Mumbai, February 27: The Indian stock market opened in the red on Friday, the last trading day of the week, amid mixed signals from global markets. The BSE Sensex opened approximately 30 points lower at 82,220.48 but quickly fell by 364.85 points, or 0.44%, reaching 81,883.76. Meanwhile, the NSE Nifty opened down nearly 40 points at 25,459.85, and by the time of writing, it had dropped 119.05 points, or 0.47%, to 25,377.50.
During this period, all Nifty indices, except for Nifty IT, were trading in the red. In the broader market, the Nifty Midcap 100 index recorded a decline of 0.41%, while the Nifty Smallcap 100 index fell by 0.51%.
Sector-wise, only the Nifty IT index saw a rise of 0.81%. In contrast, the Nifty Auto index fell by 0.84%, Nifty FMCG by 0.99%, and Nifty Bank by 0.53%.
Among the 30 stocks in the Sensex, IT shares experienced buying for the third consecutive trading session. Infosys, Trent, Tech Mahindra, Eternal, HCL Technologies, and TCS were among the top gainers. Conversely, Maruti Suzuki, HUL, Ultratech Cement, Mahindra & Mahindra, Bharti Airtel, ITC, Asian Paints, and Kotak Bank saw the most significant declines.
Akash Shah, a technical research analyst at Choice Broking, noted that the previous trading session was marked by considerable volatility. The Nifty50 had a strong gap-up opening of 83 points and reached an intraday high of 25,572.95. However, it could not hold onto these upper levels and fell sharply by around 170 points to 25,400. Ultimately, a late recovery saw it close at 25,496.55, marking a modest gain of just 14 points. This indicates a lack of clear direction in the market. The immediate resistance for Nifty is seen at the 25,600-25,650 level, while support is observed in the 25,300-25,350 range. The RSI stands at 47.11, suggesting neutral momentum.
Experts further mentioned that on February 26, foreign institutional investors (FIIs) were net sellers, offloading shares worth ₹3,465 crores. In contrast, domestic institutional investors (DIIs) continued to be buyers for the third consecutive session, purchasing over ₹5,000 crores worth of shares.
Experts advise traders to adopt disciplined and strategic approaches amid global uncertainty and heightened volatility. It is advisable to focus on fundamentally strong stocks during market declines. Considering new long positions in Nifty should only be contemplated after a clear and sustainable breakout above the 25,800 level, which would signal strong bullish momentum and confirm a positive market structure.
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