Market Sees Slight Downtick as Traders Capitalize on Recent Gains
On Friday, there was a slight downtick in the market as traders chose to capitalize on recent gains after sustained positive performance over the past three days. The Nifty 50 had a drop of 64.85 points, translating to a 0.26% decrease, falling to 25,358.75 by 1.35 PM. Similarly, the Sensex decreased by 289.47 points, or 0.35%, settling at 82,724.49 within the same period.
Starting the day, both indices opened marginally below their previous closing levels. The Nifty started at 25,410.20, slightly lower in comparison to its previous closing level of 25,423.60. The Sensex also opened at a marginally lower level of 82,946.04, compared to its closing value of 83,013.96 from the day before.
Market watchers remained on high alert as the Nifty faced continual hurdles to break past the 25,500-25,600 resistance area. Moreover, there were indications from technical analysis that the market was getting weary at elevated levels, contributing to the cautious approach by traders.
However, there were some bright spots in the market. Stocks from the Adani Group experienced impressive growth with Adani Enterprises leading the pack, its value escalating by 6.87% to reach ?2,567. In the second spot, Adani Ports recorded a 3.18% increase, with its price shooting up to ?1,457.70.
There were a few other notable gainers in the market as well. Shriram Finance saw a rise of 1.21%, adjusting its share price to ?634.50. Asian Paints also reported a 1.01% increase taking its market value to ?2,503.80. Finally, State Bank of India achieved a modest 1.00% increase, raising its share price to ?862.90.
On the flip side, there were a few key players that experienced a decline. HCL Technologies led the group of losers, with its stock price falling by 1.48% to ?1,471.70. ICICI Bank also saw a drop in shares with a decrease of 1.27% to ?1,403.70. Nestle India followed with a 1.19% decrease, bringing its stock price to ?1,194.70.
Additionally, Titan Company experienced a mild dip in its stock price with a 1.18% decrease, lowering its trading value to ?3,469.90. Kotak Mahindra Bank shares too, slid 1.10%, causing its value to settle at ?2,032.10 at the close of the trading session.
There were contrasting performances noted across the various sectors. The financial services sector grappled with the brunt of a selling surge. More specifically, the Nifty Financial Services index took a hit of 0.61%, resulting in the index falling to 26,531.50. The Nifty Bank index saw a similar trend, experiencing a 0.44% decrease to close at 55,472.60.
However, in contrast to the bearish trend in the financial sector, mid-cap stocks held their ground. Particularly, the Nifty Midcap 100 experienced a minor gain of 0.15% to finish at 59,141.50. Similarly, the Nifty Next 50 advanced by 0.59% to come out at 69,710.55.
The overall market performance was relatively even, as evidenced by the market breadth. A total of 2,006 stocks were on the upward trend against 2,034 stocks that fell on the BSE. Additionally, 185 stocks remained unchanged during this trading session.
Regarding new highs and lows, 152 stocks reached a new 52-week high point compared to 50 that touched their respective 52-week low points. Furthermore, there was a noticeable uptick in the number of stocks hitting the upper and lower circuit. 241 stocks got locked at the upper circuit limit, while 128 got stuck at the lower circuit limit.
From a technical analysis standpoint, the inability of the market to maintain a level above the 25,500 mark signals profit-realizing measures by traders following the recent surge. Consequently, the technical analysts underscored that the crucial support floors to monitor are at 25,325 and 25,150 whereas the resisting levels continue to persist around 25,500-25,600.