Tuesday saw a negative start for the stock market, following trends observed during the Lok Sabha election. This decline followed a record high on Monday, characterized by significant gains across the board.
At the opening bell, the Sensex dropped by 1,135.48 points to 75,333.30, and the Nifty fell by 408.35 points to open at 22,855.55. Of the Nifty companies, only 6 advanced, while 44 declined, signaling caution among investors.
In the Nifty index, Sun Pharma, Divi's Lab, Nestle India, Cipla, and Britannia were the top gainers. Conversely, Adani Ports, Adani Enterprises, Larsen & Toubro (LT), Coal India, and ONGC were among the top losers, contributing to the index's decline.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, offered a technical viewpoint, stating, "As long as the index remains above 23,000, bullish momentum is expected to persist. We could see it rise to 23,500, 23,800, or even 24,000. However, if it dips below 23,000, correction towards 22,800 levels might occur." He advised investors to consider partial profit-taking around the 23,800 levels.
Chouhan also mentioned the Bank Nifty, which recently surpassed 51,000 and could potentially reach 52,000, with support at 50,500.
Ajay Bagga, a banking and market expert, highlighted the market dynamics, citing the significance of election results. He said, "Yesterday's strong FII inflow was noteworthy, but we await the final tally, cabinet composition, and Union Budget expectations for further clarity. Market valuations aren't cheap, and there's froth, which might lead to selling later in the week." Bagga emphasized that these are early trends, and markets will await more clarity as the day progresses.
The market's current behavior reflects investor apprehension over election outcomes and their impact on economic and political stability. Despite immediate volatility, the overall sentiment remains cautiously optimistic, provided critical support levels hold.
Investors are urged to stay vigilant and consider strategic profit-taking to navigate potential fluctuations in the days ahead.