MUMBAI: The Indian stock market encountered a downward trend as indices closed in the red, marking the third consecutive session of losses.
The Sensex concluded the trading day at 66,230.24, down by 570.60 points, while the Nifty faced a decline of 159.05 points, ending at 19,742.35.
Among the Nifty companies, 16 advanced, while 34 registered declines.
Notable gainers included Adani Ports, Tech Mahindra, Dr. Reddy, Asian Paints, and Bharti Airtel. Conversely, M&M, ICICI Bank, Cipla, SBI, and IndusInd Bank were the top losers at the closing of the market.
Varun Aggarwal, Founder and Managing Director of Profit Idea, commented on the market’s performance, stating, “Nifty hit a low of 19,709 today, approaching the expected support area of 19,698. Large-cap stocks continue to correct today.”
He further noted, “Major heavyweight counters, such as Reliance and HDFC Bank, along with Nifty, appeared oversold. HDFC Bank reached a low of 1,637, precisely near the support area of 1,634. Reliance touched a low of 2,360, with support at 2,337. We expect the market to remain sideways to bullish.”
Aggarwal expressed optimism, saying, “Expect Nifty to find good support at 19,517-19,698, as open interest (OI) data suggests strong put writing on dips. Bulls are looking to defend these levels. Premiums also indicate that bulls might protect these levels.”
He concluded by recommending specific stocks, stating, “We remain biased towards major index stocks at these levels. INFY, Reliance, HDFC Bank appear attractive for accumulation with a bullish bias.”
The ongoing selling trend in Indian stock markets aligns with the decision of the US central bank to keep interest rates steady during its September meeting.
The bank hinted at potential future rate hikes as part of its strategy to combat inflation. Additionally, rising global crude oil prices and a strengthening US dollar have added to the market’s concerns.
In the past week, Indian stock indices experienced profit booking after reaching new highs, leading investors to withdraw some of their investments.
It’s noteworthy that Indian markets were closed on Tuesday in observance of Ganesh Chaturthi.
The US central bank has raised interest rates 12 times as part of its efforts to combat surging inflation.
Raising interest rates is a monetary policy tool used to reduce demand in the economy, ultimately leading to a decline in inflation rates.
The central bank reiterated its commitment to achieving a long-term inflation rate of 2 percent, as opposed to the 3.7 percent reported in August. (ANI)