Stock market opens in red territory amidst bleak conditions

Mumbai (Maharashtra) [India], October 26 (ANI): The stock market continued its downward trend as it opened flat in the red today, further extending the ongoing bearish sentiment.
The Sensex witnessed a significant drop of 481.30 points, opening at 63564.74, while the Nifty was down by 156.45 points, opening at 18964.75. Among the Nifty companies, there were 4 advances and 46 declines.
Axis Bank, HCL Technology, and IndusInd Bank emerged as the top gainers, offering a glimmer of hope amidst the gloom. However, companies like Tech Mahindra, Hindalco, M&M, Adani Enterprises, and Bajaj Finserv faced notable losses, adding to the overall bearish sentiment.
Varun Aggarwal, founder and managing director Profit Idea, said, "Yesterday's positive opening, Nifty reversed early gains and ended nearly 1 per cent lower to close a 3-month low below the 19200 mark. Downside momentum continued and its effect can be seen on today's opening as well. Nifty has reached nearly 19000 levels. Today being FO expiry, 19000 OI is maximum, it will be important for bulls to defend this crucial technical as well as psychological level on index".
The market's negative momentum persisted from the previous day, where Nifty experienced an early surge only to close nearly 1 per cent lower, marking a 3-month low below the 19200 mark.
The downward trend was exacerbated by today's futures and options expiry, with 19000 being the maximum Open Interest (OI). Analysts emphasize the importance of defending this crucial technical and psychological level to prevent further declines.
"India Volatility Index (VIX) ended with marginal gains of 2 per cent while sore by 12 per cent in intra-day. Broder market witnessed a sharp decline as the Nifty mid-cap and small-cap index slipped 1 per cent each along with banks, auto and IT stocks. The metal stock advanced after China unveiled plans for USD 137 billion extra debt to boost infrastructure spending. Worries over a possible escalation in the Israel-Hamas conflict have dampened the risk appetite, coupled with concerns over bond market volatility and the expectation of a slowing global economy", said Aggarwal.
Several global factors contributed to the market's apprehension. China's announcement of a $137 billion additional debt to boost infrastructure spending led to an advance in metal stocks.
Aggarwal said, "Index has corrected by 850 points in the last six sessions and broke its immediate support zones. It formed a Bearish candle on the daily frame and has been making lower highs from the last five sessions. Now till it holds below 19222 zones, weakness could be seen towards 19000 then 18887 zones whereas hurdles are placed at 19250 then 19333 zones".
However, concerns about the Israel-Hamas conflict escalation, bond market volatility, and expectations of a slowing global economy dampened risk appetite.
"Bias for the Indian economy remains positive and we expect this temporary correction due to war should end soon. Investors should utilise this opportunity to add quality stocks from large, mid and small-cap space. It is not advised to panic in this downfall. India is bullish in the medium to long term, growth story is very strong with demand growing. Stay invested and utilise dips to focus on stocks from Petrochemical, IT, Media, Metals, FMCG, and Banking space", added Aggarwal.
Despite the current downturn, experts maintain a positive bias for the Indian economy in the medium to long term. They suggest that this temporary correction, influenced by global events, should soon come to an end.
Investors are encouraged to view this period as an opportunity to acquire quality stocks across large, mid, and small-cap sectors.
Analysts emphasize that panicking during this downfall is not advised. The Indian market remains bullish, with a robust growth story, particularly in sectors such as Petrochemicals, IT, Media, Metals, FMCG, and Banking. (ANI)