The Indian stock market experienced a tumultuous session on Friday, following an initially optimistic start backed by positive global trends. The market faced significant selling pressure as investors engaged in profit-taking, triggered by rising tensions between India and Pakistan after recent terrorist incidents in Pahalgam, Kashmir. This led to a swift decline, with the Nifty 50 index plummeting by 207 points to settle at 24,039, while the BSE Sensex lost 588 points, closing at 79,212. The Bank Nifty index also faced a setback, dropping 537 points to finish at 54,664.
Market Overview: Declines Across the Board
Almost all sectoral indices closed in the red, with the exceptions being the Nifty IT sector. The real estate and financial services sectors were particularly hard hit, each declining by nearly 3%.
- Nifty 50: Closed at 24,039 (-207 points)
- BSE Sensex: Finished at 79,212 (-588 points)
- Bank Nifty: Ended at 54,664 (-537 points)
Foreign Investment and Geopolitical Concerns
Despite the sharp sell-off, there was a silver lining as Foreign Institutional Investors (FIIs) continued to buy stocks for the seventh consecutive day, contributing inflows of approximately ₹8,250 crores on Thursday. Moreover, easing tensions in the US-China tariff disputes and potential trade agreement developments between India and the US offered some hope for market stability. However, ongoing geopolitical issues with Pakistan are likely to increase market volatility in the coming days.
Technical Analysis: Nifty 50 and Bank Nifty Insights
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, provided insights into the current market sentiment. She noted that the Nifty 50 closed below the 200-day exponential moving average (DEMA) at 24,050, indicating cautious sentiment. The index faces a significant resistance level at 24,350, with support at 23,800.
Nifty 50 Outlook
Parekh commented on the Nifty 50’s performance: "After struggling against resistance near 24,350, the index experienced profit booking and high volatility, concluding close to the crucial 200-period SMA. Although the overall trend remains positive, support at 23,800 must hold for any upward movement in the near term."
Bank Nifty Performance
Regarding the Bank Nifty, Parekh observed, "Opening near 55,300, the index lost ground due to profit-taking but managed a partial recovery, closing near 54,650. The critical support level is around 53,800, which needs to be sustained for potential upward movement."
Stock Recommendations for Today
For investors looking for actionable insights, Vaishali Parekh has recommended several stocks to consider:
-
Sona Blw Precision Forgings:
- Action: Sell
- Entry Price: ₹453
- Target: ₹440
- Stop Loss: ₹465
-
Patel Engineering:
- Action: Buy
- Entry Price: ₹45
- Target: ₹48
- Stop Loss: ₹44
- Bandhan Bank:
- Action: Sell
- Entry Price: ₹164
- Target: ₹155
- Stop Loss: ₹169
Conclusion
The Indian stock market is in a state of flux, influenced by both internal and external factors. Investors should stay vigilant, monitor geopolitical developments, and consider expert recommendations for navigating this volatile landscape. As market dynamics continue to evolve, the significance of informed decision-making cannot be overstated.
