Dear Trader…
Markets traded under pressure and slipped below crucial support levels, derailing the recent recovery momentum. After an initial sharp fall, the Nifty future traded in a narrow range for most of the session; however, renewed selling in the final hours pushed the index further lower. It eventually settled near the day’s low at 24,731, down 1.03%. Sectoral performance was broadly weak, with realty, pharma, and metal stocks bearing the brunt of the decline, while FMCG displayed relative resilience with marginal gains.
Sentiment was largely dampened by caution ahead of the upcoming tariff deadline, which weighed heavily on export-sensitive sectors. This pressure was compounded by sustained foreign institutional selling, a weakening rupee, and a rebound in crude oil prices, prompting investors to reduce risk exposure.
Traders are advised to align their positions accordingly. Going ahead, export-oriented sectors may continue to face selling pressure on any uptick, while domestic demand-driven segments like FMCG and consumer discretionary could offer relative stability. Key triggers to monitor include foreign fund flows, global market trends, and any policy measures aimed at cushioning trade-related concerns.
Nifty futures opened at 24903 points against the previous close of 24989 and opened at a low of 24710 points. Nifty Future closed with an average movement of 230 points and a decline of around 258 points and 24731 points…!!
On the NSE, the midcap 100 index will decline 1.62% and smallcap 100 index is closing decline 2.03%. Speaking of various sectoral indices, the NSE saw gains in only FMCG stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, October gold opened at Rs.1,00,812, fell from a high of Rs.1,01,090 points to a low of Rs.1,00,700 with a rise of 176 points, a trend of around Rs.1,00,800 and September Silver opened at Rs.1,16,173, fell from a high of Rs.1,16,729 points to a low of Rs.1,15,347 with a decline of 501 points, a trend of around Rs.1,15,449.
Meanwhile, Sun Pharma, Tata Steel, Trent, Bajaj Finance, Bajaj FinServ, Tech Mahindra, Axis Bank, Titan, Mahindra and Mahindra, L&T, Bharati Airtel, NTPC, BEL, ICICI Bank, SBI, HCL Tech, and HDFC Bank settled in negative territory from the Sensex basket. Hindustan Unilever, Maruti Suzuki and ITC were the top gainers.
The majority of sectoral indices traded lower amid selling pressure. Nifty Bank dipped 688.85, down 1.25 per cent, Nifty Fin Services fell 354.30 or 1.35 per cent, Nifty Auto closed 103.10 points down or 0.41 per cent, and Nifty IT closed 216.85 points lower or 0.60 per cent. Nifty FMCG surged 505.35 points or 0.91 per cent.
The US move is expected to weigh on India’s export outlook, limiting any sustained recovery in the currency. While crude prices have softened by around 1.5 per cent in the past session, providing some relief on the import bill side, the negative impact of tariffs overshadowed these gains. FII outflows and overall dollar demand have further capped the upside. The trading range for the rupee is now seen between 87.25 and 88.25, with risks tilted towards depreciation unless sentiment improves.
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