Stock market opens flat, experts predict continued volatility in the short term
The stock market opened flat on Friday, with both the Sensex and Nifty experiencing declines during the initial trading session. The Sensex started the day down 185.20 points at 81,426.21, while the Nifty fell 51.30 points to 24,947.15.
Among the Nifty 50 companies, 18 stocks gained, while 32 saw losses, indicating mixed market sentiment. HCL Technologies, Hindalco, JSW Steel, Wipro, and Bajaj Auto were the top gainers, showing resilience amid the downturn. Meanwhile, CIPLA, Trent, Asian Paints, YCS, and Power Grid were the top losers, adding pressure on the indices.
Soni Patnaik, AVP and Derivatives Research Analyst at JM Financial Services, shared insights on market trends, noting that the Nifty is currently trading between 24,800 and 25,100/150 levels. The new weekly expiry shows the highest open interest at the 25,000 straddle, with calls registering 1.86 lakh contracts and puts showing 1.57 lakh contracts. Patnaik also mentioned that FIIs’ long positions have dropped to 36%, indicating an increase in short positions. On an intraday basis, Nifty’s immediate support lies at 24,950, with further support at 24,800/24,750 if this level is breached. For a short covering move, the Nifty needs to cross the 25,300 resistance level.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that the market is likely to remain volatile in the near term, fluctuating between FII selling and DII buying. He explained that attractive valuations in other markets, especially Chinese stocks, may encourage further selling by FIIs in India, given the higher valuations here.
As investors navigate the ongoing volatility, market participants will closely monitor global developments and domestic signals to gauge the next move of the indices. (ANI)