After a lively session on D-Street, Indian equity markets have hit a temporary pause. The Nifty 50 dropped 346.35 points, reflecting a 1.39% decline, closing at 24,578.35. Similarly, the Sensex fell by 1,282 points, or 1.55%, ending the day at 81,148.22.

Market Overview

The Nifty Bank index mirrored the broader market sentiment, experiencing a dip of 0.80% to close at 54,940.85. However, a different trend emerged in the small and mid-cap sectors, which defied the market’s downward trajectory.

• The BSE Smallcap index climbed 482.93 points (up 0.99%) to finish at 49,176.68.
• The BSE Midcap index also saw gains, rising 75.23 points (up 0.17%) to 43,806.83.

Technical Analysis and Support Levels

Shrikant Chouhan, the Head of Equity Research at Kotak Securities, noted, “The daily charts reveal a bearish candle, indicating a phase of temporary weakness. Nevertheless, the short-term outlook remains positive. Traders should watch for key support levels at 24,500 and 24,450. If the market manages to hold above these levels, a rally towards 24,800–24,900 could be on the horizon.”

Key Highlights from Today’s Market Movement

• The market opened with a noticeable decline, which intensified throughout the day. The Nifty 50 saw a drop of up to 1.5%, while the Sensex hit a daily low of 1.68%.

• Top Gainers:

  • Bharat Electronics led the Nifty 50 with a 4% increase.
  • Other notable gainers included Jio Financial Services, Hero MotoCorp, Dr. Reddy’s Lab, and Sun Pharma.
• Top Losers:
  • Infosys emerged as the biggest loser, followed closely by Zomato, Power Grid Corporation, HCL Technologies, and TCS.

Sector Performance

The Nifty IT sector struggled, closing 2.42% lower at 37,354.60, making it the worst performer among sectoral indices. The Nifty FMCG index also faced a setback, declining 1.34%. The Nifty Bank index fell by 442 points or 0.80%.

In contrast, the broader market, particularly small- and mid-cap stocks, managed to finish on a positive note. Furthermore, the volatility index decreased by 1%, settling at 18.20.

Market Breadth and Trends

The overall market breadth favored the bulls, with 1,948 out of 2,959 traded stocks advancing, while 937 declined. Additionally, 74 stocks remained unchanged. Notably, 43 stocks reached new 52-week highs, compared to only 10 that hit 52-week lows. The market also saw 199 stocks hitting the upper circuit and 31 hitting the lower circuit.

This day in the Indian markets showcases the mixed sentiments, highlighting the resilience of small and mid-cap stocks amid broader market challenges. For traders and investors, keeping an eye on key support levels and sector performance remains crucial as market dynamics continue to evolve.