Rajesh Bhosale, Technical Analyst at Angel One said that technical indicators suggest early signs of a potential double-bottom formation. (AI image)
Stock market today
: Indian equity benchmark indices, BSE Sensex and Nifty50, opened in red on Tuesday. While BSE Sensex was below 75,900, Nifty50 was near 22,900. At 9:23 AM, BSE Sensex was trading at 75,880.81, down 116 points or 0.15%. Nifty50 was at 22,899.15, down 60 points or 0.26%.
Indian stock markets ended their 8-day decline on Monday with an impressive turnaround, despite a weak start. The recovery was led by HDFC Bank’s strong performance, supported by Reliance Industries (RIL) and Bajaj Finance.
Commenting on the market performance, Rupak De, Senior Technical Analyst at LKP Securities, noted that whilst the Nifty showed significant recovery from its daily low due to buying at lower levels, the overall sentiment remains subdued. He observed that the index failed to surpass the crucial Fibonacci retracement level.
“Additionally, the index continues to trade below critical moving averages, reinforcing the overall bearish undertone. In the short term, the index is likely to remain a sell-on-rise candidate unless it decisively crosses above 23,150 on a closing or sustained basis. On the downside, support is placed at 22,800,” De said.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “The weakness in the market persists despite the mild recovery witnessed yesterday. The market construct doesn’t favour a rally in the market. FIIs are likely to continue to sell. News flows are not positive. The US market continues to be strong and may attract more capital flows to the US from other markets. A new development is from the Chinese authorities indicating a new perspective regarding the Chinese government’s approach to Chinese businesses. President Xi has indicated the need for a “clean relationship” between government and business. This is regarded as a favourable development for reviving the Chinese economy, which is struggling now from the fall out of the crisis in the real estate sector. If the Chinese government’s new initiatives attract positive responses from the FIIs, that means more bad news for Indian markets. More money will flow into Chinese stocks through the Hang Seng exchange since the PE of the Hang Seng index is only around 12 compared to the 18.5 one-year forward PE in India. Since largecaps are fairly valued in India, calibrated buying in this segment can be done. But the market construct doesn’t favour aggressive buying.”
Following an eight-day decline, Nifty registered gains, confirming strong support near 22,800, according to Rajesh Bhosale, Technical Analyst at Angel One. He noted that technical indicators suggest early signs of a potential double-bottom formation on the daily chart, indicating a firm foundation at this level.
Asian equities edged downwards whilst awaiting the Reserve Bank of Australia’s policy announcement, following a surge in defence-sector stocks that lifted European markets on Monday.
Gold prices increased on Tuesday, driven by ongoing uncertainty regarding U.S. President Donald Trump’s tariff policies, strengthening its position as a safe-haven investment amidst concerns of potential global trade conflicts.
Foreign institutional investors (FIIs) emerged as net sellers in
Indian equities
, offloading shares worth Rs 3,937.83 crore on Monday, whilst domestic institutional investors (DIIs) acquired shares valued at Rs 4,759.77 crore.
