Sun Pharma, Divis Labs, Nestle India, Cipla and Britannia were among the top gainers on the Nifty index, while Adani Ports, Adani Enterprises, Larsen & Toubro (LT), Coal India and ONGC were among the top losers, dragging the index down.
Speaking from a technical standpoint, Shrikant Chouhan, Head of Equity Research, Kotak Securities said, “Technically, as long as the index is trading above 23,000, the bullish momentum is likely to continue. On the upside, the index can rise to 23,500, 23,800 or even 24,000 levels. On the other hand, if the index dips below 23,000, it may correct down to 22,800 levels.”
He advised investors to book partial profits on long positions near the 23,800 levels. He also highlighted the performance of the Bank Nifty index, which recently crossed the 51,000 level and could see support at 50,500 levels and potentially 52,000 levels.
Opining on the market trends, banking and markets expert Ajay Bagga emphasised the importance of the election results and said, “While the increase in Foreign Investment Institutions (FII) inflows yesterday is commendable, we expect the next catalyst to be the final tally which will contribute to political continuity and stability, followed by cabinet composition and then the outlook for the Union Budget. Valuations are not cheap and froth is visible in the market which may lead to selling later in the week.”
He added, “The market has given up on a further decline beyond Monday’s gains as early trends in NDA were weaker than expected. These are still very early trends and the market will wait for more clarity by the afternoon once the initial sell-off is over.”
Current market movements reflect investor anxiety about the election outcome and its impact on future economic and political stability.
Markets are struggling with near-term volatility, but as long as indexes remain above key support levels, overall sentiment remains cautiously optimistic.
Investors are advised to remain vigilant and consider strategic profit-taking to weather possible volatility over the coming days.
