Monday was the first trading session after Diwali in the Indian stock market but the Sensex fell by 1500 points in the Indian market. The domestic stock market started off with a modest decline but the Sensex and Nifty saw sharp declines as the market opened. There could be many reasons behind the steep fall in the stock market and the sharp drop in IT stocks with the start of the November series has led to weaker trading today. The Sensex closed down 941 points at 78782 points, while the Nifty futures index closed down 283 points at 24100 points. While the Bank Nifty Future Index closed at the level of 51535 points with a decrease of 392 points.
Funds booked profits in IT-software services, technology stocks and consumer durables, banking-finance stocks early today. If the fund's attraction to capital goods stocks remained unchanged. IT stocks rallied as China's central bank pumped $70 billion into the system through a new liquidity tool and the stimulus measures again fueled the outflow of foreign funds. Poor quarterly results are also a reason for the market decline. Sensex, Nifty based markets fell again on caution in global markets after weakness in Asian, European markets despite signs of ceasefire after Israel weakened Hezbollah in Lebanon.
Global uncertainties and low prices in China led foreign investors to sell heavily in the Indian stock market. With China issuing a relief package, foreign investors have been attracted to invest in Chinese markets instead of India. Because volumes are very high in the Indian stock market, there is an opportunity to buy at low prices in China. Amid uncertainties globally, foreign investors are withdrawing their investments in a big way.
Top gainers in today's trade include Mahindra & Mahindra, Cipla, Voltas, Glenmark Pharma, Dr. Stocks like Reddy, HCL Technology, Infosys, AU Bank, SBI Cards gained. Today's list of top losers include Devise Lab, Torrent Pharma, Havells, Kotak Bank, ACC, Muthoot Finance, Reliance, Larsen, Adani Ports, Sun Pharma, Indigo. Stocks have fallen. Out of a total of 4199 scrips traded on BSE, decliners were 2714 and gainers 1354, while 131 scrips were unchanged. While in 422 stocks there was a bearish lower circuit of only sellers against a bullish upper circuit of only buyers in 231 stocks.
Nifty Future Technical Levels NIFTY FUTURE CLOSE :- ( 24100 ) :- The next fluctuation is possible Nifty Future may touch the crucial level of 24272 points first and 24303 points from 24008 points to 23939 points, 23880 points very important strong stoploss trading. Positioning cautiously around 24303 points…!!
Bank Nifty Future Technical Levels Bank Nifty Future Close :- ( 51535 ) :- The next fluctuation is likely Bank Nifty Future to touch the crucial level of 51808 points first and 52008 points from 51474 points to 51303 points, 51180 points very important level regarding strong stoploss trading. Carefully positioning around the 52008 point.
Specific technical level regarding future stock Lupine Ltd. ( 2202 ) :- The share price of this company, the leader of Lupine Group, is currently trading around Rs.2170. Buyable with a stoploss of Rs.2147, this stock is likely to register a price of Rs.2233 to Rs.2240 in a short period of time…!! Bullish focus above Rs.2249. Tata Communication ( 1752 ) :- Positive breakout around Rs.1727 as per technical chart…!! Buyable with support of Rs.1707, this stock is likely to touch Rs.1787 to Rs.1800…!! HCL Technology ( 1770 ) :- According to the technical chart, this stock from the Computers – Software & Consulting sector is likely to trade profitably around Rs.1808 with a target price of Rs.1747 to Rs.1730. Consider a trading stoploss of Rs.1820..!! Infosys Ltd. ( 1769 ) :- Registering overbought position around Rs.1793, this stock sellable with stoploss of Rs.1808..!! It is likely to show a price of Rs.1755 to Rs.1730 in a phased manner…!! Consider bullish above Rs.1820.
Future direction of the market… Friends, Samvat 2080 stocks are leaving with a major correction in the last one month after a historic rally. The buying of local funds against the selling of foreign funds was not enough to prevent the market from falling. Diwali cited a dip in stock prices over the weekend amid renewed tensions in the Middle East and weak corporate results at frontline companies, amid concerns over asset quality at banks, citing a disappointing Diwali return. It is now necessary to be defensive and selective in stocks.
India's fiscal deficit stood at Rs 4.75 lakh crore in the April-September period of the current financial year. This is 29.4% of the target for FY 2024-25. In the last financial year, this figure was Rs 7.02 lakh crore. About Rs 14,000 crore was sold by foreign institutional investors (FIIs) last week. FIIs sold a total of Rs 1.2 lakh crore in October. During the last month, domestic institutional investors (DIIs) invested Rs 1.07 lakh crore in the stock market.
After the minor uptick seen in the stock market last week, investors are now looking ahead to the coming days. In the coming days, the Indian stock market will depend on the results of the US presidential election, interest rate decision by the Federal Bank of America, PMI, FII data and crude oil fluctuations. The stock market performance last week could be full of ups and downs.
The author is a SEBI registered research analyst and proprietor of Investment Point.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
