Mumbai, March 6: The Indian stock market opened in the red on Friday, the last trading day of the week, amid rising tensions in West Asia and weak global signals.
The 30-share BSE Sensex opened at 79,658.99, down 356.91 points or 0.45% from its previous close of 80,015.90. Meanwhile, the NSE Nifty started at 24,656.40, a decline of 109.50 points or 0.44% from its last close of 24,765.90.
As of around 9:30 AM, the Sensex was trading at 79,699.81, down 316.09 points or 0.40%, while the Nifty was at 24,679.30, down 86.60 points or 0.35%.
In early trading, broader market indices performed better than the benchmarks. The Nifty Midcap 100 rose by 0.48%, and the Nifty Smallcap 100 index gained 0.64%.
Sector-wise, the Nifty IT index saw the highest increase of 1.23%, while the Nifty Auto, Nifty FMCG, and Nifty Bank indices recorded declines of 0.60%, 0.02%, and 0.85%, respectively.
Notably, on the previous trading day, Thursday, the domestic market broke a four-day losing streak, opening and closing in the green with significant gains. By the end of the day, the Sensex had surged by 899.71 points or 1.14% to close at 80,015.90, while the Nifty rose by 285.40 points or 1.17% to finish at 24,765.90.
Akash Shah, a technical research analyst at Choice Broking, noted that the Nifty currently has crucial support in the range of 24,550 to 24,500, with the nearest resistance level at 24,850.
Experts indicate that the Relative Strength Index (RSI) stands at 37.55, suggesting gradual improvement in the market after moving above oversold levels.
Market expert Shah further mentioned that foreign institutional investors (FIIs) continued selling for the fifth consecutive session, offloading shares worth approximately ₹3,752 crores. Conversely, domestic institutional investors (DIIs) maintained their buying spree for the seventh day, purchasing over ₹5,000 crores in shares. This provided some support to the market despite the selling pressure from foreign investors.
Experts advise investors to exercise patience and caution in light of global uncertainties and increasing market volatility. They recommend focusing on fundamentally strong stocks during the downturn.
A new buying strategy should only be considered if the Nifty provides a clear and strong breakout above the 25,000 level. Such a move would strengthen bullish sentiment and confirm the establishment of a sustainable upward trend.
Leave a Comment