Benchmark stock market indexes closed slightly lower on Tuesday as investors took profits on the monthly derivatives expiry day, amid weak global cues. The S&P BSE Sensex ended down 75.11 points at 84,703.73, while the NSE Nifty50 dropped 29.85 points to settle at 25,936.20.
The broader markets showed mixed movement, with increased volatility during the session. However, strategic buying at lower levels helped mitigate losses, especially in the metals and PSU banking sectors.
Vinod Nair, Geojit Financial Services’ Head of Research, mentioned that market sentiment was somewhat negative due to profit-taking and global uncertainties, despite remaining resilient overall.
Metals saw gains on positive news from China regarding steel overcapacity reduction and potential progress in US-China trade talks. PSU banks also performed well on reports suggesting a potential increase in FII holding limits. Nair highlighted expectations of improved corporate earnings and reduced global trade tensions as factors that could bolster sentiment moving forward.
Market volatility was influenced by technical factors related to the monthly F&O expiry. According to Rupak De, Senior Technical Analyst at LKP Securities, the broader market trend remains positive. De noted that the Nifty’s current trading position indicates a bullish bias, with key support levels and potential upside targets.
The market witnessed a strong recovery in the final trading hour, leading to a reduction in key index losses. Enrich Money’s CEO, Ponmudi R, mentioned that the market was cautious ahead of the US Federal Reserve’s policy announcement. The late-session rebound signaled underlying market strength as it entered the November series.
Analysts anticipate a decrease in volatility now that the expiry pressures have eased. A breakout above 26,000 with strong trading volumes could drive the Nifty towards higher levels, while sustained weakness below 25,800 may lead to short-term downward pressure.
Bank Nifty performed well, closing at 58,270, up 156 points, and maintaining support above 58,000. Analysts believe that as long as the index holds above key support levels, momentum could push it towards higher targets.
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