. Until a decisive reversal occurs, we maintain a cautious stance.”
Key Technical Levels for Nifty
Market analysts identify 23,780-23,800 as a critical resistance range for Nifty, with support at the 50-week simple moving average (SMA) near 23,300.
Hrishikesh Yedve from Asit C Mehta Investment Intermediates explained,
“The short-term trend remains negative below 23,800. Investors should adopt a stock-specific approach until the trend reverses.”
Global Market Trends and Key Influences
Mixed cues from global markets weighed on Indian equities.
- US Markets: While the Nasdaq faced a decline due to weak performance from Target Corp and geopolitical concerns in Eastern Europe, the Dow and S&P 500 showed resilience.
- Asian Markets: Early trading saw weakness across Asia, influenced by Nvidia’s conservative revenue outlook and subdued US market performance.
- Bitcoin: The cryptocurrency surged to a new all-time high, reflecting continued investor interest in alternative assets.
- US Dollar: Strengthened as traders awaited clarity on US Federal Reserve interest rate decisions and policy guidance from President-elect Donald Trump.
FII and DII Activity
Foreign Portfolio Investors (FPIs) remained net sellers, with outflows amounting to Rs 3,411 crore on Tuesday. However, Domestic Institutional Investors (DIIs) provided some support, purchasing shares worth Rs 2,784 crore.
FII net short positions reduced from Rs 2.17 lakh crore on Monday to Rs 1.91 lakh crore on Tuesday, indicating a slightly cautious but improved sentiment.
Key Insights for Investors
- Sector-Specific Opportunities: Analysts recommend focusing on sectors like IT and energy, which show resilience amid global uncertainty.
- Watch for Global Cues: Developments in US policy and geopolitical tensions in Eastern Europe could significantly influence market sentiment.
- Remain Cautious: With bearish trends dominating, adopting a sell-on-rise strategy and sticking to stock-specific trades could minimize risks.
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