The Indian stock market ended Monday’s session in the red as stocks gave up all their intraday gains amid profit booking at higher levels. Sharp volatility in crude oil prices also weighed on broader market sentiment.
Stocks opened higher, tracking gains in the previous session on Friday. At one point, both benchmark indices had risen 0.60% intraday before paring their gains and slipping into negative territory.
The reversal erased most of the indices’ early gains and the losses came ahead of crucial inflation data that could offer cues on the outlook for further interest rate hikes.
Indian stock market today
The Nifty 50 closed 0.70% lower at 22,363, while the Sensex settled at 71,924, down 0.76% from the previous session. The broader markets, however, ended in positive territory, with the Nifty Midcap 100 rising 0.08% and the Nifty Smallcap 100 surging 1.42%, indicating relative resilience among mid- and small-cap stocks.
Sectoral performance was mixed, with FMCG emerging as the biggest laggard, followed by PSU banks, technology, cement, and oil and gas stocks. On the other hand, media, chemicals, auto, realty, and pharmaceutical stocks closed in positive territory.
In the currency market, the Indian rupee strengthened to around 95.77 per dollar, rebounding from levels near its all-time low. The recovery came after the Reserve Bank of India (RBI) rolled out a series of measures on Saturday to support the currency, including opening a special window to meet the dollar requirements of state-run oil companies and introducing a reserve requirement for certain foreign-exchange derivatives.
The central bank’s measures came after the rupee approached the record-low mark of 97 per dollar. The RBI had also raised interest rates on Wednesday and signaled that it remained open to further monetary tightening.
Meanwhile, Brent crude traded above $105.50 a barrel on Monday, its highest level in more than two weeks, as escalating tensions in the Middle East heightened concerns over regional security. Saudi Arabia’s main airport reportedly came under attack again on Sunday, while another tanker was targeted in the Strait of Hormuz.
How did key Asian markets perform amid regional volatility?
Among other key Asian markets, South Korea’s Kospi fell 3.7% to 6,384.24, while markets in Tokyo remained closed for a holiday. Hong Kong’s Hang Seng gained 0.3% to 24,271.20, while the Shanghai Composite slipped 0.4% to 3,797.24.
In Australia, the S&P/ASX 200 surged 0.8% to 8,783.20. Taiwan’s Taiex ended nearly unchanged, while India’s Sensex dropped 0.8%.
Vipin Kumar, AVP-Research at Globe Capital Market, said the Kospi index had drifted lower towards the lower band of its two-month-long congestion range of 6,230–7,220 spot levels. Going ahead, a decisive breach below the 6,230 spot level could drag the index towards 5,950, followed by 5,650 in the near term. The 6,800–6,820 spot levels will act as immediate resistance on the upside.
Kumar said the Dow Jones had formed a fresh buying pivot on Friday. Sustained trading above the 51,900–52,000 spot zone could lead the index towards 52,750–53,000 in the immediate near term, while support on the downside is placed around the 50,900–50,500 spot zone.
How much further could the Nifty fall if 22,300 support breaks?
Rupak De, Senior Technical Analyst at LKP Securities, said, “The index closed in the red, forming a dark cloud cover pattern. The formation suggests that the previous day’s positive momentum is losing strength, raising the possibility of a resumption of a bearish move.”
“The overall sentiment looks weak and may lead to further downside, as the spike in crude oil prices continues to weigh on equities. On the lower end, immediate support is placed at 22,300, below which the Nifty might drift towards 22,100 or even lower. On the higher end, resistance is placed at 22,420 and 22,650,” he further added.
Kumar said the benchmark Nifty index had been trading with volatility in the 22,180–22,850 spot range for the past nine trading sessions. The overall chart structure remains negative as long as the index trades below the 22,850 spot level on a closing basis. He added that there is a higher probability of a sideways move within the 22,180–22,850 spot range before the index makes a directional move. A decisive close below 22,180 could drag the index towards 21,740, which is the structural price support for the Nifty index.
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