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The stock market experienced a tumultuous day of trading, characterized by early volatility and a subsequent sharp decline at the market closing on Wednesday, as concerns over global issues, particularly the Israel-Gaza conflict, weighed heavily on investors.
The Sensex tumbled, closing 560.46 points down at 65,879.64, while the Nifty also faced a substantial decline, ending the trading session 143.85 points down, closing at 19,667.65. Market analysts observed that this decline was primarily influenced by growing concerns surrounding the Israel-Gaza conflict, which introduced an element of uncertainty into the markets. This geopolitical instability was cited as a key factor contributing to the sharp drop in the indices. Within the Nifty firms, the performance was mixed, with 11 advances and 39 declines. Cipla, Dr Reddy, Tata Motors, Sun Pharma, and SBI Life stood out as the top gainers, managing to secure some positive movement amid the broader market decline. In contrast, Bajaj Finance, Bajaj Finserv, NTPC, HDFC Bank, and Reliance experienced notable losses. Varun Aggarwal, founder and managing director, Profit Idea, said, "Index corrected today but most mid and small cap stock were up and steady. Market breath is still positive and concerns over war give good opportunity to investors. Quality stocks can be picked on dips. Open Interest (OI) data sees good put writing on Nifty around 19500 levels. Bulls are trying to defend the level and creating good base. Pharma sector saw good buying today. Selected pharmaceutical stocks can be selected with breakout". Despite the negative performance in the broader indices, the mid and small-cap stocks showcased relative strength, with many of them remaining steady or even gaining ground. This resilience in the mid and small-cap segment of the market was seen as a positive sign, indicating that the market's breadth remains favorable. Analysts noted that concerns over geopolitical issues often present opportunities for investors, particularly in quality stocks that may experience dips in their prices. The market's overall breath appeared to remain positive, with investors seemingly eager to capitalize on opportunities presented by market turbulence. The Options Interest (OI) data pointed to significant put writing on Nifty around the 19,500 levels, indicating that bulls were actively defending this level and establishing a strong base for the index. Amid the market decline, the pharmaceutical sector was a standout performer, attracting notable buying activity. Certain pharmaceutical stocks exhibited strong momentum and saw potential breakouts, offering opportunities for investors. "Apart from this we continue to remain bullish on Banks, IT, Media, Metal, FMCG space. Mid and small cap ratio is quite favourable and investors should not worry too much on global concerns. Keeping stop loss for traders is quite important. Opting for defined risk strategies is best in current scenario", said Aggarwal. Despite global concerns, market experts continued to express a bullish outlook for sectors such as banks, IT, media, metals, and FMCG (Fast-Moving Consumer Goods). Additionally, the favourable mid and small-cap ratio was highlighted, suggesting that investors should not be overly concerned about global issues. However, market professionals emphasized the importance of implementing strict stop-loss strategies for traders, as defined risk strategies were considered the best approach in the current market environment. Amid global uncertainties, investors were encouraged to remain cautious while selectively identifying quality investment opportunities. (ANI)
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