A slowdown was seen in the stock market on Tuesday. Smallcap and midcap indices were trading in the red zone. Today, the stock market sensex broke up to 900 points. When the Nifty also registered a decrease of 300 points, it was the turn of the investors to bear a big loss. Apart from this, energy, healthcare, metal, oil and gas shares also traded lower due to increasing profit booking. After heavy volatility in Sensex, Nifty, against stability, small and mid-cap stocks continued to sell off, funds, operators started selling by breaking the prices, the investors' wealth i.e. the aggregate market capitalization of the listed companies in BSE decreased due to the fall in the prices of many stocks.
The Sensex closed down 820 points at 78675 points, while the Nifty futures index closed down 295 points at 23931 points. While the Bank Nifty Future Index closed at the level of 51334 points with a decrease of 747 points.
Weak corporate results in India, including Asian Paints, and the negative factor of overvaluation saw funds offloading into frontline stocks. Sensex, Nifty showed a limited decline and re-funds, players re-funds in small, mid-cap stocks, high net worth investors bet to sell prices by breaking the prices, the market breadth was further weakened due to gaps in many stocks. Indian stock markets witnessed heavy volatility today with the recovery lagging behind the US in global markets.
Investment inflows in equity mutual funds increased by over 21% to a record Rs 41,887 crore in the month of October 2024. Investments in large cap funds increased to Rs 3452.3 crore in October compared to Rs 1769 crore in September. While investment in mid cap funds has increased to Rs.4683 crore from Rs.3130 crore and investment in small cap funds has increased to Rs.3772 crore from Rs.3071 crore. The investment inflow in hybrid funds has increased to Rs.16,863.3 crore as compared to Rs.4901 crore. According to the statistics of the Association of Mutual Funds in India (SEBI), investors are seeing an increase in investment enthusiasm in mutual funds. Investment inflows have been recorded in October due to a sharp down-correction in the stock markets.
Top gainers in today's trade include TCS, Grasim, Lupine, Infosys, HCL Technology, AU Bank, Sun Pharma, Reliance, Ramco Cement. Today's top losers include IndiGo, Larsen, Muthoot Finance, Kotak Mahindra Bank, Glenmark Pharma, Cipla, Bharti Airtel, Adani Ports, Axis Bank, Mahindra & Mahindra, Voltas, Tech Mahindra, Tata Chemicals.
Out of a total of 4213 scrips traded on BSE, decliners were 2568 and gainers 1530, while 115 scrips were unchanged. While in 05 stocks there was an upper circuit of only buyer bullishness in 06 stocks against the bearish lower circuit of only sellers.
Nifty Future Technical Levels… NIFTY FUTURE CLOSE :- ( 23931 ) :- Next fluctuation is possible Nifty Future may touch the crucial level of 24008 points to 24088 points, 24108 points with respect to first and 23676 points very important strong stoploss trading. Cautious positioning around 24008 points.
Bank Nifty Future Technical Levels Bank Nifty Future Close :- ( 51334 ) :- Next fluctuation is possible Bank Nifty Future may touch the crucial level of 51008 points first and 50979 points from 51404 points to 51474 points, 51505 points in relation to very important strong stoploss trading. Cautious positioning around the 51505 point.
Specific technical level regarding future stock ACC Limited ( 2265 ) :- The share price of this leading company of Adani Group is currently trading around Rs.2223. Buyable with a stoploss of Rs.2208, this stock is likely to register a price of Rs.2283 to Rs.2290 in a short period of time…!! Bullish focus above Rs.2303.
Infosys Limited ( 1866 ) :- Positive breakout around Rs.1833 as per technical chart…!! The buyable stock is likely to touch Rs.1878 to Rs.1890 with support of Rs.1818.
HDFC Bank (1723) :- According to the technical chart, this private bank sector stock has the possibility of a target price of Rs.1707 to Rs.1690 through a profitable sell-off around Rs.1747. Consider a trading stoploss of Rs.1760.
Voltas Limited (1677) :- This stock is sellable with a stoploss of Rs.1707 registering an overbought position around Rs.1693..!! It is likely to show the price of Rs.1660 to Rs.1633 in a phased manner…!! Consider bullish above Rs.1717.
Future direction of the market… Friends, as a result of the daily selling of foreign portfolio investors (FPIs), the erosion of the stocks has been seen increasing. On the day of the announcement of the victory of Donald Trump as the new President of the United States, the Indian stock markets along with the global markets saw a boom. But the frenzy of bullishness quickly subsided on the second day as expected policies including unexpected tariff hike by the Trump government and the China factor led to a sell-off in the market. Sensex, Nifty showed limited declines and funds continued to offload into small, mid-cap stocks and continue to take profits on every bounce. It is now necessary to be defensive and selective in stocks.
Care must be taken in the market until the incessant sell-off of foreign funds stops. With the geopolitical tension, in the circumstances of rising crude oil and incessant selling of foreign funds, the pressure of redemption on the local funds may come in the next few days, in this situation, the month of November may be a disaster, so it is advisable to book the stocks which are getting good profits. In the coming days, local Institutional investors i.e. local funds-purchasing of mutual funds may also see a slowdown. So it is advisable to stay away from new buying or averaging in the coming days. After the slight upswing seen in the stock market last week, investors are now looking at the coming days. The performance of the stock market may be full of ups and downs in the coming days.
The author is a SEBI registered research analyst and proprietor of Investment Point.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
