Mumbai, June 8: On the first trading day of the week, the Indian stock market closed in the red due to escalating tensions in West Asia. Major domestic benchmarks, the BSE Sensex and NSE Nifty 50, recorded declines of over 1 percent.
At market close, the 30-share Sensex fell by 719.08 points, or 0.97 percent, ending at 73,524.26. Meanwhile, the Nifty dropped 243.70 points, or 1.04 percent, to settle at 23,123.
The broader market underperformed compared to key benchmarks. The Nifty Midcap Index declined by 1.40 percent, while the Nifty Smallcap Index saw a drop of 1.92 percent.
Sector-wise, the Nifty Realty, Nifty Metal, and Nifty Auto indices experienced the most significant declines, with drops of 2.56 percent, 2.33 percent, and 1.85 percent, respectively. Additionally, sectors such as Nifty Media, Nifty Oil and Gas, Nifty IT, Nifty Financial Services, and Nifty Consumer Durables also recorded declines exceeding 1 percent.
In the Nifty 50 pack, only 9 stocks gained, while the rest traded in the red. Max Health, Powergrid, Bharti Airtel, BEL, Nestle India, and Tech Mahindra saw the most significant gains. Conversely, Wipro fell by 8.4 percent, along with declines in Jio Finance, Eternal, Hindalco, and Shriram Finance, which dropped by 3.6 percent.
Reports indicate that Iran launched missiles at Israel, dampening hopes for a peace agreement between Washington and Tehran and raising concerns about the ceasefire situation.
A market expert noted that technically, the Nifty 50 is trading below its recent highs, indicating weakness in the market. Currently, the 23,250 to 23,300 range will act as immediate resistance, with 23,450 being the next significant barrier. For the market to regain strength, the Nifty must hold above these levels.
On the downside, the 23,100 level remains crucial support. If this level breaks, the Nifty could slide to 23,000. Below that, the 22,800 to 22,850 range is considered the next strong support, where buying may return.
The expert further mentioned that momentum indicators currently point towards weakness. The daily RSI is around 37, below the neutral level of 50, reflecting a bearish market sentiment. However, the market is gradually approaching the oversold zone, which may lead to intermittent short covering and relief rallies.
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