Indian Stock Market Opens Bearish as Sensex and Nifty Experience Declines
The trading day in the Indian stock market started on a bearish note as both the benchmark indices, Sensex and Nifty, registered a downward opening in the red. The Sensex opened with a decline of 141.00 points, starting the day at 63,809.35. Similarly, the Nifty began with a decline of 13.40 points, opening at 19,070.30. The Nifty index showed a mixed start, with 37 advances, 12 declines, and 1 remaining unchanged.
Among the Nifty companies, Bajaj Auto, LT, Dr Reddy, Cipla, and SBI Life were notable gainers at the market opening. On the other hand, Bharti Airtel, HDFC Bank, Axis Bank, Hindalco, and JSW Steel faced declines, making them the top losers early in the trading session.
Varun Aggarwal, founder and managing director of Profit Idea, commented on the global market dynamics that influenced the early market sentiment. He mentioned that Asian markets experienced substantial gains, with the Japan Index soaring up to 2%. Meanwhile, U.S. markets advanced over 0.5% in anticipation of the Federal Reserve’s interest rate decision, which would impact the Indian market the following day. The Bank of Japan also maintained its interest rates on Tuesday.
Aggarwal further stated that the Nifty opened flat and expected a range-bound market throughout the day due to the US Fed rate decision outcome. He also forecasted positivity for the aviation sector after the government’s reduction in Aviation Turbine Fuel prices. Dow Futures were trading approximately 0.2% lower as investors awaited the U.S. Fed’s interest rate decision.
European indices recorded gains of up to 1% on the previous day, while EU inflation fell to a two-year low of 2.9% in October. However, domestic equity markets experienced a downturn after two consecutive days of gains, influenced weak Chinese manufacturing data and cautiousness ahead of the U.S. Federal Reserve meeting. The Nifty closed with a loss of 61 points at the 19,080 level.
In terms of foreign institutional investments (FIIs) and domestic institutional investments (DIIs), FIIs witnessed an outflow of Rs 696 crore, while DIIs recorded an inflow of Rs 340 crore.
Despite the initial market challenges, experts remain positive about the Indian economy and anticipate it to outperform global markets. They have a positive bias towards the IT, Pharma, Metal, Banking, and Petrochemical sectors.
On the weekly front, the maximum call open interest (OI) was concentrated at the 19500 and 19400 strike prices, while the maximum put OI was concentrated at the 19000 strike. Options data suggests a broader trading range between 18800 and 19600, with an immediate trading range of 19000 to 19400. Traders are advised to approach the market cautiously with well-defined risk strategies, while long-term investors see every dip as a golden opportunity. The medium target for Nifty remains in the range of 20466-21234.