Mumbai ,Maharashtra,India, October 19: The stock market saw a cautious start to the trading day as a combination of global factors weighed in. At the opening bell, stock indices opened with losses in the low percentage range. The trading session began with both the Sensex and Nifty in the red, showing a degree of uncertainty in the market.
The Sensex opened lower, shedding 392.41 points from the previous close, initiating the session at 65,424.12. Simultaneously, the Nifty recorded a 134-point decline, starting at 19,537.75, raising initial concerns among traders and investors.
This bearish trend continued through the market opening, with only four Nifty companies advancing, while a significant 45 were in decline, leaving one company’s stock unchanged.
Prominent gainers in the Nifty included Bajaj Auto, IndusInd Bank, L&T Mindtree, Hero Motocorp, and ITC. In contrast, notable losers encompassed companies such as Wipro, Hindalco, Tata Steel, Power Grid, and Bajaj Finance.
The market opened on a negative note in line with global cues, influenced by the recent US Treasury yield, which is nearing a 16-year high. Other global factors include rising oil prices and a Dow Jones Industrial Average that recently experienced a decline, adding to the overall caution in the market.
Varun Aggarwal, founder and managing director, Profit Idea, said, “Nifty opened on negative note today following the global cues. US Treasury yield near 16 years high, oil jumps and Dow falls along with tension at Gaza Strip. Market is again going down and moving in expected Opening Interest (OI) range of 19500-20000. Bulls have defended 19500 levels quite well recently”.
“It will be interesting to see how they defend the levels this time. IT, Pharma, Banking, Metals, FMCG, Media, Realty stocks continue to look attractive. Dip on these selected company’s stocks can be good opportunity for investors. Bias on Indian economy remains bullish despite global concerns. Medium term target on Nifty remains 20466-21410. Major support lies at 18887. Risk defined strategies are advised in this volatile market”, Aggarwal added.
The Nifty seems to be adhering to an expected OI range between 19,500 and 20,000, and market observers note that bulls have been defending the 19,500 levels effectively in recent times.
This challenge puts an interesting spotlight on the market’s ability to maintain this support amid various global concerns.
Sectors such as Information Technology (IT), Pharmaceuticals, Banking, Metals, Fast-Moving Consumer Goods (FMCG), Media, and Real Estate are still holding investor interest and continue to appear attractive.
Dips in selected companies’ stocks could potentially present opportunities for investors in this fluctuating market.
Despite global apprehensions, the general sentiment surrounding the Indian economy remains bullish, with a medium-term target for the Nifty index hovering between 20,466 and 21,410.
In this volatile market, experts recommend implementing risk-defined strategies to navigate potential uncertainties and market fluctuations.
