The Sensex and Nifty both began the day in a downtrend as the stock market got underway with cautious trade on Wednesday. As investors remained cautious in the face of persistent uncertainty, the muted global indications suggested that Indian markets would have another dull day.
Ahead of the day, the Nifty was down 68.95 points at 22,233.55, and the Sensex was down 192.45 points at 73,319.40. Of the Nifty companies, 16 had gains in the early trade, while 34 had losses.
Notable gainers among the Nifty companies included Coal India, BPCL, Maruti, SBI, and Reliance, whereas Dr. Reddy, Asian Paints, Larsen & Toubro (LT), Hindustan Unilever, and HDFC Bank were among the top losers.
Expert in banking and markets Ajay Bagga said, “Muted global handover is pointing to another listless day in Indian markets,” in response to the market’s performance. He emphasised elements influencing market mood, such as the rising Volatility Index (VIX) and ongoing outflows of Foreign Institutional Investors (FII).
Bagga underlined the lack of significant catalysts in the Indian markets, citing the RBI’s provisioning overhang on lenders and the poor prognosis for the IT sector. He mentioned how well the European markets were doing and how money was flowing into China.
In terms of Open Interest (OI) data, the call side’s highest OI was recorded at 22,600 strike prices, while the put side’s highest OI was recorded at 22,500 strike prices.
Technically, the trend weakened as the index fell below the 21-day Exponential Moving Average (EMA), with a visible Head and Shoulders pattern on the hourly chart indicating a bearish formation.
Varun Aggarwal, founder and managing director of Profit Idea, stated, “On the global front, Asian stocks showed mixed trends.” He mentioned geopolitical tensions between China and the West and ongoing uncertainties affecting global markets.
Despite these challenges, stocks worldwide have been striving for a rebound after April’s decline, buoyed by prospects of Federal Reserve rate cuts and robust earnings.
The Indian stock market opened cautiously, reflecting muted global cues and ongoing uncertainties. Investors are closely monitoring developments both domestically and internationally for further direction.