Sensex and Nifty started the day on a lower note on Tuesday, following global uncertainty and anticipation of key US economic data. The lack of significant domestic drivers kept market sentiment subdued on Dalal Street.
By 9:34 am, the S&P BSE Sensex had declined by 136 points to 84,814.95, while the Nifty50 dropped 49.95 points to 25,963.50. Sectoral indices displayed mixed performance, reflecting investor caution.
In early trading, Max Healthcare emerged as the top gainer on the Nifty50, climbing nearly 2%. Other stocks that attracted buying interest included Bharti Airtel, Axis Bank, Eternal, Bajaj Auto, and ONGC. Conversely, Hindalco, Bajaj Finserv, Bajaj Finance, Tata Steel, and Kotak Mahindra Bank were among the top losers.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that the market is being supported by a blend of global and domestic factors. He identified three key factors driving the market rally: progress on a US-India trade agreement, a slowdown in global artificial intelligence trade favoring Indian equities, and strengthening fundamentals backed by robust growth and rising earnings. Although the recent increase in consumption due to GST cuts has boosted optimism, sustaining this demand is crucial for the market rally.
According to Amruta Shinde, Technical & Derivative Analyst at Choice Broking, traders should adopt a selective approach amidst ongoing market volatility. She recommended a cautious strategy of buying on dips with tight stop-losses and partial profit-taking. Shinde advised considering fresh long positions only above the 26,100 level, while closely monitoring global signals.
Anand James, Chief Market Strategist at Geojit, noted that the Nifty is struggling to establish a clear direction within the 26,130 and 25,840 levels. He anticipated sideways movement in early trade, with possible declines towards 25,980–25,900 before any recovery attempts. James suggested that a direct move above 26,022 could propel the index towards 26,130.
The market outlook remains uncertain, with traders advised to proceed with caution in the current volatile environment.
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