As global uncertainty continues to cast a shadow over financial markets, the Indian stock market opened with subdued sentiments on Wednesday.
Indices experienced a flat start before slipping into the red, extending the challenging streak that has persisted since the beginning of the week.
The benchmark Sensex began the day on a low note, opening at 65,001.81, marking a decline of 499.52 points. Similarly, the Nifty also started in negative territory, opening at 19,393.00, recording a substantial drop of 135.75 points.
This cautious approach by investors is a response to the ongoing volatility in global financial markets.
Among the Nifty companies, the day saw a stark contrast between advances and declines, with 6 firms registering gains and 43 firms facing declines.
The top performers in the early trading hours included Nestle India, Adani Enterprises, Hindustan Unilever, BPCL, and Dr Reddy, which experienced gains. On the flip side, companies like Maruti, NTPC, M&M, Axis Bank, and Power Grid faced declines.
The downward trend in the global markets, particularly the Dow Jones, has continued to influence market sentiment negatively.
As concerns grow over surging treasury yields and economic uncertainties, investors are adopting a cautious stance. This caution is evident in the Indian markets, with the Nifty unable to remain immune to the broader global economic turmoil.
Varun Aggarwal, founder and managing director, Profit Idea, said, Nifty cant stay away longer as global markets are seeing a blood bath. 19000-19200 OI data has shifted. 18887 remains crucial support for bulls. One should be cautious going ahead".
Aggarwal added, "Risk-defined strategies are best for trade. Investors can approach cautiously to accumulate good stocks on dips. India continues to remain bullish over the medium to long term. Even though the carnage in the world market is quite severe, Indian markets are relatively outperforming.
In light of these developments, market experts are emphasizing the importance of vigilance. The OI (Open Interest) data has shifted towards the 19,000-19,200 range, with 18,887 emerging as a critical support level for the bulls.
Traders are being advised to exercise caution in their strategies and consider risk-defined approaches.
Focus on blue-chip IT, Metals, Financial Services, and Banks stocks with bullish bias on dips. Traders should strictly trade with tight stop losses, Aggarwal said.
While the global markets face significant headwinds, India's outlook remains relatively bullish in the medium to long term.
Investors are encouraged to cautiously accumulate fundamentally strong stocks during market dips, keeping a watchful eye on blue-chip companies in the IT, Metals, Financial Services, and Banking sectors. (ANI)