Stock market closes in the red after initial positivity

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MUMBAI: After an optimistic start to the trading day, the Indian stock indices were unable to sustain the positive momentum, ending in the red.

The Sensex, India’s benchmark index, closed 522.82 points lower at 64,049.06. Its counterpart, the Nifty, also witnessed a decline, closing 159.60 points down at 19,122.15.

The Nifty index showed a mixed performance with 10 advancing companies and 40 declining ones. Notably, Tata Steel, Coal India, Hindalco, Tata Consumer Products, and State Bank of India (SBI) emerged as the top gainers.

On the flip side, Apollo Hospital, Adani Enterprises, SBI Life, Cipla, and Eicher Motors ended the day as the top losers.

Varun Aggarwal, founder and managing director, Profit Idea, said, “Nifty closed in red amid concerns on Israel War. The market witnessed heavy selling after nearly flat to positive open. Today again stocks were hammered from the day’s high. This week investors have lost significant value in stocks. One should not panic about this fall, we expect the Indian market to outperform. 18887 remains a strong levels for bulls to defend. OI data has seen good OI build-up at 19000”.

“Sentiment on street is quite negative but good observation today was many mid and small cap stocks reverted from bottom. We continue to remain bullish on selected good stocks. Market is providing opportunity to medium to long term investors. Risk defined bullish strategies are best for traders. Pharma, IT, Automobile, FMCG, Banks, Petrochemicals stocks can see good returns in coming times”, said Aggarwal

The red closing of the Nifty index was influenced by concerns over the ongoing Israel War, leading to heavy selling after a mostly flat to positive opening.

This week has been challenging for investors, resulting in significant value erosion in stocks. However, market analysts advise against panicking in the face of this downturn, as they anticipate the Indian market to rebound.

The level of 18,887 is seen as a strong support level for bullish investors.

The data showed a notable increase in open interest (OI) at the 19,000 level. While market sentiment remains somewhat negative, today witnessed a noteworthy trend where many mid and small-cap stocks recovered from their earlier lows.

Analysts maintain a bullish outlook on selected high-quality stocks, suggesting that the market continues to present opportunities for medium and long-term investors.

Furthermore, risk-defined bullish strategies are advised for traders. Promising sectors include pharmaceuticals, information technology, automobiles, fast-moving consumer goods (FMCG), banking, and petrochemicals, all of which are expected to yield good returns in the coming period.

As the stock market continues to demonstrate volatility, investors and traders are encouraged to adopt a cautious yet strategic approach to navigate the current market conditions. (ANI)

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